Further Vocational Training Energy Service Manager E-Book

Jürgen Hogeforster

• Herausgeber: Books on Demand
• Kategorie: Wissenschaft und neue Technologien
• Sprache: Englisch
• Veröffentlichungsjahr: 2018

Seitenzahl: 382

Beschreibung

A rising need for energy-saving solutions and the use of renewable energies has become particularly urgent in some Baltic Sea countries, given a high proportion of old buildings in need of renovation. For instance, in Latvia, 99% of existing buildings were built with very poor energy efficiency standards before 1993. In order to reach the EU energy 2020 goals, according to the 'Build up skills'national reports, in some EU member states the percentage of skilled workers has to be raised by up to 50%. Partners from Estonia, Germany, Hungary and Poland teamed up, to tackle this issue and develop and implement a further training course for Energy Service Managers, based on the specific needs of small and medium-sized enterprises (SMEs). A compact course of 80 training hours has been designed as well as a comprehensive course of about 300 training hours. The background information, concept, curricula, including a train-the-trainer program, evaluation and experiences with this course is shared in this publication.

Leseprobe

Foreword : Further Vocational Training “Energy Service Manager”

Between September 2015 and August 2018, „Further Vocational Training for Energy Service Technicians (VESTE)” an Erasmus + „Strategic Partnership projects” EU-funded programme, channelled via the National Agency „Education for Europe” at the German Federal Institute for Vocational Education and Training, was implemented by the following partners:

Baltic Sea Academy, Lead Partner, Hamburg, Germany

University of Corporate Education, Hamburg, Germany

Eastern Europe Business Association of Germany, Berlin, Germany

Chamber of Crafts and SME in Katowice, Poland

Hanseatic Academy of Management in Słupsk, Poland (opted out in April 2016 due to dissolution of the university; succeeded by Hanseatic Institute for the Support of Small and Medium-sized Enterprises, Gdańsk, Poland)

Võru County Vocational Training Centre, Võru, Estonia

Kontiki Vocational Centre, Budapest, Hungary

We hereby like to thank the partners and agency for the support and provision of sound advisory backing of such an important project, as well as for constructive, amiable collaboration in our consortium. This publication presents a summary of the most important project results.

July 2018, Hamburg

Baltic Sea Academy

Dr. Jürgen Hogeforster

Kamila Keinke

Dr. Max Hogeforster

Table of Contents

The project Further Vocational Training in Energy Service Manager

1.1 Problems and Tasks

1.2 Objectives and Outputs

1.3 Consortium

1.4 Summary

Basics, qualification needs and concepts

2.1 Analyses of labour and population markets in Baltic Sea Region

2.2 Qualification needs and conditions in the energy sector

2.3 Concepts for a compact and comprehensive course

Train the Trainer Training

3.1 Concept and Curriculum

3.2 Evaluation Concept

3.3 Test and Evaluation of the Train the Trainer Seminar

Curricula and teaching materials for two further education courses

4.1 Compact course and comprehensive course "Energy Service Manager"

4.2 Evaluation concept of compact and comprehensive course

4.3 Integration program for the unemployed

Examination Regulations, Ratings and Recognition

5.1 Analysis of existing examination regulations

5.11 Estonia

5.12 Germany

5.13 Poland

5.14 Hungary

5.2 Uniform examination regulation for the Baltic Sea Region of the Project

5.3 Reviews and recognition of the degree

Exemplary sample report for an Energetic Refurbishment

6.1 Preliminary note

6.2 Summary

6.3 Proposals for energy saving measures

6.4 Subsidies

6.5 Recommendations for saving energy

Further vocational training "Solar Energy Technology & Applications"

7.1 Curriculum

7.2 Testing and Evaluation

Further vocational training "Energy Efficient Construction and Application of Renewable Energies

8.1 Curriculum

8.2 Testing and Evaluation

Dissemination and transfer of project results

Other Publications by the Baltic Sea Academy

Members of the Hanse Parlament

Members of the Baltic Sea Academy

1. The project Further Vocational Training in Energy Service Manager

1.1 Problems and Tasks

A rising need for energy-saving solutions and the use of renewable energies has become particularly urgent in some Baltic Sea countries, given a high proportion of old buildings in need of renovation. For instance, in Latvia, 99% of existing buildings were built with very poor energy efficiency standards before 1993.

SME across diverse industries, especially craft trades, are predestined to decisively contribute to this process, as they are carrying out remedial work on old and on new buildings, assuming key functions of informing and advising, always in direct contact with end users. In Germany and Scandinavia, countless SME have systematically developed energy as a strategic growth area. Despite a growing interest by SME in Poland, Lithuania, Latvia, Estonia and Hungary, a business-like development in those countries yet remains largely untapped.

In order to reach the EU energy 2020 goals, according to the “Build up skills” national reports, in some countries the percentage of skilled workers has to be raised by up to 50% by 2020. Furthermore, in the energy sector, all countries of the Baltic Sea Basin, especially Poland and the Baltic countries, face a high need for staff and training.

SME represent 99% of all companies and they account for almost 70% of all workplaces. However, the growing scarcity of skilled workers is increasingly becoming a potential barrier to growth, an exacerbating bottleneck, as the number of younger working generation in the Baltic Sea countries, apart from Sweden, is likely to decrease by up to 25% by 2030. With regard to SME support, training of existing staff and recruitment of qualified professionals has now become a key challenge, along with the realisation of specific energy goals.

