Energy Performance
Contracting for
street lighting
Christiane Egger
OÖ Energiesparverband
christiane.egger@esv.or.at
www.esv-en.at
www.streetlight-epc.eu
www.streetlight-epc.eu
The challenge
• 56 million street light luminaires (62 million street lamps) in
operation in Europe, estimated electricity consumption of 35 TWh
• For municipalities with older, inefficient systems, street lighting
accounts for 30-50% of their total electricity consumption, with
enormous savings potentials: often 30-70 %
• Savings potential recognised by EU policies: phasing out of nearly
80 % of all lamps currently in operation until 2017 (meaning: they
can not be purchased anymore - similar to incandescent light bulbs)
www.streetlight-epc.eu
What can municipalities do?
•
Lamps only replacement - "plug-in" ("re-lamping")
 often technically not possible (no lamps available) and even if,
technical problems likely
 low savings
•
Replacing both lamps and ballasts
 lamps and luminaires then often do not fit well
 likely to result in a loss of warranty on the whole system
•
Reduction street lighting services on "an ad-hoc basis"
(broken lamps are not replaced anymore)
 negative impacts on safety and public perception
 risk of liability for accidents (in cases of a legal obligation)
•
Replacing luminaires (including lamps and ballasts) by efficient
and long-lasting systems (usually LEDs)
 high upfront investment costs
www.streetlight-epc.eu
LED streetlighting - life cycle costs
Costs over the lifetime
Costs in 5
Lamp type
years (Euro/lamp)
Costs in 15
years (Euro/lamp)
Investment
Electricity
Maintenance
Total
costs
Investment
Electricity
Maintenance
Total
costs
High Pressure
Mercury Lamp
4
321
230
555
12
964
690
1666
High Pressure
Sodium Lamp
20
214
230
464
68
623
690
1401
160
67
75
302
319
201
225
745
LED
www.streetlight-epc.eu
Energy Performance Contracting
• a key instrument to finance and implement economic energy
efficiency investments
• streetlighting refurbishment an "ideal" application field!
• Energy performance contracting is (from the EED):
- a contract between a client (= municipality) and a
provider of an energy efficiency measure (= ESCO)
- investments (work, supply or service) are paid in
relation to a
- contractually agreed level of energy efficiency
improvement (or another criterion, such as financial
savings)
- verified and monitored during the whole term of the
contract
www.streetlight-epc.eu
What is "Energy Performance Contracting"?
Example OÖ Energiesparverband
energy cost
reduction
contract start
energy costs
after investment
before investment
energy costs
refinancing
investment
contract end
time
Energy efficiency investments are pre-financed and implemented by
an energy service company (ESCO), the annual energy savings then
cover the investment and capital costs. After the expiration of the
contract, the client benefits from the energy and cost savings.
www.streetlight-epc.eu
Overcoming "the chicken or the egg" problem
The "no demand, no supply" challenge
ESCOs
• specialists in energy efficiency
• qualified in technical operation of
plants/buildings
• good understanding of contractual
& financial issues
• able to finance the investments
The clients (= municipalities)
• understand the business model
• develop trust
• overcome legal constraints
Pressure created by phasing out of streetlamps is
a real opportunity for starting EPC markets!
www.streetlight-epc.eu
New IEE project:
Triggering the market uptake of energy
performance contracting through street
lighting refurbishment projects
Streetlight-EPC
Project duration: 1 April 2014 – 31 March 2017
www.streetlight-epc.eu
www.streetlight-epc.eu
Background
So far, in most European regions, energy performance contracting (EPC)
has not been able to develop significantly.
Street lighting is a good "learning and testing ground" for EPC due to its
lower technical and economic complexity.
The recent market introduction of LED technology for street lighting offers
high savings with comparatively short pay-back times.
This creates an opportunity:
• to establish EPC markets & trigger the uptake of guaranteed energy
services
• to support the market introduction of efficient lighting technologies and
• to support municipalities in "phasing-out" of street lighting lamps
www.streetlight-epc.eu
Project summary
• creates demand and supply for EPC projects in 9 regions by setting
up regional EPC facilitation services (providing comprehensive
support both to municipalities and to SMEs as potential ESCOs).
• performs real-life procurement of 36 EPC street lighting projects
during the project life, creating knowledge and trust in both LED and
other street lighting technologies and the EPC model.
