FIN3 Energy Audit Programme in Industry (EAP)

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1 Title of the measure: FIN3 Energy Audit Programme in Industry (EAP) General description Energy auditing has been one of Finland s main energy conservation tools since Energy audits were one of the measures implemented within the Action Plan for Energy Efficiency and have been mentioned in all the national climate strategies since Therefore, the energy auditing no doubt has official support from the administration, which is needed for the programme level activity to be maintained. Finland s Energy Audit Programme (the EAP) is one of the oldest energy efficiency subsidy schemes in place. The EAP started as a subsidy policy in 1992, was developed into a programme in 1993 and was launched in practice in The EAP is a full-scale programme consisting of the following elements: programme administration, detailed guidelines, auditor training and authorisation as well as a monitoring system and promotion activities. The EAP is a voluntary programme but promoted by a 40% subsidy for industrial participants by the Ministry of Economic Affairs and Employment (MEAE). Since 5 June 2014 large companies have not been receiving subsidies for audits because they are within the sphere of mandatory audits required by the Energy Efficiency Directive. This is leading to the observed decline in the impact of the measure because the volume of voluntary agreements is lower. The Energy Authority is responsible for the implementation of the EAP. In practice, it has designated the operation to Motiva Oy ( The Energy Department of the MEE is the Administrator and is responsible for all official decisions. Most of the energy auditors come from consulting companies and their clients are industry and the service and energy sectors. An energy audit consists of three basic elements: the evaluation of the present energy consumption, identification of energy saving possibilities and reporting. Energy audits provide a tool for company energy management and can also form a part of a company s environmental management system. Nine audit models have been developed for different type of buildings and for different sectors. Motiva is responsible for monitoring the energy audit volumes and results and for the quality of the reported energy audits. Two separate models have been developed for the energy sector, namely District Heating Energy Audit (a model for heating plants and distribution network) and Power Plant Energy Analysis. These two models are also subsidised by the MEE. The Energy Audit Models applicable in the industrial sector are: Industrial Energy Audit: The lighter model for facilities with low energy intensive core processes or facilities where the saving potential of the process is known to be marginal Industrial Energy Analysis: The heavier model for facilities with medium energy intensive core processes or facilities where the saving potential of the process is known to exist Process Industry Energy Analysis: A two-step Energy Audit model for energy intensive process industry, where the first step is a scanning phase and the second step consist of one or more above mentioned Industrial Energy Audits or Analyses Energy Inspection: A model for very small buildings in the tertiary and industrial sectors Building Energy Audit: The basic model for tertiary buildings Post acceptance Energy Audit (PEA): A model for new and renovated tertiary buildings. The model is specially designed to set the energy consumption into an optimal level after the building has been taken into use.

2 Follow-up Energy Audit (FEA): A model to update previous energy audits. The model is suitable for the tertiary sector, but in industry where the follow-up auditing is also possible, the basic industrial models are used instead. Power Plant Energy Analysis: A model for power plants producing electricity for communities or for industry. District Heating Analysis The Motiva Energy Audits are carried out by two experts, one specialised in HVAC and another one in electric systems. Approximately 2000 experts have been authorised to operate as Motiva Energy Auditors (end of 2013). In energy aid given to energy audits totaled EUR 37.6 million covering industry, services and energy sectors. The number of sites audited totaled about at the end of In 2014, 82% of energy audit subsidies were given to industries participating in the Energy Efficiency Agreements confirming the strong link between the two measures. Impact evaluation Means and outputs The Ministry for Economic Affairs and Employment (MEAE) has annually contracted Motiva for assignments for the energy audit activity and its monitoring and evaluation since The budget for the assignments is over 0.35 million euros in Data about energy savings Results reported in NEEAP-4 for industry (all savings, not just those under the ESD Directive) Ex-post evaluation 2010 direct CO 2 (kt) Energy (TJ) 2275 GWh (Fuels and Heat/Electricity) Ex-ante evaluation direct CO 2 (kt/a) Energy (TJ/a) (Fuels and Heat/Electricity) 1403 GWh 773 GWh Given the level of savings in comparison to energy use by industry the impact level is high. Measure Impact Level low medium X high Sources of uncertainties about energy savings The data to be gathered from the energy audit reports are data clarified and/or measured on the spot by energy auditors, and the calculations performed on the basis of that data. The accuracy of the savings calculation corresponds to the accuracy that may be achieved in normal field work. Savings calculations

