Long term agreements on energy efficiency in industry

Panel: Panel 3: Energy Efficiency options for industry

Author:
Wil C. Nuijen, Netherlands Agency for Energy and the Environment (Novem)

Abstract

Over the past years a particular version of Voluntary Agreements has been developed in the Netherlands. These agreements focus on energy efficiency: ?Long Term Agreements on Energy Efficiency? (LTA?s) and are strictly monitored.

This type of agreement was first applied in sectors of industry. Later on it also found its way to services and commercial sectors.

LTA?s are primarily agreements between the government (Ministry of Economic Affairs) and representatives from economic sectors. The process to come to an LTA usually takes a few years. Once it is effective, it puts energy efficiency into focus in many individual companies. A variety of activities are undertaken to improve the sector?s energy efficiency. As LTA?s focus on particular sectors, they are (in content) highly dedicated to the characteristics of the sectors.

In this program different parties agree to pursue the same tartget, although their primary motives may be different. Government primarily aims for an emission reduction of carbon-dioxide, while industry primarily is driven by cost benefits and the expectation that future regulation can be prevented by active participation. Currently, about 90% of industrial energy consumption is covered by LTA?s.

An intensive monitoring process assures that achievements are made visible. From this monitoring we see that in the year 1995 the energy efficiency improved by 10%, with respect to the reference year 1989. This meets the expectations of the program.

In the year 2000, annual savings of about 1500 million Guilders for the Dutch industry are anticipated. This implies that the Dutch industry improves its performance compared with international competition. The LTA?s offer a framework that also looks promising to be continued after expiration of the first target-year (2000).