• The project team: 9 regional agencies/organisations (providing the
EPC facilitation services) and 9 municipalities (committed to implement
EPC projects)
www.streetlight-epc.eu
Main project activities
Triggering the market uptake of energy performance contracting through
street lighting refurbishment projects:
•
•
•
•
•
•
•
•
•
Organising 45 regional meetings with a total of over 500 participants
Completing 90 "Streetlight-EPC quick-checks"
Providing advice to 270 enquiries
Reaching out to more than 4,000 municipalities
Supporting 50 SMEs
Making regional learning and feedback processes happen
Trans-regional learning and exchange of experiences
Extending the learning to indoor lighting applications
Transferring the knowledge to other European regions
www.streetlight-epc.eu
Partners
• 19 partners in 9 countries
• 9 regional partners, 9 city partners, 1 European network
• co-ordinator: OÖ Energiesparverband
Region
Upper Austria/Austria
North-West Croatia
South Bohemia/Czech Republic
Pomerania/Poland
Carlow & Kilkenny County/Ireland
South East Sweden
Podravje/Slovenia
Macedonia
North/Central Spain (regions of
Madrid, Castilla y Léon, Cantabria)
Regional partner
ESV
REGEA
ECCB
BAPE
CKEA
ESS
ENERGAP
MACEF
ESCAN
www.streetlight-epc.eu
City/county partner
City Wels
Zagreb County
City of Trhové Sviny
City of Gdansk
Kilkenny County
City of Kalmar
City of Maribor
City of Skopje
City of Santander
EPC facilitation services Upper Austria (1)
• programme managed by the OÖ Energiesparverband which combines
financial incentives and information activities
• targeting the "supply" (ESCOs) and the "demand" (potential clients, e.g.
municipalities) of EPC services
• continuous information and awareness raising activities
ESCOs:
information & training
Clients: targeted
information
to target groups
Promotion of
successful
examples
Support the desicion
making process
www.streetlight-epc.eu
EPC facilitation services Upper Austria (2)
• Project advice:
Individual advice both to ESCOs and clients, pre-check of contracts
• Comprehensive information on our website, e.g.:
a list of ESCOs, project examples, contract information, funding
sources, FAQs
• Publications
• Training courses (e.g. "Energie-Contracting" in the
Energy Academy)
• Conferences & events (e.g. "Breakfast for Mayors" on streetlighting)
• Including EPC in many other information channels (e.g. energy
advice programme for company, training courses etc.)
www.streetlight-epc.eu
The EPC facilitation services Upper Austria (3)
What did we learn?
• We need "in-house know-how": building up know-how within the
organisation at a first step
• "explain, explain, explain": the EPC concept and its the concrete
implementation need significant and continuous efforts in
explanation
• providing targeted advice at all project stages
• taking a "quality approach" (better fewer projects, but these are
very good)
• main bottleneck: limited number of ESCOs
reasons: - access to capital (after the first few projects)
- risks associated with the provision of EPC services
www.streetlight-epc.eu
!
The EPC facilitation services Upper Austria (4)
• more than 100 projects realised
• the first years were challenging and the programme started very slowly
("Nigerian eMail phenomenon")
• 15 ESCOs are listed on ESV website and
in total more than 30 ESCOs are
established which offer ESCO services in
Upper Austria
• EPC has found its place in the portfolio of
sustainable energy solutions in
Upper Austria
www.streetlight-epc.eu
Example Kremsmünster: In 2 Steps
• population: 6,400
First step:
• LEDs tested at the main square (12 luminaires )
• Increase of level of illumination from 1.5 to 10 lux
• Investment: 6,700 €
• Savings: 2.300 kWh (about 20%), 220 €/a
electricity costs, 300 €/a maintenance
Second step:
• Renovation of total streetlighting (693 luminaires)
• Investment: 598,700 €
• Savings:
48,882 €/a, 146,020 kWh/a (53.5%)
• Contract duration: 10 years (2013-2023)
www.streetlight-epc.eu
Example: City of Wels
•
streetlighting renovation project in the city of Wels
(population: 61,000)
•
4,200 luminaires (50 % of all luminaires), including
all lamps older than 15 years, replaced by LEDs
•
improved control systems (e.g. 1/3 of the lamps are
now dimmed between 21:30 - 05:00)
•
Investment: 2,100,000 €
•
Savings:
- 47% guaranteed by the ESCO
- 1,300,000 kWh/a
- 250,000 €/a, 60,000 €/a maintenance costs
•
Contract duration: 10 years (2012 – 2021)
www.streetlight-epc.eu
World Sustainable Energy Days 2015: 25 - 27 February
 European Nearly Zero Energy Buildings
Conference
 Energy Efficiency Policy Conference
 Young Researchers' Conference
 European Pellet Conference
 Trade Show - Energiesparmesse: +1,600
exhibitors
Call for Papers: 10 October 2014
www.wsed.at
Streetlighting & EPC now is the time to get active!
Christiane Egger
OÖ Energiesparverband
christiane.egger@esv.or.at
www.esv-en.at
www.streetlight-epc.eu
www.streetlight-epc.eu
“Phasing out”
• Phasing out means that these product groups will no longer be
placed on the market and can not be purchased any more.
• Nearly 80 % of all lamps currently in operation will be affected by the
phase-out: among them 26 million High Pressure Sodium (HPS) and
18 million High Pressure Mercury (HPM) lamps.
