An energy efficiency program for Swedish industrial small- and medium-sized enterprises

Industrial energy programs such as energy audit programs and long-term agreements (LTAs) are one of the most common means of promoting energy efficiency in industry. As a result of the European Energy End-Use Efficiency and Energy Services Directive from 2006, the Swedish Government Bill proposed a national energy program towards industrial small- and medium-sized enterprises (SMEs) using more than 500 MWh energy annually. The aim of this paper is to present the structure and design of the program, adopted in 2010, the logics in brief behind the structure, as well as an ex-ante evaluation of the program’s cost-effectiveness. The paper is aimed towards the part of the program involving industry, i.e. not the part involving companies within service and sales etc. The proposed design primarily includes a subsidized energy audit with some minor LTA-elements, such as the need to report results from the energy audit, to present a plan over which measures to conduct, and after three years present which measures that were implemented. The ex-ante evaluation of the program shows a cost-effectiveness of 0.25–0.50 Eurocents/kWh, yielding savings of about 700–1 400 GWh annually.