3 of individual measures dependent on outside temperatures are made using normalized heat consumption data. Some of the initial data are design data or estimates, since measurements are not always possible. The savings achieved by the energy-saving measures are not usually verified by subsequent measurements, since it is most often difficult to take measurements in practice and it generates significant additional costs. Evaluation of the energy savings Motiva is responsible for monitoring the energy audit volumes and results and for quality control of the energy audit reports. Motiva delivers an Annual Report on energy auditing to the Energy Authority. Evaluation input data is derived from the monitoring tool for the energy audits and energy efficiency agreements. Data is inserted into the tool in three phases: 1) From the subsidy application and decision e.g.: building volume, construction year, building type, possible participation in the Agreements, audit subsidy granted 2) From the energy audit report: use of energy and water in the year preceding the energy audit for each proposed measure e.g.: short description and classification to technical measures or measures addressing operation saving estimate of energy and water (volume kwh/a or m 3 /a, and cost /a) based on measurements or calculations by the energy auditor investment estimate and pay-back period (, a) implementation status of proposed measures at the time of submitting the Audit Report (implemented T, decided to be implemented P, under consideration H, abandoned E) 3) From annual reporting of the Energy Efficiency Agreements: updated information on the implementation status of the measures proposed in the audit (implemented T, decided to be implemented P, under consideration H, abandoned E) is the site in the sphere of emissions trading The two key data used in the savings estimate are savings potential of measures proposed in the energy audit and rate of realization based on annual reporting of the Energy Efficiency Agreement Scheme. Ex post savings calculations from NEEAP-4: The savings potentials in are from reported energy audits. The realization rate of the potential has been calculated based on the average realization data from annual reporting of the energy efficiency agreements in The ex ante calculations for energy audits in 2016 and 2020 in NEEAP-4: The savings potential in 2016 has been estimated to be the same as the average in The savings potential in the period of has been estimated to be at average on the same level as in the period of The realization rate of the potential has been calculated based on the average realization data from annual reporting of the energy efficiency agreements in Measure lifetime used in evaluation of total savings is 12 years for technical measures which is conservative compared to commission guidelines presenting 15 year lifetimes for most measures in industry. Measure lifetime for measures addressing operation is 5 years based on assumption that participants implement good consumption monitoring and reach to abnormalities which is one of the requirements for the participants. Measures addressing operation account for less than 10% of the total savings potential identified in energy audits. It is the task of the energy auditor to observe technical interactions of measures and remove such overlap in results presented in the audit report. There is no overlap between the savings reported for energy audits

4 and the Energy Efficiency Agreements; such overlap has been removed from the results shown for the Agreements. Other indicators monitored and/or evaluated energy cost savings (EUR/a) investment estimate (EUR) direct payback period for the measure (EUR, a) Interaction of measures See also the following descriptions in the Mure database: FIN2 (General): Energy Aid (subsidies for energy auditing and energy efficiency investments) FIN14 (Industry): Energy Efficiency Agreement of Industry (participants to the agreement undertake energy audits) Historical data The history of energy auditing in Finland can be tracked back at least to the beginning of the 1980s when the former Ministry of Trade and Industry launched the first energy auditing campaign. One aim of the campaign was to develop standard procedures for energy auditing but the campaign was ended without expected effect of continuity among the building owners. In energy auditing volume varied annually depending on the subsidy policy, the marketing activities of the auditors and to some extent on the building owner s interest. By the end of 1987 the market for energy audits had collapsed totally due to two reasons: the start-up of an overall economical overheating, specifically affecting the building sector and a simultaneous rapid fall in energy prices. In January 1992, the market for energy audits opened again. The customers were ready and interested to reduce their energy costs because the rapidly weakened economical situation in Finland. A significant driver was the Ministry s decision to start subsiding energy audits by 50 %. Finland s Energy Audit Programme (EAP) started with a relatively low profile. During the first year the EAP actually did not have that kind of properties that it would today be considered to be a programme level operation. Most of the auditing done during the first year was by a few consulting companies. The EAP gained very little publicity in the beginning, but the Ministry had a vision, based on in-house experiences on energy auditing, and launched two major development projects. The first development project in 1992 was aimed to monitor the kick-off phase and from that experience, to further develop the operation. This project produced a lot of good ideas on e.g. programme administration and on other basics of a programme level operation. The second development project in 1993 produced the first detailed guidelines and standard auditing procedures. Also auditors toolbox software and training programme for the auditors were taken into use. The Moticop monitoring system was built and monitoring started during the spring of These programme level properties were developed mainly during 1993 and by the summer of 1994 the activity, which started as a subsidy policy had become a full-scale energy audit programme. References

5 (in English) Last update: 4 October 2017

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