In order to secure the demand for skilled labour and to increase energy-related qualifications in the Baltic Sea countries, the German advanced training “Building Energy Consultant”, as adopted in 2012 by the German Federal Ministry of Economics and Technology, may be particularly suitable. However, a simple one-to-one transfer is not an option; rather, it is about the build-up of a comparable information and advisory service for boosting energy efficiency and the use of renewable energy sources, by drafting a comprehensive concept with an integrated package of legal, technical and economic content, made available to the Baltic Sea Region, always in accordance with their national framework conditions and needs.

Studies on economy, population, education and labour markets were evaluated specifically for the energy sector. In the partner countries, qualification requirement analyses were carried out, and concepts for two further training courses were drafted, based on the German “Building Energy Consultant”.

A 70-80-hour compact course, providing an overview, primarily targeted at business owners to initiate energy saving and the use of renewable energy at their premises.

A comprehensive course, consisting of mandatory and elective course modules. The mandatory modules include all relevant issues regarding the assessment of the building envelope and the systems engineering, diagnosis of energy saving potentials, investment and profitability calculations, as well as legal issues and advisory competence. The elective modules are a detailed extension of each topic with regard to on-site execution, e.g. proper installation of insulation materials, fitting of insulation, set-up and maintenance of various energy systems, etc. Depending on regional conditions and needs, mandatory and elective modules are combined with at least 300 hours of training. Target groups are SME managers and specialists, architects and engineers, as well as jobseekers.

For both courses, curricula, teaching materials, etc. and uniform examination regulations, as well as a procedure for international degree recognition have been developed for the Baltic Sea Region. The goal of the training as “Energy Service Manager” is to enable the course participants to produce high-quality, expert reports on comprehensive energy-focused building renovations. During the project, the desire arose to also illustrate the objective pursued by an exemplary report, thus providing further support to the educational process. To this end, taking the example of Estonia and Poland, also a report template was drafted.

The project implementation also revealed shortcomings with respect to SME active in realisation of building-related energy-savings measures in Poland, the Baltic States and Hungary, such as insufficient information and qualification. In order to counteract this deficiency, further curricula for SME trainings were developed, tested and evaluated for two most urgent topics.

A “train-the-trainer” program, targeted at lecturers from universities, chambers and educational institutions, was developed, tested and evaluated. This program is about to be sustainably offered by universities so that qualified trainers are always available for the ongoing independent implementation of the courses across all regions.

All project outcomes, including concepts, curricula, instructional notes, etc. have been disseminated via various channels and transferred to seventy chambers, universities and educational institutions across thirteen countries, where implementation-related advising took also place. Further dissemination activities are now being carried out in third countries. A broad, sustainable and continued use of the courses was achieved, with a view to securing the supply of skilled labour and enhancing energy-related qualifications across the entire Baltic Sea Region.

1.2 Objectives and Outputs

General objectives of the project were:

Enhancing qualifications of managers and qualified personnel in SMEs for activities to increase energy efficiency and renewable energy use by advanced training programmes.

Thereby, recruiting additional managers and professionals, and specifically prepare SMEs for work in the energy sector; hence, SMEs can be involved in this highly interesting growth area, secure existing jobs, create new ones, and reduce the unemployment rate.

Developing and coordinating an integration programme and offering the course “Building Energy Service Manager” to unemployed persons, to place them into permanent jobs.

Developing high-quality, comprehensive advanced trainings with very strong employment-related learning components.

Offering targeted training to teachers/trainers, so that enough well-qualified teachers are available in all regions, which ensures high-quality implementation of the vocational education measures.

In order to achieve the project’s goals, the consortium pursued these objectives which resulted in the subsequent outputs.

Output 1 Fundamentals, qualification needs and concepts

In output 1, the consortium analyses economic and demographic developments, educational and labour markets as well as educational systems with a synoptic evaluation of advantages and disadvantages as well as development and reform needs in the Baltic Sea Region countries. To identify the qualification needs and conditions in the energy sector in the participating countries, the Build-up Skills national reports and detailed studies of demand for skilled workers and skill improvements for the performance of energy sector tasks are evaluated. Lastly, based on the insight gained from the research, the consortium develops concepts for a compact and a comprehensive training course "Energy Service Manager / Technician" in the Baltic Sea Region.

Output 2 Evaluation concepts

For this output, the consortium develops an evaluation concept each for the training as energy service manager as well as for the Train the Trainer programme.

The scientific evaluation should include written questionnaires, face-to-face interviews with participants and lecturers as well as accompanying observations. Particular emphasis is put on the determination and evaluation of the usability of the acquired competences and skills. Particularly challenging is the evaluation of the training “Energy Service Manager” because the evaluation concept and materials should be applicable for all module combinations in all countries. Additionally, it should be possible to use the materials at various times during the implementation depending on the scope of the training.

The analyses of the evaluation must be country-specific, demonstrate the differences between the results and show the significant causes for these differences.

