1

Netherlands Energy Efficiency Programme Over 20 years of experience with Voluntary Agreements on

energy efficiency in Industry!

2

Overview

LTA’s as a successful approach in Industry in the Netherlands

Energy Management as the basis of LTA

Support for LTA companies, sectors and authorities

International cooperation on setting up LTA’s

3

20 years experience with Long Term Agreements in the Netherlands!

Current Long Term Agreements (LTA 3 and LEE): Negotiated voluntary agreement between: Sector

Organizations, Ministries, and Competent Authorities About 1100 companies: +/- 900 PJ (70%) of industrial

energy consumption LTA 3: 950 companies, +/- 170 PJ LEE (Long Term Agreements Energy Efficiency for ETS

Enterprises): 150 companies, +/- 740 PJ (1,5 up to 65 PJ per company)

“Voluntary but not without obligations”

4

LTA 1: A new (collaborative) approachRationaleGovernment was looking for effective ways to reach energy goals!Managing energy efficiency is not only about technical measures but more importantly about behaviour and innovative thinking!To accomplish this there is a need fore involvement, enthusiasm and co-operation with industry!

Setting Voluntary Agreements (VA)Freedom of operation for industry but strong focus on resultsRealistic target setting by identifying energy efficiency improvement potential (EPS)Agreements with sectors:

One contact point Similar companies can learn form each other

5

LTA 1: A new (collaborative) approachIncentives Freedom of operationGovernmental support

Energy Potential Studies Energy saving projects support

Obligations Making Energy Efficiency Plans (currently with 2%/a ambition) Monitoring progress (results!)

Safety net Exclusion from agreement and enforcing energy saving measures with pay

back time < 5 years (environmental act)

“Voluntary but not without obligations”

6

Evolution LTA’s over the years

LTA 1 (1992-2000): Focus on Process Efficiency (inside company) Processes, utilities, buildings and good housekeeping

LTA 2 (2001-2012): Focus shifts to Life Cycle Efficiency Obligation to implement Energy Management Sustainable Energy (generation on-site and purchasing) Life Cycle Efficiency (recycling production ‘waste’, transport) Energy Efficient Product Design (savings in users phase)

LTA 3 (2009-2020): Focus on the long term → Sector Road Maps What is needed to remain competitive (and energy efficient) in the

year 2030?

SuppliersCustomer

s

SocietyIndustry

7

Long Term Agreements remain effective!

Energy Efficiency improvement for:

non LTA organisations: Autonomously: 0.7 % Policy driven: 0.3 % Total: 1.0 %

LTA organisations (2001-2008): Total average: 2.4 %

“30 % over 15 years”

8 05/03/23 8

Road map: Metalurgic Industry and Foundries

Total expected savings in 2030: 132 PJ (64 %) Process 32 PJ Chain 60 PJ Sustainable energy 40 PJ

Improvement projectsUlcos/ Hisarna (steel furnace)15% energy efficiency50% CO2 reduction

Low Pressure Sand Casting 30% energy efficiency20% material savings

Potentials up to 2030

9 05/03/23 9

Road map: Diary Industry

Total expected savings in 2030: 28,9 PJ (120 % = E-neutral) Process efficiency 0,2 PJ Sustainable energy 28,7 PJ

Solar (PV) 1,6 PJ Wind 9,3 PJ Biogas 17,9 PJ

“Milk the Green Engine”

Potentials up to 2030

10

Important role of Energy Management

LTA

Energy Management integrates all and guarantees continuous improvement

EnergyEfficiencyPlan (every 4 years)

EnergyManagement

Monitoring(every year)

Plan

CheckAct

Do

11

Successes with energy managementDAF Trucks (Paccar company): In 2009 25% efficiency improvements referred to 2008 Success EnMS: detailed monitoring system and management

commitment

Douwe Egberts 2-5% efficiency improvement every year, 15-40% efficiency

improvement the coming 4 years expected Success EnMS: awareness, communication (success), energy

efficient design (investment proposal evaluated by energy manager)

Paper sector: 11,4 % efficiency improvement over 2010 Succes EnMS: Structural attention (Can we do with less?)

12

NL Agency supports on several levels!

Industry wide (NL Agency): Fiscal instruments: Energy Investment Deduction Knowledge development: Stimulation Sustainable Energy

Generation, Energy Research Strategy a.o. Networks and Platforms: Technologies, Sustainable Product

Chains, ESCO’s, Automotive a.o.

Sector specific (LTA): Sector roadmaps: “What is needed up to 2030?” Long Term Sector Plans: Four year sector ambitions

13

NL Agency supports on enterprise levelGeneric: Making energy efficiency plans Energy monitoring Implementation Energy Management:

Working groups, website, linking with ISO 14001 and ISO 9001

Specific: Energy Potential Scan (Energy Audit): Utility and Building scans Working groups…

14

Institutional framework LTA’s Agreement between ministries and industries:Negotiated voluntary agreement between: Sector Organizations, Ministries, and Competent Authorities

Environmental Law:LTA’s fill in the obligations on energy from the Environmental Law (in close consultation with competent authorities) Safety net: Enforcing energy saving opportunities as defined in Environmental Law (all measures with a

pay back time < 5 years)

Role NL Agency:Implementing organization for ministry programmes and regulation: LTA’s, financial incentives (ministry finance), subsidies etc.Dedicated LTA team to support enterprises and sectors in order to reach the LTA objectives

15

Contribution sector associations and enterprises

Role sector associations: Intermediate between enterprises and government Report annually on sector progress Initiate sector initiatives (projects and ‘peer to peer’ working groups) Communication to associations members on energy efficiency issues

Role enterprises: Implement an EnMS (Dutch Specifications ≈ EN16001/ISO 50001) Formulate an Energy Conservation Plan (ECP) Implement energy conservation opportunities from (ECP) Report annually progress in energy performance

16 16

International CooperationInternational projects: BESS-project (www.bess-project.info): Implementation of 'energy

management' and 'benchmarking' to increase energy efficiency of SME’s;

LTA-uptake (www.ltauptake.eu) : Facilitating governments and sector organisations in setting up and implementing LTA’s

Facilitating in setting up LTA’s in several countries: Bulgaria, Romania, Ukraine, Poland, Czech Republic, China, Chile Main focus on suitable instruments (form LTA programme) and

training of consultants and (local) government

17

Pilot action: Implementation VA between local governments and industries 14 Industrial Companies using 60% of local industrial energy

Objectives and targets: 3-5% energy savings annually (18 PJ in 2009) Negotiation of targets by using EPS methodology Double capacity building

Results: At least 25 PJ/a energy savings

www.va-china.com

Successes with LTA’s in China

18 18

Conclusions 20 years of good experiences wit LTA’s in the Netherlands

despite of scepticism in the beginning 70 % of industrial energy use is covered by LTA’s 2.4 % energy efficiency improvement annually

Successful dissemination of LTA approach and instruments

Implementations of LTA’s in different countries

Broad spectrum of knowledge, experience and instruments are available for use!

19

For any questions please contact:

NL AgencyRonald Vermeeren

Ronald.Vermeeren@agentschapnl.nl or +31 (0)88 602 2658