Industrial energy efficiency improvement – the role of policy and evaluation

At EU and to a varying degree at Member State (MS) level, industrial energy efficiency improvement (EEI) is considered an attractive means for reaching political objectives of different dimensions, not least environmental. For energy-intensive manufacturing industry in particular, EEI can lead to cost reductions, improved profitability and competitiveness. However, research and other analyses show that far from all privately profitable EEI actions are implemented, and for this reason a number of policies, programmes and instruments, have been launched to stimulate industrial EEI. For political objectives and measures to be credible, it is essential that the policy process is informed by close evaluations of progress, impact and other outcomes. Evaluation results can also contribute to the improvement of programmes in operation. This thesis contributes with evaluations and assessments of existing programmes and instruments that, besides other objectives, targets industrial EEI and GHG emissions reduction in energy-intensive manufacturing industry in Sweden and partly elsewhere. The research combines a theory-based evaluation approach with impact evaluations and other forms of analysis to find out if and to what extent that desired results in terms of energy savings and GHG emissions reductions are achieved. Outcomes in terms of corporate responses to policies are also addressed in order to identify underlying factors for changes to occur. The results show that the Swedish programme for improving energy efficiency in energy-intensive industries (PFE) has resulted in large and cost-effective electricity savings. As a main programme instrument the implementation and certification of industrial Energy Management Systems (EnMS) has led to organizational changes among interviewed firms in the Swedish pulp and paper industry (PPI). Through its combination of instruments PFE has caused attention-raising effects and norm changes towards a higher priority for EEI. A top-down decomposition analysis of energy trends in the Swedish PPI shows that especially electricity efficiency improvement has increased in the post-2000 period. This result corresponds well with bottom-up reported electricity savings in PFE and confirms the success of the programme. Also CO2 emissions have been reduced in Swedish PPI. An interview-based study on the influence of the EU emissions trading system (EU ETS) on corporate climate strategies shows that the economic value of CO2 emissions is accounted for, but that the carbon price tag represents a minor factor among many that underpin industrial investment decisions. In the third period of EU ETS, the amount of free allocation to manufacturing industry is generally reduced compared to previous periods. However, the outcomes of the new allocation rules are dispersed in some industrial sub-sectors. For instance, the Swedish PPI will receive free allocation well above the actual emission level. To further stimulate industrial decarbonisation, the ongoing discussion on structural reforms of EU ETS is welcomed. To further stimulate industrial EEI the continuation of complementary industrial policies is recommended

Evaluating industrial energy management systems – considerations for an evaluation plan

Since year 2000 a number of national energy management systems (EnMS) standards and specifications have been developed. To support EnMS implementation in industry some governments have launched agreements centered around energy management practices. National experiences show that such policy programs can achieve significant energy efficiency improvements. Implementation of industrial EnMSs has gradually increased and uptake can be expected to accelerate as the international standard (ISO 50001) gains further recognition. Since EnMS complements, or replaces, other energy or climate policies (e.g. emissions trading, energy or carbon taxes) it makes sense to systematically evaluate its implementation in industry. Accurate information needs to be compiled and rated against relevant criteria to confirm desired impact. In their assessments evaluators need to address several issues. Firstly, EnMS are embedded in a context which makes it difficult to attribute results. Secondly, a principle of EnMS is that firms set internal targets to improve energy performance, but these targets might not be consistent with societal objectives. Finally, EnMS certification issued by external auditors gives approval according to standard but cannot guarantee a desired impact. These and other aspects are analyzed and also proposed to be considered in EnMS evaluation. The methods include literature studies, stakeholder consultations to gather empirical input from practitioners, and quantitative data assessments of energy performance. The main contributions are documented experiences from industrial EnMS implementation in Sweden and based on these a set of considerations to be addressed by policy makers and academics in developing a plan for industrial EnMS evaluation

Free allocation in hte 3rd EU ETS period: assessing two manufacturing sectors

This paper provides an analysis of the EU ETS harmonised benchmark-based allocation procedures by comparing two energy-intensive sectors with activities in three Member States (MS); the cement industry (CEI) and the pulp and paper industry (PPI) in UK, Sweden and France. Results show that the new procedures are better suited for the homogenous CEI, for which allocation is to decrease in a consistent manner. For the heterogeneous PPI – with diverse product portfolios, technical infrastructure and fuel-mixes – the allocation procedures cause dispersed outcomes. The lack of product benchmark curves, biased reference values on fuel-mix and specific energy use as well as other issues, leads to allocations that do not represent the average performance of the 10% most GHG efficient installations. Another issue with the 3rd phase allocation procedure is that grandfathering is still present via the historically based production volumes. How to deal with structural change and provisions regarding capacity reductions and partial cessation is an issue, which is highly relevant for the PPI but less so for the CEI. In manufacturing sectors such as cement industry (CEI) and pulp and paper industry (PPI), the new banchmark-based allocation procedures have managed to reduce the EU-wide free allocation in the 3rd period compared with the 2nd period. For the homogenous CEI the outcome of stricter allocation is consistent between Member States. However, free allocation based on grandfathering of prerecession activity levels and CO2 performances is likely to create long positions in coming years. Our results disclose differing outcomes between sectors and Member States, with cases of conspicuous supply of allowances in the heterogeneous PPI. Lack of product benchmark curves, biased reference values on fuel-mix and specific energy use etc., leads to allocations that do not represent the average performance of the 10% most GHG efficient installations

