"FINANCIAL AND ECONOMIC ASPECTS OF

ENERGY SAVING WITHIN THE FRAMEWORK OF THE CSRC APPROACH"

Workshop: "TRANSNATIONAL ENERGY SAVING NETWORKS"
14 December 2005 Vilnius, Lithuania

Seppo Silvonen, Motiva Oy

Finland

Energy auditing as an essential part of the investment

process

Finnish national and EU energy auditing procedures

 A Package of Three Instruments
The Finnish set-up

Reporting
boundaries 4,1 TWh/a
Voluntary
Agreements

1,5 TWh/a
Energy 0,5 TWh/a
Audits Subsidies
 The Finnish Energy Auditing Scheme (1)

Energy and Climate Strategy

Energy EfficiencyProgramme RES-Programme

Voluntary
Agreements Energy Auditing Scheme

Market

Free Subsidised
The Finnish Energy Auditing Scheme (2)

THE ADMINISTRATOR

THE OPERATING AGENT Financing

Marketing

Reporting
THE AUDITOR

Guidance

THE CLIENT
 An Energy Audit
In general
• gives adequate knowledge of the existing energy
consumption profile
• identifies factors affecting the energy consumption
• brings up cost-effective energy saving opportunities

The Core Audit

• makes an evaluation of the present consumption
• identifies and quantifies the feasible energy saving
possibilities
• produces a report
Programmes
Environmental programmes

Energy efficiency programmes

Energy Other
Audit Program-
Program- mes
mes with EA

Activities with
Energy Audits
TARGETS OF ENERGY AUDITING

 Total picture of the use of energy, its distribution and costs

 Energy saving potential and the possibilities to use renewable

energy sources

 Listing of all economically feasible proposals for energy

saving measures (single pay-back time < 10 a)

Nitrogen factory Lighting Compressed air Air cooling Ventilation Other

260 [kW] 190 [kW] 80 [kW] 220 [kW] 65 [kW] 200 [kW]

Electricity
3165 [kW]

530 [kW] 50 [kW] 220 [kW]

TABLE 2
Heat recovery

30 [kW]
2600 [kW]
Savings Costs Payback
6900 [kW] Heat recovery boiler
EUR EUR time (y)
Direct process removals
4000 [kW]
Raw material
preprocessing 1400 [kW]
Measure 1
520 [kW]

Oxygen burner

550 [kW] 1630 [kW] Lehr

Measure 2
Float bath
1320 [kW]
1110 [kW]

Melting 3600 [kW]

Water cooling
:
1300 [kW]
1380 [kW] :
Natural gas 17730 [kW]

1220 [kW] Total

10620 [kW] Room

The Finnish Energy Auditing Scheme (3)
Motiva – Key Functions in the Energy Auditing Scheme

DEVELOPMENT
AND MARKETING
TRAINING

QUALITY
MONITORING CONTROL
 The Finnish Energy Auditing Scheme (4)

Functioning in close co-operation

with the Ministry of Trade and Industry
Linking to other
systems
Implementation of the Directives on
• energy performance of buildings
• energy end-use efficiency and
energy services

Reporting International
co-operation
Information Information
System dissemination
Quality control
Planning Training of auditing reports
Development Authorisation
of Methods&Tools of auditors
 The Finnish Energy Auditing Scheme (5)
The link between the voluntary energy
1 Agreement
conservation agreements and
energy audits

2
Description of
energy consumption
Follow up,
3 Energy audits updates….
and analyses

4 Improvement
plans and
implementation

5 Annual reporting
Agreements and energy audits

Voluntary energy conservation agreement:

• significant carrier for energy audits in all sectors
except the transport sector

• partners to the agreements are “obliged” to carry out

energy audits and to reach a set coverage within a
certain time
Energy auditing models for different
client groups

• Buildings: public and private services, apartments

• Industrial sites
- SME’s
- Process industry

• Energy sector
- Power plants
- District heating, plants and distribution
networks

