The Programme For improving. intensive industries (PFE) a. Patrik Thollander Linkoping University

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1 The Programme For improving Energy efficiency in energy- intensive industries (PFE) a Swedish LTA Patrik Thollander Linkoping University Patrik.thollander@liu.se

2 Industrial energy systems a Swedish context Linköpings universitet Swedish Energy Agency (204) Sid 2

3 Industrial energy systems a Swedish context Linköpings universitet Sid 3 Swedish Energy Agency (204)

4 Industrial energy systems a Swedish context Swedish industrial energy use is about 55 TWh/year. Swedish hindustrial ti electricity ti it use is about t55twh/ TWh/year. For Swedish industry, significant energy price increases, not the least electricity it price increases has taken place the last decade due to the EU market deregulation. The historically low electricity prices in Sweden has, in general, made the Swedish industry use more electricity than its European competitors. The Swedish industry is using exceptionally high levels of bioenergy. Swedish Energy Agency (204)

5 Major energy end-use efficiency policies in Sweden The Programme For improving Energy efficiency in energy-intensive industries (PFE). The energy audit program. The Swedish Environmental Code. The electricity certificate system (ECS). Energy and carbon dioxide taxes. The European Emission Trading Scheme (EU ETS). According to the Swedish Energy Agency (203)

6 The programme for improving energy efficiency in energy-intensive industries (PFE) A five-year LTA (Long Term Agreement). Began in Now into its second phase During the first two years, the company should: - undertake an energy audit. - implement an Energy Management System (EMS). - set up routines for investment, planning and maintenance. During the last three years, the company should implement the measures. The participating p companies recieve a full tax reduction of the electricity tax of 0,005 SEK/kWh. about 0,005 EUR/MWh Swedish Energy Agency (204)

7 The programme for improving energy efficiency in energy-intensive industries (PFE) Petersson and Ottosson (2007)

8 The programme for improving energy efficiency in energy-intensive industries (PFE) Companies joining PFE must: - Be classified as a manufacturing industry, Industrial Classification Use electricity in their manufacturing processes. - Be energy-intensive (i.e. energy costs of at least 3 % of the production value, and/or paying energy-, carbon dioxide and sulphur taxes of at least 0,5 % of the value added). Have the economic means for carrying out the programme. 30 % of the participating i companies are SMEs. less than 0% of eligible companies are participating in PFE but participating companies cover about 85 % of the eligible companies energy use. Swedish Energy Agency (204)

9 The programme for improving energy efficiency in energy-intensive industries (PFE) Petersson and Ottosson (2007)

10 The programme for improving energy efficiency in energy-intensive industries (PFE) Impact evaluation : Gross electricity savings (end use, not primary): The about 00 participating companies saved,45 TWh/year of electricity. Additionally, i 950 GWh/year was saved from other energy carriers (heat and fuel). Free tider co efficient is Total investments: 70.8 MEUR. Administrative i ti cost, companies: 3 MEUR. Administrative cost, government: 4.2 MEUR. Annual ltax rebate: 5 MEUR/year. Results of the PFE exceeded ddex ante estimations i by about 2.5! Swedish Energy Agency (20;204) and Stenqvist and Nilsson (202)

11 The programme for improving energy efficiency in energy-intensive industries (PFE) Electricity savings per sector in percent (%) Pulp and paper Plastic and chemical Steel and metals Others Mining Food and beverage Sawmill and wood Swedish Energy Agency (20)

12 The programme for improving energy efficiency in energy-intensive industries (PFE) Implemented number of measures per process type in percent (%) Production processes Compressors and comp. air systems Lighting g Fans Cooling systems Electrict motors Pumping Premise and ventilation Vaccum systems Others Swedish Energy Agency (20)

13 The programme for improving energy efficiency in energy-intensive industries (PFE) Savings of implemented measures per process type in percent (%) Production processes Compressors and comp. air systems Lighting Fans Cooling systems Electrict motors Pumping Premise and ventilation Vaccum systems Others Swedish Energy Agency (20)

14 LTAs in theory Thollander P, Palm J, 203. Improving energy efficiency in industrial energy systems - an interdisciplinary perspective on barriers, energy audits, energy management, policies & programs. Springer. ISBN

15 LTAs in theory Various reasons 323 GWh/year Project planning Efficient routines 36 GWh/year 74 GWh/year Other means 27 GWh/year Already known 296 GWh/year Energy audit 397 GWh/year => A clean cut energy audit program would have resulted in an impact of less than 30 % compared with the LTA. Swedish Energy Agency (20;204) and Stenqvist and Nilsson (202)

16 LTAs in theory Energy efficiency will not be significantly improved simply because energy-saving equipment is installed and renewed. In-plant energy systems are complex, and the optimum operation of these systems will lead to further improvements in energy e efficiency. ce cy (CRIEPI 20). Major energy use in energy-intensive industry not found in stand-alone technologies but in production processes. => LTAs will deliver higher impact than stand-alone energy audit programs. Swedish Energy Agency (20;204) and Stenqvist and Nilsson (202)

17 Psychiatry and communication Transactional Analysis Three roles: Adult, Parent, Child. Successful relation is adult to adult communication. Boosting the industrial energy efficiency potential means moving from Parent to- Child-relationship l to Adultto-Adult between the government and industry. LTAs provides just that!

18 Thanks for your attention For further reading, please see e.g.: Swedish Energy Agency, Peterson and Ottosson, 2007 s paper at ECEEE Summer Study Stenqvist and Nilsson, 202 spaper in Springer s Energy Efficiency Stenqvist, 204 s dissertation: