Evaluation of the swedish programme for energy efficiency - successful examples of market transformation through technology procurement

Panel: Panel 2: Incentives and instruments to achive greater

Author:
P.D. Lund, SOLPROS

Abstract

NUTEK runs one of the major energy efficiency programmes in the world based on technology procurement. Recent evaluation of this programme reveals promising results.

The Swedish National Board for Industry and Technology (NUTEK) runs a major energy conservation in Sweden. The programme spans from 1991 to 1998 with an overall budget of ca 950 million kr ($150 million). NUTEK? programme is quite unique in that most of its activities are concentrated on technology procurement compared to the usual more static measures typical for national activities elsewhere.

A major evaluation of the NUTEK? energy efficiency programme was performed in 1996 to find the achieved and future effects of the measures with emphasis on energy effects. Five representative technology procurement projects out of some 30 initiated were chosen for more detailed analyses. These areas represent an energy use of 40 TWh/yr in Sweden and the estimated market potential is 13 TWh/yr.

The major result of the evaluation is that after 5 years of work NUTEK? programme on energy efficiency has accomplished a series of major achievements: in average the procured technologies are 30% more energy efficient than prevailing products, the sales volumes are increasing and some learning effects have already been captured, the unit-costs of some technologies are decreasing, etc. The projects have been economically justified. The major factor for success lies in understanding the market.

The five procurement projects have captured about 1% of their market potential which corresponds quite well to the penetration rate of industrial products in general. By the end of the 90? this may increase to around 10%.