Farm Energy Programme

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Domenic Lyons
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1 Farm Energy Programme

2 What s it about? The Farm Energy Programme is an Energy Efficiency Agreement under the Ministry of Agriculture and Forestry (MAF) for the period Programme aim to implement the government energy and climate policy and to improve profitability of farms Based on Sector agreement signed between the Ministry and producer organisations on Government Decree on farm energy planning subsidy (1000/2009)

(MAF) for the period 2010 2016 Programme aim to implement the government energy and climate policy and to

3 Programme in practice Agency for Rural Affairs (Mavi) administrative responsibility Motiva operator Producer organisations programme marketing Farms & horticultural enterprises programme implementation Programme implementation Farms offered In-House Control Plan and Farm Energy Plan Farm Energy Audits for largest energy users start during 2010

horticultural enterprises programme implementation Programme implementation Farms

4 Voluntary participation rules Farm Energy Programme is based on voluntary energy efficiency agreement scheme Challenges in preparatory work large number of farm enterprises variations in size variations in lines of production Agricultural sector model different from other sectors models Voluntary nature common factor with other sectors models

enterprises variations in size variations in lines of production Agricultural sector

5 Sector agreement Parties Ministry of Agriculture and Forestry and sector organisations Points of departure, foundations and definitions Aims Implementation of agreement Aims of farms Reporting for each farm Signatories obligations Operator s duties Steering group Agreement term and termination Other conditions

Points of departure, foundations and definitions Aims Implementation of

6 Government Decree on farm energy planning subsidy (1000/2009, ) Scope of application Definitions Obligations under European Community legislation Funding of the subsidy Activities qualifying for subsidy and the recipient Creator of farm energy plan Recipient of farm energy plan Costs eligible for subsidy and the recipient Coming into force

Funding of the subsidy Activities qualifying for subsidy and the recipient Creator of

7 Programme aims Improving profitability of farms Main tool for achieving energy-saving targets set by EU in agricultural sector Programme coverage target is 80% of agricultural energy use Indicative target for improving energy efficiency is 9% of energy use of participating farms by 2016 Programme covers energy efficiency electricity, heating, farm machinery fuels and water use of renewable energy

target for improving energy efficiency is 9% of energy use of participating farms by 2016 Programme

8 Farm Energy Programme SECTOR AGREEMENT Agreement between MAF and agricultural and horticultural producer organisations JOINING THE ENERGY PROGRAMME FOR INDIVIDUAL FARMS INDIVIDUAL FARM Farms < 100 MWh/a IN-HOUSE CONTROL PLAN FARM ENERGY PLAN SUBSIDISED BY GOVERNMENT Largest farms in terms of energy use FARM ENERGY AUDITS IMPLEMENTATION OF PLANNED MEASURES REPORTING ON ACTIONS MONITORING THE RESULTS AIMS OF ENERGY SERVICES DIRECTIVE

CONTROL PLAN FARM ENERGY PLAN SUBSIDISED BY GOVERNMENT Largest farms in terms of energy use FARM ENERGY

9 Farm Energy Programme actors and their tasks OPERATOR general programme tasks induction training for planners production and distribution of information STEERING GROUP monitoring implementation of programme planning the reporting PRODUCER ORGANISATIONS marketing the programme to farms together with other actors ADMINISTRATION maintaining register of accession documents payment of planning subsidy programme supervision and monitoring provision of guidance to energy management services approval of energy planners FARM ENERGY PROGRAMME ENERGY PLANNERS AND AUDITORS energy plans and audits for individual farms FARMS AND HORTICULTURAL ENTERPRISES commissioning plans for individual farms implementation of measures

accession documents payment of planning subsidy programme supervision and monitoring provision of guidance to energy management services approval of energy planners FARM ENERGY

10 Joining the programme - farms All farms and horticultural enterprises may join the programme Farms join by sending an accession document to a Centre for Economic Development, Transport and the Environment (ELY), which sends the farm confirmation of membership The joining farm receives information material from the operator: Directions on ordering an Energy Plan and quality control Directions on In-House Control Plan and tool for monitoring consumption Brochures, guides Sources of additional information

confirmation of membership The joining farm receives information material from the operator: Directions on ordering an Energy

11 Farm Energy Plan Energy management model with guidelines from Agency for Rural Affairs Plan initiated by collection of preliminary info and one-day farm visit + report (ca. 1 day) and implementation continues in spirit of continuous improvement Subsidised activity Planning subsidy 85% of eligible costs (price ceiling 1100, VAT is not an eligible cost), rest payable by farmer Subsidy paid to creator of Farm Energy Plan Prepared by qualified planners Quality of plans controlled by Agency for Rural Affairs, aided by Motiva in practical work

1 day) and implementation continues in spirit of continuous improvement Subsidised activity Planning subsidy 85% of eligible costs