Energy efficiency in energy-intensive industries - an evaluation of the Swedish voluntary agreement PFE

In this paper we evaluate the Swedish Programme for improving energy efficiency in energy-intensive industries (PFE). Since 2005, some 100 energy-intensive companies have entered this five year voluntary agreement (VA) and been exempted from the EU minimum tax on electricity. In return, each company is required to: conduct an energy audit and analysis; identify and invest in profitable electricity saving measures; implement and certify an energy management system; introduce routines for energy efficient procurement and project planning. For most participants the first programme period was completed in 2009 and available data enables this PFE ex-post evaluation. An impact evaluation compiles and analyse data that the companies have reported to the administrating agency, the Swedish Energy Agency (SEA). This assessment of quantifiable results is complemented by a process-oriented approach that combines studies of policy documents, previous evaluations and personal communication with administrators as well as companies. The bottom-up calculation method distinguishes between gross and net impact. While the SEA estimates a gross impact of 1450 GWh/year the net impact consists of an interval between 689 and 1015 GWh of net annual electricity savings. PFE has effectively and to a low cost exceeded the estimated impact of a minimum tax and can thus be judged as successful. A comprehensive evaluation plan could facilitate relevant data gathering in PFE and similar VAs and could, in doing so, improve accuracy and possibly reduce evaluation cost. Such a plan should give weight also to the organisational changes, with potential long-lasting effects, that these programmes are capable of promoting

National Report on the Energy Efficiency Service Business in Sweden

The ChangeBest project is supported by the Intelligent Energy Europe Programme of the European Commission. The purpose of the project is to promote the development of an energy efficiency service (EES) market. The project provides good practice examples of changes in energy service business, strategies, and supportive policies and measures in the course of the implementation of Directive 2006/32/EC on Energy End-Use Efficiency and Energy Services. This report presents the sitauation of the Swedish energy efficiency service market

Process and impact evaluation of PFE – a Swedish tax rebate program for industrial energy efficiency

Before the minimum tax directive (2003/96/EC) took effect in 2004, Swedish industries had enjoyed untaxed electricity for over a decade. While the introduction of the tax increased costs for many companies, energy intensive industries were eligible for exemption if they entered an agreement on energy efficiency. Sweden quickly implemented the directive and simultaneously launched the Programme for improving energy efficiency in energy-intensive industries (PFE). Since then, over 100 companies have entered the five-year voluntary agreement which requires participants to do energy audits, implement energy management systems and make profitable investments. PFE has been hailed as a major success. Participants cite it in bringing organisation and structure into their energy management activities. Companies and industry associations now advocate for policies of this kind to receive precedence when targeting increased energy efficiency. According to ex-ante estimates PFE has resulted in gross annual electricity savings of at least 1 TWh, equivalent to 3 percent of the total consumption of participating companies. This paper presents an intermediate program evaluation focusing both on the PFE process and impact; it evaluates under what conditions the program meets stated objectives. It is evident that gross and net impact will deviate significantly from the officially reported results. Considering EU energy saving targets, the development of policy for energy efficiency in industry as well as monitoring and evaluation to assess program impacts is becoming increasingly important. This paper contributes to this process through an in-depth understanding of PFE, and more broadly to voluntary agreements of similar kind

Energy management in Swedish pulp and paper industry - the daily grind that matters

The Swedish pulp and paper industry (PPI) accounts for almost 50 percent of industrial final energy use. It is an energy-intensive industry and process optimization is seen as prerequisite to compete on the global market. This alone should motivate company boards and on-site organisations to put energy management high on the agenda. Definitely, from time to time, energy issues (e.g. fuel shifts, selling of generation capacity, and more lately increasing auto-produced electricity) have been managed with respect to combined effects of policies and market forces. Yet, it was first after 2004 that the industry implemented energy management systems (EnMS), with particular focus on energy efficiency, and received certification according to the Swedish and later the European standard. This was required by the Programme for improving energy efficiency in energy-intensive industries (PFE), a five-year voluntary agreement in which some 100 companies reported gross annual electricity savings of 1.45 TWh, equal to 5 percent of base year consumption. This result highlights the potential role of an EnMS in raising awareness and facilitating investments. In this paper we analyse the case of the Swedish PPI; its relation to energy issues in previous periods and the formalised EnMS practices of recent years. We pose the questions: How are standardised EnMS structured and put into practice? What are the measurable effects and other discernible outcomes? The results are based on in-depth interviews with energy management coordinators at eight pulp and paper mills. The experiences with EnMS are found to be predominantly positive. EnMS has changed organisational structures and created greater focus on energy efficiency, which has resulted in quantified energy savings. Considering that EnMS implementation and certification is at a pioneering stage and that the international ISO 50001 standard is currently being developed, these are important results for the future of EnMS in industry

Materials science at Swiss universities of applied sciences

Copyright ©Swiss Chemical Society: CHIMIA, Volume 73, Numbers 7-8, August 2019, pp. 645-655(11)In the Swiss Universities of Applied Sciences, several research institutes are involved in Materials Science, with different approaches and applications fields. A few examples of recent projects from different groups of the University of Applied Sciences and Arts Western Switzerland (HES-SO), the Zurich University of Applied Sciences (ZHAW) and the University of Applied Sciences and Arts Northwestern Switzerland (FHNW) are given