1. 1 as df

2. 2 Vantaa Electricity production & procurement Electricity distribution District heat Natural gas Biogas

3. 3 Turnover 1.Fortum3 877 M€ 2.Helsingin Energia564 M€ 3.Vattenfall350 M€ 4.E.ON Finland234 M€ 5.Tampere152 M€ 6.Vantaan Energia147,5 M€ Power production, procurement, and distribution Power turnover 63,3 milj. €

4. 4 ENERGY SAVING COOPERATIN IN TH EBALTIC SEA REGIONS. SOCIAL, ECONOMICAL AND ENVIRONMENTAL APPROACH IN REGIONAL PLANNING OF RATIONAL ENERGY USE ECONOMIC ENVIRON- MENTAL SOCIAL ACCOUNTABILITY SUSTAINABILITY Corporate Social Responsibility

5. 5 Finland: Uusimaa Regional Council, Vantaa City, Motiva, GreenNetFinland Estonia: Association of Municipalities Latvia: District Heating Association Lithuania: Kaunas Germany: Energy+, Max Planck Institute, municipalities Sweden: Sollefteå Poland: European Centre for Integration Internet Portal www.esprojects.net

6. 6 EU – Energy Strategy Instruments Communication documents Green Papers White Papers Action plans Directives Support programmes Research and development Studies Information activities Investment subsidies Partnerships and networks

7. 7 Green Papers, White Papers, Directives and Programmes related to Energy in the EU Security of Supply Energy Efficiency Action Plan Appliance labelling Combined heat and power production Energy performance of buildings Energy Services Ecological design of products Transport policy Electricity market Gas market Use of RES in power production Alternative fuels for transport Emission trading of GHGs Intelligent Energy for Europe

8. 8 GREEN PAPER on SECURITY OF SUPPLY and the role of RES and RUE Europe-30: total energy balance (reference scenario in Mtoe) Why the security of energy supply? Inevitable increase of energy consumption The Union’s increasing dependence as regards its energy supplies: 70% in 2030 from the current 50% Distributing consequences: e.g. rocketing oil prices New challenges: climate change

9. 9 GREEN PAPER on SECURITY OF SUPPLY and the role of RES and RUE Energy Efficiency Action Plan  Promotion of measures to reduce energy consumption  Target of 15 per year by 2010 above the spontaneous development  Integration of energy efficiency into other EU policies  Strengthening of existing measures  New policies and measures, e.g. public procurement  Appliance labelling

10. 10 Directive on the energy performance of buildings Energy performance of buildings Promotion of the improvement of the energy performance of buildings Methology of calculation of the integrated performance of buildings Minimum requirements: new, retrofits Energy certification Regular inspection: boilers, air-conditioning systems

11. 11 Directive on the promotion of cogeneration based on a usefus heat demand in the internal energy market Combined heat & power production Framework for promotion of CHP Guarantee of origin of electricity from cogeneration Analysis of the national potential for high- efficiency cogeneration Support schemes based on useful heat Guarantee of transmission and distribution

12. 12 Proposal for a Directive on energy end-use efficiency and energy services A general, indicative energy end-use savings target of 6% within the period of 6 years: – Households; agriculture; commercial sector; transport and industry – All types of energy: electricity and natural gas to district heating and cooling, heating fuel, coal and lignite, forestry and agricultural energy products and transport fuels An optional obligation on the sale of energy services: – Energy distributors and/or retail supply companies to The public sector: – Integration of energy efficiency improvement considerations into their investments and operating budgets

13. 13 Directive proposal on Ecological Design of Products (EuPs) Aims at: - free movement of EuPs within the EU - better overall environmental performance - contribution to the security of energy supply - preserving the interests of both industry and consumers The scope: - any EuP to be covered by implementing measures - eligibility criteria for adopting implementing measures (e.g. large volume of sales) - motor vehicles excluded - contribution to the integration of life-cycle thinking into product design

14. 14 Transport Policy White Paper

15. 15 GOVERNANCE OF FINNISH ENERGY SAVING POLICY MINISTRY OF THE ENVIRONMENT MINISTRY OF TRADE AND INDUSTRY HOUSING ENVIRONMENT ENERGY, TRANSPORT INDUSTRY TERTIARY SECTOR Branch associations Organisations Energy conservation agreements Energy audit (methodology, subsidiaries, monitoring, authorisation of auditors, pricing…) Energy Efficient Technology Renewable Energy Sources Information Dissemination Communication, Networking, International Cooperation

