Norwegian Water Resources and Energy Directorate International training conference on Energy Efficiency Energy efficiency program in the Pulp and Paper Industry in Norway 30. March 2016

Norwegian Water Resources and Energy Directorate Content ■ Program objectives ■ Duration ■ Administrative burden ■ Results 2

Norwegian Water Resources and Energy Directorate Program objectives ■ Company: Save electrical energy (EUS) and cost. ■ Society: Reduce demand for production (EPS) and transmission ETS. ■ Ten year (2004 – 2014) programme for energy efficiency in exchange of exemption from electricity tax 0,45 øre/kWh. ■ Pulp and Paper Industry 3

Norwegian Water Resources and Energy Directorate Program drivers ■ Energy prices (2011): electricty 31,5 øre/kWh, (3,29 Eurocent/kWh) - total GWh average energy price17,7 øre/kWh (1,89 Eurocent/kWh) – Total GWh ■ Energy of total cost for the company: Approx. 9 % ■ Customers require their suppliers to be certified acc. ISO (and 14001). 4

Norwegian Water Resources and Energy Directorate Energy consumption in the Industry 5 Pulp and Paper

Norwegian Water Resources and Energy Directorate Duration ■ July 2004 – July 2014 ■ Two 5 year periods, each period: ■ First two years: Energy management system – ISO Establish an action plan – save electrisity. ■ Last three years: ■ Implement action plan – save electrisity. 6

Norwegian Water Resources and Energy Directorate Special obligations ■ Describe energy use in the Company´s production processes. ■ Assess how the Company´s energy use can be changed in the short and long terms. ■ State the energy efficiency measures that shall be implemented in the company´s manufacturing process. ■ Investment that is calculated to be repaid within three years must be completed. 7

Norwegian Water Resources and Energy Directorate Administrative burden (authorities) ■ Low ■ ISO to be established and monitored by third party accredited body (e.g.Veritas). No / little involvement from NVE. 8

Norwegian Water Resources and Energy Directorate Results ■ First five years: Yearly electrisity savings:. 73 GWh. ■ Total savings per year: 12 companies 32,1 Mill NOK ■ 23,4 mill NOK/year (tax exemption per year) ■ 15,3 mill NOK/year (saved cost: 73 (GWh/year x 0,21 NOK/kWh) ■ mill NOK/year (company investment: 19,9 mill NOK) ■ 32.1 mill NOK/year (Total yearly savings) ■ For more information: 9

Norwegian Water Resources and Energy Directorate 10

Norwegian Water Resources and Energy Directorate Thank You For Your attention 11