What prevents organisations from implementing energy saving measures? Case studies of Norwegian public and commercial companies

Hanne Sæle, Pål Næsje, and Øivind Hagen, SINTEF Energy Research
Håvard Nordvik, E-CO Tech

Keywords

Demand Side Management, network planning, end-users, motivation, energy saving, peak load reduction, network tariff

Abstract

The background for this project is analyses conducted in an industrial area with a capacity problem concerning electricity supply. To cope with the problem the network operator, in cooperation with the Norwegian Research Council, executed a project focusing on how to reduce peak loads and energy consumption. Technical and economical analyses of energy efficiency actions were offered to 40 companies and 20 out of these decided to implement the proposed actions.

Two years later, 7 out of these 20 companies had not implemented the suggested actions or the starts were delayed. These cases were analysed based on personal interviews. The goal was to study the reasons for not implementing actions or for the delay. Most analyses of this kind analyse successful implementations. Here, however, the research issue is why organizations choose not to implement solutions that make sense, both economically and technically?

Results suggest that information overload, bad timing, lack of personal address and formal responsibility for the report hindered companies from using the report as a basis for decision-making. Different aspects of financial management systems, such as rigid routines not allowing means for investments and aversion of less predictable costs, also hindered implementation.

Despite these findings several organisations do have interest in energy saving and consumption, personnel that takes responsibility and financial incentives for reducing energy costs. Although the study is based on only a few cases to draw sound conclusions there are indications that, targeting the right organisations, energy efficiency is an interesting alternative to increasing power capacity.