Project partners:
Combining energy services with subsidy schemes
to finance energy efficiency in Central Europe
Energetická agentura Vysočiny
Nerudova 1498/8
586 01 Jihlava, Czech Republic
Web: www.eav.cz
SEVEn - The Energy Efficiency Center
Americká 17
120 00 Prague 2, Czech Republic
Web: www.svn.cz
Berliner Energieagentur GmbH
Franzoesische Straße 23
10117 Berlin, Germany
Web: www.berliner-e-agentur.de
POLITECNICO DI MILANO - Dipartimento di Energia
eERG – end-use Efficiency Research Group
Via Lambruschini 4
20156 Milano, Italia
Web: www.eerg.polimi.it
Lead partner:
Energetická agentura Vysočiny
Nerudova 1498/8,
586 01 Jihlava, Czech Republic
Contact person: Hana Zábranská, zabranska@eav.cz
Building and Civil Engineering Institute ZRMK
Dimičeva 12
SI-1000 Ljubljana, Slovenia
Web: www.gi-zrmk.si/ZRMKinstitut/
Energy Centre Bratislava
Ambrova 35
831 01 Bratislava, Slovakia
Web: www.ecb.sk
COMPREHENSIVE RENOVATION
OF BUILDINGS
Combining
Energy Performance Contracting
with subsidies
Photo / FreeDigitalPhotos.net by Koookkai_nak
Design / TRIDESIGN d. o. o. Ljubljana / www.tridesign.si
Polish Foundation for Energy Efficiency
Fundacja na rzecz Efektywnego Wykorzystania Energii
Ul Rymera 3/4
40-048 Katowice, Poland
Web: www.fewe.pl
VITAL FACTS and SELECTED STORIES
www.combines-ce.eu
This project is implemented through the
CENTRAL EUROPE Programme co-financed by the ERDF.
Contents
→→ Introduction3
→→ EPC potential with building envelope rehabilitation in Central Europe
4
What’s EPC
→→ Subsidy scheme: Today and tomorrow
6
→→ Main principles of Comprehensive Renovation
7
CombinES Comprehensive Renovation;
→→ Procedures of CombinES Comprehensive Renovation 8
Project timeline
→→ Partners’ words
→→ Best practices examples of Comprehensive Renovation
10
11–22
Czech Republic
Slovenia
Italy
Slovakia
Germany
Poland
→→ Definitions and Glossary
23
→→ Photo gallery
24
Hana Zábranská
Romana Krátká
Jana Szomolányiová
Vladimir Sochor
Laurenz Hermann
Christoph Blaschke
Giulio Cattarin
Lorenzo Pagliano
Miha Tomšič
Marcel Lauko
Symon Liszka
Jan Twardowski
Introduction
Maintaining and upgrading the buildings stock is a far-reaching task.
We face many challenges, be it technical, economic, budgetary, legal or institutional. One of the most critical points is raising necessary funds, where
available public financial incentives – not to mention limited own sources
- often do not suffice to cover the total investment programme of energy
efficiency measures. This may lead to their minimisation or even abandonment, losing the opportunity to exploit the large energy saving potential
resulting in lower operational costs and to contribute to climate change
mitigation.
A relevant solution is to complement subsidies with energy performance contracting (EPC). EPC is usually suitable for financing measures
with a short or medium payback (for example, technical systems) while
additional financing from subsidy programmes is needed to implement actions with a longer payback (for example, thermal envelope). A significantly
larger number of projects can thus be implemented, which result not only
in energy and related cost savings but also in a higher quality of indoor
comfort and reduced environmental impact. Benefits include boosting innovative technologies, creation of new work places and even support to
regional social development. In this way all three sustainability pillars are
handled: the environmental, economic and social one.
CombinES – Combining energy services with subsidy schemes to finance energy efficiency in Central Europe – connected seven partners representing public equivalent bodies and private institutions from the energy
efficiency sector. We carried out an evaluation of existing rules for providing public support for energy savings in individual countries, as well as future options for realisation of savings. Based on this research we prepared
recommendations for policy makers and market players, outlining how
to adjust rules and criteria for subsidy programmes for thermal envelope
measures in order to optimise costs and savings in combination with EPC.
We also gave this approach a name: CombinES Comprehensive Renovation
(CCR).
The brochure you are reading will enable you to understand the basics
of EPC principles and subsidy schemes, get a feeling about the energy saving and financial potentials waiting to be released, discover procedures of
comprehensive renovation with combined financing and learn about good
practice cases from six countries. Most importantly, we hope that its content will encourage you to boldly plan and undertake your own integral
energy efficiency actions secured by a suitable combination of financing
mechanisms.
Energy Performance Contracting
EPC potential with building envelope
rehabilitation in Central Europe
M
ost European countries struggle to modernise their building stocks. This is also true for public
authorities, who often lack the necessary funds to refurbish their schools, offices or hospitals.
Energy Performance Contracting (EPC) has been refined and advanced in the past years as
an important instrument to enable building modernisation in PPP projects, where private energy service companies (ESCOs) implement measures with guaranteed savings in a contract of normally 6-10
years. With this approach, the ESCO investments are being financed with the future savings, making
EPC a win-win situation for all parties involved.
As refurbishments of the building shell
generally have payback periods exceeding
10 years, they can only be included in the
EPC approach if additional funds (either
from the building owner or from public
funding schemes) are made available. The
optimization of this combination in a comprehensive process scheme is the main
topic of the CombinES project.
How big is the potential?
The ‘Ambitious growth’ scenario
needed to achieve the European Union’s
energy and climate objectives in the building sector implies a very active role of
governments and local authorities as customers, information providers and policy
makers in the EPC sector.
The analysis of the EPC market potential in the assessed markets confirms
that a simplified and uniform investment
framework for energy efficiency projects
including thermal envelope upgrade financing schemes would give the markets,
Provided EPC receives this major push,
which are currently characterized by an
the shares of the estimated ‘Economical
only modest growth, a major impulse.
What is Energy Performance Contracting (EPC)?
• Without the need for up-front capital: Energy efficiency investments are repaid directly from
energy savings and related financial savings, so there is not need for up-front capital on the
customer’s side.
• Turnkey service: The energy service company (ESCO) provides all services required to design and
implement a comprehensive energy saving project at the customer’s facility, from initial energy audit
to measurement and verification of savings.
• Risks for customers minimized: The ESCO assumes the contractually agreed performance risks of
the project.
• Savings guaranteed: The ESCO guarantees the achievement of the contractually agreed level of savings and is obliged to compensate savings shortfalls.
For more information on the main EPC principles download European Code of Conduct for EPC at:
www.transparense.eu/eu/epc-code-of-conduct or EPC Marketing Brochure at http://eesi2020.eu/service/downloads/.
4
Energy Performance Contracting
energy saving potentials’ for 2020, that
can be exploited by EPC, could be increased from values lower than 0.5% to a
range of 1 – 5% for Poland, Czech Republic
and Italy and to a range of 7 – 10% for Germany, Slovenia and Slovakia. To tap these
potentials alternative financing schemes
adapted to the necessary stimulation of
deep renovation projects in existing buildings and the involvement of specialized
project development consultants (see
also next chapter) are mandatory.
As shown by the analysis of the market potential, a considerable part of the
economically advantageous energy saving potentials can be tapped with an optimized legal and policy framework as illustrated in the CombinES model. It has
been observed that the implementation
rate of energy efficiency investments differs even for similar building types in the
same country, dependent on the level and
type of the responsible administration,
their acquaintance with the EPC concept
and the availability of public funds. This
underlines the need for capacity building
among public stakeholders, appropriate
funding mechanisms and the implementation know-how of experienced facilitators.
