2 Helgesen 2012-09-12 Enova ECEEE 1-115-12.pptx

Lessons Learnt from 10 years
of Industry Energy Efficiency
Program Management
eceee Industrial Summer Study 2012-09-12
Per Ivar Helgesen, Enova SF
Marit Sandbakk, Enova SF
Enova SF
Norwegian national energy agency, est.
2001
Vision:
An energy-efficient
and renewable
Norway
Enova SF
Owned by Ministry of Petroleum and Energy
Financed by the Energy Fund
Quantified energy targets Freedom in program design
60 employees, located in Trondheim
Our main tool
Investment support
-  We support new solutions that can
become competitive
-  Give an extra push, and lower the risk
by providing support early
-  Concern: Applicants have incentives to
overstate their goals and costs in order
to maximise the financial support
Granting support – to which projects?
Ex post impact evaluation
A project profile
Start
Finish
Operational
Research questions
1) Do energy efficiency projects in Industry deliver
what they promise?
2) How soon can we know?
The time span for industrial energy
efficiency programs is long
The figure is based on
observed cancellation
and completion rates for
supported projects since
2002.
n=337
•  Many projects are still cancelled after 4 years
- but have rarely received any monetary support
•  Most projects last 5 years or more
à Administrative follow-up is necessary!
The promise
n=24
The whole picture
n=337
How soon can we know?
n=24
Comparison
Industry
Renewable
heating
Buildings
Industry projects perform well!
•  Lower support levels (cost/benefit)
•  Comparable cancellation rates
•  Deliver the expected results
•  Smaller fluctuations
Industry projects perform well
+8%
+15%
+8%
The projects
Pulp and paper (waste heat recovery)
Pulp and paper (portfolio of subprojects)
Pulp and paper (waste heat recovery)
Metallurgic industry (portfolio of subprojects)
Pulp and paper
Metallurgic industry (portfolio of subprojects)
Food industry (isolation and rehabilitation of evaporators)
cost/benefit ratio
The support level has been increasing
•  The lowest hanging fruits may have been taken
•  The importance of barriers may change over time
1.
Lack of external
infratructure
Total
potential
100 %
27 TWh
11 TWh
2.
Immature technology
3.
Lack of economic
interest
56%
47%
2,4TWh
6,9TWh
4.
Limited funding
22%
5.
Lack of
consciousness
and expertise
19%
0,8TWh
5,1 TWh
Enova Industry
Investment
aid for
infrastructure
Aid for
qualifying new
technologies
Developing technology
Investment aid
Developing markets
Energy management
Benchmarking
Analysis
Advisory services
Cooperation
Change of behaviour
Lessons learnt
• 
• 
• 
• 
• 
• 
• 
Do Industry projects reach their commitments?
Yes – they seem to over perform by 15%
Are project completion estimates more accurate than initial ex ante
estimates?
Yes, they are close to ex post results, and not overly optimistic
How much do we lose in cancellations?
25% of the energy results - but we retain the money
Are energy results definitive?
No - they will fluctuate, and it is natural to expect +/- 10%
How do Industry projects deliver compared with other areas?
Very well
Do we get quick results?
No, many projects need more than 5 years to complete
Are the benefits easy to trigger?
The support level needed to trigger projects is increasing, we
need to address the relevant barriers
Thank you for your attention!