IEA DSM Task XVI Experts’ Meeting Delhi, India 31.3-1.4.2008

IEA DSM TASK XVI National expert(s) Subtask 2: National Implementation Activities National expert(s) The national expert of Finland with the overall responsibility of implementing Task XVI: Mr. Pertti Koski, Senior Consultant Other experts and organisations participating in the work: Mr. Seppo Silvonen, Head of Unit 11 January, 2019

IEA DSM TASK XVI Goals/Expected results Subtask 2: National Implementation Activities Goals/Expected results The expected results regarding participation in Task XVI, based on the nationally set objectives, may include some or all of the following (check, with remarks as appropriate): x enlargement of the energy services market x higher quality of energy services and implementation capacity x contribution to the implementation of the Energy Services Directive (ESD) x improved integration with the international energy services community x other (specify): 11 January, 2019

IEA DSM TASK XVI Subtask 2: National Implementation Activities Target group(s) The actors involved in the national market and linked to the NIA include the following (check and name as appropriate): x acting (and to-be) ESCOs: Are, YIT, ENESPA, Inesco, TAC, ESCO Partners, Sarlin Hydor ES-facilitators/project developers: names x end-users of energy in the sectors of: municipal, commercial, industrial x energy authorities: Ministry of Employment and the Economy authorities/interest groups in the concerned sectors: financial and funding institutions: 11 January, 2019

IEA DSM TASK XVI Scope of activities Subtask 2: National Implementation Activities Scope of activities The expected results are planned to be achieved through the following activities (check and add as appropriate): x general market information and development developing model projects developing projects/energy services for selected market segments and arranging follow-up of that designing, elaborating and testing of innovative energy services and financing models x capacity build-up: Training of market actors (project developers, ESCO’s, customers) x development of standards/templates, e.g. model contracts, procurement, rough analyses 11 January, 2019

IEA DSM TASK XVI Scope of activities Subtask 2: National Implementation Activities (continued …) Scope of activities The expected results are planned to be achieved through the following activities (check and add as appropriate): x participation/contribution to the centre of excellence and other international activities founding of a professional interest group introduction of a Certification system for ESCO’s of for energy services x adoption of the manuals (to be produced in Task XVI) as translated versions in the national language(s) x adoption of other tools and models presented in Task XVI other (specify): 11 January, 2019

IEA DSM TASK XVI Description of the starting points Subtask 2: National Implementation Activities Description of the starting points Brief description of the status of the energy services market in the country and of the specific national needs of support and development, including expectations concerning Task XVI: - few actors in the ES-market - contract volume growing slowly - financial support from the gvmnt available to ESCO- based investments and promotion - “customer education” needed - tools to support the contractual process of ES needed 11 January, 2019

IEA DSM TASK XVI Subtask 2: National Implementation Activities Motiva has taken part in the Eurocontract project, which is linked to the national CUBENet-work wide Energy audit program New Energy Efficiency Agreement (EEA) for the years 2008-2016 requirements for municipalities to increase their understanding about ESCO and EPC services Implementation of Energy Service Directive by the EEA of Energy Sector good culture of energy efficiency 11 January, 2019

Motiva’s role in promoting ESCO–business in Finland on the assignment of the MEE To act as an information link between ESCO’s, energy users, potential clients, energy auditors … To prepare information material, brochures, ESCO tools, and arrange information dissemination affairs and seminars and to be directly in contact with ESCO’s and possible ESCO clients. To follow the development of ESCO industry abroad and to participate in international co-operation. To identify possible obstacles to the growth of ESCO business. To disseminate information of good ESCO project examples Start and lead national development and marketing projects 11 January, 2019

