Germany

GE-9:30 Pilot Network Project

Policy Description

The Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU) supports in the period 2009-2013, 30 energy efficiency and climate networks as part of its Climate Protection Campaign. Each network brings 10 to 15 companies together under the auspices of a network initiator. The network initiator often is the local or regional Chamber of Commerce, the local municipality or utility, or a regional industrial platform, energy agency or trade association. Up to one third of the costs incurred for the operation of the network is funded by the government in the first years of the network. Applications are open to companies with annual energy costs between € 150,000 and € 50 million.

Description

The Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU) supports in the period 2009-2013, 30 energy efficiency and climate networks as part of its Climate Protection Campaign. Each network brings 10 to 15 companies together under the auspices of a network initiator. The network initiator often is the local or regional Chamber of Commerce, the local municipality or utility, or a regional industrial platform, energy agency or trade association. Up to one third of the costs incurred for the operation of the network is funded by the government in the first years of the network. Applications are open to companies with annual energy costs between € 150,000 and € 50 million. Fraunhofer ISI, Germany’s publicly funded innovation research institute, coordinates the program.

The main aim of the networks is to increase energy efficiency in business. This is facilitated by a regular exchange of experiences among the energy managers of the participating companies. These meetings are initiated by the network initiator and supported by software-based techno-economic calculation tools for participants’ consultant engineers. This allows to considerably reduce the transaction costs of the companies involved and at the same time increases the effectiveness and efficiency of the advice offered.

The 30 pilot networks project builds on the experiences gained through successfully implemented demonstration projects. The main aims of the project are to implement 30 of such energy efficiency networks as well as to improve the existing LEEN (Local Energy Efficiency Networks) - the network management system that operate the networks at a high quality standard. In March 2012, 27 networks were in operation. [1], [2], [3], [4]

The major components of each network follow a common underlying framework [3]:

  • An initial consultation of each participating company by Fraunhofer Isi or one of its consortium partners.
  • Informing all participating energy managers of new and reliable efficiency technologies, discussing advantages and limitations, identifying risks and co-benefits.
  • The exchange of experience leads to lower transaction costs of companies within the networks.
  • The exchange of experience among companies of different sizes and types or levels expertise leads to new ideas of how to handle energy efficiency investments and organisational measures within the companies.
  • The framework integrates social and individual psychology concepts such as social acceptance of knowledgeable energy managers, motivation to contribute to joint targets in a group, professional career enhancement and motivation of management to achieve high public reputation as a company striving for a sustainable production status.
  • Participating companies agree on a common CO2 reduction target and an energy efficiency target for three or four years
  • Participants pay two-thirds of the costs for the network themselves as well as any costs beyond the eligible government funding.

Policy Information Expand this section for information on the key features of the policy, such as its date of introduction, categorization, main objective(s) and linkages with other policies.

Policy Categorisation

Policy Instrument Type: Information & Outreach

Position in the Pyramid

About Us

Participation: Voluntary

Period

Start Date: 2009

End Date: 2013

Policy Linkages

Supported By KfW Environmental and Energy Efficiency Programmes (formally ERP) Supporting Measure
Supported By BMU environmental innovation programme Supporting Measure
Supported By Partnership for Climate Protection and Energy Supporting Measure

Agencies Responsible

Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU)

Primary Objective: Energy

Objective

­Increase energy efficiency in business

Target Group

Medium-sized business

Driver of energy consumption or emissions affected by policy: Total energy use / Specific energy / knowledge levels / technology implementation rate

Implementation Information Expand this section for information on targets, monitoring, verification and enforcement regimes, and implementation requirements and tools.

Coverage

No information available

Quantitative Target? yes

Target: Aim of the project is to double the “autonomous” (BAU) energy saving in medium-sized companies from one to two percent per year. (*2)

Progress Monitored? yes

Verification Required? no

Enforced? no

Sanctions: None

Requirements on the Target Group

  • Applicants must submit a participation agreement secured by at least 10 companies who agree with the specific set-up of the network
  • The participating companies have annual energy costs between  € 150,000 and € 50 million for the years 2007, 2008 or 2009
  • The companies involved agree on a common CO2 reduction target and an energy efficiency target for three or four years.
  • The companies accept that annual monitoring is conducted by Fraunhofer ISI
  • The network moderators and consulting engineers must successfully complete their LEEN training

Support by Government

  • Overall project coordination
  • Funding up to one third of the costs incurred for the operation in the first years of the network.
  • The LEEN management system (see implementation toolbox), intended to offer several elements included in the European Norm 16001 for energy management systems.