With appropriate financing schemes
in place, the CombinES model provides
an approach to bring about integrated
deep renovation projects by experienced
ESCOs able to provide the technical knowhow and to guarantee for the savings.
This would contribute substantially to the
achievement of the European Union’s energy and climate objectives in the building
sector.
EPC as instrument for risk minimization in building modernisation
additional financing arrangements which will the costs stay within the budget, will
are in principle decoupled from the EPC the savings really be achieved?
contract period is necessary and reasonOne main advantage of implementing
able (see CombinES comprehensive renoenergy related investments in the context
vation model).
of an EPC project is the outsourcing of
Also in this case, however, the savings important risks from the building owner
guarantee in EPC contract arrangements to the ESCO. The crucial aspects in this
can be a key element to de-risk the com- context are the transfer of technical and
prehensive rehabilitation project from a financial risk to the ESCO.
financial point of view and to guarantee
As the ESCO bears the technical and
that all financing obligations can be serentrepreneurial risk for achieving the guarviced from the associated energy savings
anteed energy savings, the client is freed
within the lifetime of the investment.
from any cost risk resulting from technical
Though, the EPC method is not uni- problems of the systems installed by the
versally applicable, as percentage value ESCO. The ESCO, in turn, is highly motivatof project preparation and tendering ed to reach and even surpass the energy
costs varies with project size and thus a savings guaranteed through optimal paminimum energy consumption baseline rameterization and maintenance. Lower
for the building or the building pool is re- energy savings would lead to reduced remuneration for the ESCO, as the ESCO has
quired.
guaranteed the savings.
As EPC projects are complex contracFor the planning, construction, and
tual arrangements a diligent preparation and development phase is required. maintenance of a given technical system,
Hence, one of the keys to success in EPC the building owner would normally inprojects is involving a well-trained, expe- volve different external service providers
rienced project Facilitator, who supports as well as in-house personnel with spethe preparation and implementation of cific responsibilities. In the case of a system failure with unclear warranty status,
the project on behalf the facility owner.
these shared responsibilities can result
in a difficult and time-consuming process
Role and tasks of the ESCO
to resolve conflicts between different acEnergy saving measures can be real- tors, e.g. the planner, the installer and the
ized with in-house personnel, with ex- maintenance company. The result can be
ternal suppliers / service companies or delays in the fixing of the problem and
– alternatively – in the context of an EPC consequently financial losses. In the case
project by an Energy Service Company of an EPC contract, all such issues con(ESCO).
nected with the new systems are in the
responsibility of the ESCO.
Any investment or modernisation
project involves risks: Did I choose the
Thus, the building owner benefits
right design, was the installation properly from the ESCO being the ‘one face to the
done, will the system operate as planned, customer’ (see Fig. 1).
The rationale of the EPC concept is
that the energy service provider not only
designs and installs energy saving solutions, but guarantees the annual (cost)
savings. This enables the project cost to
be financed with annual cost savings that
are used to repay the loan within the lifetime of the investment.
In the case of very high upfront investments with consistent long-term energy
savings, as in the case of envelope rehabilitation measures, the necessary payback
times though often exceeds feasible EPC
contract periods. In this case setting up
Figure 1
Photo by Ponsulak
5
Energy efficiency subsidy schemes
Subsidy schemes:
Today and tomorrow
S
ubsidy schemes are generally managed at national level and in most cases the type of financing measures
consists into grants, which percentage can vary in a broad range between 15 and 100%. Leverage mechanisms such as revolving funds are still not common, but some examples already exist such as the Market
Incentive Programme in Germany, Fondo Kyoto in Italy and SLOVSEFF II in Slovakia. The situation may change
in the next years due to the limited public budgets, which would probably be better preserved by creating and
effectively managing revolving funds.
According to experts, the optimal approach is to implement first the measures on the demand side increasing
the energy efficiency of the building envelope. In the second step these should be accompanied by the energy
management, regulation and the technical measures improving EE on the side of the heating system. The later
mentioned measures are particularly suitable for EPC model, which both secures the financing and provides
guarantees of a proper and efficient operation of the technical equipment.
Why are subsidy schemes not used in EPC projects?
Even though both private and public subjects can apply for
subsidies, several restrictions still curb the utilization of the incentives for cofinancing EPC projects. One of the main barrier
consists in the fact that according to some scheme provisions
ESCOs cannot apply for grants in the place of the clients. Since
all invoices should be addressed to the building owner (and not
to the ESCO), this leads to high administration costs and to problems with the general guarantee for products and services. In
some cases, entire customer segments are excluded from access to incentives. A general barrier is that the conditions of the
subsidy schemes are often not formulated with respect to needs
of combinations with the EPC projects. Almost none of the subsidy programmes is devoted to the EPC project preparation.
The only partial exception is the Czech programme EFEKT 2013,
which supports the preparation of EPC projects in municipalities, city quarters, regions and public-owned companies.
The short blanket and the wise choices
The experience from the implemented energy efficiency
projects financed by both subsidies and EPC shows that this is
a very promising way to realise the highest share of the existing
energy efficiency potential from the limited public funds.
It is good to keep in mind that energy saving measures are
mainly based on mature and economically sustainable technologies. As a consequence, subsidy schemes should encourage the
development of EPC market but also prepare the ground for a
solid, self-sustaining business.
A reflection on the actual need of subsidy schemes (in terms
of % and volume) for the different types of energy saving measures should receive its proper space. The subsidies should be
allocated only to those measures which could not be imple-
6
mented on the basis of commercial conditions. The information
gathered suggests that street lighting, heat metering systems,
inverter and electric motors are all self-sustaining technologies.
The replacement of boilers, the installation of a heat recovery
system or a combined heat and power plant are also self-sustaining, but to a lesser extent. The interventions on the building
envelope are usually not economically sustainable due to their
long payback period and need either to be subsidized or to be
coupled with short-term interventions so to achieve a shorter
average payback period. However, if there is a necessity of other than economic reasons (e.g. safety, comfort etc.) driving the
building envelope renovation, the additional measure consisting
in adding an insulation layer could have relatively low payback
period and become economically efficient.
In addition, subsidy programmes should finance new realizations which create employment, job opportunities and development. It is noxious to feed existing projects that revealed to be
ineffective. Energy savings measures are characterized by being
labour-intensive and localized, giving good opportunities to local installation and manufacturing companies and entailing benefits also for transport, energy and service sectors.
CombinES Comprehensive Renovation
Main principles of Comprehensive Renovation
I
n this brochure, the term »Comprehensive Renovation”
means coordinated implementation of renovations to the
thermal envelope (including building envelope insulation and
substitution of fixtures) and technology (including interventions
in heating, cooling, domestic hot water [DHW] and ventilation
systems). The main advantage of this approach is that both types
of measures can be inter-optimised within one renovation. This
leads to optimal energy savings under the given volume of investment costs. These results are impossible to achieve solely
by partial renovation or by implementing the two types of measures without coordination.
The Energy Efficiency Directive (2012/27/EU) also requires
that implementation of energy efficiency measures in buildings should be as comprehensive as possible and should entail
measures both in the thermal envelope and in the technological
equipment of the building.
Building insulation alone does not lead to optimal
energy savings. To achieve such savings, the insulation
needs to be accompanied by renovation of the building’s heating/cooling/DHW/ventilation systems, including heat sources and regulation systems.
CombinES Comprehensive
Renovation
»CombinES Comprehensive Renovation” is a special case of
comprehensive renovation where the thermal envelope part of
the renovation is subsidised and the technology part of the renovation is implemented by applying the Energy Performance
Contracting (EPC) model.