Output 3 Train the Trainer training

The Train the Trainer course will consist of a larger set of modules that deal with technical aspects and didactic matters. The selection of modules from this set that will be combined to a training session is demand-driven. Thereby, the trainings are tailored specifically to the regional conditions and needs of the participants. The course will be completed with a qualified participants’ certificate that contains a description of the topics, priorities etc. of the training.

Based on the developed evaluation concept from the previous output, the evaluation of the implementation of the Train the Trainer training is carried out. The evaluation outcomes are the basis for revising the curricula, learning materials and application notes before they are completed and transferred to interested institutions.

Output 4 Curriculum and teaching materials for training “Energy Service Manager”

On the basis of the results of Output 1, a curriculum, teaching and learning materials, slides for lecturers, instructions for the implementation, etc. are developed.

The compact course "Energy Service Manager" with 70 – 80 hours gives an overview of the topics and is primarily addressed to SME owners in order to initiate their companies to enter the field of energy saving and use of renewable energies.

The comprehensive training course "Energy Service Manager" has compulsory and optional modules. The compulsory modules include all relevant issues to assess the building envelope and systems engineering, determine potential savings, calculate investment and profitability and acquire legal foundations and consulting expertise. The optional modules allow focusing on specific realisations, e.g. of proper installation of insulation materials, installation and maintenance of various energy sources, etc. Depending on the regional conditions and needs the compulsory and the optional modules are combined to training of at least 300 hours. The target groups are managers and professionals of SMEs, architects and engineers as well as unemployed persons.

For the target group "unemployed persons" an integration programme is developed in order to provide the comprehensive training “Energy Service Manager” and thus ease the re-integration into the labour market. The programme is coordinated with training providers, SMEs and employment services.

Output 5 Examination regulations and international recognition

Examination regulations leading to a recognised qualification will be developed for the training programme “Energy Service Manager”. Those regulations also allow for the transfer of previously acquired skills.

The newly developed unified examination regulation is based on an analysis of existing regulations and the legal basis in the participating countries. Thus, it can be realised in all participating countries.

In Germany, the comprehensive training “Energy Service Manager” is concluded with an officially recognised training examination. Since such an official training examination is not possible in the other participating countries due to regulations, it is planned to have certified exams to complete the training in these countries. For this, specific examination regulation will be developed based on the German official examination regulations and negotiated with the respective authorities. The development and implementation of unified examination regulations require persuasive efforts on the policy level and intense negotiations with public and especially examination bodies.

The compact and the comprehensive training "Energy Service Manager" will be assessed with ECVET credit points within the European and Baltic Sea Region qualification framework. This allows the transfer of previously acquired skills across borders. A specific, coordinated process ensures the international recognition of the acquired qualification. The method used is based on the results of a project led by Hanseatic Parliament in which competent authorities developed and adopted a method for the mutual recognition of professional education and training qualifications.

Output 6 Reference reports

Using case examples of Poland and Estonia, reference exemplary sample report for an energy refurbishment were developed.

Reference reports will contain all essential legal, technical, ecological and, above all, business/ economic requirements and detailed characteristics.

At the same time, reference reports on energy-related building rehabilitation may also serve as a trademark with respect to the qualifications and competencies acquired by the participants in the advanced training courses. After all, those participants who have successfully completed the training as “Energy Service Manager” are intended to produce respective comprehensive reports for customers or other interested parties in the broadest sense.

Likewise, a reference report may indicate to prospective lecturers and teachers specific didactical and methodological requirements on conveying of the content of respective subject areas. Oftentimes, a defined goal (or expected outcome), may help finding a path to success.

Output 7 Advanced training on energy efficiency and renewable energies

Compared to other countries (e.g. Germany), in the partner countries technical expertise and experience in installing and using renewable energies is largely limited. In order to meet these deficiencies and to promote desirable framework conditions, specifically for SME, two further vocational training programs are being developed, tested and evaluated.

Output 8: Dissemination, transfer and implementation consultations

Within this output, a handbook with all results, concepts, curricula, examination regulations, evaluation results as well as instructions concerning use and implementation is developed.

Furthermore, a written and electronic transfer of all the project results, concepts, curricula, teaching materials, examination regulations as well as support frameworks is ensured by the consortiums, as they carry out implementation consultations in person for project and associated partners. Further dissemination measures include, among others, the preparation, holding and follow-up of three international transfer and consultation conferences in different countries with all the Project Partners, seventeen colleges/universities and fifty chambers of crafts, industry and commerce from thirteen countries, representatives from politics and public administrations as well as further stakeholders and disseminators.

1.3 Consortium

The project consortium was formed in a way to associate all required project implementation expertise. Participants included transfer partners delivering relevant experience and documents, as well as implementation partners responsible for testing and implementation of further education courses. The project consortium also included partners with relevant competencies and decision-making powers, competent and experienced bodies in the field of vocational training, examination regulations and in staging examinations. Participants included partners from countries with different experiences and needs, e.g. Germany, a country with profound advanced professional education and a leading position in the energy business segment, as well as Poland, Estonia and Hungary – countries with acute demand for further vocational training and an existing untapped development potential in the energy sector. Finally, transfer and implementation consultations in thirteen countries were secured by the partners involved.