2012
2015
2017


Ausphasen von T12 (38 mm) Leuchtstofflampen ("dicke Leuchtstofflampen")
Natriumdampf-Hochdrucklampen und Halogen-Metalldampflampen müssen
bestimmte Effizienzkriterien erfüllen


Ausphasen von Quecksilberdampf-Hochdrucklampen und von
Natriumdampf-Hochdruck-Plug-In-Lampen*/Retrofit-Lampen höherer Wattagen (Plug-inLampen müssen Super/Plus HPS Level entsprechen)
(*oft als Ersatz für Quecksilberdampf-Hochdrucklampen beworben)


höhere Anforderungen an Halogen-Metalldampflampen
Ausphasen konventioneller magnetischer Vorschaltgeräte.
Nur mehr elektronische Vorschaltgeräte (EVG) sind zugelassen.
Folgende Auslaufphasen sind im Wesentlichen vorgesehen:
Weitere Details siehe EU-Verordnung 245/2009 (http://eur-lex.europa.eu/de/index.htm).
www.streetlight-epc.eu
ESCO contracts - requirements
Crucial points that have to be decided in the contracts (examples):
• what happens in case of bankruptcy of a contracting party?
• what happens if the designated use of the building changes?
• what are the provisions for changes of energy prices?
• what happens in case of damages or losses (maintenance?)
• ownership issues after the contract end?
• what happens if the building is sold?
• for efficiency contracting: consequences if the agreed savings are not achieved
In addition, the Upper Austrian programme requires the following criteria:
• the ESCO has to prove that it has the necessary technical skills
• proof of their financial standing ("Bonität") has to be provided by the ESCO and
the client
• a detailed energy analysis of the project has to be carried out
But not standard contracts or contract templates!
www.streetlight-epc.eu
ESCOs
A qualified ESCO:
• has a list of references
• is able provide proof of its financial standing
• prepares the project well and provides a clear cost-/benefits
analysis
• involves and trains buildings staff and users
• proposes a clear devision of tasks between ESCO and client
• proposes a well structured contract which also includes provisions
for "difficult" situations (e.g. bankruptcy, changes of ownership etc.)
www.streetlight-epc.eu
Wirtschaftlichkeit von LED Investitionen
• Soll der Ersatz einer bestehenden Leuchte ausschließlich über die
Energieeinsparung finanziert werden, kann unter Zugrundelegung
folgender Konditionen (15 ct/kWh, 4 % Verzinsung/a), bezogen auf die
Lebensdauer der LED von 50.000 Stunden (bei Brenndauer von 4.100
h/Jahr ca. 12 Jahren) von folgender Faustformel ausgegangen werden:
• Pro kWh Einsparung können ca. 1,41 Euro investiert werden
• jede jährlich eingesparte kWh bringt, hochgerechnet auf die typische
Lebensdauer der LED (12 Jahre bei 4.100 h/a), eine finanzielle Ersparnis
von ca. 1,41 Euro (inkl. USt.).
• Dies gilt bei einem konstanten Strompreis (werden Verzinsung und
Strompreissteigerung gleichgesetzt, liegt der Wert bei 1,8 Euro).
• Aus unserer Broschüre
www.streetlight-epc.eu
EPC facilitation services Upper Austria (2)
• programme started in 1998
• supports energy efficiency contracting ("Einspar-Contracting") and
renewable energy supply contracting ("Anlagen-Contracting")
• clients can be companies, institutions or municipalities
• the programme combines:
- comprehensive promotion activities (awareness raising, training,
events, publications, advice to both ESCOs and clients on their
specific projects)
- a subsidy (up to 20 % for energy efficiency and up to 13.5 % for
renewable supply contracting), contract periods of max.
10 years, supported investments: 50,000 - 500,000 Euro
www.streetlight-epc.eu
City of Wels – LED Großprojekt
•
Die Straßenbeleuchtung in Wels umfasst rd. 7.700
Leuchten mit 9.100 Lichtpunkten.
•
Vor der Sanierung 2011 waren QuecksilberdampfHochdrucklampen (HQL), Natriumdampflampen,
Plug-in-Lösungen, Leuchtstofflampen im Einsatz.
•
alle Lampen älter als 15 Jahre, im gesamten
Stadtgebiet (Bundesstraßen, Siedlungsgebiete und
Fußgängerzonen) getauscht.
•
Ein Drittel der Straßenbeleuchtung wird von 21.30
Uhr bis 5.30 Uhr auf 50 % abgesenkt
•
Einsparung: 36% (garantiert),1,2 Mio kWh/a (rd.
30%), 230.000 €/a, 60.000 Euro Wartungskosten
•
Investitionskosten: 2.100.000 Euro
www.streetlight-epc.eu