→→ The technology part of the renovation is implemented with
the intervention of an energy service company (ESCO) by applying the EPC model. In this case, EPC is suitable as the
renovation of technological equipment and energy systems
can achieve a relatively short payback time1 typical for commercial financing.
→→ The thermal envelope part of the renovation is subsidised
by some of the applicable programmes. Thermal envelope
measures usually entail several times higher investment
costs than technology measures. Therefore, it is often necessary to recur to subsidy programmes in order to cover part
of the investment costs and shorten the payback period2.
1
EPC is suitable for measures with payback time up to around 10 years. The
reason is that it would not be commercially viable for EPC providers to enter
into longer contracts, either from a business or financial point of view.
2
For instance in the case of operational programmes in the Czech Republic,
thanks to the subsidies the share of direct investment costs paid by the investor
was 40% of total investment costs for thermal envelope measures.
In general, the energy efficiency measures applicable to
buildings can be divided into two main types:
→→ Thermal envelope measures mainly entail insulation of the
building envelope, roof insulation and replacement of windows and doors. Implementation of these measures usually leads to a significant reduction in heat consumption,
although the payback time of such an investment often exceeds 20 years.
→→ Technology measures entail wholesale renovation of a
building’s technological equipment, such as replacement of
the heat source, installation of new measurement and regulation systems, renovation of heat distributors, installation
of thermostatic or thermodynamic valves, and the like. The
payback time of such an investment is often less than 10
years. Energy management is also covered in this brochure
under the term “technology measures”.
Strenghts
→→ Main advantage of Comprehensive Renovation, which is
optimal energy savings.
→→ Possibility to inter-optimise the timing and choice of the
measures when implementing both groups of measures.
It allows the building heating system to be sized according
to the building envelope performance achieved following
implementation of thermal envelope measures. This avoids
over-sizing of the heating system caused by only implementing thermal envelope measures, resulting in non-optimal functioning of the system.
→→ With a careful preparatory phase and a suitable time schedule, the whole project can be implemented so that the interventions in the building are as brief as possible.
→→ In the case of technology measures, the EPC provider (energy services company – ESCO) guarantees the contractually
agreed energy savings and the related costs. This is crucial,
as the energy savings usually directly depend on the maintenance and service of technological equipment (system of
measurements and verification).
→→ It is recommended that the EPC provider guarantees the
whole amount of energy savings, i.e. both energy savings
from implementation of technology measures and energy
savings from the thermal envelope measures. This brings an
advantage that one party would be in such case responsible
for a total energy savings from Comprehensive Renovation,
which can be measured. If EPC provider guarantees only the
energy savings from the technology measures, these cannot be measured but only assessed with calculations. Such
overall guarantee was successfully applied in the Czech
Republic, however, it might not be applicable on a market,
where the players are not willing to provide such service to
the client.
7
CombinES Comprehensive Renovation
Procedures of CombinES
Comprehensive
Renovation
Bottlenecks
→→ Organising Comprehensive Renovation is rather demanding and requires detailed planning, preparation and implementation for optimum results to be
achieved.
T
→→ Comprehensive Renovation is a complex process
and is not easy to manage. Potential clients may see
it as more risky and therefore may be more reluctant to approve it.
he main steps of CombinES Comprehensive Renovation
implemented in two separate procurements are described in detail below.
The EPC provider always guarantees the volume of contractually
agreed savings from technology part of the measures. If the client is able to negotiate that the EPC provider guarantee also the
energy savings from thermal envelope measures, it increases
the benefits for the client.
→→ Additional organisational and administrative efforts
are required in order to comply with the requirements of the subsidy programmes.
1 Feasibility study
→→ A feasibility study should be an integral part of Comprehensive Renovation and may also be conducted as part of an
energy audit. It optimises the combination of the thermal
envelope and technology measures in such a way, that the
heat delivery equal the expected energy consumption after
the installation of building insulation.
2 Thermal envelope measures implemented with
a subsidy
→→ Background documents for subsidy application for energy
savings through thermal envelope measures are prepared in
accordance with the rules of the specific subsidy programme.
months duration
1
2
3
4
5
6
7
8
9
10
11
12
1
2
3
4
Project timeline – Technology measures implemented through EPC +
Preliminary anaylsis
Preparation and submission of an
application for subsidy
Approval of the subsidy
Preparation of EPC
8
1st year
Publication of
contract
notice
Preparation of the
project documentation
for thermal envelope
measures
EPC tender dossier preparation &
EPC providers invitation
Procurement of
thermal envelop
measures
Closing the EPC the EPC contract
2nd year
pe
CombinES Comprehensive Renovation
→→ The project documentation for thermal envelope measures
is prepared and is then part of the tender dossier in procurement for the supplier of thermal envelope measures.
→→ Procurement of thermal envelope measures must follow the
rules of the given subsidy programme and must be adjusted
to its evaluation criteria.
→→ Implementation of thermal envelope measures by the winning supplier in accordance with the project documentation.
It is recommended that the installation will be supervised
by the project designer and the investor’s engineering supervisor. In addition, allowing the EPC provider to oversee
the quality of the measures installed may contribute to the
energy saving performance of the project.
→→ After the implementation of thermal envelope measures the
investor receives the financial subsidy. In addition, the subsidy recipient evaluates the energy savings and informs the
subsidy provider of the project outcomes.
3 Technology measures implemented through EPC
→→ Procurement of an EPC facilitator who is able to guide the
client safely through the preparation and organisation of
EPC procurement and too can assist at further steps, too.
→→ Preparation and implementation of procurement of EPC
services in accordance with the procurement requirements
of the national legislation. Negotiated procedure with prior
publication of a contract notice makes it possible to select
the EPC provider based on negotiation with tenderers upon
their offers. It includes:
5
6
7
8
9
10
11
12
1
• publication of a contract notice;
• preparation of tender dossier for EPC;
• invitation to submit offers;
• offers are submitted;
• several rounds of negotiations with the tenderers leading
to adjustments of the offers;
• the most economically advantageous offer is selected
and the winning tenderer is announced;
• signing of the contract.
→→ Implementation of all contractually agreed technology
measures by the EPC provider. The EPC provider is also
responsible for complete engineering supervision. Before
handing the measures to the client, a set of comprehensive
tests confirms that the measures have been installed properly.
→→ Guaranteed operation over the contracted period of time
(usually four to 10 years):
• The EPC provider guarantees that the contractually agreed
level of savings will be achieved. If an EPC project fails to
achieve performance specified in the contract, the EPC
provider is obligated by the contract to compensate savings shortfalls.
• Contractually agreed savings as well as achieved savings
are determined in a fair and transparent manner by Measurement and Verification (M&V) using appropriate methodology (such as IPMVP) as defined in the contract.
2
3
4
5
6
thermal envelope measures financed with subsidies
Closing the
procurement &
signing the thermal envelope
measures
procurement & signing of
Implementation
of the thermal
envelope measures
Preparation of the project
Receiving the subsidy from the subsidy programme
Guaranteed savings
3rd year
9
ITALY, Giulio Cattarin, PoliMi:
The project kept its word! In the complex
scenario of energy efficiency renovation,
municipalities, SMEs and professionals
undergo the risk of feeling isolated and
stuck in a unfavourable economic situation. CombinES has boosted the crossfertilization of expertize, giving visibility
to the best practises in Italy and keeping
open the dialogue among decision makers, ESCOs and future clients. Let’s keep
moving!
