Municipal Energy Planning and Energy Efficiency

Municipal Energy Planning and Energy Efficiency Jenny Nilsson, Linköping University Anders Mårtensson, Linköping University ABSTRACT Swedish law requires local authorities to have a municipal energy plan. Each municipal government is required to prepare and maintain a plan for the supply, distribution, and use of energy. Whether the municipal energy plans have contributed to or preferably controlled the development of local energy systems is unclear. In the research project Strategic Environmental Assessment of Local Energy Systems, financed by the Swedish National Energy Administration, the municipal energy plan as a tool for controlling energy use and the efficiency of the local energy system is studied. In an introductory study, twelve municipal energy plans for the county of Östergötland in southern Sweden have been analyzed. This paper presents and discusses results and conclusions regarding municipal strategies for energy efficiency based on the introductory study. Introduction Energy Efficiency and Swedish Municipalities Opportunities for improving the efficiency of Swedish energy systems have been emphasized in several reports such as a recent study made for the Swedish government (SOU 2001). Although work for effective energy use has been carried out in Sweden for 30 years, the calculated remaining potential for energy savings is still high. However, there have been changes in the energy system. For example, industry has slightly increased the total energy use, but their use of oil has been reduced by two-thirds since 1970. Meanwhile, the production in the industry has increased by almost 50%. This means that energy efficiency in the industry is much higher today than in the 1970s (Table 1). Table 1. Relative Industrial Production and Energy Use Since 1970 (the 1970 use = index 100) 1980 1990 1998 Production 115 137 174 Energy use oil electricity Source: SOU 2001 106 79 130 The change from oil to electricity can be observed in the building sector as well, but it is not as obvious as in industry. The total amount of energy used in the private sector has been constantly increasing, mostly due to increased use of domestic electricity. Although the population in Sweden has grown and more houses have been built, the energy use for heating has been fairly constant since the 1970s. This means that the efficiency of heating buildings has increased. 104 31 175 115 30 176

Traditionally, the municipalities have played an important role in the Swedish energy system both as the local energy distributor and as the owner of a large amount of public buildings. The municipality also plays an important role in providing information and giving advice on energy related topics. Although the local authorities are dependent on Swedish law, much of the responsibility for the development of the municipal energy system lies with the municipal government. One of the means for the municipal government to manage the municipal energy system is the municipal energy plan. Swedish Energy Policy and Municipal Energy Planning In Sweden, municipal energy planning has been a part of the energy policy for more than three decades. In 1977, the Swedish government passed a law that required municipalities to develop energy plans (SFS 1977). The law addressed secure supply and distribution of energy, but it was not compulsory. This meant that the municipalities were encouraged, rather than required, to develop an energy plan (Statens Energiverk 1986). After the oil crisis of 1979, a requirement for a complementary municipal oil reduction plan was added (Regeringens Proposition 1981). The law particularly addressed the conversion of local energy systems from oil-based systems to alternative energy sources and more efficient energy technologies. The role of the users as an important part of the energy system was also acknowledged. Municipalities were now required to plan for oil reduction as well as for the supply, the distribution, and the use of energy. Nuclear power was seen as an effective and important replacement for fossil fuels. The new nuclear power plants also provided the opportunity for increased use of cheap energy. In the mid-1980s, the government proposed a new bill (Regeringens Proposition 1985) that attempted to minimize oil dependence but the requirement of a separate oil reduction plan was removed. The preparation for the phase-out of nuclear power also played an important role. The goal was still to encourage efficient use of alternative energy resources. The alternatives were specified as lasting, renewable energy sources. Another goal in this bill was to clarify that planning was a tool for the municipality and not the state. Therefore, integration of energy planning into the municipalities overall planning process was requested. In 1997, the government proposed yet another energy bill that reflected a new energy policy. The objectives were clear: the Swedish energy system was to be based on effective energy use and energy supply with low impact on people s health, the environment, and the climate. This would include the phase-out of nuclear energy and the introduction of more renewable energy sources. Over the past three decades, laws that address municipal energy planning have been debated mainly because of their lack of strict directions or sanctions. The law has also been criticized in view of the fact that other circumstances have a much greater influence on the decision-making in municipalities than an energy plan (RRV 1991). For example, the national energy policy with respect to subsidies or taxes can dramatically change the conditions for a municipality (Olerup 2000). Even though the law has been criticized, there is still support for municipal energy planning. For example, the energy plan is considered an important guide used by local authorities when making decisions about expanding district heating. It also serves as a framework for municipalities developing waste disposal plans when waste is to be used for producing energy (Johansson 2001).

