Improving energy efficiency
Lower energy consumption is an important step towards a sustainable energy system in Sweden.
ENERGY AWARENESS. The energy use in Swedish industry represents almost 40 percent of the country’s total energy consumption. An EU programme is encouraging energy efficiency, and companies report on large energy savings. (Photo: Stockxpert)
As a step towards a sustainable energy system, the Swedish government launched its Programme for Improving Energy Efficiency (PFE) in 2005 in conjunction with energy-intensive industry. By receiving a tax exemption at the same time as reduced electricity costs, the participating companies are able to reap multiple benefits.
Tax directive
The energy use in Swedish industry represents almost 40 percent of the country’s total energy consumption. In order for Sweden to reach its ambitious climate goals and develop an economically and ecologically sustainable energy system, one important step is to lower this consumption. Therefore, and against the background of the rules for taxing this industry no longer approved under EU regulations, the Swedish government in 2004 introduced PFE. The new tax directive from EU meant setting a minimum tax level of 0.5 euro/MWH on electricity. The introduction of the PFE was a way of compensating for this tax.
5-year programme
In January 2005 the Programme for Improving Energy Efficiency (PFE), a long term agreement between the Swedish government and the energy intensive industry, was launched, lead by the Swedish Energy Agency. In addition to the direct savings through reductions in electricity cost, companies participating in the 5-year programme could also receive a tax exemption, provided that they took specific steps to improve their energy performance and carry out measures intended to improve their efficiency in electricity use. By the end of 2006, the PFE had attracted 117 industrial companies accounting for about 30 TWh of electricity consumption, or about one fifth of Sweden’s total electricity consumption. The pulp and paper industry, sawmills, chemicals, foodstuffs, steel and mining industries are those most strongly represented in the programme.
Large savings
During the first two years of the programme the companies carried out extensive audits and analyses of their energy use, and introduced and certified energy management systems. In addition, they undertook to improve their efficiency in electricity use by enough to save 1 TWh of electricity per year, for a total investment cost of over SEK 1000 million which is about 95 million euros. Two years after the launch of programme almost 100 of the companies involved submitted their first promising reports to the Swedish Energy Agency.
Now, in September 2009, the first 5 year programme period has almost come to an end. A second period will be launched at the turn of the year, and the majority of the participating companies are to deliver their final reports. Indicators show large savings have been made, both in the use of electricity and of other energy sources.
Increased energy awareness
As both the Swedish Energy Agency and the industry note, the most important results might not be the efficiency improvements measures as such, but the fact that the companies have now started a continuous process of energy efficiency improvement. Energy awareness now occupies a prominent position among both company management and employees. In a wider perspective, the programme therefore also has beneficial effects in other sectors, including regional development and an improved environment.
