1 Polish Energy Efficient Motor Programme PEMP Szymon Liszka Krzysztof Brzoza-Brzezina

2 Organizations involved in development and implementation of the PEMP

3 Poland million inhabitants and area of 312,000 square kilometers. From 1991 to 2003, GDP in Poland increased by 64,7 per cent (based on 2003 fixed prices). The primary energy productivity increased from 118,3 PLN//GJ in 1991 to 203,4 PLN/GJ in The energy intensity of GDP in Poland decreased from 0,79 MWh/1000 USD in 1998 to 0,61 MWh/1000 USD in Electricity production 151,7 TWh (2003). Specific CO 2 emmission factorr for electricity generation is 1,06 kg/kWh. Electric motor systems are responsibile for 40 – 50 per cent of all electricity consumed in Poland. Project background

4 Project background

5 the technical potential for energy efficiency improvement of electric motor systems in Poland is large in both absolute and relative terms; energy efficiency increases could substantially reduce domestic GHG emissions in Poland, thereby supporting Poland’s activities as a party to the UN Framework Convention on Climate Change (UNFCCC); there is great economic potential for energy efficiency improvements with low payback periods that meet the usual investment criteria. However, manufacturers have reported that almost no energy efficient motors have been sold recently in Poland. Therefore, it is clear that these investments face substantial barriers; Project rationale

6 a large economic potential exists with higher pay-back period, which could be exploited by financial incentives lowering the pay-back period; the manufacturing industry, the energy and water sector, and the mining industry are key sectors, because they show the largest economic potential for efficiency improvements. lack of national promotional initiatives and lack of funding for such activities; finally good experience with PELP - Polish Efficient Lighting Project (transformation of market of energy efficient lighting sources); Project rationale

7 The PEMP is five years programme supported by Global Environment Facility, it concerns electric motor systems (motor, controls, transmission, driven machinery: pumps, fans, compressors, conveyors, etc.), it is intended to utilize the economic potential for energy efficiency improvement in Polish economy, reduction of electrical energy consumption – translates to the reduction of greenhouse-gases emission from power plants, PEMP has been located in GEF Focal Area of Climate Change. PEMP what is it?

Expected results 8 climate change goal: reduce domestic GHG emissions by 832 thousand tons CO2 by 2008 and 3.7 million tons CO2 by 2013; energy efficiency goal: reduce electricity consumption in motor systems by 55.7 GWh in 2008 and GWh in 2013; ecological goal: reduce emission of air pollutants - dust, NOx, SO 2 economic goal: introduce to the market a new generation of energy-efficient motors and achieve their 15% share in total motor sales over 5 years, increase the number of adjustable speed drives, activate market niches for manufacturing and services of ca. 90 million PLN.

PEMP activities 9 The first major activity focuses on building capacity and raising awareness by providing information and services related to energy efficient electric motor systems. The second major activity involves demonstration projects to establish and showcase the technical and economic benefits of energy efficient motor systems. The third major activity has the objective of stimulating market transformation and competition through a financial incentive mechanism. The fourth, a policy component.

10 Building capacity and awareness raising

Demonstration projects 11

Financial incentives 12 Sale of motors Present state During the PEMP program (4 years)After 15% SS EE

Financial incentives 13 Cost of motors Present state During the PEMP program (4 years)After K EE KSKS ca. 0.2 K s Part of differential cost K EE – K S will be subsidized SSEE

Policy component 14 increase knowledge of industrial energy efficiency policy among decision-makers, develop a national policy for industrial energy efficiency, develop schemes for the labelling, Long Term Agreements (LTA) and Best Practice Initiatives (BPI), link and co-ordinate with other energy efficiency programmes.

Implementation 15 The PEMP implementation phase has started in the year 2004, The PEMP Center is establisched and operate, First demonstrations are under implementation, The financial incentive mechanism is delayed.

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