The lead partner, Baltic Sea Academy, draws on many years of experience in managing complex, international projects with up to forty partners from eleven countries. By assuming general managerial responsibilities in the project and by using effective control instruments, BSA could relieve its partners of administrative tasks, thus ensuring cost-effective implementation and achievement of all project goals. Moreover, the lead partner has long-standing experience in the vocational training in all Baltic countries as well as specific knowledge in energy-related vocational training in Germany. Conclusively, this partner guaranteed transfer of results and implementation advice to sixty-eight educational institutions across thirteen countries.

The Professional Academy Hamburg (Berufsakademie Hamburg) has contributed documentation and experience to the German advanced education training “Building Energy Consultant”. Also, this partner offers own topic-relevant degree program and is highly experienced in identifying qualification needs and in drafting curricula.

The German Eastern Business Association was ideally suited to manage transfer tasks; drawing on excellent contacts and a robust international network, this partner has contributed reference conditions and needs of its member companies. The Association also has in-depth experience in energy-related building renovation in Central and Eastern Europe.

The Chamber of Crafts and SME in Katowice from Poland, were engaged in vocational training, including staging examinations and introducing new examination regulations. Being an SME association, the Chamber could deliver its knowledge of conditions and needs of its member companies and their employees, as well as its profound expertise in advanced vocational training. Its own vocational school is a predestined partner for practical testing of advanced education courses for the target group of handicraft trades in Poland.

The Hanseatic Academy in Słupsk, Poland, has offered bachelor’s programmes that may serve as backbones for integration of comprehensive advanced education programs. This partner has also provided its expert knowledge in educational framework conditions as well as in developing curricula in Poland. However, by order of the Polish government, the university was closed in April 2016, and therefore this partner had to cancel partnership in the consortium, but was replaced by a new partner, the Hanseatic Institute for the Support of SME, Poland. This institute was founded by executives of the dissolved university and scientists from the University of Sopot. In the VESTE project, some of those experts had already carried out all possible project work for the departed partner and were familiar with the entire project and its partners, goals and tasks, which is why they could seamlessly continue to undertake the current project work. These specialists are particularly experienced in all matters related to the promotion of advanced vocational education and training and higher education with respect to SME.

The Võru County Vocational Training Centre, Estonia, brought in its expertise as an experienced leading educational institution in Estonia, serving also as an ideal partner for the implementation of trainings.

Kontiki Vocational Centre conducts vocational education and training in Hungary, having gained experience in this area as well as profound knowledge of the conditions and needs of SME in Hungary. Kontiki Vocational Centre owns two educational centres that are genuine vehicles for the implementation of trainings. Entertaining a strong network, this partner was also ideal for transfer tasks in Hungary and southern Europe.

The majority of partners have superb experience in the implementation of international projects and they had effectively collaborated in various projects. The set-up of the consortium ensured a smooth and successful project implementation.

The transfer recipients included sixty-eight chambers, colleges, universities and further educational institutions from thirteen countries. From the project start on, these partners are actively involved through consultation at meetings, attending workshops and meetings, statements on drafting results, etc. in the implementation.

1.4 Summary

The need for energy saving and increased use of renewable energy is particularly high in some Baltic Sea Region countries given the very high proportion of old buildings greatly in need of refurbishment, e.g. around 99 % of the buildings in Latvia were built before 1993 and thus are very energy inefficiency.

SMEs in various sectors, especially in the crafts, are therefore predestined to function as an active contributor to this process, as they carry out the renovation works in old and new buildings. Hence, they fulfil important functions related to assisting final consumers directly for example by informing and consulting them. SMEs in Germany and Scandinavia have systematically developed the energy sector as a growth area. While SMEs in Poland, Lithuania, Latvia, Estonia and Hungary are strongly interested in this area, a systematic business development approach is almost completely absent.

According to the Build-up Skills national reports for the individual countries, the number of skilled workers in the energy sector has to increase by up to 50 % until 2020 in order to meet the EU's energy goals. In addition, SMEs in all Baltic Sea Region countries, particularly in Poland and the Baltic states, are in high demand for training on energy-related issues.

SMEs account for 99 % of all enterprises and almost 70 % of all jobs in the EU. The existing shortage of skilled workers, which will only increase in the future due to demographic change, is increasingly becoming a major growth barrier. The training of existing staff and the recruitment of skilled workers is therefore the most crucial task for the promotion of SMEs in general, and in particular for the realisation of the energy targets.

To secure skilled-labour supply and increase skills in the energy sector in the Baltic Sea Region countries, the German advanced training model "Building Energy Consultant", developed by the German Federal Ministry of Economics and Technology in 2012, may be particularly suitable. However, a straight 1:1-adaptation is not advisable, but rather the creation of opportunities in the Baltic Sea Region states and the set-up of comparable information and advisory services for energy saving and alternative energy sources. Following a holistic approach, these services can provide a complete package of legal, technical and economic content, depending on national conditions and needs.

Within the VESTE project, studies on the development of economy, population, education and labour markets will be evaluated for the energy sector. Furthermore, qualification demand analyses are carried out in the individual partner countries. On this basis, as well as based on the German training “Building Energy Consultant”, concepts for a training model “Energy Service Manager” will be developed.

To support the training as energy service manager, sample surveys for energy efficient building renovations are developed using two countries as examples.

