Seppo Silvonen Seppo Silvonen, Motiva Oy Finland Energy auditing as an essential part of the investment process Finnish national and EU energy auditing procedures "FINANCIAL AND ECONOMIC ASPECTS OF ENERGY SAVING WITHIN THE FRAMEWORK OF THE CSRC APPROACH" Workshop: "TRANSNATIONAL ENERGY SAVING NETWORKS" 14 December 2005 Vilnius, Lithuania

Seppo Silvonen A Package of Three Instruments The Finnish set-up Voluntary Agreements Energy Audits Subsidies 4,1 TWh/a 1,5 TWh/a 0,5 TWh/a Reporting boundaries

Seppo Silvonen The Finnish Energy Auditing Scheme (1) Energy and Climate Strategy Energy EfficiencyProgrammeRES-Programme Voluntary Agreements Market FreeSubsidised Energy Auditing Scheme

Seppo Silvonen The Finnish Energy Auditing Scheme (2) THE OPERATING AGENT THE AUDITOR THE CLIENT THE ADMINISTRATOR Financing Marketing Reporting Guidance

Seppo Silvonen An Energy Audit In general gives adequate knowledge of the existing energy consumption profile identifies factors affecting the energy consumption brings up cost-effective energy saving opportunities The Core Audit makes an evaluation of the present consumption identifies and quantifies the feasible energy saving possibilities produces a report

Seppo Silvonen Programmes Environmental programmes Energy efficiency programmes Energy Audit Program- mes Other Program- mes with EA Activities with Energy Audits

Seppo Silvonen  Total picture of the use of energy, its distribution and costs  Energy saving potential and the possibilities to use renewable energy sources  Listing of all economically feasible proposals for energy saving measures (single pay-back time < 10 a) TARGETS OF ENERGY AUDITING TABLE 2 Measure 1 Measure 2 : Savings EUR Costs EUR Payback time (y) Total

Seppo Silvonen Motiva – Key Functions in the Energy Auditing Scheme DEVELOPMENT AND TRAINING MARKETING QUALITY CONTROL MONITORING The Finnish Energy Auditing Scheme (3)

Seppo Silvonen The Finnish Energy Auditing Scheme (4) Planning Information System Training International co-operation Development of Methods&Tools Information dissemination Authorisation of auditors Quality control of auditing reports Reporting Linking to other systems Implementation of the Directives on energy performance of buildings energy end-use efficiency and energy services Functioning in close co-operation with the Ministry of Trade and Industry

Seppo Silvonen The link between the voluntary energy conservation agreements and energy audits Energy audits and analyses Improvement plans and implementation Description of energy consumption Annual reporting Agreement 1 Follow up, updates…. The Finnish Energy Auditing Scheme (5)

Seppo Silvonen Agreements and energy audits Voluntary energy conservation agreement: significant carrier for energy audits in all sectors except the transport sector partners to the agreements are “obliged” to carry out energy audits and to reach a set coverage within a certain time

Seppo Silvonen

Seppo Silvonen Energy auditing models for different client groups Buildings: public and private services, apartments Industrial sites - SME’s - Process industry Energy sector - Power plants - District heating, plants and distribution networks Transportation

Seppo Silvonen Model subsidised by the Ministry of Trade and Industry Model not subsidised Energy Audit Model being developed Industrial plants high energy intensity Industrial plants SME’s Small buildings service sector Large buildings service sector Blocks of flats Small residential buildings Air Audit COMMERCIAL AUDITS Other sectors: Energy sector Building Audit Industrial Energy Audit Process Industry Energy Analysis Energy Inspection Post- acceptance Energy Audit Follow-up Energy Audit Industrial Energy Analysis Energy Audit Programme Power Plant Energy Analysis District Heating Energy Audit Updating with industrial models THE VOLUNTARY AGREEMENT SCHEME Audit Models

Seppo Silvonen ENERGY CONSERVATION PROGRAMME Estimated saving potentials with the proposed measures by 2010: FuelsElectricity Heating of buildings 12 % 15 % Industry 6 % 3 % Transportation 9 % Other sectors 3 % 4 %

Seppo Silvonen Energy Audits – Results Savings potential service sector (appr buildings) Heat15 % Electricity6 % Water7 % small and medium sized industry (appr. 190 buildings) Heat and fuels25 % Electricity8 % Water11 % the saving potentials in the energy intensive industry and power and heat sector are considerably smaller

Seppo Silvonen Standard contents Proper scheme to be applied for the case in question Criteria to be met by the applicant of the subsidy Authorised auditors for HVAC and electrical installations Cost limits Forms of application and payment of the subsidy Reporting procedure Subsidy level Rules for Energy Audits subsidised by the Ministry of Trade and Industry (MTI)

Seppo Silvonen Direct government support The government finances the costs of the operating agent (Motiva) of the Finnish energy audit program and gives 40…50 % support for the energy auditing project expenses 15…20 % subsidies for conventional energy saving investments for companies who have joined the voluntary Energy Conservation Agreements with the Government. Higher subsidies ( %) has been granted for ESCO investment projects at least until the end of the year 2004 by the government

Seppo Silvonen Profitability of the proposed energy saving measures of buildings

Seppo Silvonen Regional Energy Audits meant for mapping the existing use of fuels and the potential for increasing the use of RES in the production of heat and power in a munici- pality or other region supporting the working out of the plan for RES in implementing the voluntary energy conservation agreement done by working out a regional energy balance estimating the available sources of renewable energy identifying facilities where the available sources of renewable energy could feasibly replace the use of non-renewable energy sources

Seppo Silvonen International review of Energy Auditing Review of energy audit methods and practices in some European countries Establishing an energy audit programme – the 12 basic elements Situation in some European countries More of this:

Seppo Silvonen International review of energy auditing Energy audit programmes in the EU Member States, Norway and the CEECs

Seppo Silvonen International review of energy auditing Other programmes with energy audits in the EU Member States, Norway and the CEECs

Seppo Silvonen International review of energy auditing Other Activities with energy audits in the EU Member States, Norway and the CEECs

Seppo Silvonen International review of energy auditing Projects in the SAVE II Programme: Audit I – Country reports Audit II – Topic reports Monitoring and evaluation Energy audit models Training, authorisation and quality control Auditor’s tools Implementing instruments To look at these: (English pages)

Seppo Silvonen To hear the latest, come to energyAUDIT06 in Lahti, Finland September 11-13, 2006 More of this: (Enlish pages)