CZECH REPUBLIC, Vladimir Sochor, SEVEn:
Simple thermal insulation is not sufficient to ensure an optimal volume of savings – it should be complemented with a
technological upgrade of the heating system as well as with an effective energy
management.
Partners’
words
SLOVAKIA, Marcel Lauko, ECB:
SLOVENIA, Miha Tomšič, ZRMK:
The word is out: a clever combination
of public and private financing enables
comprehensive renovation with maximised benefits. Investigate, observe,
learn, compare, follow example – and
engage trustworthy support.
CombinES helped us to discover the potential hidden in utilization of subsidies
through Energy Performance Contracting. We believe that discussions among
relevant stakeholders, initiated on base
of the project’s recommendations, will
materialize into successful ESIF-EPC
combined projects within the actual
ESIF 2014 - 2020 programming period.
GERMANY, Laurenz Hermann, BEA:
POLAND, Jan Twardowski, FEWE:
Energy performance contracting EPC developed after competitive dialogue in the
form of small public-private partnerships
gives momentum to the development of
real energy services in Poland.
10
The CombinES project made an important contribution to the further development of Energy Performance Contracting (EPC). Finding ways to extend
the scope of EPC to also include measures to rehabilitate the building shell
is at the same time a challenge and a
necessity. The proposed utilisation of
funding schemes to bridge this financial
gap is a very promising approach.
BEST PRACTICE examples of COMPREHENSIVE RENOVATION
Czech Republic
CombinES Comprehensive Renovation in
Josef Gočár Secondary Civil Engineering
Technical School in Prague
Facility
Country
Region
Customer
Type of building
Josef Gočár Secondary Civil Engineering Technical School
Czech Republic
Prague
Municipal Prague City Council
Campus of the secondary school
Overview
Implemented via
I. EPC
II. Subsidies
Type of measures
technology measures
thermal envelope measures
Start date for the procurement
procedure
December 2009
May 2009
Date of contract signature
July 2009
September 2009
Year of installation measures
2009–2010
2009–2010
Contract duration
8 years
7 months
Period of provided guarantees for
8 years
energy savings
8 years
Investment volume
EUR 1.3 million
EUR 0.4 million
I. Technology measures implemented by EPC
EPC provider
MVV Energie CZ a.s.
Project in short
A CombinES Comprehensive Renovation project has been prepared for the
Josef Gočár Secondary Civil Engineering
Technical School in Prague 4. The project
consisted of energy saving measures in all
modern school buildings with use area of
5,283 m2.
In the second half of 2009, thermal
insulation of the building, supported by
a subsidy from Operational Programme
Environment commenced. The insulation
measures were completed during the
spring of 2010.
In 2010, an EPC project was launched.
The EPC project has lead to renovation
of the boiler house, installation of new
air conditioning system and heat pumps
and new regulation system. In total these
technology measures estimated to save
16.7 GWh of heat and 2.7 GWh of electricity during the whole lifetime of 15 years.
Savings guaranteed in the contract were
about 0.1 million EUR/year.
Implemented measures Within the EPC project a gas boiler plant, engine room of heating
and hot water and air-conditioning were reconstructed, as well as
2 heating pumps (air-water) and modernised measurement and
regulation have been installed.
Interventions on the building (wall insulation and replacement of
windows and doors) were implemented one year prior to implementation of the EPC project.
Financing
The investment costs of energy saving measures within the
EPC project were in the amount of EUR 0.4 million. The client's
own funds invested in the project amounted to about 20% and
the rest of the investment is being repaid from energy savings
achieved.
II. Thermal envelope measures co-financed by subsidy
Supplier of subsidized
measures
Vltavín Holding, stavební podnik, Ltd. (construction company based
in Prague)
Implemented measures Insulation of building thermal envelope
Type and source of
financing
The client received a subsidy from Operational Programme Environment (OPE) for insulating the building thermal envelope
amounting to EUR 1 million i.e. 74% of the total investment
costs).
11
BEST PRACTICE examples of COMPREHENSIVE RENOVATION
Czech Republic
CombinES Comprehensive Renovation in
Secondary Technical
School Novovysocanska
Facility
Country
Region
Customer
Type of building
Secondary Technical School Novovysocanska
Czech Republic
Prague
Prague City Council
Campus of the secondary school
Overview
Overview
Implemented via
I. EPC
II. Subsidies
Type of measures
Technology measures
Thermal envelope measures
Start date for the procurement
procedure
July 2008
May 2009
Date of contract signature
November 2008
September 2009
Year of installation measures
2009
2009–2010
Contract duration
8 years
4 months
Period of provided guarantees for
8 years
energy savings
8 years
Investment volume
EUR 0.6 million
EUR 0.3 million
I. Technology measures implemented by EPC
EPC provider
Enesa a.s.
Implemented measures Heating system was renovated by replacement of gas boilers and
a rather extensive refurbishment of the heating system.
In rooms, there was implemented IRC system. In addition measures aimed at reduction of electricity and water consumption
have been implemented.
Financing
Costs of measures in the amount of CZK 8 million are partly repaid from the energy savings in the amount of CZK 6 million. Thus
the client’s own funds invested in the project amounted to 25%
(CZK 2 million).
II. Thermal envelope measures co-financed by subsidy
Supplier of subsidized
measures
3V&H, Ltd. (based in Uherský Brod)
Implemented measures Insulation of the building (skin and replacement of windows and
doors) was implemented at the same time.
Type and source of
financing
12
For the insulation of building the client received a subsidy from
OPE for thermal insulation in the amount of EUR 0.4 million (i.e.
64% from the total investment costs of insulation in the amount
of EUR 0.6 million).
In 2009 the Secondary Technical
School Novovysocanska in Prague implemented CombinES Comprehensive Renovation.
Firstly, the Schools’s heating system
was renovated by replacement of gas
boilers and a rather extensive refurbishment of the heating system. Measures
pertaining to heat consumption were
supplemented by saving measures aimed
at reduction of electricity and water consumption. For the preparation of the project the school received a subsidy from
the Programme EFEKT in the amount of
EUR 4,000.
Moreover, in the second half of 2009
the school carried out complete insulation of the building envelope, including
replacement of the original windows with
plastic ones. The project was financially
supported by the State Environmental
Fund of the Czech Republic within the Operational Programme Environment (OPE).
Seventy five percent of the investment in
the technological components will be repaid by the energy savings. As the savings
are guaranteed by the EPC contract, the
client does not take the financial risk of
the repayment for this part.
BEST PRACTICE examples of COMPREHENSIVE RENOVATION
Czech Republic
CombinES Comprehensive Renovation in
Prague school buildings
Facility
Country
Region
Customer
Type of building
Schools in district Prague 13
Czech Republic
Prague
District Prague 13
EPC implemented in 31 school buildings (primary schools and
nursery schools) from which 15 school buildings were insulated
Project in short
Overview
Implemented via
I. EPC
II. Subsidies
Type of measures
Technology measures
Thermal envelope measures
Start date for the procurement
procedure
February 2009
September 2009
Date of contract signature
September 2009
February 2009
Year of installation measures
2009–2011
2010
Contract duration
10 years
6 months
Period of provided guarantees for
10 years
energy savings
10 years
Investment volume
EUR 10.8 million
EUR 4.4 million
I. Technology measures implemented by EPC
EPC provider
ENESA a.s., EVČ, s.r.o. (consortium)
Implemented measures The project was implemented in two phases – 18 school buildings
in the first one and 13 nursery schools in the second one.
Within the EPC project, the interventions included disconnection
from district heating, installation of new boilers, installation of IRC
and implementation of M&R. Further saving measures were implemented in water and electricity consumption.