12 Eligibility for subsidy Government subsidy available for preparing Farm Energy Plan A subsidised plan is available to farms engaged in primary production, if they are eligible for subsidy in the year Farm Energy Plan is drawn up, by virtue of: 1) Act on agricultural structural funding (1476/2007); 2) Act on Support for Rural Development (1443/2006); 3) Act on compensation for damage by natural causes, agri-environmental aid and certain other subsidies related to improving the environment and rural areas (1440/2006); 4) Act on National Aid for Agriculture and Horticulture (1559/2001); or 5) Act on the Implementation of the Single Payment Scheme (557/2005)

Development (1443/2006); 3) Act on compensation for damage by natural causes, agri-environmental aid and certain other subsidies related to improving the environment

13 Farm energy planners Planner s required qualifications: 1. training in electrical, HVAC, construction or other energytechnological occupation OR 2. training in agriculture, equine sector, forestry or horticulture Additional requirements: 1. understanding of agricultural energy issues and production conditions 2. induction training Motiva trains farm energy planners Qualification as energy planner to be applied from Agency for Rural Affairs

training in agriculture, equine sector, forestry or horticulture Additional requirements: 1.

14 Training of farm energy planners Induction training for farm energy planners at Motiva First training course held Training courses in Finnish training course in Tampere Swedish training course in Seinäjoki Finnish training course will be organised in autumn 2010 in Helsinki area. One additional Finnish training course will be organised in 2011

3.2010 in Seinäjoki Finnish training course will be organised in autumn 2010 in Helsinki area.

15 In-House Control Plan Targeted at relatively small energy users Aims: to guide farm in independent mapping of own energy use provide guidance in identification and implementation of measures following the principle of continuous improvement Contents (under development): Mapping current position Developing monitoring of consumption Checklists for identification of energy-saving methods and potential uses of renewable energy Often followed by commissioning Farm Energy Plan or Audit

Contents (under development): Mapping current position Developing monitoring of consumption Checklists for

16 Farm Energy Audit Targeted at relatively large energy users May follow on from In-House Control Plan or Energy Plan, or farm may go directly on to commissioning Energy Audit Also a subsidised energy management model Drafted during 2010 Launch requires Government decree and guidelines from Agency for Rural Affairs

commissioning Energy Audit Also a subsidised energy management model Drafted

17 Energy Audit is thorough Energy Audit is more thorough than Energy Plan Main differences compared to Energy Plan Conducted by at least two persons, at least one with a Ministry of Employment and the Economy energy auditor s qualification (heating or electric energy technology) Includes measurements Produces detailed proposals for measures, always with: Cost estimates and payback periods Calculated estimate of total energy saving and costs Calculated estimate of reduction in emissions Final extent and content as yet unconfirmed

energy technology) Includes measurements Produces detailed proposals for measures, always with: Cost estimates and payback periods

18 Monitoring is important Monitoring and reporting are essential elements of energy efficiency agreements and programmes Aims: to chart the programme s performance and impacts to enable timely introduction of corrective or additional measures Need for Energy Services Directive: to quantify improvements in energy efficiency by 2016 There are a lot of farms, so to save costs, at least with those taking up Energy Plans and In-House Control, based on sample-based monitoring electronic monitoring tools Audits will possibly include more detailed monitoring

to quantify improvements in energy efficiency by 2016 There are a lot of farms, so to save costs, at least with those taking up Energy

19 Reporting Annual progress report at programme level coverage of farms and their energy use completed Energy Plans and Audits marketing efforts measures implemented by farms and energy-saving included in reporting every few years Progress reports 2011 and 2014 Final report 2017

efforts measures implemented by farms and energy-saving included in

20 Further information on the programme Ministry of Agriculture and Forestry: Agency for Rural Affairs: Motiva:

fi/maatilojenenergiaohjelma Agency for Rural Affairs:

21 Energy Efficiency Agreements in other sectors Industries (responsible ministry MEE) High-energy industry Medium-sized industry and service sector Energy production Energy services Municipal sector (responsible ministry MEE) HÖYLÄ III (responsible ministry MEE) Oil-heated properties and heating and transport fuel distribution Transport (responsible ministry MTC) Goods transport and logistics Public transport Properties (responsible ministry ME) Residential apartment block and terraced housing companies Renewal initiated 2009

HÖYLÄ III ENERGY-EFFICIENCY AGREEMENT ON THE DISTRIBUTION OF LIQUID HEATING AND TRANSPORT FUELS

Unofficial translation DNo 22/804/2007 MoTI HÖYLÄ III ENERGY-EFFICIENCY AGREEMENT ON THE DISTRIBUTION OF LIQUID HEATING AND TRANSPORT FUELS 1. Parties The Ministry of Trade and Industry and the Ministry