Energy efficiency

Energy efficiency has been systematically improved Energy efficiency refers to the production of products or services with the minimal use of energy. Energy efficiency has been systematically improved in Finland for years, especially within industry.

Energy efficiency also includes the efficient production of energy. The efficiency of electricity production in Finland is high compared with other countries. This efficiency is based primarily on the large share of combined heat and power (CHP) production: approximately one third of electricity is produced in CHP plants. These plants are used broadly by industry and for district heating.

Over 15 years of voluntary energy efficiency agreements

The energy efficiency of individual companies has been improved since the late-1990s by voluntary energy efficiency agreements. These are based on a framework agreement between Finnish business sector and the State to which individual companies have subscribed.

Energy efficiency agreement 2008-2016 accounts for most of Finland’s energy use, production, transfer, distribution and retail:

-	energy intensive industry as an own group
-	medium size industry: food and drink, chemical, plastic, wood product and technology and general
-	private services: commerce, hotel and restaurant, motor trades and repairs and general
-	energy: production and services

Implementation of the energy efficiency agreements have played a central role in the national implementation of the EU Energy Services Directive. This directive applies to companies that are not part of the emissions trading scheme. The goal is to make their energy use 9 per cent more efficient by 2016.

Since companies and communities subscribing to energy efficiency agreements fulfill their commitments through these agreements, no other mechanisms are needed to monitor their operations.

Companies subscribing to the agreements undertake to carry out energy audits or analyses in their own properties and production plants, to draw up an energy efficiency plan, and to implement cost-effective conservation measures. In addition, subscribing companies undertake to monitor energy efficiency continuously and to introduce energy-efficient technologies wherever possible.

An effective way of promoting energy efficiency

Energy efficiency agreements have proven to be the best practical way of promoting energy efficiency among companies. Finnish companies voluntarily invested over EUR 283 million in energy efficiency during the period 2008-2011. These investments have helped save cumulatively 5.3 TWh/a of fuel, heat and electricity.