Energy Efficiency Agreement and ProgrammeThere are two alternative types of agreement in the contractual system of the municipal sector. Large and medium-sized municipalities have a bilateral municipal energy efficiency agreement with the Ministry of Employment and the Economy (known as KETS). Small municipalities have the so-called KEO energy programme administered by Motiva Ltd, which municipalities join by signing an induction document.
The purpose of the energy efficiency agreement and the energy programme is primarily to support the improvement of energy efficiency, but they also contain aims and measures for promoting the use of renewable energy.
Through the activities linked to the energy efficiency agreement and the energy programme the municipality contributes to reducing Finland’s greenhouse gas emissions. The main aim of the agreements and the programme is to achieve 9% energy savings within the period 2008-2016.
By making energy use efficient and by using renewable energy it is possible to improve the economy of a municipality’s or a city’s activity.
Energy efficiency agreements involve:
- cities and municipalities with over 20,000 inhabitants; and
- municipal groupings whose energy use exceeds 20,000 MW a year.
The energy programme is intended for:
- municipalities with a population of fewer than 5,000 people; or
- municipal groupings whose energy use amounts to less than 5,000 MW a year.
Cities and municipalities with populations or 5,000-20,000 people and municipal groupings whose energy use amounts to 5,000-20,000 MW a year can opt for either an energy efficiency agreement or an energy programme.