Annex XVI: Energy Efficiency in SMEs

This Annex was finished in 2015. The reports delivered are listed and available for download at the bottom of this page.

Background

The issue of climate change due to, in particular, anthropogenic emissions of CO2, is forcing decision-makers to make decisions towards more efficient use of energy. Industrial energy efficiency is stated to have a key role in the transition into more carbon-neutral energy systems. While the potential is vast, there are many barriers hindering implementation of energy efficient technologies. Moreover, much attention, both research and policy-wise, have been raised towards energy-intensive industries, while non-energy-intensive and small and medium-sized enterprises (SMEs) have received less despite the larger relative energy efficiency potential spotted compared to the energy-intensive sector.

In summary, there is a great need to conduct research and development on non-energy-intensive and SME industry, in particular on design and adoption of energy policies and implementation of energy efficiency studies.

The definition of an SME

This Annex will be using the common definition of an SME in accordance with the EU Commission’s definition:

Enterprise that employ fewer than 250 persons and have an annual turnover not exceeding €50 million, and/or an annual balance sheet total not exceeding €43 million
 
This study however makes the following exceptions from the EU definition:
  • Only SMEs with more than 10 employees are included
  • Only Industrial manufacturing SMEs are included

 

Objectives and scope

The objective of Annex XVI is to analyze energy systems and factors promoting or inhibiting a more efficient energy use in industrial SMEs. Specific areas of study are:

  • Energy policies and programs towards industrial SMEs
  • Energy efficiency technologies; their potentials and barriers to implementation in industrial SMEs
  • Methods and tools, e.g. for energy auditing and energy management, used in energy efficiency studies towards industrial SMEs
  • Energy services and business models for industrial SMEs

The Annex strongly facilitates international cooperation and networking within the field. The scope is energy efficiency improvement in industrial SMEs, using the EU definitions of Energy efficiency and Energy efficiency improvements (Directive 2006/32/EC on energy end-use efficiency and energy services):

  • Energy efficiency – A ratio between an output of performance, service, goods or energy, and an input of energy
  • Energy efficiency improvements – An increase in energy end-use efficiency as a result of technological, behavioural and/or economic changes

 

Task structure

The objectives will be achieved by performing four Tasks. Each Task builds on national projects brought together to a collaborative work which forms the total Annex scope. The first Task within the Annex will give outlines for other collaborative work topics. The tasks are described as follows:

I. Energy policies and programs towards industrial SMEs

  1. Description of the country specific context: Energy mix, overall country energy use, part of energy used by industrial SMEs, etc.
  2. Overview of policies and programs implemented: Subsidies, administrative polices, energy audit checks, investment funds, networks, general information campaigns incl. self-scanning, and benchmarking methods, i.e. the possibilities for SMEs to compare their energy use.
  3. Feedback and outcomes: Overview of the experience, e.g. difficulties met during implementation of the program/policy, outcome in terms of energy saved in relation to e.g. public money invested in the program, and advantages/disadvantages with various designs.

II. Energy efficiency technologies and their potentials and barriers to implementation in industrial SMEs

  1. Allocation of energy use in industrial SMEs (bottom-up), through whole site energy audit or survey part results, including concrete examples on where energy is used; production processes, HVAC, lighting, pumping, compressed air, etc.
  2. Comparison of energy efficiency potentials in industrial SMEs through whole site energy audit or improvement proposal part results, including concrete examples on where the energy efficiency could be improved (same as for i. above).
  3. Review of main energy efficiency measures with short descriptions, energy savings, return on investments, advantages and disadvantages for various industrial SME sectors (with one concrete reference example).
  4. Overview of major barriers to energy efficiency in industrial SMEs based on previous studies
  5. Suggestions for further categorization of industrial SMEs (common definition but further elaborated) based on results from subtask i and ii.

III. Methods and tools to achieve energy efficiency in industrial SMEs

  1. Benchmarking methods and tools: Overview, analysis and mapping of existing tools, practical examples of the use, including experience sharing.
  2. Technical auditing methods and tools: Overview, analysis and mapping of existing tools, practical examples of the use, including experience sharing.
  3. Energy management methods and tools. Overview of the adoption level of energy management practices, practical examples of the use of EMS (Energy Management Systems) and standardization. Overview of other energy management tools towards industrial SMEs including practical examples and experience sharing.
  4. Overview of emerging technologies and process integration (methods and tools) in order to achieve energy efficiency improvements, as well as case studies on the implementation of these.

IV. Energy services towards industrial SMEs

  1. Overview of business models and energy service offers by consulting firms, utilities, and ESCOs  with practical examples of business models and offers including type of technologies treated.
  2. Feedback and outcomes: Experience of various models and services (e.g. TPC and EPC), difficulties met during the use of various business models/implementation of various energy services, including advantages and disadvantages in regards to, local context, type of technology etc. This task will also include so called Micro firms.

 

Annex deliverables

The Annex has defined the following deliverables:

  • A synthesis on energy policies and programs towards industrial SMEs including an overview of policies and programs, and the outcome of these policies and programs.
  • A synthesis on energy efficiency potentials in industrial SMEs concerning major technologies, energy efficiency potentials and major barriers for implementation.
  • A synthesis on methods and tools, for e.g. energy auditing and energy management, used in energy efficiency studies towards industrial SMEs, including an overview of different methods and tools, and experience from applied studies using these tools.
  • A synthesis on energy services towards industrial SMEs, including business models and energy services, and experience of energy services towards industrial SMEs.
  • A Scientific summary of the Annex results to be freely disseminated including recommendation for future research and developments.

 

Contact details

Annex manager:
Assistant Prof. Patrik Thollander, Division of Energy Systems, Linköping University, Sweden

 

Annex Delivieries

Task 1

Task 2

Task 3

Task 4