Financing
Measures implemented within the EPC project amounted to
EUR 4.4 million and are being repaid from energy cost savings
achieved.
The most extensive project using
CombinES Comprehensive Renovation
was prepared in 2010 for the Prague 13
district. The local council received a subsidy from the Operational Programme
Environment (OPE) to thermally insulate
15 school buildings and the project was
implemented in the same year. In 2009,
an EPC provider was selected in a tender, and in 2010 the EPC provider implemented the EPC project in the respective
school buildings.
The investment costs of energy saving measures (EPC + thermal envelope
measures) were EUR 15 million. Measures implemented within the EPC project
amounted to EUR 4.4 million and are being repaid from the savings achieved on
energy costs. The subsidy from OPE for
thermal envelope measures covered 69%
of the investment costs of thermal insulation.
II. Thermal envelope measures co-financed by subsidy
Supplier of subsidized
measures
4 construction companies: Podzimek a synové, Ltd., Vltavín Holding, stavební podnik, Ltd., Prominecon Group, Swietelsky stavební
Ltd.
Implemented measures Thermal insulation of 15 buildings (envelope, partial insulation,
replacement of windows and doors) was implemented.
Type and source of
financing
The subsidy from OPE for thermal envelope measures of EUR 7.5
million covered 69% of the thermal insulation investment costs
(total of EUR 10.8 million in 15 buildings).
13
Slovenia
BEST PRACTICE examples of COMPREHENSIVE RENOVATION
Concessions for the supply of heat and cooling in the
Administrative building of the
City Municipality of Kranj
Facility
Country
Region
Customer
Type of building
Building of City Municipality of Kranj
Slovenia
Gorenjska
City Municipality of Kranj
Municipality building
Project in short
Overview
Implemented via
I. EPC
Type of measures
Concessions for the supply of heat and cooling with natural gas from cogeneration of heat and electricity, cooling
unit, and other use of renewable energy sources
Start date for the procurement
procedure (publication of con- 2011
tract notice)
Date of contract signature
2011
Year of installation measures
2012
Contract duration
2027
Period of provided guarantees
for energy savings
15 years
Investment volume
EUR 1,678,300
I. Technology measures implemented by EPC
EPC provider
El-tec Petrol
Implemented measures
Gas boiler, power of 635 kW
Central cooling, power of 250 kW
CHP system – 80 kW, heat output – 50 kW
Renovation of mechanical installations
Air conditioning of meeting halls, power of 55 kW
Photovoltaic power plant, power of 30 kWp
Central control system
Financing
El-tec Petrol
Acknowledgement
Our thanks go to the City Municipality of Kranj
and Local energy agency of Gorenjska for the
provision of good practice information.
14
Due to energy efficiency measures
implemented in the administration building of the City Municipality of Kranj not
only energy and cost savings have been
achieved; thermal comfort of the building
users has been improved both in winter
and in summer, too. The energy demand
for heating and cooling has been reduced
by introducing a cogeneration of heat
and electricity and also by installing a 30
kWp photovoltaic power plant placed
on the roof of the building. The average
annual heat consumption amounted to
826 MWh before renovation. A comparison was made with the actual measured
heat consumption from the heating season 2012/13 (end of recordings: February 2013) combined with the calculated
approximation until the end of the heating season based on data from previous
years. It is expected that the use of energy for heating at the end of the heating
season reaches around 590 MWh, which
represents a reduction of approximately
29%. Installations have also been renovated and a central control system and soft
measures such as education and capacity building of employees have been introduced as well, which brings additional
savings of energy and related operational
costs.
BEST PRACTICE examples of COMPREHENSIVE RENOVATION
Slovenia
Renovation of the thermal building envelope and installation
of a wood biomass boiler at
Primary School Predoslje
Facility
Country
Region
Customer
Type of building
Energy renovation of the Primary School Predoslje
Slovenia
Gorenjska
City Municipality of Kranj
School
Overview
Implemented via
II. Subsidies
Type of measures
Renovation of the thermal building envelope
Start date for the procurement procedure
2013
(publication of contract notice)
Date of contract signature
2013
Year of installation measures
2014
Contract duration
/
Period of provided guarantees for energy
/
savings
Investment volume
EUR 738,629.12
EUR 609,940.39
II. Thermal envelope measures co-financed by subsidy
Supplier of subsidized measures
Ministry of Infrastructure and Spatial Planning
Implemented measures
Renovation of the building thermal envelope
Installation of a wood biomass boiler
Type and source of financing
Grants by funding from the the Ministry – 83%
Primary school Predoslje before the renovation.
Project in short
The most important energy efficiency
measures include a replacement and upgrading of thermal insulation of external
walls and roof. A new facade will be installed with a thickness of thermal insulation from 14 to 18 cm. The consecutive
improvement of the thermal conductivity
will comply not only with regulations currently in force, but also with the conditions
and requirements of the public tender for
co-operation in the energy renovation of
buildings owned by local communities.
Calculations anticipate a significant reduction of annual heating energy consumption: from the current 660,000 kWh it will
be decreased by 314,500 kWh to reach
only 345,500 kWh. By doing so, the specific annual heating demand indicator will be
reduced from the current 140 kWh/m2 to
approximately 75 kWh/m2. This decrease
in the energy required for heating will also
have a significant effect on the reduction
of greenhouse gas emissions. A new wood
biomass boiler will contribute substantially to the share of renewable energy in the
overall energy use.
Primary school Predoslje thermal envelope renovated (photo: Mapei Slovenia, www.mapei.si)
15
Italy
BEST PRACTICE examples of COMPREHENSIVE RENOVATION
CombinES Comprehensive Renovation in
Public buildings in the Province of Milan
Facility
Country
Region
Customer
Type of building
Public buildings owned by members of Covenant of Mayors
in Milan Province
Italy
Lombardy
Municipalities in the Milan Province
Schools and other public buildings
Overview
Implemented via
EPC + ELENA funds from EIB
Type of measures
Building envelope insulation, fitting of thermal and electric plants, installation of renewable energy sources
and energy management & control systems; actions on
the urban transport sector and the local infrastructure
Date of contract signature
2013 and 2014
Year of installation measures
2014 – ongoing
Contract duration
15 years
Period of provided guarantees for
15 years
energy savings
Investment volume
at present date about EUR 18 million
Technical Financing Scheme for Public Buildings Energy Refurbishment in the Province of Milan
Partnership agreement between DGtren & Prov. MI for the Convenant of
Mayors
Funds by EIB
(European Investment Bank)
Energy Performance Assessment of
public buildings (Fondazione Cariplo)
Financial Intermediary
Actions managed within ELENA facility
Systemization of Assessment of
Energy Audits on Public Buildings
(Baselines)
fuel payment
Municipalities
Terms of
Contracts
Fuel Suppliers
Call for Bids c/o Municipalities
Winning ESCO’s
Project in short
In the framework of IEE-ELENA Facility, the European Investment Bank (EIB)
has supported the Province of Milan in a
3-years project entitled Energy Efficiency
Milan Covenant of Mayors. The investments mainly concern the energy refurbishment of existing public buildings
(mostly schools) located in selected small
municipalities in the Province of Milan
and the Municipality of Milan, all of which
have joined the Covenant of Mayors. The
obtained funding from ELENA facility is
about EUR 1.8 million, corresponding to
approx. 90% of assistance costs. The expected investment of EUR 90 million has
been articulated in three calls for tender,
two of which have been awarded: the
first one including 98 buildings in 16 municipalities, the second one addressing 38
buildings in the Municipality of Milan.