Objectives and Methods The research project Strategic Environmental Assessment of Local Energy Systems is a part of a national research program that deals with emissions and air quality. The research is focused on municipal energy plans as a tool for controlling the development of a local energy system. This paper is based on an introductory study in which 12 municipal energy plans in Östergötland County in southern Sweden were analyzed. The county includes relatively large municipalities with large industries, widespread agriculture, and advanced centralized energy systems. Smaller municipalities in the county base their economy on agriculture and forestry or large industries (Table 2). The focus is energy efficiency in municipal energy planning. How energy use and efficiency is dealt with in the plans, measures for managing the municipal energy systems, goals for energy efficiency, and how the goals are meant to be achieved, are analyzed. Table 2. Municipalities Studied and Their Main Business, Public Service (Schools, Hospitals etc.) Excluded Municipality Inhabitants Main Business Åtvidaberg 12,000 Manufacturing industry Boxholm 6,000 Steel and wood industry Finspång 22,000 Manufacturing industry Kinda 10,000 Manufacturing industry, agriculture Linköping 133,000 Manufacturing and high-tech industry, agriculture Mjölby 25,000 Manufacturing, food and steel industry Motala 42,000 Manufacturing industry Norrköping 122,000 Manufacturing industry, paper mills Ödeshög 6,000 Manufacturing and building industry, agriculture Söderköping 14,000 Manufacturing and building industry, agriculture Vadstena 8,000 Manufacturing industry, agriculture Valdemarsvik 9,000 Manufacturing Industry, agriculture Ydre 4,000 Manufacturing Industry, agriculture The plans have been analyzed using a number of questions to categorize the contents. The questions are based on a number of categories that consider different aspects of the energy plans. This paper is based on three question categories that specifically address energy efficiency. The first category, Energy system characteristics, analyzes the status of the energy system as it is presented in the plan. Here some indications on how the municipal energy systems have evolved over time can be seen. From this category, the analysis in this paper is based on the present energy use described in the plans and the visions for future energy use and energy efficiency. The second category, Goals for the energy sector, studies the municipalities future energy system strategy. In this paper, the description of goals regarding energy efficiency is analyzed. The third category, Political measures, studies how different political measures are handled in the plans. The focus in this paper is how the municipality will work to promote energy efficiency in the private and the public sector using measures such as advisory or integration of energy efficiency in the spatial planning process.

Results The status of energy plans varies widely between the municipalities. In one case, no plan has been issued at all. In other municipalities the plan has been regularly updated and revised. The planning processes have also differed. In some municipalities, civil servants have administrated the planning process. In others, external consultants have been responsible for the energy plan. The contents of the plans are also largely different because the plans are written at different times and therefore are based on different national energy policies. The level of ambition the municipalities demonstrate in their plans is also variable. In some municipalities, in particular the larger ones, the plans contain scenarios and analyses of environmental impacts. In others, mainly the ones with older plans, the plans are descriptive rather than analytical and contain a large amount of information summarized in charts and tables. Use of Energy in the Municipalities It seems that the parts of the plans that deal with the present energy system in a municipality and energy use have been the part taken most seriously by the planners. Almost all plans contain information about energy use and the present types of fuels used for buildings (public and private) and for industry. In general, the older plans are dominated by a quantitative description of the energy system. The plans issued after 1990 contain a more qualitative analysis on the use of energy. A summary of the energy use described in the plans is listed in Table 3. Table 3. Energy Use Described in the Municipal Energy Plans in Three Time Periods Plans Describing Systems containing Older 1977-1984 Middle-Aged 1985-1996 Newer 1997-2000 Fossil fuels for heating buildings Fossil fuels in industry Electricity for heating buildings Biomass used in industry Biomass used for heating small houses Heat pumps used for heating small houses District heating for private and public buildings Industrial use of energy is a large part of some municipalities energy use, but the plans do not contain detailed information on the industrial energy use or types of fuels used in the industry sector. Because only one plan from each municipality is studied, exact figures on how energy use has changed over time are not available. In the newer plans, however, there are indications that energy use has decreased since the 1970s. Future energy use. All the municipal energy plans contain some kind of goals or visions for the future energy system. The goals differ with the time of origin of the plan (Table 4). In the plans from the initial period of energy planning, the goals are mainly focused on oil reduction. In the newer plans, some new ideas are present: environmental motives for energy saving and the desire to decrease energy use in industry. The latter, however, is not mentioned in the municipality with the largest and most energy-intense industry. In two

plans, energy efficiency is addressed with caution. One plan addresses energy efficiency in buildings and compares this with expansion of district heating. The other plan notes that saving energy in Sweden is a waste of money and that better results could be achieved in Eastern Europe. Table 4. Goals for Energy use Described in the Municipal Energy Plans in Three Time Periods Goals Described in Plans Older 1977-1984 Middle-Aged 1985-1996 Newer 1997-2000 Oil reduction Energy efficiency in buildings Use of heat pumps District heating Reduced emissions Optimization Sustainable development Renewable energy Energy Efficiency in the Municipalities Goals for efficiency. The goals for energy efficiency in the plans are generally vague; however, older plans are generally more ambitious. In the newer plans, goals aim for a net decrease of energy used in the municipality. What is new in these plans is also a clearly stated aspiration for reduced energy use in the industrial sector. A summary of different goals for energy efficiency stated in the plans is presented in Table 5. Table 5. Energy Efficiency Issues in the Municipal Energy Plans in Three Time Periods Plans Containing Goals for Older 1977-1984 Middle-Aged 1985-1996 Newer 1997-2000 Efficiency in buildings 25% reduction goal Expected increase in energy use Even use over 24 hours Visionary goals Decreased industrial energy use Efficiency in the whole energy system Reaching energy efficiency goals. Municipal governments can take several measures to move their energy system onto the desirable track. Advisory, charges, local subsidies, and spatial planning are some of them. The means to reach the goals for energy efficiency mentioned in the plans are listed in Table 6. Lowered indoor temperatures, improved insulation, and more efficient operation of heating systems in buildings were seen as great potentials in the 1970s and early 1980s; a reduction of indoor temperature of one degree Celsius would mean a saving potential of 5%. Building insulation in the 1950s and 1960s was poor, and sophisticated controls of the building heating systems were rare.