16. 16 THREE INSTRUMENTS OF FINNISH NATIONAL ENERGY SAVING PROCEDURE Reporting boundaries Energy Audits Subsidies Voluntary Agreements 1,5 TWh/a 4,1 TWh/a 0,5 TWh/a

17. 17 THE FINNISH ENERGY AUDIT SCHEME 1 Energy and Climate Strategy Energy Efficiency Programme RES-Programme Voluntary agreements Energy Auditing Scheme Market FreeSubsidised

18. 18 THE FINNISH ENERGY AUDIT SCHEME 2 THE ADMINISTRATOR THE OPERATING AGENT THE AUDITOR THE CLIENT Financing Marketing Reporting Guidance

19. 19 VOLUNTARY ENERGY CONSERVATION AGREEMENTS AND ENERGY AUDITS Voluntary energy conservation agreements are: significant carrier for energy audits in all sectors except transport partners to the agreements are committed to carry out energy audits and to reach a set coverage within a certain time

20. 20 COVERAGE OF VOLUNTARY ENERGY CONSERVATION AGREEMENTS 60% of the total energy consumption 31 December 2005 VOLUNTARY ENERGY CONSERVATION AGREEMENTS 81% of energy used in industry 90% of electricity generated in power stations 68% of sales of district heating 81% of electricity distributed 58% of building stock of the municipal sector 23% of building stock of private service sector and state owned properties 45% of bus and coach stock 15% of the stock of residential apartment buildings Within agreement scheme Maximum coverage of the agreement in Finland

21. 21 ENERGY CONSERVATION PROGRAMME Estimated saving potentials with the proposed measures by 2010: FuelsElectricity Heating of buildings12%15% Industry6%3% Transport9% Other sectors3%4%

22. 22 RESULTS OF ENERGY AUDIT Saving potential: Service sector (appr. 1200 buildings) Heat15% Electricity6% Water7% Small and medium size industry (appr. 190 buildings) Heat and fuels25% Electricity8% Water11% The saving potential in the energy intensive industry and power & heat sectorare considerably smaller

23. 23 Voluntary Energy Conservation Agreements

24. 24 Voluntary Energy Conservation Agreements

25. 25 Why a VA? Climate strategy Energy Conservation Programme Renewable Energy Programme Voluntary before regulatory Voluntary Energy Conservation Agreements: How to make more from less?

26. 26 Climate Change Strategy of Finland Energy Conservation Programme 2002 Programme for the Promotion of Renewables 2002 Decision to expand nuclear power 2002 Measures directed towards decrease in the use of coal Implementation Programmes

27. 27 appointing a person to be in charge of the implementation of the agreement setting the targets for efficiency improvement in the use of heat and electricity (and transport fuel) setting the target for the coverage of energy audits setting the target for continuous consumption monitoring working out an energy conservation plan working out a plan for the use of renewable energy sources reporting of the energy use, both initial and annual carrying out energy audits and energy analyses carrying out conservation measures proposed in the audit reports providing the requested data and other information to Motiva for the annual report to be delivered to the Ministry Duties of the parties (municipalities and branch organisations) Voluntary Energy Conservation Agreements

28. 28 Example: the Municipal Sector Targets and duties of the municipality:  energy audits  target for 2005: 80% coverage  status in 2003: 44%  promotion of the use of renewable energy sources in buildings and in district heating  favouring of CHP and cooperation with industry  promotion of a compact city structure in city planning Voluntary Energy Conservation Agreements

29. 29 Example: the Municipal Sector Voluntary Energy Conservation Agreements Targets and duties of the municipality:  appointing the person in charge of the Agreement  energy conservation plan with information of the initial status of energy use  investigating of the potential and planning of the use of renewable energy sources  monitoring of monthly energy consumption  target for 2010: 90 % coverage for buildings, 70 % for other consumption  status in 2003: 76% for electricity, 80 % for heat

30. 30 Example: the Municipal Sector Voluntary Energy Conservation Agreements Targets and duties of the municipality:  specific consumptions (ref. 2001)  heat: –3% by 2005 and –7% by 2010  electricity: stop the growth by 2005 and turn to decline after that  data on annual consumptions  specification (separation) of the costs of heat, electricity and water in the internal rents of the municipality  energy efficiency in procurement

31. 31  subsidising energy audits and analyses  subsidising energy conservation investments  developing the VA-system (through Motiva)  providing training and information support (through Motiva) to the VA-partners Duties of the parties - Ministry of Trade and Industry Voluntary Energy Conservation Agreements

