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 ten 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 industry and the State to which individual companies have been encouraged to subscribe.

Energy efficiency agreements today account for most of Finland’s energy production, transfer, distribution and industrial end use.

The third round of energy efficiency agreements between Finnish industry and the State was signed in December 2007. The previous round was signed in 1997. The new round will be valid from 2008 to 2016.

Implementation of the energy efficiency agreements will play 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 consumption more efficient by 9 percent by 2016.

Since companies and communities subscribing to energy conservation agreements fulfil 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 conservation 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.

Service sector included in energy efficiency work

The large Finnish industrial energy consumers and a significant number of smaller ones have participated in energy conservation work already for a long time. This focus on energy efficiency is now being systematically introduced among a larger group of companies and new sectors, including retail trade and accommodation and restaurant services. The goal is for as much of industry’s energy consumption as possible to be included in energy efficiency agreements.

The new agreements have been tailored to conform with the unique characteristics of 10 different business sectors, including the food industry, energy services, energy production, the wood refining industry, retail, accommodation and catering, the plastics industry and the technology industry. A separate programme for improving energy efficiency has been drafted for the energy-intensive industry. In addition, there is a general energy efficiency programme for companies operating in other sectors.

An effective way of promoting energy conservation

Energy conservation agreements have proven to be the best practical way of promoting energy efficiency among companies. Finnish companies voluntarily invested over EUR 360 million in energy efficiency during the period 1998-2006. These investments have helped save 5.5 TWh of fuel and 1.5 TWh of electricity each year. Finnish industry consumes annually approximately 45 TWh.

Improving energy efficiency through energy conservation agreements is part of the implementation of Finland’s climate strategy.

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