Table 6. Technical and Political Measures for Reaching Efficiency Measures Older 1977-1984 Middle-Aged 1985-1996 Newer 1997-2000 Optimization of building heating systems Lowered indoor temperature Improved insulation Individual measurement of energy use Efficient equipment and appliances Indicators for energy use in buildings Energy advising Energy issues in the over all planning process In the newer plans, the measures for reaching the efficiency goals are different. For example, energy efficient kitchen appliances or household equipment play an important role. In addition, ideas about using key indicators to benchmark energy use in public buildings are discussed. The indicators would make it easier to compare energy use in different buildings. The idea of individually measured energy has been present as a means to reduce energy use in apartment houses for the whole time period. Despite this, any examples of the practice have not been observed in the plans. Most of the municipalities have planned for a municipal energy adviser. About half of the municipalities appoint their own civil servants, two have given the responsibility to the local energy supplier (i.e., the energy company owned by the municipality), and one plans to hire a consultant. The planned role of the energy adviser differs over time. The older plans address energy in general and energy savings. In the newer plans, the role has widened to include energy related environmental issues and economic issues. The energy advisor role seems to have evolved more to informing homeowners about subsidies and taxes, but the technical advisory on energy saving is still important. The overall planning is a way for the municipality to control the development of the local energy system. For example, the municipality possesses means for optimization of the location of a new residential area with respect to solar or wind conditions. The municipality can also decide on standards for efficiency in buildings or the nature of the heating system in the area. The relation between the energy plans and spatial planning in the municipality has varied, and has, in fact, been more detailed in the older plans. Discussion Why is there an absence of efficiency improvement and why are the goals in the plans more vague in the newer plans? One explanation for the vague goals may be that the municipalities have realized that the ambitious goals for energy saving of the late 1970s were hard to reach and are now more careful when stating their goals. The absence of efficiency improvement is no new phenomenon. This can be called the efficiency gap. There are some explanations for this efficiency gap, which are applicable to Swedish municipalities, which are referred to as barriers to energy efficiency (Eyre 1997). One example is the so called information barrier. The municipality owns the energy company that serves the municipality. Why would they make the inhabitants buy less energy? This was in fact mentioned in one of the plans, where weighing energy saving against expansion of the district heating system was brought up. Another example is the

Separation of costs and benefit barrier : costs and benefits do not fall on the same individuals. The municipality owns many buildings and pays for the energy used, the rent is not affected whether the tenant saves energy or not. Therefore, there are no incentives for energy saving. In addition, there are other possible explanations for the absence of results from the planned efficiency improvement: kitchen and household appliances have long life spans and therefore measures do not show up instantly. There has been a tendency to overrate the willingness to replace equipment or windows or to improve insulation (SOU 2001). This paper is based on an introductory study that reviews municipal energy plans. Therefore, no analysis about if or how the municipal energy plans have played a role in the development of municipal energy systems can be made. Further research is now carried out within this research project. Municipalities with an energy plan approved by municipal governments between 1995 and 1998 are studied. Goals stated in the plans are compared with the actual development of the municipal energy systems. The results from this study are estimated to be available in spring 2003. Conclusions From the results of this study, some conclusions can be drawn about energy plans in Östergötland County: Quality of the energy plans varies widely. The status of energy plans varies and the planning processes differ. The contents of the plans are also largely different because the plans are written at different times and therefore are based on different national energy policies. Level of ambition differs between the plans. In some municipalities, the planning has subordinated other factors affecting the local energy system. In some municipalities, energy planning seems to have played an important role in the strategic planning for the municipality. Contents of the plans are consistent with the Swedish energy policies since the 1970s. The industrial energy use is not often mentioned in the energy plans Intentions for the future energy systems are clear regardless of the time the plans were written: the objective is greater energy efficiency, reduced oil use, and increased renewable energy use. In the older plans, the goals for the energy systems are more ambitious and in the newer plans, the goals are more visionary. The goals do not reflect the present energy saving potential that is mentioned in the introduction. Most of the municipalities have planned for a municipal energy adviser. The advisory role has widened from mostly technical advice to advice on subsidies, taxes, and environmental issues. The relation between the energy plans and spatial planning in the municipality has varied, and has been more detailed in the older plans

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