The cost-effectiveness of voluntary energy efficiency programs

Henriksson, Eva; Söderholm, Patrik

doi:10.1016/j.esd.2009.08.005

Cited by 29 publications

(9 citation statements)

References 15 publications

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“…Hence, in absolute numbers, PFE comprise most of the saving potential. It is possible though, as pointed out by Henriksson and Söderholm (2009), that PFE components like EnMS could do a better job in detecting costeffective energy efficiency improvement measures among the 1150 non-participating companies, since these can be assumed to lack prior experience in energy management compared to the really energy-intensive companies. In practice, the administrative cost of having a full scale EnMS constitutes a barrier for these companies often being SMEs with lower energy cost shares (Sjögren et al, 2007).…”

Section: Eligibility and Programme Coveragementioning

confidence: 99%

“…The general energy tax on fuels is set at zero for manufacturing processes and the carbon tax on fossil fuel use is significantly reduced for energy-intensive industries. Since fossil CO 2 emissions from many of these facilities are controlled under the EU-ETS cap and trade, further policy interference would be futile in terms of short-term emission reductions (Henriksson and Söderholm, 2009). Also industrial electricity consumption was untaxed for many years but in 2004 this received criticism from the European Commission for being incompatible with the common market (EC, 2004).…”

Section: Policy Making For Industrial Electricity Efficiencymentioning

confidence: 99%

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

Stenqvist

Nilsson

2011

Energy Efficiency

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In this paper we evaluate the Swedish Programme for improving energy efficiency in energyintensive 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.

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Section: Eligibility and Programme Coveragementioning

confidence: 99%

Section: Policy Making For Industrial Electricity Efficiencymentioning

confidence: 99%

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

Stenqvist

Nilsson

2011

Energy Efficiency

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“…According to [65], the possibility to trade with renewable electricity certificates has introduced a new source of income for some PPI companies. Additionally, electricity demand in the Swedish PPI industry changed in response to the voluntary Swedish programme for EE (PFE), which grants tax exemptions if the participating firms implement energy-efficiency measures suggested by an energy audit [66]. Empirical results showed that electricity use in the PPI in Sweden was somewhat price insensitive, and the electricity savings that were self-reported as a result of the voluntary PFE programme indicated the presence of information asymmetries at the company level.…”

Section: Implementation Of Energy Efficiency Via Policy Instrumentsmentioning

confidence: 99%

Drivers, Barriers, and Success Factors for Improving Energy Management in the Pulp and Paper Industry

2018

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Successful energy management is a way to achieve energy efficiency in the pulp and paper industry (PPI), which is important for assuring energy supply security, for increasing economic competitiveness, and for mitigating greenhouse gases. However, research shows that although energy use within PPI can be reduced by 5.5-19.4% per year, some of this by energy management practices, energy management is not always implemented. Why is this so? What are the barriers to, and drivers of implementation? How can the barriers be overcome? A systematic review of barriers and drivers in energy management in the PPI within peer-reviewed scientific articles suggests that the world-wide events that affect energy supply, volatility, and use seemingly also affect the number and frequency of research articles on energy management in the PPI. The perception of energy management in the PPI seems to be dominated by the understanding that it can mostly be achieved through technological improvements aiming to improve energy efficiency. The main driver of energy management was shown to be economic conditions: high and unstable energy prices, followed by drivers such as the need to remain internationally competitive, collaboration and energy management systems. Meanwhile, examples of the most important barriers are technical risks, lack of access to capital, lack of time and other priorities, and slim organization. The success factors for enhancing drivers and overcoming barriers were continuous energy accounting, energy-related collaboration, energy-efficiency programmes, and benchmarking. Altogether, success factors for energy management for improved energy efficiency could be summarized in the 4M framework-the "4M for energy efficiency": mind, measure, monitor, and manage-that could be used as the energy management memory-tool that could lead to improved energy efficiency in other sectors as well.

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“…However, the current set-up of PFE induces the reverse situation, stimulating participation mainly among companies that have a high electricity cost share and therefore have faced considerable incentives in the past to lower electricity use [6].…”

Section: A the Voluntary Energy Efficiency Program Pfementioning

confidence: 99%

“…In return they have had to introduce and obtain certification for a standardized energy management system and carry out an energy audit. The latter has been done to identify specific energy efficiency measures to be implemented in subsequent years as long as these have a pay-back time of less than three years [6]. Participation is voluntary, but the program has only been open for energy-intensive companies (i.e., implying that the cost of energy in the company amounts to at least 3 percent of the value of the output).…”

Section: Energy Efficiency and Environmental Performance In The Pmentioning

confidence: 99%

Energy efficient and low-carbon technology in process industries: Innovation, diffusion and the role of public policy

Mansikkasalo

Söderholm

2012

2012 9th International Conference on the European Energy Market

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Abstract--This paper addresses the role of public policy in influencing technological innovation and diffusion in the energyintensive process industries (e.g., pulp and paper, iron and steel etc.). We highlight in particular technologies that either reduce the industry's energy use or imply lower process emissions of carbon dioxide. This research scope is motivated due both to its societal relevance and the fact that it raises a number of important scientific challenges and controversies. Specifically, the paper discusses the role of two different theoretical perspectives for orienting the analysis of issues in technology policy: the neoclassical and the evolutionary approaches. The overall objectives of the paper are to: (a) provide a conceptual comparison of these theoretical approaches and their implications for the role and the design of policy intervention; and (b) discuss some relevant implications for spurring innovation processes by examining the experiences of two existing policies and one future technological challenge (CCS) in the Swedish process industries.

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The cost-effectiveness of voluntary energy efficiency programs

Abstract: Financial support from the Swedish Energy Agency (AES program) is gratefully acknowledged as are valuable comments from Staffan Jacobsson on earlier drafts of this work. Any remaining errors, however, reside solely with the authors.

Cited by 29 publications

References 15 publications

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

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

Drivers, Barriers, and Success Factors for Improving Energy Management in the Pulp and Paper Industry

Energy efficient and low-carbon technology in process industries: Innovation, diffusion and the role of public policy

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