Municipal Energy Planning and Energy Efficiency Jenny Nilsson, Linköping University Anders Mårtensson, Linköping University ABSTRACT Swedish law requires local authorities to have a municipal energy plan. Each municipal government is required to prepare and maintain a plan for the supply, distribution, and use of energy. Whether the municipal energy plans have contributed to or preferably controlled the development of local energy systems is unclear. In the research project “Strategic Environmental Assessment of Local Energy Systems,” financed by the Swedish National Energy Administration, the municipal energy plan as a tool for controlling energy use and the efficiency of the local energy system is studied. In an introductory study, twelve municipal energy plans for the county of Östergötland in southern Sweden have been analyzed. This paper presents and discusses results and conclusions regarding municipal strategies for energy efficiency based on the introductory study. Introduction Energy Efficiency and Swedish Municipalities Opportunities for improving the efficiency of Swedish energy systems have been emphasized in several reports such as a recent study made for the Swedish government (SOU 2001). Although work for effective energy use has been carried out in Sweden for 30 years, the calculated remaining potential for energy savings is still high. However, there have been changes in the energy system. For example, industry has slightly increased the total energy use, but their use of oil has been reduced by two-thirds since 1970. Meanwhile, the production in the industry has increased by almost 50%. This means that energy efficiency in the industry is much higher today than in the 1970s (Table 1). Table 1. Relative Industrial Production and Energy Use Since 1970 (the 1970 use = index 100) 1980 1990 1998 Production 115 137 174 Energy use 106 104 115 oil 79 31 30 electricity 130 175 176 Source: SOU 2001 The change from oil to electricity can be observed in the building sector as well, but it is not as obvious as in industry. The total amount of energy used in the private sector has been constantly increasing, mostly due to increased use of domestic electricity. Although the population in Sweden has grown and more houses have been built, the energy use for heating has been fairly constant since the 1970s. This means that the efficiency of heating buildings has increased. Traditionally, the municipalities have played an important role in the Swedish energy system both as the local energy distributor and as the owner of a large amount of public buildings. The municipality also plays an important role in providing information and giving advice on energy related topics. Although the local authorities are dependent on Swedish law, much of the responsibility for the development of the municipal energy system lies with the municipal government. One of the means for the municipal government to manage the municipal energy system is the municipal energy plan. Swedish Energy Policy and Municipal Energy Planning In Sweden, municipal energy planning has been a part of the energy policy for more than three decades. In 1977, the Swedish government passed a law that required municipalities to develop energy plans (SFS 1977). The law addressed secure supply and distribution of energy, but it was not compulsory. This meant that the municipalities were encouraged, rather than required, to develop an energy plan (Statens Energiverk 1986). After the oil crisis of 1979, a requirement for a complementary municipal oil reduction plan was added (Regeringens Proposition 1981). The law particularly addressed the conversion of local energy systems from oil-based systems to alternative energy sources and more efficient energy technologies. The role of the users as an important part of the energy system was also acknowledged. Municipalities were now required to plan for oil reduction as well as for the supply, the distribution, and the use of energy. Nuclear power was seen as an effective and important replacement for fossil fuels. The new nuclear power plants also provided the opportunity for increased use of cheap energy. In the mid-1980s, the government proposed a new bill (Regeringens Proposition 1985) that attempted to minimize oil dependence but the requirement of a separate oil reduction plan was removed. The preparation for the phase-out of nuclear power also played an important role. The goal was still to encourage efficient use of alternative energy resources. The alternatives were specified as lasting, renewable energy sources. Another goal in this bill was to clarify that planning was a tool for the municipality and not the state. Therefore, integration of energy planning into the municipalities’ overall planning process was requested. In 1997, the government proposed yet another energy bill that reflected a new energy policy. The objectives were clear: the Swedish energy system was to be based on effective energy use and energy supply with low impact on people’s health, the environment, and the climate. This would include the phase-out of nuclear energy and the introduction of more renewable energy sources. Over the past three decades, laws that address municipal energy planning have been debated mainly because of their lack of strict directions or sanctions. The law has also been criticized in view of the fact that other circumstances have a much greater influence on the decision-making in municipalities than an energy plan (RRV 1991). For example, the national energy policy with respect to subsidies or taxes can dramatically change the conditions for a municipality (Olerup 2000). Even though the law has been criticized, there is still support for municipal energy planning. For example, the energy plan is considered an important guide used by local authorities when making decisions about expanding district heating. It also serves as a framework for municipalities developing waste disposal plans when waste is to be used for producing energy (Johansson 2001). Objectives and Methods The research project Strategic Environmental Assessment of Local Energy Systems is a part of a national research program that deals with emissions and air quality. The research is focused on municipal energy plans as a tool for controlling the development of a local energy system. This paper is based on an introductory study in which 12 municipal energy plans in Östergötland County in southern Sweden were analyzed. The county includes relatively large municipalities with large industries, widespread agriculture, and advanced centralized energy systems. Smaller municipalities in the county base their economy on agriculture and forestry or large industries (Table 2). The focus is energy efficiency in municipal energy planning. How energy use and efficiency is dealt with in the plans, measures for managing the municipal energy systems, goals for energy efficiency, and how the goals are meant to be achieved, are analyzed. Table 2. Municipalities Studied and Their Main Business, Public Service (Schools, Hospitals etc.) Excluded Municipality Inhabitants Main Business Åtvidaberg 12,000 Manufacturing industry Boxholm 6,000 Steel and wood industry Finspång 22,000 Manufacturing industry Kinda 10,000 Manufacturing industry, agriculture Linköping 133,000 Manufacturing and high-tech industry, agriculture Mjölby 25,000 Manufacturing, food and steel industry Motala 42,000 Manufacturing industry Norrköping 122,000 Manufacturing industry, paper mills Ödeshög 6,000 Manufacturing and building industry, agriculture Söderköping 14,000 Manufacturing and building industry, agriculture Vadstena 8,000 Manufacturing industry, agriculture Valdemarsvik 9,000 Manufacturing Industry, agriculture Ydre 4,000 Manufacturing Industry, agriculture The plans have been analyzed using a number of questions to categorize the contents. The questions are based on a number of categories that consider different aspects of the energy plans. This paper is based on three question categories that specifically address energy efficiency. The first category, “Energy system characteristics,” analyzes the status of the energy system as it is presented in the plan. Here some indications on how the municipal energy systems have evolved over time can be seen. From this category, the analysis in this paper is based on the present energy use described in the plans and the visions for future energy use and energy efficiency. The second category, “Goals for the energy sector,” studies the municipalities’ future energy system strategy. In this paper, the description of goals regarding energy efficiency is analyzed. The third category, “Political measures,” studies how different political measures are handled in the plans. The focus in this paper is how the municipality will work to promote energy efficiency in the private and the public sector using measures such as advisory or integration of energy efficiency in the spatial planning process. Results The status of energy plans varies widely between the municipalities. In one case, no plan has been issued at all. In other municipalities the plan has been regularly updated and revised. The planning processes have also differed. In some municipalities, civil servants have administrated the planning process. In others, external consultants have been responsible for the energy plan. The contents of the plans are also largely different because the plans are written at different times and therefore are based on different national energy policies. The level of ambition the