Non-Energy Benefits of Industrial Energy Efficiency : Roles and Potentials

Abstract: Climate and environmental targets place significant requirements on energy efficiency and improved industrial energy efficiency is viewed as one of the most important means of reducing CO2 emissions and mitigating climate change. Even though efforts have been undertaken to improve energy efficiency there is still the potential for further improvements to be made. The potential is a result of that proposed energy efficiency improvement measures are not implemented, even if judged as cost-effective.Besides improving energy efficiency, the implementation of energy efficiency improvements in industrial firms can generate additional beneficial effects: so-called non-energy benefits. Examples of non-energy benefits are: improved productivity, lower operation and maintenance costs, a better work environment, decreased waste and fewer external effects, such as lower emissions. This thesis has investigated the roles and potential of non-energy benefits in decisions on energy efficiency improvements from three perspectives: energy efficiency measures, energy efficiency investments and energy management activities.The results of the studies presented in this thesis demonstrated that different types of non-energy benefits were observed in various areas within industrial firms due to the energy efficiency measures, energy efficiency investments and energy management activities they have implemented. Studying energy efficiency measures and investments revealed that implementing one single energy efficiency measure or investment can generate several non-energy benefits. The studies also uncovered a relationship between the non-energy benefits, i.e. chain reactions of primary, secondary and further effects, in which one benefit can generate other types of benefits. Consequently, some non-energy benefits were observed immediately after the implementation of energy efficiency measures, direct effects, while others were perceived later on, indirect effects. Furthermore, extending the perspective by including energy management activities led to the recognition of novel non-energy benefits.The results of this thesis demonstrated that non-energy benefits were seldom acknowledged in decisions on energy efficiency improvements. However, the non-energy benefits’ character, diversity and relations among them enabled opportunities for the non-energy benefits to be included in decisions on energy efficiency in various ways. For instance, based on the results of these studies, monetised non-energy benefits could be included in investment calculations contributing to cost-effectiveness, while certain effects that are difficult to measure and quantify could be utilised qualitatively in investment evaluations as extra arguments, or, if important to the firm, as objectives for making the investment. Hence, depending on their type, non-energy benefits seemed to have different roles in decisions on industrial energy efficiency improvements.This thesis contributed with a comprehensive approach by investigating energy efficiency improvements and the related non-energy benefits through three perspectives. By combining the results from each perspective, the view on industrial firms’ decisions on energy efficiency improvements was widened. In this thesis it is concluded that the potential of non-energy benefits in decision-making on industrial energy efficiency improvements lies in the utilisation of all types of non-energy benefits and to consider all the roles that non-energy benefits may have. By utilising knowledge on non-energy benefits along with their roles observed in relation to previous implementations of energy efficiency improvements, non-energy benefits can impact decisions on new implementations.