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IEA Offers Guidance on Industrial Energy Management Policies

Greater efficiency in the industrial sector is a major step towards improved energy security as well as reduced greenhouse gas emissions, according to a new report that offers a step-by-step guide to implementing energy management policies for industry.

Jointly developed by the International Energy Agency (IEA) and the Institute for Industrial Productivity (IIP), Energy Management Programs for Industry uses lessons learned from these programs to present a 10-step implementation guide for policy makers as they move from planning to implementation, then monitoring and finally an overall evaluation.

The 10 steps are:

  • Define the program role in the policy framework.
  • Design the program.
  • Develop the action plan and secure resources.
  • Provide institutional assistance.
  • Promote the program and recognize achievements.
  • Establish what to measure and how.
  • Assess compliance.
  • Communicate results and outcomes.
  • Determine what to evaluate and how.
  • Revise and adapt the program.

The report is the fourth in the “policy pathways” series on how countries can achieve the IEA’s 25 Energy Efficiency Policy Recommendations. The IEA says the report’s diverse approaches fit the different frameworks and objectives of individual countries and industrial sectors.

The IEA also provided in-depth case studies that it says show the importance of stakeholder consultation, pilot projects and evaluation. In Sweden, for example, small incentives have led to big energy savings. In 2004, in line with the EU tax directive, the country placed a tax on industrial energy use. A year later, to boost Swedish industry, the Swedish Energy Agency established a program for improving energy efficiency—and participating companies received a tax rebate.

More than 100 companies, with 240 separate production sites, participated in the first five years, which saw even more energy savings than government officials had expected. Instead of the expected annual electricity savings of 0.5 TWh, participating companies reported gross annual savings of 1.45TWh; plus they invested about EUR 70 million in more than 1,200 efficiency measures. Savings from the tax exemption equals EUR 15 million per year, and the reported electricity savings have an annual value of around EUR 70 million, according to the report.

Bo Diczfalusy, director of sustainable energy policy and technology at the IEA, says by 2030, industry could cut energy use by the equivalent of the current annual electricity consumption of the United States and China combined.

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