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A Swedish success story: How to get astonishing results in energy efficiency due to implementation of a long term agreement with energy intensive industry

Panel: 3. Energy use in industry: The road from policy to action

This is a peer-reviewed paper.

Authors:
Karolina Petersson, Swedish Energy Agency, Sweden
Thomas Björkman, Swedish Energy Agency, Sweden
Johanna Moberg, Swedish Energy Agency, Sweden
Eva Albäck, Swedish Energy Agency, Sweden

Abstract

The Swedish long term agreement (LTA) for energy efficiency for energy intensive industries (PFE) gives energy-intensive companies the opportunity to obtain tax exemption on electricity use, in line with the EU Tax Directive. In return the companies commit themselves to several actions in order to improve their energy efficiency.

More than 100 companies from e.g. pulp and paper industry, wood product, chemical, food and beverages, steel, iron and metallurgy, ore and mining joined the programme in 2004-2005. During the autumn 2009, these companies presented their final reports on their energy efficiency improvements. The companies have thoroughly gone through their use of electricity, fuels and heat, and found and carried out measures for energy efficiency. The reported results and figures were above all expectations – about three times more electricity than expected had been saved. The major success factors have been the systematic work outlined by the energy management system, starting from the thorough energy review, as well as the enhanced status of the energy efficiency issue and the network meetings among the participants.

During the five year programme, the companies have increased their energy efficiency by 1.45 TWh - and this on electricity alone! Furthermore the participants have:

• invested 708 MSEK (appr. Euro 70 Million) in more than 1200 electricity efficiency measures,

• carried out more than 350 other measures in order to increase their energy performance, e.g. converted energy use from fossils to renewables, increased production of electricity (appr. 1 TWh) and increased delivery of surplus heat to external parties,

• implemented and certified standardized energy management systems.

This paper presents the PFE-programme and the participating companies as well as the results from the final reports together with lessons learned from the use of this policy program.

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