Although facing different difficulties,
especially of contractual and financial nature (see below), this project has pushed
forward the diffusion and recognition of
EPC models in Italy, providing inspiration
and support also to other public administrations involved in other ESCO projects
(e.g. Provinces of Modena, Padova and
Rovigo, Trento).
reimbursements to ESCO’s
savings
Energy Performance Contracts for
Energy Savings
Thanks to Giuseppe Giambersio of the Provincia di Milano for the documentation
provided on the case study.
16
BEST PRACTICE examples of COMPREHENSIVE RENOVATION
Italy
Measures implemented by the combination of EPC and subsidies
Supplier of subsidized
measures
European Investment Bank, IEE-ELENA Facility
Type and source of
financing
The initial provision approved by EIB consisted in EUR 65 million, while EUR 25 million were expected to be financed via the ESCOs awarding the EPC. The actual total investments amount so far to about EUR 18 million, part
of which have benefitted from the credit line provided by EIB.
The ELENA assistance activities consists in assessing the final saving requirements, drawing all the tender documentation, organizing and coordinating all the procedures for the award of public work contracts, public supply
and public services contracts, then follow and supervise the work and finally monitoring and auditing the results
and disseminate the acquired experience.
Implemented measures The project aims at the energy requalification of public buildings (mostly schools) in municipalities of the Province
of Milan, by insulating the building envelope, fitting the existing thermal and electric plants (including condensing
boilers, micro CHP plants, pumps and lights), installing RES and adopting reliable energy management & control
systems.
Within the first tender, interventions have included: 25 interventions on the building envelope, 31 on the roof
insulation, 72 condensing boilers, 17 heat recovery systems, thermostatic valves in 78 buildings, 17 variable-flow
circuits, 34 thermal solar systems, 73 micro-CHP plants, 16 heat pumps, 12 radiant systems in gyms, 56 interventions on presence sensors, 81 interventions on thermoregulation with zone valves and tele-control. The investments forseeen amount to EUR 13 million. The minimum energy savings guaranteed to the Municipalities is 35%,
while a shared-saving model has been applied (5% of savings guaranteed to the Municipalities).
A tenders went void twice (in 2013 and 2014) for different financial and contractual issues, such as (i) the boycotting of major ESCOs, that hesitate to adopt EPCs with guaranteed results and a transparent separation of energy
savings and fuel supply, (ii) the difficulty for small ESCOs to access bank loans and hold long and complex contracts, (iii) the resistance of banks, that generally refuse to consider the cash flows generated by energy savings as
main collateral.
A third tender for the Municipality of Milano was awarded in August 2014, involving 38 schools. The proposed
interventions include natural gas conversion of all oil plants, PV installations and a few solar thermal plants, insulation of building fabric and roof, window replacements, interventions on the lighting system and the introduction of
BEMS. The guaranteed savings accounted for 35,4% of the baseline, 15% of it directly in the form of shared saving
for the municipality.
Slovakia
Modernization of thermo-technical equipment and buildings, laundry and
drinking water source
Psychiatric Ward of Samuel Blum in Plešivec
Facility
Country
Region
Customer
Type of building
Psychiatric ward of Samuel Blum in Plešivec
Slovakia
Košice
Psychiatric ward of Samuel Blum in Plešivec
Hospital
Project in short
Psychiatric ward of Samuel Blum in
Plešivec is one of the oldest institutions
of this type in Slovakia. Majority of the
ward campus has been built since end of
19th century until middle of 20th century.
Only limited refurbishments were done
within recent decades and thus also the
heating system of the ward suffered from
obsolete state and high energy consumption. Previous more significant investment
into the heating system – reconstruction
of central boiler room from coal to natural gas – was made in beginning of 90s.
Despite this, the heating system based
on steam as the as the medium had enormous heat loses due to technical state of
the distribution system.
This was the dominant factor of triggering the decision making process on
modernization of the heating system using the EPC approach which started in the
first quarter of 2012. In the course of project development also additional energy
and costs saving measures have been
identified. These consisted of modernization of laundry and utilization of own
water well. The preparatory stage of the
project was concluded by publishing of
tender in October 2012. The public procurement process was concluded in January 2013.
17
Slovakia
BEST PRACTICE examples of COMPREHENSIVE RENOVATION
Implementation of the measures
started in March and was finished in September 2013. Actually, after finalization of
the first annual saving period, it is possible
to state that the aims of the project have
been reached as the natural gas consumption decreased by 50% against the baseline and other significant savings were
achieved on operation of the laundry and
drinking water source.
Overview
Implemented via
I. Project Development
II. EPC
Type of measures
Advisory and technical assistance within project development and public procurement
Technological
measures
Start date for the procurement
NA
procedure (publication of contract
notice)
October 2012
Date of contract signature
NA
January 2013
Year of installation measures
2009–2010
2013
Contract duration
10 years
Period of provided guarantees for
energy savings
10 years
Investment volume
EUR 1.549 million
(VAT incl.)
Before ...
... and after
I. Assistance co-financed from EU programme
Supplier of subsidized
assistance
Energy Centre Bratislava
Implemented measures The preparatory stage of the project consisted of:
1/ Technical assessment of the actual state of buildings and heating system including preparation of baseline of energy consumption, definition of possible measures and estimation of related
investments and energy savings;
2/ Development of tender dossier;
3/ Execution of public procurement.
Type and source of
financing
Initial stages of the project development have been financed within European Energy Service Initiative – EESI project (co-financed
by EU programme Intelligent Energy Europe). Contribution from
EU resources (approx. 40% of overall costs for assistance) has
been complemented with own resources of the Psychiatric ward
of Samuel Blum in Plešivec.
Before ...
II. Technology measures implemented by EPC
EPC provider
Siemens s.r.o.
Implemented measures The measures implemented within the project were focused into
three areas:
1/ Heating and hot water preparation – Replacement of old heating system based on central steam boiler room with eight small
object boiler rooms (10.5 – 202 kW) in individual buildings, thermal regulation of heat distribution systems in buildings, installation of new control system;
2/ Laundry technology – complex reconstruction;
3/ Own drinking water source – installation of new technology for
treatment of water from own water well.
Financing
18
Initial investment (EUR 1.549 million VAT included) into the implemented measures was financed by the EPC provider which is enabled to sell the claim against client after first year when level of
guaranteed savings is reached. The initial investment is completely
repaid from savings on energy and water consumption.
... and after
BEST PRACTICE examples of COMPREHENSIVE RENOVATION
Slovakia
Design and implementation of energy efficiency measures and
Modernization of heating and buildings of
the City of Malacky
Facility
Country
Region
Customer
Type of building
City sports hall Malina, City centre of social services,
Cinema Záhoran
Slovakia
Bratislava
City of Malacky
Sport facility, Social facility, Cultural Facility
Overview
Implemented via
I. EPC
Type of measures
Construction and technological measures
Start date for the procurement
December 2013
procedure (publication of contract
notice)
Date of contract signature
April 2014
Year of installation measures
2014
Contract duration
10 years
Period of provided guarantees for 10 years
energy savings
Investment volume
EUR 0.442 million (VAT incl.)
I. Construction and technology measures implemented via EPC
EPC provider
COFELY a.s.
Implemented measures 1/ City sports hall Malina:
Technology measures – modernization of boiler room, heating
system, ventilating system and lightning. Construction measures –
replacement of glass wall on the swimming pool hall;
2/ Cinema Záhoran:
Technology measures – optimization of heating system. Construction measures – thermal insulation of the building, replacement of
windows and doors;
3/ City centre of social services:
Technology measures – optimization of heating system.