In addition, two SME specific training courses focusing on the use of renewable energies are developed, tested, evaluated and implemented. Additionally, a "Train the Trainer"-programme, targeted at lecturers of universities, chambers and other education providers, will be developed, tested and evaluated. The goal is to offer this programme at universities on a permanent basis, so that teachers are qualified for the ongoing independent implementation of the training courses in all regions.

The project, under the lead of the Baltic Sea Academy, will be carried out jointly with six universities, chambers and training institutions from Germany, Poland, Estonia and Hungary. Sixty-eight chambers with their educational institutions as well as several other educational institutions and universities from thirteen countries are involved as associated partners. All project results, such as concepts, curricula, teaching materials, application notes, etc. will be published and advice will be given on the implementation to the associated partners. Diverse dissemination models will be implemented in various countries to achieve a sustainable demand for the courses which aim to secure supply of skilled labour and increase skills in energy topics on a large scale.

2. Basics, qualification needs and concepts

2.1 Analyses of labour and population markets in Baltic Sea Region

The following analyses are based on different studies and projects, in particular the project "Skill Alliance Energy saving and sustainable construction in Baltic Sea Region". The research aims to analyse the current socio-economic situation in the Baltic Sea Region. It describes the demographic and economic aspects of the eight European countries having direct access to the Baltic Sea and three non-EU members (Norway, Russia and Belarus), who also play a supportive role because of their proximity to the sea and common interest and benefit to make the region more innovative and competitive as well as prosperous and a safe place to live.

These analyses also give an overview on educational markets and national educational systems with a synoptic evaluation of advantages and disadvantages as well as development and reform needs in the Baltic Sea Region countries.

With regard to the importance of energy, the construction sector and the energy sector will be considered in greater depth. Only the results of these analyses and the objectives and consequences for the education sector are presented below. A detailed presentation of the analyses on the economy, demography, innovations, education and labour markets can be found in the output result.1

2.11 Construction sector in the Baltic Sea Region2

Key figures on construction industry in Europe3:

Estimated construction investment (EU 27 - 2011): 1.208 billion €

9,6 % of GDP

51,5 % of Gross fixed Capital Formation

3,1 million enterprises (EU 27), of which 95% are SMEs with fewer than 20 and

14,6 million operatives:

7 % of Europe`s total employment

30,7 % of industrial employment

43,8 million workers in the EU depend, directly or indirectly, on the construction sector

Biggest industrial employer in Europe

Situation study of construction sector in BSR

Performance indicators have been analysed using the most recent available statistical data. This data may be partly insufficient to make a proper review of the entire construction cluster and its components.

Production, turnover and value added

Due to the long-term effects of the global financial and economic crisis, the overall EU 27 construction activity experienced negative growth for the third consecutive year in 2010. The BSR countries’ construction activity experienced negative growth for the second consecutive year in 2010 (see Table 2).

Table 2: Construction production index - annual data - percentage change

EU-271.93.72.0-3.8-8.5-4.0BSR8.012.29.60.1-16.0-3.4Denmark3.13.8-4.2-5.7-10.3-8.4Germany-5.36.32.9-0.70.10.3Estonia22 426.913.5-13.3-29.8-12.4Latvia15.513.313.6-3.1-34.9-23.4Lithuania9.921.722.24.1-48.5-7.7Poland9215.616.310.24.53.7Finland527.810.24.1-13.111.8Sweden3.08.06.24.2-3.55.9Norway3.96.05.81.1-8.3-0.1

Source: Eurostat

The reduction in construction activity has been largely concentrated within the building subsector, while the index of production for civil engineering remained relatively stable. This trend reflects decisions made at a governmental level to maintain expenditure on public infrastructure projects.

According to estimates, the situation varies greatly from one country to the other in the BSR regarding recovery in the construction sector. Few Northern and Eastern BSR countries experienced an uptake of the activity in 2010 already (Poland, Finland, and Sweden). On the opposite side, a small group of countries will remain very much impacted by the crisis in the coming years (Latvia, Lithuania, and Estonia).

Furthermore, in almost all BSR countries, the comparative share of construction in the gross value added in 2010 was below the 2007 levels (Table 3).

Table 3: Gross value added - Construction, % of all branches

EU 276.06.26.46.46.36.0BSR5.86.36.96.96.05.4Denmark5.45.75.75.44.94.3Germany4.03.94.04.14.44.2Estonia7.1879.38.67.05.8Latvia6.27.49.09.16.65.0Lithuania7.58.710.29.96.45.6Poland6.06.47.1737.57.1Finland676.86.97.26.96.6Sweden4.85.05.35.25.25.5Norway4.44.55.04.94.94.9

Source: Eurostat

However, if we look at the turnover dynamics, we see that up to 2008 construction turnover was growing in almost all BSR countries, save for Estonia and Latvia (Table 4).