• Transportation
 Audit Models
Other sectors: Power Plant District Heating

THE VOLUNTARY AGREEMENT SCHEME

Energy sector Energy Analysis Energy Audit

Industrial plants Energy

Process Industry COMMERCIAL
high energy
Energy Analysis
Audit AUDITS
intensity Programme
Industrial
Energy Air
Industrial Updating
Audit
Analysis with
plants
industrial
Industrial
models
Energy
Audit
SME’s
Energy
Inspection Post-
Follow-up
Small buildings acceptance
Energy
service sector Energy
Audit
Audit
Building
Audit
Large buildings
service sector

Blocks of flats Energy Audit

Model being developed

Small
residential buildings

Model subsidised by the Ministry of Trade and Industry Model not subsidised
ENERGY CONSERVATION PROGRAMME

Estimated saving potentials with the proposed

measures by 2010:

Fuels Electricity

Heating of buildings 12 % 15 %

Industry 6% 3%

Transportation 9%

Other sectors 3% 4%
Energy Audits – Results
Savings potential
• service sector (appr. 1200 buildings)
Heat 15 %
Electricity 6%
Water 7%
• small and medium sized industry (appr. 190 buildings)
Heat and fuels 25 %
Electricity 8%
Water 11 %
• the saving potentials in the energy intensive industry
and power and heat sector are considerably smaller
Rules for Energy Audits subsidised by the Ministry
of Trade and Industry (MTI)

• Standard contents
• Proper scheme to be applied for the case in question
• Criteria to be met by the applicant of the subsidy
• Authorised auditors for HVAC and electrical
installations
• Cost limits
• Forms of application and payment of the subsidy
• Reporting procedure
• Subsidy level
Direct government support

• The government finances the costs of the operating agent

(Motiva) of the Finnish energy audit program and gives 40…
50 % support for the energy auditing project expenses

• 15…20 % subsidies for conventional energy saving

investments for companies who have joined the voluntary
Energy Conservation Agreements with the Government.

• Higher subsidies (20..25 %) has been granted for ESCO

investment projects at least until the end of the year 2004 by
the government
Profitability of the proposed energy saving
measures of 1 265 buildings
3,0

2,5 2,5
2,5
Savings potential(million €)

2,0

1,5

1,0 0,8

0,4 0,4
0,5
0,3 0,3
0,2 0,2 0,1
0,1
0,0
0,0
0 0-1 1-2 2-3 3-4 4-5 5-6 6-7 7-8 8-9 9-10 10
Pay back time (years )
Regional Energy Audits
meant for

• mapping the existing use of fuels and the potential for

increasing
the use of RES in the production of heat and power in a munici-
pality or other region
• supporting the working out of the plan for RES in implementing
the voluntary energy conservation agreement

done by

• working out a regional energy balance

• estimating the available sources of renewable energy
• identifying facilities where the available sources of renewable
energy could feasibly replace the use of non-renewable energy
sources
International review of Energy Auditing

Review of energy audit methods and

practices in some European countries

Establishing an energy audit programme – the 12 basic

elements

Situation in some European countries

More of this: www.

International review of energy auditing

Energy audit programmes

in the EU Member States,
Norway and the CEECs
International review of energy auditing

Other programmes with

energy audits in the EU
Member States, Norway
and the CEECs
International review of energy auditing

Other Activities with

energy audits in the EU
Member States, Norway
and the CEECs
International review of energy auditing

Projects in the SAVE II Programme:

Audit I – Country reports

Audit II – Topic reports

• Monitoring and evaluation

• Energy audit models
• Training, authorisation and quality control
• Auditor’s tools
• Implementing instruments

To look at these: www.motiva.fi (English pages)

To hear the latest, come to

energyAUDIT06
in Lahti, Finland

September 11-13, 2006

More of this: www.motiva.fi (Enlish pages)