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Good practices of EE policy in Denmark

Karen Marie Pagh NielsenPrincipal Energy Policy Adviser, Ramboll

Complex solutions of Energy and Ecology Problems of enterprises and Municipalities

Yalta, UkraineMay 23-27, 2005

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Overview of presentation

Regulation and normative base for energy efficiency Good practices in Danish municipalities Good practices in industrial enterprises Communication and Energy Information Networks Project ideas for cooperation with Ukraine

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Denmark

5,3 mill inhabitants - 2,4 dwellingsArea 43.000 km23 administrative levels: 20 ministries (central level) 14 counties (regional level) 270 municipalities (local/communal level)

Total energy consumption: 829 PJ (2003)/ 13,6% RESEnergy balance: DK has been net exporter of energy since

1997Energy sector: Oil and gas production from the North Sea,

wind energy industry, CHP, DH …

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Fuel Shares

0%

20%

40%

60%

80%

100%

1980 1990 2002

Oil Natural Gas Coal Renewable Enery

Adjusted

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Danish situation and results

A small country: Quick adaptation to new energy sources

Consumption of energy stable since 1990 Decrease of CO2 emissions since 1990 Decrease of energy consumption/GNP Share of RES: 13,6 % of primary energy supply Wind power: 16 % of electricity supply District Heating in 60% of all private homes More energy efficient domestic appliances (+30% over

10 years)

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50

75

100

125

150

'90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02

BNP in fixed pricesGross energy consumption, adjustedCO2-emissions, adjustedEnergy intensityCO2-intensity

BNP, energy consumption, CO2 -emissions and intensities

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Ukraine – why is energy efficiency important?

At present, energy may be cheap and abundant, but…

Membership of the European Union?

Energy prices will increase (important for industrial production as well as for agriculture and other parts of society)?

Necessary to comply with European legislation and normative base for energy efficiency?

Climat policy. The more energy saved, the more CO2 kvota to sell

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Danish regulation promoting energy efficiency I

Strict building codes and labeling of large buildings and one-family homes. New revised building codes will imply a further 25% reduction of energy consumption.

“The public sector is in front and “shows the way”

Tax system has favored RES and punished CO2 emissions from energy consumption

Energy taxes are paid by the general public, not by industry

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Energy prices for households, 2002

Gasoline regular (Euro per litre) 1.10 (e.tax 48%) Heating gas oil (Euro per litre) 0.75 (e.tax 36%) Natural gas (Euro per Nm3) 0.83 Electricity (Euro per kWh) 0.24 (e.tax 43%)

More figures and information: www.ens.dk

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Danish regulation promoting energy efficiency II

PSO: Public Service Obligations: support of green energy – Public utilities (electricity, gas, district heating) are obliged to inform and guide consumers on energy saving methods

Subsidy schemes as energy saving mechanisms and as a way of supporting the utilization of RES

The energy saving law (2000): The creation of energy saving committees all over the country

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Energy saving in Danish municipalities – good

practices

Registration of energy consumption Benchmarking shows huge differences DEA publishes results and success stories Conference yearly - exchange of experience Nomination of the “energy saving/energy sound

municipality of the year” Creation of the Danish Electricity Saving Trust Labeling of electric appliances and white goods The“A club” for governmental/municipal institutions

(commitment to buy A-labelled appliances) Campaigns: Energy saving in offices and institutions

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Municipalities - lessons learnt An “easy” target group – homogeneous, focal points Benchmarking is a great idea - Competition has been

fruitful DEA has played an important role in creating

transparency and in the exchange of information Important that those who save energy, also get part of

the benefit (for instance in municipal institutions) Perhaps more targeted focus is needed: hospitals,

schools, office buildings Labeling (the “A-club”) has been a success The Electricity Trust has had successful activities and

creative ideas - impressive results A huge potential for saving energy in offices and

institutions

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Industrial enterprises - Good practices over the years

Subsidy schemes - “standard solutions” (energy efficient motors/ventilation/dryers/windows etc.)

Subsidy schemes – RES (biomass, solar heating, heat pumps)

Campaigns to promote energy management Campaigns to promote energy efficient design in industry Annual conference: Energy saving in private enterprises Voluntary agreements for industry to reduce CO2

emissions (large, energy intensive companies) CO2 kvota – New regulation and new commercial market

has started Information material: energy efficient design,

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Industrial enterprise - lessons learnt

Energy expenses is only 3% of production expenses on the average. Therefore the message is often difficult to sell

Go for highly energy intensive companies Distinguish between sub sectors of industry Show and describe shining examples from various sectors Standard solutions (subsidies) were popular! Campaigns shall be targeted and simple (one message/

one process etc. – or too little value for money Voluntary agreements has proven to be a good way in DK

- however, follow up is needed

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Communication and Energy Information Networks

The National Danish Energy Information Centre (free service- energy information, guidance to energy savings, telephone hotline, no commercial interest)

PSO (public service obligation) – utilities’ obligation to inform and guide the consumers in saving energy

Campaigns (standby energy, energy glass and windows, solar heating, natural gas etc.)

Information material and websites (KIS principle)

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The Energy Saving Law

The Energy Saving Law came into force in July 2000

Umbrella for parts of the EU regulation on energy efficiency (labelling etc.)

Shows priority of the topic – signal value

The Law requires energy savings committees to be formed

Utilities (gas, heating and electricity) are born members Municipalities, local administrations and NGOs are

invited to participate. Coordination of utilities’ required energy savings efforts

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Local Energy Saving Committees

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Association of Energy and Environment

Network of energy people sharing ideas on energy saving

Initiated in 1982 by energy people in industry, municipalities and the Ministry

Financed by membership fee and benefit from events 500 members (industry, municipalities, consultants

and housing associations) Organises conferences and seminars (20-25 per year) Publishes a Newsletter (5 x per year) Handbook (Manual) on energy saving in industry,

offices and municipal institutions

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Project ideas for co-operation with Ukraine

Industry: Energy management in energy intensive industry Energy Handbook (Manual on energy efficiency) Energy efficient design

Municipalities: Introduction of key figures and benchmarking Energy lighting in offices and schools Energy Handbook (Manual on energy efficiency) Energy conscious purchasing

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Project ideas for co-operation with Ukraine

Example 1: Energy management in energy intensive industry

The project could include:

Identification and involvement of relevant industries Training of energy managers - in the 5 phases of energy

management: 1. energy policy, 2. Planning 3. Implementation and operation, 4. Monitoring and corrective actions, 5. Management review

Production of information material and manuals Demonstration of energy management – shining examples

(e.g. within food industry, agriculture or other production) Dissemination activities

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Project ideas for co-operation with Ukraine

Example 2: Energy Handbook (Manual on energy saving and processes in industry and municipalities)

The manual could include: Introduction to the principle of energy management Chapters on energy saving techniques: insulation of

buildings, heating, lighting, ventilation, cooling, drying, compressed air, pumps, motors, automation, measuring of energy consumption, office equipment etc.

Key figures for consumption of energy in industry and officebuildings

Useful advice and guidance to energy people and building administrators

Additional literature, links and references

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Project ideas for co-operation with Ukraine

Example 3: Lighting in municipal office buildings and schools

The project could include e.g.: Identification and involvement of relevant buildings,

schools and day-care centres etc. Collection of data – diagnosis – production of key figures Demonstration energy efficient lighting – shining examples

(e.g. in a school, a day-care centre or an office building) Production of information material and lighting manual Production of tools for calculation of saving potential Dissemination activities