32. 32 Companies Municip´s Monitoring Steering Group Ministries Branch Organisation Companies Motiva Marketing Branch Organisation Motiva External expertise authorized auditors Implementation and roles Government support energy audits 40-50 % energy saving investments - conventional technology 10-20 % - new technology... 30 % Annual Reporting Voluntary Energy Conservation Agreements

33. 33 Enterprises report with a fixed format including site specific information Branch organisation in charge of delivering the data Verification and input of the data into the database (Essu) mainly by branch organisation Data transferred to Motiva Analyses - Motiva and branch organisation Annual report - Branch organisation and Motiva Elements of Annual reporting Example: the Industrial Sector Voluntary Energy Conservation Agreements

34. 34 Work package ready Voluntary Energy Conservation Agreements

35. 35 3. REPORTING AND DELIVERY office work Layout Printing Delivery / other parties + connection to other Motiva VEA- information processes Delivery / VEA municipalities and steering group Fr 15.10. Fr 8.10. Fr 1.10. Fr 17.9. Fr 15.10. continues from page 1 JUSO/KRESS-steering group meeting week 43/2004 Voluntary Energy Conservation Agreements

36. 36 INDUSTRY(TT) TT-ESSU “RUN TIME”-VERSION ELECTRICITY GENERATION (VL) VL-ESSU “RUN TIME”-VERSION MUNICIPALS (KU) KU-ESSU “RUN TIME”-VERSION ELECTRICITY DISTRIBUTION (SJ) SJ-ESSU “RUN TIME”-VERSION PRIVATE SECTOR (KR) KR-ESSU “RUN TIME”-VERSION ESSU ACCESS-DATABASE FOR ENERGY CONSERVATION AGREEMENTS MOTICOP ACCESS DATABASE FOR ENERGY AUDIT REPORTS DISTRICT HEATING (KL) KL-ESSU “RUN TIME”-VERSION MOTIVA TRANSPORT BUS AND COACH (LA) OWN DATABASE Main principles of data management MOTIVA Branch Associations “RUN TIME”-VERSION = BRANCH ASSOCIATION’S PART OF ACCESS DATABASE ESSU TRANSPORT TRUCK AND VANS (SK) OWN DATABASE Voluntary Energy Conservation Agreements

37. 37 Cumulative saving effects reported by Industry, Energy, Estate & Building sectors The industrial sector accounts for 87 % of implemented savings at the end of 2002 Voluntary Energy Conservation Agreements 0,5 1,3 2,4 3,2 4,4 5,0 6,1

38. 38 Profitability of the proposed energy saving measures of 1 265 buildings Voluntary Energy Conservation Agreements

39. 39 Estimated impact by 2010 Mtoe/a Energy and related taxation0.4 Energy conservation agreements0.4 Building regulations0.2 Energy subsidies and renovation support0.1 Development of urban structure 0.1 Subtotal1.2 ENERGY EFFICIENCY PROGRAMME TOTAL1.5 Voluntary Energy Conservation Programme

40. 40 Input of resources Over 2 man-years of work is required per year to run and develop the monitoring and reporting system for energy conservation agreements The staff involved is –8-9 persons in Motiva –2 persons in the Ministry of Trade and Industry –6-7 persons in branch Associations - additionally: Coding of monitoring system (Essu) 1999-2003 about 1,7 year, (2002-2003 about 1-2 months per year) Administration and development of energy conservation agreements per year: Motiva about 0,5 man-year, MTI 6 man-weeks, associations about 1 man-week/area Over 1000 (about 300 in industry) enterprises or communities filling fixed format blankets for yearly reporting MTI arrangements for new agreements and assessments of the agreements each about 2 weeks per agreement area Man-hours used for implementation projects excluded from these figures Total costs of energy conservation agreements administration, operation and development in 1997-2002 about 1,2 million € Voluntary Energy Conservation Agreements

41. 41 About 2 man-years of work is required per year to run the Energy Audit Programme The staff involved is –3-4 persons in Motiva –1-2 persons in the Ministry of Trade and Industry –2-4 consultants for quality control, training, development Total costs of operation and development in 1992-2002 – about 2,2 million € Voluntary Energy Audit Programme Input of resources

42. 42 Juri Markovitch Vantaan Energia Manager, International Business Operations Phone: +358 50 349 6237, +358 9 829 0297 Fax: +358 829 0415 E-mail: juri.markovitch@vantaanenergia.fi