Germany

GE-7:Energy advice for SMEs

Policy Description

The energy advice programme for SMEs is a programme developed by the Federal Ministry of Economics and Technology and implemented by the German Development Bank KfW. Through this programme, independent audits and consulting are offered to identify energy efficiency potentials in small and medium-sized Enterprises (SMEs) and increase the level of information on these potentials with SMEs. The advice is largely funded by the government and further incentives are available for the implementation of identified energy efficiency measures.

Description

The energy advice programme for SMEs is a programme developed by the Federal Ministry of Economics and Technology and implemented by the German Development Bank KfW. Through this programme, independent audits and consulting are offered to identify energy efficiency potentials in small and medium-sized Enterprises (SMEs) and increase the level of information on these potentials with SMEs. The advice is largely funded by the government and further incentives are available for the implementation of identified energy efficiency measures (see GE-4).

 

Applications for an audit have to be made with a regional partner of KfW, for example, the Chamber of Commerce, economic development corporation or local energy agency. The program distinguishes between initial consultations and detailed advice.

  • The initial consultation aims to identify energy efficiency potentials and weaknesses as well as to recommend appropriate measures.
  • The detailed advice provides concrete proposals and action plans on implementation of energy and cost saving improvements.

The grant for the initial one to two-day consultation is 80% of the agreed daily rate, with a maximum of EUR 800 per consulting day, so a grant of maximum EUR 1,280. The grant for detailed advice is 60% of the agreed daily rate, with a maximum of EUR 800 per consulting day, so a grant of maximum of EUR 4,800.

The energy advice programme is a follow-up of the "Special Fund for Energy Efficiency in SMEs", which was launched on 20 February 2008. [1], [2]

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: Economic, Incentives & Subsidies, Information & Outreach

Position in the Pyramid

About Us

Participation: Voluntary

Period

Start Date: 2008

Policy Linkages

Supports Voluntary agreements with German industry Effort Defining
Supports KfW Environmental and Energy Efficiency Programmes (formally ERP) Supporting Measure
Supports 30 Pilot Network Project Supporting Measure

Agencies Responsible

KfW (German development Bank)

Primary Objective: Energy

Objective

­Providing energy advice in order to support investments that improve energy efficiency levels.

Target Group

SMEs –whether self-employed or private company- with an energy bill of over EUR 5,000 per year at a single location in Germany.

Driver of energy consumption or emissions affected by policy: energy saving or energy efficiency improvement, knowledge levels

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

Coverage

All in target groups

Quantitative Target? no

Progress Monitored? yes

Verification Required? no

Enforced? no

Sanctions: None

Requirements on the Target Group

Application for a grant goes via standardised route to a regional partner of KfW and applicants need to fill out a standardised final report on the initial consultation.

Support by Government

N/a

Implementation Toolbox

N/a

Complexity of Implementation

Government

Initial audit identifies saving potentials according to overall and available knowledge of specific SME activity. Detailed audit develop implementation plan on case-specific basis.

Target Group

Applicants only need to fill out standardised application forms and standardised final report on the initial consultation.

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 - ­In the period February 2008 - June 2010 a total of 10,400 energy consultations have been provided, of which 8383 initial consultations and 2017 detailed advices. [2] ­- In the 70 reports analysed for initial consultation, a total of 256 recommendations were included, an average of four per report. Recommendations most mentioned were in the area of the building envelope, lighting and heating. In the 37 detailed consultation reports analysed, a total of 162 measures were included. In four reports this was only one measure, in 17 reports six or more measures were proposed. The range of proposed actions was broad, with a focus on waste heat recovery and heating. [2] ­- 20% of the recommendations were already planned by the companies, 59% partially and 21% had no overlap with the already planned measures. [2] ­- Total savings as a result of the advice in the period February 2008-June 2010 were about 1920 GWh per year, of which 1.435 GWh annual savings as a result of initial advice and 205 GWh annual savings as a result of detailed consultations. Corresponding avoided CO2 emission are 624 kilotonnes per year in the same period. [2]
Estimated costs/benefits for industry Not applicable (no targets). ­- The costs of the audit vary strongly among participants. Initial consultations took an average of 2.7 days, costs for companies were on average EUR 888, ranging from EUR 558 to EUR 1,218 (representing the costs to companies after the subsidies). Detailed consultations took an average of 10.8 days, costs for companies were on average EUR 3,619, ranging from EUR 1,965 to EUR 5,272. [2] ­- Total investment costs for following energy saving measures are estimated to be EUR 666 million. Total cost savings per year are estimated to be 122 million, cumulated over the same period. [2]
Estimated cost for government Actual costs for the government per initial consultation ranged from EUR 1.171 (average 2008) to 1.243 (first half 2009). Actual costs per detailed consultation ranged from EUR 3300 (2008) to EUR 3963 (first half 2009). [2]

References & Footnotes

References

[1] KfW, Energieberatung Mittelstand, http://www.kfw.de/kfw/de/Inlandsfoerderung/Programmuebersicht/Energieberatung_Mittelstand/index.jsp. Accessed -2/04/2012

[2] Frahm, B-J et al, Evaluation des Förderprogramms „Energieeffizienzberatung“ als eine Komponente des Sonderfonds' Energieeffizienz in kleinen und mittleren Unternehmen (KMU), IREES and Fraunhofer Isi, Karlsruhe, 18 november 2010.