Table 4: Turnover by sector - Construction - Millions EUR

20052006200720082009EU 271,383,652.01,553232.01,666,950.0::BSR275,783.3314,845.0338,884.8375,393.836,0427.1Denmark24,378.323,163.331,481.031,997.525,276.7Germany137,347.1153240.9143,848.01158.659.2169.829.9Estonia2,667.03,552.04,551.74,303.12,8247Latvia2,661.94,022.65,703.45,604.43,186.0Lithuania3,020.74,053.15,690.75,736.32,803.9Poland27,077.933,965.244264.258,318.954,001.9Finland19,827.720,579.023,797.226,351.624,075.6Sweden33259.638,153.944,138.946,175.342,222.4Norway25,543.129,110.035,409.638247.536,206.0

Source: Eurostat

Germany, Poland and Sweden have the largest market share. The countries account for about 70% of the entire construction turnover in the BSR. The construction turnover of EU newcomers in the BSR market accounts for about 20%, Poland taking 79% of that share. Between 2004 and 2007, before the financial and economic crisis, the construction turnover of these countries was growing fastest in the BSR. Within this period, the turnover in Poland, Latvia, Lithuania and Estonia more than doubled. This was caused by the growing capacity of national budgets coming from: economic growth and EU-membership benefits; expansion of banks and other credit entities, their growing capital and increasing diversity of new loan products; growing private investment; growing income per person; huge demand for modern infrastructure; huge demand for new homes; huge demand for renovation to trim mostly well-worn and inefficient heat and energy guzzling national residential stock with insufficient social infrastructure; huge demand for social housing; transport sector development (such as the success of the E67 Via Baltica project); more investment from other Scandinavian countries and Germany; etc.

The European Union is also funding an increasing amount of infrastructure work through its various structural aid programmes. It is estimated that 30% of European Infrastructure development is now partially funded by the EU.

Recovering economies in Russia and other CIS countries might facilitate BSR companies to apply in this market their former experience (Lithuania, Latvia, Estonia) and their competencies gained from activities in western markets. Eventually, western markets will also aim East and the European Economic Area is likely to become Eurasian.

The economic state of BSR countries highly depends on productivity. Since about 10% of all employed people work in construction and the share of construction in GDP is about 7%.

Gross value added per employee (FTE) for construction in 2008 is 48,100 EUR in the BSR (excluding Poland), and 16,600 EUR in the new member states (Estonia, Latvia, Lithuania) (Table 5). The highest value added per employee in the construction sector is created in Norway and Denmark.

Gross value added per person employed or apparent labour productivity for construction in 2008 is 36,000 EUR in BSR, and 16,000 EUR in the new member states (Poland, Estonia, Latvia, Lithuania) (Table 6).

Table 5: Gross value added per employee FTE in construction sector

20082009EU 27::BSR48.1:Denmark68.9:Germany50.548.3Estonia17.314.6Latvia16.012.2Lithuania16.49.7Poland::Finland64.964.2Sweden64.057.4Norway87.1:

Source: Eurostat

Table 6: Apparent labour productivity (Gross value added per person employed)

20082009EU 2740.0:BSR36.0:Denmark50.7:Germany40.338.4Estonia16.513.6Latvia14.810.4Lithuania13.38.0Poland19.416.5Finland49.648.5Sweden49.044.1Norway70.2:

Source: Eurostat

So far, productivity in the Baltic States and Poland has been below the European standards. Lithuanian, Latvian, Estonian and Polish construction industries are catching up with the EU 27 and other BSR countries in construction labour productivity – but still have a long way to go.

Turnover per person employed in the EU 27 is 127,640 EUR in 2008 (Table 7). Turnover per person employed in the BSR was below European average in 2008. Only Scandinavian countries have a turnover per person employed which exceeds average of the EU 27 and BSR. In the new member states, turnover per person employed is about 63,880 EUR in 2008.

Table 7: Turnover per person employed

20082009EU 27126.7:BSR114.4:Denmark147.0:Germany107.5105.0Estonia78.063.6Latvia65.856.2Lithuania44.830.5Poland66.957.9Finland152.0141.3Sweden148.1134.8Norway219.2:

Source: Eurostat

Employment

The downturn in construction production following the financial and economic crisis has had a severe impact on the number of persons employed within the EU and BSR construction sector. The EU 27 employment index for construction fell in 2008 (-0.9%), in 2009 (-7.7%) and in 2010 (-5.3%) (Table 8, Figure 2). The BSR employment index for construction began to fall in 2009 (-10.3%) and further in 2010 (-6.8%). Strongest rates of decline have been recorded in Latvia, Lithuania and Estonia (Table 9, Figure 2). In few BSR countries the size of the construction workforce remained relatively stable (Germany, Poland, Norway, Sweden).

Table 8: Construction labour input index - annual data - percentage change

EU-272.54.14.9-0.9-7.7-5.3BSR5.63.011.42.7-10.3-6.8Denmark525.96.7-3.9-13.6-7.4Germany-6.50.21.60.71.32.1Estonia8.715.016.50.5-16.0-18.2Latvia15.316.428.10.7-37.7-18.7Lithuania4.010.319.08.1-21.5-17.7Poland8.55.37.34.43.91.3Finland8.02.66.65.2-5.7-1.8Sweden2.57.47.54.91.0-0.6Norway5.08.59.33.7-4.0-0.1

Source: Eurostat

Table 9: Number of persons employed

20082009BSR3,708,838:Denmark219,756:Germany1,582,2701,601,940Estonia57,22744,387Latvia89,17258,831Lithuania141,80191,909Poland930,213931,885Finland178,200171,989Sweden314,964310,504Norway195,235193,618

Source: Eurostat

The average number of persons employed per enterprise in construction in EU 27 in 2008 is 4.58, and 5.99 in the BSR (Table 10). The BSR average above that of EU 27 can be explained by the larger average number of persons employed per enterprise in Estonia, Latvia and Lithuania. Looking at the period between 2002 and 2009, we see a tendency for the average number of persons employed per enterprise to be decreasing – in Lithuania, Latvia and Estonia in particular. In other BSR countries, the average number of persons employed per enterprise remained relatively stable. The shift toward smaller companies indicates that new enterprises entering the growing market have been predominantly micro-enterprises or businesses made up of self-employed persons.

