The Programme for Improving Energy Efficiency in Energy Intensive Industries “PFE”

On 1 January 2005, the Programme for Improving Energy Efficiency Act (2004:1196) came into force. The programme is intended to increase energy efficiency in energy intensive industries.

On 1 July 2004, the tax on industrial process-related electricity was raised from SEK 0 to SEK 0.005 per kWh, which was in line with the EU's Energy Tax Directive. The Directive gives energy-intensive companies in manufacturing industry, which are subject to the tax, the opportunity of being granted tax exemption on their electricity consumption if they take action to improve their energy efficiency. The Swedish government therefore adopted a programme of improving energy efficiency in energy-intensive companies (PFE), with the carrot of reduced taxation. Participation in the programme is voluntary, and is open to energy-intensive manufacturing companies which meet certain criteria.The Programme for Improving Energy Efficiency Act (2004:1196) came into force on 1 January 2005. From that date, companies have been able to apply to participate in PFE. The Swedish Energy Agency is the supervisory authority for the programme.

A five year programme

The programme period for participating companies is five years. During the first two years of the programme period, the company must introduce and obtain certification for a standardized energy management system. An energy review is used to generate a list of measures to improve energy efficiency, which the company then implements during the remaining three years of the programme. Since PFE focuses on electricity-efficiency, the priority is to list measures to improve the efficiency of electricity use.

Report after two years and five years in the programme

When a company has participated in PFE for two years, it is required to submit a report on the energy review, the energy management system and the list of measures. After five years in the programme, a final report shall be submitted. The final report shall describe and summarized the actual result of the energy efficiency measures. The reports are to be submitted via the Swedish Energy Agency's e-services. The final results of 100 companies that participated in the programme during the years 2005-2009 is found at the right.

Benefits of EMS and PFE

An energy management system makes it easier for a company to check its energy use and ensure that its energy consumption is more consciously planned and structured. With more conscious planning, improved operating and maintenance procedures and purchasing procedures, companies can reduce their energy consumption and, therefore, their energy costs and their negative environmental impact. Since 2003, there has been a Swedish standard for energy management system, SS 627750. This was replaced in 2009 by the European standard EN 16001. In 2011, an international (ISO) standard for energy management system will be published. Companies can, of course, introduce energy management systems without participating in the programme.