Financing
Project in short
This project was implemented as the
first EPC project in Slovakia combining the
usual technology measures together with
significant volume of construction measures. The project was initiated as a result
of technical assistance provided by Energy
Centre Bratislava for the City of Malacky
within project Minus 3% co-funded by the
Intelligent Energy Programme, in which
both entities took part as project partners.
Following recommendations provided
within Energy efficiency action plan of
the City of Malacky, the city administration started preparation of the project
at beginning of 2013. The inevitability of
construction measures implementation
was considered from early beginning of
the project development and was followed by decision of the city to co-finance
part of the investment costs with the aim
to enable implementation of the project
within economically feasible duration. Implementation of the project will ensure
increased energy efficiency of three city
buildings gained through comprehensive
modernization of one building – Cinema
Záhoran, partial modernization of City
sports hall (technological measures combined with selected construction measures) and modernization of heating system in the City centre of social services.
Initial investment (EUR 441,870 VAT included) into the implemented measures was financed by the EPC provider which is enabled
to sell the claim against client after first year when level of guaranteed savings is reached. To enable implementation of project
within economically feasible duration, the City of Malacky will
co-finance the investment with amount of 68,898 EUR through
increased payments in first two years of the contract duration.
19
Germany
BEST PRACTICE examples of COMPREHENSIVE RENOVATION
Comprehensive Renovation in buildings of
Federal Police St. Augustin
Facility
Country
Region
Customer
Type of building
Facilities owned by Federal Police St. Augustin
Germany
St. Augustin
Direct contracting entity is the BImA (Bundesanstalt für
Immobilienaufgaben) and indirectly the Federal Police
84 buildings with a main floor space of 127,000 m²
Overview
Implemented via
Comprehensive EPC
Financed by the client
Type of measures
Technology measures
Thermal envelope measures
Year of installation measures
2013 – 2025
Contract duration
10 years
Period of provided guarantees for
10 years
energy savings
Investment volume
EUR 6.3 milllion
I. Technology measures implemented by EPC
EPC provider
Cofely Deutschland GmbH
Implemented measures
-
Financing
- Funding source: Forfaiting i.e. the ESCO sells the future ESCO
rates from client to the bank, which is providing the project
financing.
Refurbishment of the building shell;
New heating supply with wood chips and gas boilers;
Cogeneration plant;
New building control system;
About 3,000 new luminaries, partly LED;
Hydraulic optimization;
Optimization of existing HVAC systems.
- Investment volume: EUR 6.3 million
II. Thermal envelope measures financed by the client
Implemented measures
Refurbishment of the building shell
Type and source of
financing
100% of the costs of thermal envelope measures have been
financed by the client
Project in short
The St. Augustin project provides an
example of combining the technology
measures implemented through EPC with
the thermal envelope measures financed
by the client.
The Bundespolizei (Federal Police Authority, FPA) commissioned Cofely to energetically optimize its facilities in Sankt
Augustin, near Germany’s former capital
Bonn. The BPA in St. Augustin is one of
9 regional FPAs in Germany, with about
3,500 police and administrative staff,
and is responsible for all federal police
assignments in the State of NorthrhineWestfalia. The site comprises 84 buildings
with a main floor space of 127,000 m².
Cofely guarantees an energy cost reduction of 55% during the contract term of
10 years and will reduce local CO2 emissions by 5,200 tons per year. Direct contracting entity is the BImA (Bundesanstalt
für Immobilienaufgaben) and indirectly
the Federal Police, whose high security
standards have to be observed. The contract is based on an energy performance
contract bid issued by dena, the German
Energy Agency. Main requirements of the
contract: 50% of the heat are to be supplied carbon-neutral; energetic refurbishment of one building; reduction of energy
consumption. Cofely developed a package
of tailor-made measures for the optimization of heat and power supply, lighting
systems, domestic hot water, building automation and metering technology as well
as building reconstruction. To our best
knowledge, this is one of the most comprehensive energy performance projects
in Europe to date, with a high degree of
technical complexity, an above-average
energy savings guarantee of 55%, the integration of renewable energy sources
and above all, the refurbishment of the
building shell.
Cofely was awarded with the European Energy Service Award 2014 with reference to this project.
Photo: Cofely Deutschland GmbH
20
BEST PRACTICE examples of COMPREHENSIVE RENOVATION
Poland
Comprehensive Renovation of educational buildings of the
Municipality Radzionków in
public-private partnership
Facility
Country
Region
Customer
Type of building
Educational buildings owned by/entities of/
the municipality
Poland
Silesia
Municipality of Radzionków
4 schools and 1 kindergarten
Overview
Implemented via
I. EPC and maintenance
II. Energy management
Type of measures
Technology and thermal
envelope measures
Technology measures
Start date for the procurement
procedure
July 2009
competitive dialogue
July 2009
competitive dialogue
Date of contract signature
March 2010
March 2010
Year of installation measures
2010
2010 and onwards
Contract duration
1/2 construction+10 years m. 10 years
Period of provided guarantees for 10 years
energy savings
10 years
Investment volume
EUR 0.2 million
EUR 2 million
I. EPC: Construction and technology measures implemented
EPC provider
SIEMENS Spółka. z o.o.
Implemented measures Thermal insulation of walls and roofs,
Replacement of windows and doors,
Modernization of lighting system,
Reconstruction of 5 heating sources, regulation
EPC provider decided not to replace the whole heating systems
but only partially renovate them taking the risk of higher maintenance costs
Financing
Guaranteed savings: 54.03% – heating and 39.77% – electricity.
Costs of all measures in the amount of EUR 2 million paid by the
client will be partly repaid by the guaranteed savings estimated
at EUR 0.8 million (in 2010), currently (2014) valued EUR 1 million. Thus client expects savings will exceed 50% level.
II. Energy management financed on the yearly basis
Supplier of the energy
management system
Siemens
Implemented measures BMS – on-line individual each and every room temperature measurement and control
Type and source of
financing
Deferred semi-yearly payments, clients’ savings
Project in short
The subject of the contract is to achieve
guaranteed energy savings in educational
buildings of the Municipality Radzionków
through the execution of comprehensive
works consisting of buildings thermal renovation and modernization of the lighting,
combined with the maintenance of these facilities for a period of 10 years from the date
of signing the contract (i.e. March 2010).
The Radzionków project is first long term
ppp contract in Poland signed under new
PPP Act of 19th December 2008. It has been
announced on 15th July 2009 and signed on
the 4th March 2010.
It provides a model example of the green
public procurement and combines the technology and the thermal envelope measures
implemented under EPC with guarantees of
savings but financed by the client. The contract, under rules of public-private partnership, has been concluded after competitive
dialogue procurement procedure. The ppp
agreement provides for the joint implementation of the project based on the division
of tasks and risks between the parties. The
municipality bears the demand risk i.e. that
the facilities are used effectively as the educational buildings within the contract duration. The private partner covers both the
construction and availability risk and in addition provides energy management of the
facilities for a decade (ten years) and guarantees that agreed level of savings and thermal
comfort is delivered.
The competitive dialogue, a unique public procurement procedure, has enabled to
create optimal contract documentation describing the energy saving measures to be
implemented. The contracting authority has
acquired the know-how directly from the
tenderers. The assistance of the partners in
determining the accounting, tax and law issues especially in relation to the public debt
issues cannot be underestimated. Municipality had not hired external counseling nevertheless project has successfully undergone
several state controls.
The realized savings are steadily growing, reaching in 2013: 57.99% on heating
(41.96% on electricity).
