Measuring Energy Efficiency

The Finnish Energy Authority has financed a series of studies to analyze energy efficiency indicators in different sectors and to analyze indicator studies (e.g., developed comparison tools) by different bodies. Sectoral studies have been carried out in the recent years for pulp and paper industry, basic metals industry and the commerce sector, and a new study for data centers is underway in 2022. In addition, national energy efficiency trends and underlying drivers are monitored annually (Energy Efficiency Trends).

Energy efficiency is often analysed by different indicators. These indicators try to show the development of energy efficiency within an industrial subsector, a country, or the EU. Part of the indicators can provide good monitoring information, such as those measuring specific energy consumption, but only as long as there are no breaks in the time series.

Unfortunately, oftentimes indicators with poor information value are used in the absence of data for the better ones. Such weak indicators are, e.g., energy intensity (energy consumption per value added) of industry or energy consumption per employee in the services sector.

Even when good indicators can be identified, in the industry sector international comparisons are affected by, e.g., industry structure, process types in heavy industry, degree of integration, raw materials used (virgin vs recycled) and high export volumes of intermediate products from energy-intensive processes.

In the grocery trade sector comparing specific consumption indicators is useful only among of units of the same size, although the same indicators are applicable in different size categories.

The studies made show that the energy efficiency level of Finnish companies is good, even excellent taking into account background factors such as additional challenges posed by the climate or that fuels used to produce sold surplus energy burden the energy balances of those selling it.