Table 10: Number of persons employed per enterprise

20082009EU 274.58:BSR5.99:Denmark6.1:Germany6.76.7Estonia6.95.6Latvia11.78.2Lithuania6.37.6Poland3.94.1Finland4.24.1Sweden4.03.8Norway4.1:

Source: Eurostat

Enterprises

Between 2004 and 2007, the number of enterprises in almost all BSR countries remained relatively stable, bar Poland, which recorded an increase. However, the number of enterprises in construction has been affected by the financial and economic crisis (Table 11). The number of enterprises in BSR countries decreased from 717,951 in 2008 to 700,266 in 2009, representing a decrease of 2.46% over one-year period – mostly because of dropping numbers in Lithuania, Poland and Denmark. Some countries, though, recoded a slight increase (Germany, Sweden, and Norway).

Table 11: Number of enterprises in construction sector

20082009EU 273,284,810:BSR717,951700,266Denmark36,02833,135Germany236,717240,747Estonia8,3177,911Latvia7,5997,137Lithuania22,42912,112Poland238,125226,387Finland42,53842,444Sweden78,23481,258Norway47,96449,135

Source: Eurostat

2.12 Energy sector in the Baltic Sea Region4

The energy market of each country is the basis for the functioning of its economy, households, consumption and production. The events that occurred in Europe and worldwide in 2011 had a deep influence on the social perception of energy problems as well as on the development of energy policy in Europe and the Baltic Sea Region (BSR). The failure of the Fukushima nuclear power plant in Japan caused by an earthquake sparked a substantial discussion on the future of nuclear power, security issues and potential consequences of such a failure. Political events in North Africa and especially the changes in Libya caused concerns over the supply of oil and gas. Successive discussions continue to arouse fears concerning the emission of carbon dioxide, both in the context of the influence on the global climate and the costs of energy production, including emission fees.

The EU Strategy for the Baltic Sea Region adopted in December 2010 involved 10 Baltic countries: 9 EU member states and Russia.

The strategy involved the following:

Transforming the BSR into an environmentally sustainable area, including:

alleviating the consequences of climate changes,

unlocking potential to develop renewable energy,

improving energy efficiency of residential buildings,

development of combined heat and power.

Transforming the BSR into a prosperous region, including:

joint development of entrepreneurship related to renewable energy from the sea (offshore wind power).

Transforming the BSR into an accessible and attractive place, including:

improved access to energy markets, their efficiency and safety.

Transforming the BSR into a safe and secure area.

There is no suitable infrastructure in the energy markets of the Baltic Sea Region (electricity, gas, oil, etc.). Moreover, with the excessive concentration on a given country, these markets are not mutually combined and coordinated. In some EU member states, the level of market opening, and competition is not sufficient to offer proper incentives for investments. This leads to greater risk in terms of energy security and higher prices. In particular, three Baltic countries (Estonia, Latvia and Lithuania) are not sufficiently integrated with larger energy networks in the remaining part of the European Union (the only connection is ESTLINK between Finland and Estonia), which means that they are virtually isolated in the field of energy.

Decentralised markets of electrical energy are the source of further problems:

weak market liquidity,

few incentives or opportunities for investments in infrastructure, especially in the field of renewable energy,

lack of cooperation in matters connected with natural gas, mainly due to the lack of trans-border gas connections with the rest of the region.

In March 2011, the meeting of the European Council was devoted solely to energy issues in the Baltic Sea Region. It was established that the European Union needs a combined and integrated internal energy market. Starting from 2015, no country can be isolated from the European gas and electricity transfer network (Market Coupling policy). In order to prevent energy isolation and make countries independent of external suppliers, it will be necessary to construct transfer network infrastructure (interconnectors) and power connections (grids).

The Baltic Sea Region is a good example of a macro region including a range of separate administrative regions that have common problems to cope with that are serious enough to justify the adoption of the strategic approach.

In 2007 the European Council adopted energy and climate change objectives for 2020.

Europe 2020 – 20/20/20 targets:

Reduction of greenhouse gas emissions by 20% as compared to 1990 – indicator: Greenhouse gas emissions, base year 1990

Increase in the share of renewable energy sources in the final energy consumption to 20% - indicator: Share of renewables in gross final energy consumption

20% increase in energy efficiency – indicator: Energy intensity of the economy (proxy indicator for energy savings, which is under development)

Clearly, the EU is the main driver of renewable energy policy in the Baltic Sea Region. No major development in this area will happen without the active support of the EU.

