Bridging the energy efficiency gaps: Lessons from the Swedish PFE programmes

Abstract Sweden implemented a unique policy instrument over two consecutive five-year periods aimed at promoting industrial energy efficiency: a voluntary agreement programme (VAP) known as the Programme for Improving Energy Efficiency in Energy-Intensive Industries (PFE). This paper evaluates the second programme period using process and impact evaluation approaches. The impact evaluation revealed that the programme generated numerous benefits beyond the implementation of energy efficiency measures. The second programme period demonstrated impacts comparable to the first, underscoring the pivotal role of energy management within policy frameworks. Moreover, the findings suggest that VAPs may be among the few policy instruments capable of achieving substantial impact within industrial production processes. The process evaluation identified two critical gaps: a policy gap and a knowledge gap. Many of the positive elements present in the evaluated programme are currently absent from Sweden’s industrial policy mix. The role of the policy operator—as facilitator or intermediary—proved essential, particularly in the context of policies involving energy audits and certified energy management systems. In this case, the Swedish Energy Agency played a central role. The study concludes that continuous energy management, when integrated throughout the entire organization, significantly enhances companies’ capacity to identify and implement energy efficiency measures. This approach not only deepens internal knowledge but also fosters the development of more structured and effective routines. Furthermore, the findings suggest that financial incentives may be essential to ensure the long-term persistence of energy efficiency practices. Consequently, future policy design should include a strong facilitator and incorporate mechanisms that both reinforce organizational knowledge of energy end-use processes and promote sustained engagement over time, preferably involving a financial incentive.