© iStock.com/Tony Tremblay
Successful federal funding for energy and resource efficiency
Around 7 million tonnes of CO2 equivalent (a measurement unit for greenhouse gases) is avoided each year thanks to the more than 55,000 projects that have benefited from funding under the programme so far. At the same time, this has had a positive effect on the competitiveness of German companies. A total of €2.9 million in funding was disbursed by the end of 2023. This funding has leveraged investments worth €9.7 billion. This is the outcome of the Final report on the “Evaluation of energy and resource efficiency in business (in German only), which looks at the period from 2019 to 2023.
The federal funding for energy and resource efficiency in business programme (EEW) supports companies through grants and loans for investments intended to lower their energy and resource consumption, and to draw up plans for their transition. Six funding modules and the competition for funding for energy and resource efficiency help companies on this path.
The elements of EEW funding: an offer for every type of demand
Module 1 of the EEW supports horizontal technologies in companies, i.e. engines, pumps, ventilators and insulation for installations. According to the evaluation, the bulk of all funding approved over the years belonged in this category (65%). The module is successfully aimed at small and medium-sized enterprises (SMEs) and serves as a door opener for applications made for funding from the other modules of the EEW.
Module 2 supports companies seeking to make the transition to process heat generation from renewables. The number of approvals in the grant-based leg of this module, in particular, has been on the rise since 2019. The target of avoiding emissions of 450,000 tonnes of greenhouse gas equivalent every year up to 2026 was surpassed as early as in 2023.
Module 3 focuses on the acquisition and installation of measurement, monitoring and control technology, and on the use of energy management software. Demand and implementation have seen a positive trend.
Module 4 promotes technology-neutral investments by companies with the aim of reducing greenhouse gas emissions. Within the EEW, approx. half of the funding disbursed (52% or €1.49 million) went to projects in module 4 between 2019 and 2023, which also accounts for about two thirds of the amount of greenhouse gas emissions avoided (66%).
This means that the funding has increased implementation of the measures, with more emissions avoided than originally expected. The module has developed favourably in terms of demand, emissions avoided, and also beneficiary satisfaction.
Similar to module 4, the competition for funding also promotes decarbonisation within companies and does this in a technology-neutral way. Funding rates can be higher than in module 4, but companies need to compete with other firms.
Module 5 supports the development of strategies for decarbonisation on the basis of plans for the transition. It was introduced in November 2021, when the programme was reformed. A total of 687 applications were approved between 2021 and 2023. Companies are to calculate the carbon footprint of their individual sites and also develop specific measures that allow them to tangibly reduce their emissions.
Module 6 provides support for small companies that are replacing their fossil-fuel based installations with electrical ones. This module was not established until May 2023, which is why the data only allows an initial estimate regarding target achievement. There are positive impacts, particularly on the electrification of small businesses.
The evaluation of the federal funding for energy and resource efficiency in business programme (EEW) was carried out by a consortium formed by Fraunhofer Institute for Systems and Innovation Research (ISI), Prognos AG, Öko-Institut e.V. and the Institute for Energy Economics and Rational Energy Use of Stuttgart University.