The energy consumption of each country’s economy is conditioned by many factors. The most important are:

Macroeconomic policy – sector structure of the economy, including share in the domestic economy of those industry branches that are considered most energy-consuming – production of steel, cement, paper.

Energy policy – structure of fuel consumption in the economy, development of energy-saving technologies, organisation of production.

Among the means of improving energy efficiency, there is mainly the change of industry structure but also the implementation of new, energy-saving technologies. In order to achieve the desired result in the form of reduced energy consumption, the stimulators of energy cost share in production costs, legal regulations (system of permits and consents) and the CO2 emissions trading system are used.

The price of energy is an important factor that not only constitutes a cost factor in the economy but is also decisive in making decisions on investments in energy-saving investments, both among individual recipients and in the industry. According to the worldwide policy, most countries of the Baltic Sea Region have adopted the concept of deregulation and liberalisation of the energy sector, which usually leads to an increase in price variability, depending on the predominance of the raw material used to produce energy.

Electricity generated from renewable sources (RES)

The share of renewable energy sources in electricity production (measured as % of gross electricity consumption) depends to a large extent on geographical conditions, as well as on implemented energy-saving technologies. The biggest share of RES in electricity production is observed in Norway, which is one of the world’s largest producers of hydropower. A share of ca. 50% has been recorded in Sweden and Latvia, the indexes for Denmark and Finland being lower. Germany, with its dynamically developing renewable energy sector and being one of the world’s biggest producers of wind energy is also the biggest energy market in Europe. However, despite the highest values of energy production based on RES, the percentage share in the gross energy consumption is only 10%. The lowest share of RES has been observed in Lithuania, Estonia and Poland (below 5% of gross energy consumption). For the majority of the Baltic countries, the key renewable source used to generate energy is biomass.

Table 11: Share of renewable energy in gross final energy consumption (%)

Country2006200820112020 targetChangeDenmark16.818.823.130.06.9Germany6.98.912.318.05.7Estonia16.119.125.925.0-Latvia31.329.933.140.06.9Lithuania14.715.320.323.02.7Poland7.47.910.415.04.6Finland29.230.531.838.07.0Sweden42.744.446.849.02.2

Source: Eurostat (Europe 2020 indicators – online code: t2020-31)

Greenhouse gas emissions

The Kyoto Protocol sets the limits for carbon dioxide emission for each country individually, taking into account their phase of economic development.

The biggest emitters of carbon dioxide in the Baltic Sea Region (million tons of CO2 equivalents) are Germany – 956.1 and Poland 398.9. This results from a significant share of coal power plants in energy production. It should be remembered that the structure of transport in a given country also affects the amount of greenhouse gas emission.

This rate juxtaposed with the data concerning energy intensity of the economy shows that the countries with highest energy intensity economies do not have the highest CO2 emission rates at all.

Table 12: Greenhouse gas emissions and agreed reduction target (Kyoto base year emissions: Index=100)

1990

1995

2000

2008

Target 2008-2012

DK

99.4

110.1

98.5

92.1

79.0

DE

99.9

89.4

83.1

77.7

79.0

EE

95.8

49.0

42.7

47.5

92.0

LV

103.4

48.6

39.4

45.9

92.0

LT

100.6

44.3

39.2

49.2

92.0

PL

80.5

78.1

69.3

70.2

94.0

FI

99.1

99.7

97.3

98.8

100.0

SE

100.4

102.9

95.4

88.7

104.0

NO

100.3

100.2

107.4

108.2

101.0

In the period between the base year for the Kyoto Protocol (1990) and the year 2008, the GHG emission dropped most significantly in Latvia (-54%), Estonia (-53%), Lithuania (-51%).

Data analysis conclusions

In summary, we can draw several conclusions from the previous analysis. First, differences are noticeable between the countries of the Eastern and Western coast of the Baltic Sea. Second, on the basis of the similarities and common power problem, macro region can be differentiated in the BSR. These three macro regions are (a) the Scandinavian countries, with Norway not being an EU member but holding a strong position as a natural gas exporter; (b) the Baltic countries, i.e. Lithuania, Latvia and Estonia, creating a common energy policy of small countries; and (c) Germany and Poland. Third, the necessity for market integration and the creation of common grids. Lastly, the necessity to develop energy supply networks in the entire BSR region.

Forecast for the development of energy markets in the Baltic Sea Region

In the BSR region, differences can be observed in the level of advancement in use of renewable energy sources in particular countries. The countries disposing of developed and implemented technologies of biomass use in electricity production, i.e. mostly Germany, Sweden and Finland may become leaders on the know-how market and export technologies and solutions. The countries that mainly use coal and fossil fuel to produce heat and electricity are Germany, Poland, Lithuania, Latvia and Estonia. The above-mentioned countries have the potential to implement new technologies within the scope of renewable energy sources.

The amount of energy obtained from waste will increase. Waste management systems will be used for the combined production of heat and electricity through combustion or fermentation. Gas retrieval from dumps will be more significant.

The power industry based on renewable energy sources is expected to grow due to the forecasted increase in the price of oil (from 100 $/bbl. in 2010 to 122$/bbl. in 2030), as well as in the price of natural gas by almost 100% till 2030. Fuel prices will affect energy prices. Thus, the lowest production costs will be those including the energy obtained from waste, biogas and nuclear energy.