Seppo Silvonen, Motiva OyFinland

Energy auditing as an essential part of the investment process

Finnish national and EU energy auditing procedures

"FINANCIAL AND ECONOMIC ASPECTS OF ENERGY SAVING WITHIN THE FRAMEWORK OF THE CSRC APPROACH"

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

A Package of Three InstrumentsThe Finnish set-up

VoluntaryAgreements

EnergyAudits Subsidies

4,1 TWh/a

1,5 TWh/a0,5 TWh/a

Reportingboundaries

The Finnish Energy Auditing Scheme (1)

Energy and Climate Strategy

Energy EfficiencyProgramme RES-Programme

Voluntary Agreements

Market

Free Subsidised

Energy Auditing Scheme

The Finnish Energy Auditing Scheme (2)

THE OPERATING AGENT

THE AUDITOR

THE CLIENT

THE ADMINISTRATOR

Financing

Marketing

Reporting

Guidance

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

EnergyAuditProgram-mes

OtherProgram-meswith EA

Activities withEnergy Audits

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)

TARGETS OF ENERGY AUDITING

TABLE 2

Measure 1

Measure 2

: :

SavingsEUR

CostsEUR

Paybacktime (y)

Total17730 [kW]

10620 [kW]

6900 [kW]

4000 [kW]

3600 [kW]

2600 [kW]

1630 [kW]

1400 [kW]

1380 [kW]

1320 [kW]

1300 [kW]

1220 [kW]

1110 [kW]

550 [kW]

530 [kW]

520 [kW]

260 [kW]

220 [kW]

220 [kW] 200 [kW]190 [kW]

30 [kW]

50 [kW]

80 [kW] 65 [kW]

Melting

Float bath

Air coolingLighting

Raw material

Nitrogen factory

Natural gas

Water cooling

Heat recovery boiler

Heat recovery

Direct process removals

Compressed air

Oxygen burner

Room

Other

Lehr

Electricity

Ventilation

3165 [kW]

preprocessing

Motiva – Key Functions in the Energy Auditing Scheme

DEVELOPMENTAND

TRAININGMARKETING

QUALITY CONTROLMONITORING

The Finnish Energy Auditing Scheme (3)

The Finnish Energy Auditing Scheme (4)

Planning

InformationSystem

Training

Internationalco-operation

Development of Methods&Tools

Informationdissemination

Authorisationof auditors

Quality controlof auditing reports

Reporting

Linking to othersystems

Implementation of the Directives on • energy performance of buildings• energy end-use efficiency and energy services

Functioning in close co-operationwith the Ministry of Trade and Industry

The link between the voluntary energy conservation agreements and

energy audits

Energy auditsand analyses

Improvement plans and

implementation

Description ofenergy consumption

2

3

4

5 Annual reporting

Agreement1

Follow up,

updates….

The Finnish Energy Auditing Scheme (5)

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

Model subsidised by the Ministry of Trade and Industry Model not subsidised

Energy Audit Model being developed

Industrial plantshigh energy intensity

Industrialplants

SME’s

Small buildingsservice sector

Large buildingsservice sector

Blocks of flats

Small residential buildings

AirAudit

COMMERCIALAUDITS

Other sectors:Energy sector

BuildingAudit

IndustrialEnergyAudit

Process IndustryEnergy Analysis

EnergyInspection Post-

acceptanceEnergy

Audit

Follow-upEnergyAudit

IndustrialEnergy

Analysis

EnergyAudit

Programme

Power Plant Energy Analysis

District Heating Energy Audit

Updatingwith

industrialmodels

TH

E V

OL

UN

TA

RY

AG

RE

EM

EN

T S

CH

EM

E

Audit Models

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

• 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

Rules for Energy Audits subsidised by the Ministry of Trade and Industry (MTI)

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

2,5 2,5

0,8

0,4 0,40,3 0,3

0,2 0,1 0,2 0,10,0

0,0

0,5

1,0

1,5

2,0

2,5

3,0

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)

Sav

ings

pot

enti

al(m

illio

n €

)

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)