EPC & ESCO business in Finland Energy savings achieved in ESCO projects (reported in Motiva’s ESCO project register, mostly in industry, more than 40 projects) Heating, fuels, steam: about 250 GWh/a Electricity about 13 GWh/a ESCO’s in Motivas project register Are Oy Enespa Oy Inesco Oy YIT Kiinteistötekniikka Oy TAC Finland Foster Wheeler Oy Suomen Lämpöpumpputekniikka Oy (Sarlin Hydor) (ESCO Partners) Energy Utilities, Cooperation with their Industrial Clients (District Heating Company) Kuusankosken Aluelämmitys Oy (Energy Utility) Etelä-Savon Energia Oy 11 January, 2019

Future topics - Finland: Energy Service Directive National indicative 9 % energy saving target during the period 2008– 2016 (ref years 2001–2005) The indicative ESD target for Finland is 17,8 TWh by 2016 Energy services to be included in the EEA (Energy Efficiency Agreements) Government subsidies for ESCO projects Utilization of new ESCO Guidelines for municipalities Increasing the business impacts Renovation-ESCO idea suggested to be studied: Energy efficiency guarantee also for renovation projects, bundling of buildings 11 January, 2019

Tasks just completed Two national ESCO subcontracting projects completed in the end of 2007 (Lead by Motiva and financed by the Ministry of Employment and the Economy) marketing and info dissemination project in 2007 for municipalities field survey in industry Implementation Action Plans of Energy Service Directive Preparation of Energy Efficiency Agreements in Finland (including ESCO/ EPC link) signed 4.12.2007 agreement period 2008-2016 1 11 January, 2019

Project 1 2007 ESCO service for municipalities Subcontractors: 4 Finnish ESCO’s, which serve especially municipalities Target info dissemination (material: ESCO guide, Municipal ESCO report including tendering documents new pilot projects Started 2/2007, completed 11/2007 Results: contacts 58 municiplaities pilots: municipalities have been interested to start pilot projects, some tendering documents delivered 11 January, 2019

Project 2, 2007 ESCO service for industry Subcontractor: Rejlers Oy Targets to enhance markets … new clients, projects and ESCOs to increase awareness about ESCO services among industrial companies and to find and give solutions on the bottlenecks to prepare ground for new instructions and guides for industrial customers about starting and implementing ESCO projects Deliverables field survey report new ESCO service actors still hesitating Industrial plants consider ESCO service and ESCO projects like other purchase acts (no balance sheet benefit anymore due to IFRS (International Financial Reporting Standards), high requirements for profitability draft scripts of guidelines for utilizing ESCO service completed, a proposal of new rules for government ESCO subsidies 11 January, 2019

Government subsidies The basis for subsidies: Energy saving investments implemented by ESCO service will get increased subsidies compared to subsidies implemented by conventional ways ESCO subsidies comparable with subsidies of new technology 11 January, 2019

Government subsidies Subsidies for ESCO/EPC investments 15..25 % Motivas proposals for ESCO projects subsidied by the Government; subsidies admitted on condition that: project info delivery to Motiva’s ESCO project register copies about ESCO contracts to Motiva to be used for marketing and info dissemination ESCO’s commitment to co-operation with Motiva for marketing 11 January, 2019

Energy Efficiency agreements See separate slides 11 January, 2019

Extract from the Municipality Action Plan 4.6 Use of new savings guarantee and/or funding procedures in the implementation of investments The operational target is to ensure that the Municipality is able to and can use new procedures in the implementation of investments. With these procedures, the procurement of energy-efficient systems and appliances can, if necessary, be carried out fully or partly in new building and renovation projects regardless of the rest of the investment budget. In order to achieve the target, the Municipality shall: acquire the expertise in the use of the ESCO service to implement the investments find out if there are any obstacles restricting the use of the ESCO service in the Municipality’s own administrative and decision-making processes and aim to contribute to the fact that any obstacles in the introduction of these services can be removed when preparing investments, take into account the possibility of using the ESCO services when the lack of funding prevents the implementation of an investment that has been estimated to be cost effective. 11 January, 2019

Projects starting or going on Implementing the Energy Efficiency Agreement and Energy Service Directive Arrangement of local ESCO seminars in 2008 for municipalities three seminars in April 2008 to be continued in Autumn IEA DSM Task XVI 11 January, 2019