Implementation Toolbox

LEEN (Local Energy Efficiency Networks) network management system consisting of an energy efficiency network manual (contract templates, checklists, technical manuals, presentation of energy efficient solutions) and about 25 software-based techno-economic calculation tools which are being developed under a joint user interface.

Complexity of Implementation

Government

Mix of technical expertise (calculation tools), organisation and communication skills required.

Target Group

energy managers are extensively supported in each step of the network activity.

Impacts, Costs & Benefits Expand this section to find information on policy effectiveness and efficiency.

Impact Quantitative Estimate Qualitative Estimate
Estimated effect on energy consumption or emissions ­- Experience from participating companies indicates that companies in the networks have energy efficiency rates at least twice that of the industry average. After three to four years, companies in the networks reduce their specific annual energy costs by an average of 8%, at a profit of around 10 € per ton of CO2 saved. [1] ­- The achievements observed in five energy efficiency networks over a period of two to four years (between 2004 and 2008) showed that on average, the participating companies agreed upon an efficiency target of around 2% per year. The joint energy efficiency target of these five networks was met by each of them. However, large differences were observed among participating companies. These varying results were caused by very different reasons such as the level of investments (ranging from substantial new investments to none), production developments (ranging from high growth to decline in production), and the level of support from the board. The corresponding specific CO2 emissions reductions of these five networks were a little less than 2%. [4]
Estimated costs/benefits for industry  Participants pay two-thirds of the costs for the network themselves as well as any costs beyond the eligible government funding (see estimated costs for government). [6]  The first 100 initial reports in the network mention that on average € 250,000 are to be invested per company in order to actually realize the savings. Extrapolated to the 400 companies in the 30 pilot networks this is about €100 million in total. [5]  After three to four years, the energy cost savings of a company ranged in the order of €120,000 per year and 500 tonnes CO2 reduction per company (average). [3]  Overall, the evaluation of proposed measures of the first 100 initial consultation reports an average interest rate of around 35%. [5]
Estimated cost for government The government funds one third of the eligible network costs. The eligible costs per pilot network are on average over the contract period 80.000 € per year plus VAT for 10 participants, increasing with € 8.000 per year plus VAT for each additional participant to a maximum of € 120.000 per year plus VAT for 15 participants. [6]

References & Footnotes

References

[1] Homepage 30 pilot networks, http://30pilot-netzwerke.de/nw-de/content/Projekt.php , accessed 17/2/2012.

[2] Project outline 30 pilot networks, http://30pilot-netzwerke.de/nw-de/downloads/30-Pilot-Networks-outline.pdf.

[3] Dirk Koewener, Eberhard Jochem, Ursula Mielicke, Energy efficiency networks for companies – concept, achievements and prospects, published in ECEEE 2011 Summer study "Energy efficiency first : The foundation of a low-carbon society", pp 725-733.

[4] 30 Pilot-Netzwerke, Stand der Projektarbeit. Stand: März 2012, http://30pilot-netzwerke.de/nw-de/downloads/Projekt-Sachstand-30PNW-V1.40.pdf

[5] 30 pilot networks, Newsletter September 2011, http://30pilot-netzwerke.de/nw-de/downloads/newsletter/30-PNW_Newsletter_September_2011.pdf

[6] Fraunhofer ISI, Bekanntmachung der Förderung von Energieeffizienz- und Klimaschutz-Netzwerken in Deutschland im Rahmen des Projekts „30-Pilot-Netzwerke“,Karlsruhe, 01.07. 2009.

Footnotes

(*1) There is no direct support from other policies to this programme, but other policies and instruments available to the specific participant will influence actual implementation of measures identified. This includes general measures such as the EU ETS and the voluntary target agreement II as well as specific measures such as feed-in tariffs specified under the CHP Act and KfW funding programs for energy efficiency and environmental protection.

(*2) The average energy efficiency increase in German industry over the last ten years was about one percent per year.