Energy efficiency_ Industry

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					Energy efficiency: Industry
1. Introduction The climate is one of the main concerns of the Province of Limburg’s policy. In addition to renewable sources of energy, such as wind energy, bio-energy and solar energy, energy efficiency is the second foundation of the Province’s policy. One important point of attention when it comes to energy savings and energy efficiency is industry. Figure 1 shows that industry is the largest consumer of energy in the Province of Limburg. Without knowing the precise share that they consume, the companies for which the Province acts as the competent authority with respect to environmental permits are those that consume the largest amount of energy.

National and Limburg-based distribution of CO2 emissions by target group (1995)


50 40 30

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2. Objective The Provincial Environment Plan for Limburg (POL) indicates the main points of the Province’s climate policy. It wishes to make a maximum effort towards achieving the national objective of reducing CO2 emissions by 6% in 2010 compared with 1990 through energy savings and energy efficiency. 3. Measures In order for us to achieve our objectives, these companies will need to introduce energy-saving measures. Various instruments will be applied, depending on the extent to which companies consume energy. 1 Benchmark Energy Efficiency Covenant, for large-scale consumers (minimum consumption of 0.5 3 PJ (peta joule)  15.8 million m of natural gas equivalents) 2 Long-range agreements (LRA) 2, for average consumers ( consumption between 0.1 PJ and 0.5 3 PJ  between 3.2 and 15.8 million m of natural gas equivalents) 3 permits granted on the basis of the Environmental Management Act (Wet milieubeheer) for all other companies. The first two are covenants concluded with the national government, other provinces, sectors of industry and individual companies. They are agreements under private law effective until 2012. Energy efficiency can be improved by consuming less energy, but also by improving the efficiency of the production process or using waste products. It is important for companies to improve energy efficiency in order to gain competitive advantages. This why they are generally not eager to share this information. Nevertheless, the LRAs in particular have resulted in close partnerships in the various sectors, encouraging companies to share what they know about efficiency improvements. Some examples are:  Reducing the percentage of waste in paper manufacturing.  Applying combined heat and power (local generation of electricity, using the waste heat in the production process).  Reusing waste heat in the production process or supplying it to homes/companies in the vicinity.  Making logistical adjustments so that stocks are smaller (less need to heat up or refrigerate goods) and do not need to be moved as often (transport energy).  Fermenting overstock/waste and use the gases so released as a fuel in the production process (for example in the foodstuffs industry).  Using waste products to replace a raw material, which requires less energy (e.g. glass remainders in the glass industry)


1 Benchmark Energy Efficiency Covenant The major energy-consuming companies in Limburg have entered into a national covenant (concluded between the Ministry of Economic Affairs and of Housing, Spatial Planning and the Environment, the Association of Provincial Authorities and companies), thereby committing themselves to belong to the world leaders in the field of energy efficiency by 2012 at the latest.

In return, the competent authorities will do everything they can to take the approved energy efficiency plan (EEP) into account when granting permits, and will refrain from setting any additional CO 2 criteria or energy requirements in such permits. The draft EEPs show that the companies’ CO2 emissions (14 in all in Limburg) will come to 698,000 tonnes of CO2 by 2012. This represents an efficiency improvement of approx. 8%. Problems  The national covenant will come under pressure in the period ahead owing to the intended introduction of CO2 emissions trading and an eco tax in the EU. From 2005 onwards, all major energy-consuming companies will be allotted CO2 emission rights. Depending on their CO2 emissions, they will be able to sell or buy rights. The ministries of Economic Affairs and Housing, Spatial Planning and the Environment have indicated that this is the instrument they intend to use to achieve the share of CO2 emission produced by major industry as set out in the Kyoto aims (a 6% reduction for the Netherlands). The current instruments, for example energy specifications in environmental legislation and the Benchmarking Energy Efficiency Covenant, are not complementary to this instrument.  Trade and industry wishes to retain the covenant in its present form, partly because the relevant companies are exempted from having to pay an eco tax on electricity. At the level of the individual company, moreover, the trade in CO2 emissions concerns only CO2 emissions within the establishment and not the purchase of electricity and heat/power. 2 Long-range agreements on energy (LRAs) Average energy consuming companies may enter into the LRA-2 covenant voluntarily, committing themselves to take energy-efficiency measures by doing so. As from 2004, they must also have an energy care system and be considering other themes, for example energy efficiency outside the company’s gates (restricting the amount of transport, sustainable/energy-efficient products, reducing waste, energy savings in the production chain). This approach to energy efficiency is entirely new for companies. We will therefore have to pay close attention and bring a great deal of knowledge to bear on producing relevant themes. The corporate energy plans (CEPs) drawn up within the context of the LRAs serve as a point of departure for including energy specifications in environmental permits.


Until now, 16 (provincial) companies have signed the covenant. It is estimated that 20 companies will join the LRA-2.The Province is assisted by The Netherlands Agency for Energy and the Environment (NOVEM) in implementing the LRA covenant. 3 Granting permits under the Environmental Management Act All companies that do not participate in the Benchmark Energy Efficiency Covenant or in LRA-2 will follow the permit procedure prescribed under the Environmental Management Act (Wet milieubeheer). Depending on how much energy they consume, these companies will be obliged to make efforts to reduce their energy consumption level. 3 What it comes down to is that companies that consume more than 25000 m of natural gas or 50,000 kWh of electricity must submit a corporate energy plan to the competent authority for approval. They are furthermore basically obliged to apply any efficiency measures possible (with a yield time of <= 5 years). Every year, the competent authority must receive a report form the company concerned in which it provides the relevant energy data. 3 The permits of companies that consume less than 25000 m of natural gas and 50000 kWh of electricity will contain no further energy stipulations. The competent authority may consider subjecting them to a limited monitoring obligation or requiring them to formulate their own policy in which they commit themselves to making a minor effort to save energy. 4. Information Province of Limburg, Urban Living Environment Department, J. Pijpers tel +31 43 3897431- e-mail