Companies and municipalities participating in energy efficiency agreements in Finland have collectively implemented nearly 25,000 individual energy efficiency measures between 2017 and 2022. These actions have enhanced annual energy efficiency by almost 12.5 terawatt-hours, equivalent to the annual energy consumption of 625,000 electrically heated small houses.
The energy consumption covered by those involved in energy efficiency agreements accounts for approximately 60% of Finland’s total energy consumption. Over 750 companies, with more than 7,000 facilities, and over 150 municipalities and joint municipal authorities are actively improving their energy use.
By the end of 2022, most sectors covered by the agreements had already reached the 2025 energy efficiency target set for them.
“We have already begun updating low-carbon roadmaps with industries. We need more clean energy to meet the growing energy demands of society. Simultaneously, it’s wise to use energy efficiently, avoiding wastefulness. Crisis years have prompted individuals and businesses to seek new energy-saving measures. I also anticipate future energy efficiency agreements will further enhance our energy use,” says Minister of the Environment and Climate Kai Mykkänen.
Investment in Energy Efficiency: €1.2 Billion
Companies and municipalities involved in the agreement reported approximately €1.2 billion in energy efficiency investments over the last six years. The industrial and energy sectors have invested the most in energy efficiency. The service, real estate, and municipal sectors have implemented the most individual efficiency measures.
The Ministry of Economic Affairs and Employment has supported energy efficiency investments by companies and organizations involved in agreements with a total of around €120 million between 2017 and 2022. Support has been granted to approximately 1,200 projects that would not have been realized without assistance.
The implemented measures reduced annual carbon dioxide emissions by approximately 2.7 million tons by the end of 2022, equivalent to nearly 270,000 average Finnish carbon footprints.
Record Number of Measures and Savings Amid the Energy Crisis
In 2022, almost 5,400 new energy efficiency measures were implemented, setting a record. These actions alone increased annual energy efficiency by over two terawatt-hours. About 45% of the measures taken in 2022 were operational, such as adjustment and operational time changes, more than double compared to previous years.
Implemented energy efficiency measures and investments in more efficient technology significantly impact current and future energy consumption. Maximizing energy efficiency is crucial as we move towards carbon neutrality and increase energy self-sufficiency. Reducing unnecessary energy consumption and timing consumption also smooth out fluctuations in electricity prices.
Which Energy Efficiency Agreements?
Energy efficiency agreements are a crucial part of Finland’s energy and climate strategy, serving as a primary means to promote energy-efficient use in the country. These agreements help implement the energy efficiency obligations set by the EU’s energy efficiency directive and monitor goal achievements.
The current agreement period spans from 2017 to 2025. Negotiations for the next period, 2026–2035, are set to begin early in 2024. Sectors involved in state and industry agreements include the Confederation of Finnish Industries, Food Industry Finland, Energy Industries, Chemical Industry, Technology Industries, Forest Industries, Finnish Commerce Federation, Hospitality Finland, the Association of Finnish Local and Regional Authorities, RAKLI, and the Heating Energy Association LEY.