21
BEST PRACTICE examples of COMPREHENSIVE RENOVATION
Poland
Comprehensive Renovation of public buildings of the
Municipality Karczew in public–private
partnership co-financed with
Green Investment Scheme program
Facility
Country
Region
Customer
Type of building
Pool of ten public service buildings
Poland
Mazovia
Municipality of Karczew
7 schools, 2 kindergartens and 1 health centre
Overview
Implemented via
I. EPC management
II. Energy management
Type of measures
Technology and thermal
envelope measures
Technology measures
Start date for the procurement
procedure
January 2012
competitive dialogue
January 2012
competitive dialogue
Date of contract signature
January 2013
January 2013
Year of installation measures
2013
2014–2027
Contract duration
1 year of construction
+ 14 years management
14 years
Period of provided guarantees for 14 years
energy savings
14 years
Investment volume
EUR 0.2 million
EUR 1.9 million
I. EPC – Construction and technology measures implemented
EPC provider
Siemens Building Technologies Sp. z o.o.
Implemented measures Insulation of walls and roofs,
Replacement of windows and doors,
Modernisation of lamps and fixtures,
Reconstruction of heating sources,
Regulation of heating system installation of automatic valves,
Basic maintenance
Financing
Costs in EUR million: investment – 1.9; financial 0.4; energy management 0.2 million. Timing: 1st year – after construction 1.3 million (0.2 m EUR non-eligible +1 m EUR eligible, of which 0.3 m
EUR refunded); years 2–15: 168 monthly instalments of approx.
EUR 0.006 million.
II. Energy management financed on the yearly basis
Supplier of the energy
management system
Siemens
Implemented measures
BMS- on-line individual each and every room temperature
measurement and control
Type and source of financing 168 monthly payments, clients’ savings of approx. EUR 0.001
million
22
Project in short
The subject of the contract is “Comprehensive thermal renovation of public
buildings of municipality of Karczew in
public-private partnership”. The contract
encompasses modernization of the indoor lighting as well as the energy management and maintenance of ESM for a
period of 14 years after energy savings
measures are implemented.
It is a successor of Radzionków project
based on the concept of TPF (Third Party
Financing). First valued at EUR 3.1 million (including financial costs, payment in
equal instalments) has been renegotiated
to meet the Green Investment Scheme
programme rules. The GIS1 programme is
run by NFOŚiGW (National Fund for Environmental Protection and Water Management) and it allows to refund up to 30% of
eligible actual expenses (not costs). The
contract has been concluded after competitive dialogue procedure. The municipality decided to hire a legal consultant do
deal with expected changes in the legal
system. The investment has been completed in 2013 but the measurable effect
will be known after first year of operation.
The realized actual energy savings will
be announced yearly. To meet the GIS1
obligation the project during next 5 years
must generate minimum of 145 mg avoided CO2 emissions each year.
The Karczew case study set base for
discussion on ‘hybrid projects’ i.e. ppp operations described in new CPR regulation
1303/2013/EU subsidized with EU funds
of new 2014–2020 perspective.
Definitions and Glossary
Term
Definition
CombinES Comprehensive
Renovation
is a special case of comprehensive renovation, where the thermal envelope part of the renovation is subsidized and the technology part of the renovation is implemented with the intervention of an energy service company (ESCO) through the Energy Performance Contracting model
(EPC).
Comprehensive Renovation
means co-ordinated implementation of both thermal envelope (including building envelope insulation and substitution of fixtures) and technology ones (including interventions on heating,
cooling, domestic hot water (DHW) and ventilation systems.
CPR: REGULATION 1303/2013
Regulation (EU) No 1303/2013 of the European Parliament and of the Council of 17 December 2013, laying down common provisions on the European Regional Development Fund, the
European Social Fund, the Cohesion Fund, the European Agricultural Fund for Rural Development and the European Maritime and Fisheries Fund and laying down general provisions on the
European Regional Development Fund, the European Social Fund, the Cohesion Fund and the
European Maritime and Fisheries Fund and repealing Council Regulation (EC) No 1083/2006.
Energy Efficiency* (EE)
means the ratio of output of performance, service, goods or energy, to input of energy.
Energy Efficiency Directive (EED)
Directive 2012/27/EU of the European Parliament and of the Council of 25 October 2012 on
energy efficiency, amending Directives 2009/125/EC and 2010/30/EU and repealing Directives
2004/8/EC and 2006/32/EC.
Energy efficiency improvement*
means increase in energy efficiency as a result of technological, behavioural and/or economic
changes.
Energy Performance Contracting* (EPC)
means a contractual arrangement between the beneficiary and the provider of an energy efficiency improvement measure, verified and monitored during the whole term of the contract,
where investments (work, supply or service) in that measure are paid for in relation to a contractually agreed level of energy efficiency improvement or other agreed energy performance
criterion, such as financial savings.
Energy savings*
means an amount of saved energy determined by measuring and/or estimating consumption
before and after implementation of an energy efficiency improvement measure, whilst ensuring
normalisation for external conditions that affect energy consumption.
Energy Service* (ES)
the physical benefit, utility or good derived from a combination of energy with energy-efficient
technology or with action, which may include the operations, maintenance and control necessary to deliver the service, which is delivered on the basis of a contract and in normal circumstances has proven to result in verifiable and measurable or estimable energy efficiency
improvement or primary energy savings.
Energy Service Provider* /Energy Service
COmpany (ESCO)
means a natural or legal person who delivers energy services or other energy efficiency improvement measures in a final customer's facility or premises.
energy*
means all forms of energy products, combustible fuels, heat, renewable energy, electricity, or
any other form of energy, as defined in Article 2(d) of Regulation (EC) No 1099/2008 of the European Parliament and of the Council of 22 October 2008 on energy statistics.
EPC provider
means an energy service provider who delivers energy services in the form of Energy Performance Contracting.
ESI Funds
European Structural and Investment Funds
PPP
Public – Private Partnership
The International Performance
Measurement and Verification
Protocol (IPMVP)
is the widely referenced framework for “measuring” energy or water savings and is available at
www.evo-world.org
Note: *Definitions according to the Energy Efficiency Directive
23
CombinES at work ...
European project CombinES
Combining energy services with subsidy
schemes to finance energy efficiency in
Central Europe
Final brochure
2012–2014
Electronic versions in English and partner
languages are available at: www.combines-ce.eu
Editor:
Miha Tomšič
Gradbeni inštitut ZRMK d. o. o., Dimičeva 12,
Ljubljana, Slovenia.
Prepared by:
Project consortium
Printed by:
xxx
Print run: xxx copies
November 2014
Front page photo: Koookkai_nak
Corporate image, brochure design and
English version DTP:
TRIDESIGN d. o. o. Ljubljana, Slovenia
www.tridesign.si
www.combines-ce.eu
This project is implemented through the CENTRAL EUROPE Programme co-financed by the ERDF.
Project partners:
Combining energy services with subsidy schemes
to finance energy efficiency in Central Europe
Energetická agentura Vysočiny
Nerudova 1498/8
586 01 Jihlava, Czech Republic
Web: www.eav.cz
SEVEn - The Energy Efficiency Center
Americká 17
120 00 Prague 2, Czech Republic
Web: www.svn.cz
Berliner Energieagentur GmbH
Franzoesische Straße 23
10117 Berlin, Germany
Web: www.berliner-e-agentur.de
POLITECNICO DI MILANO - Dipartimento di Energia
eERG – end-use Efficiency Research Group
Via Lambruschini 4
20156 Milano, Italia
Web: www.eerg.polimi.it
Lead partner:
Energetická agentura Vysočiny
Nerudova 1498/8,
586 01 Jihlava, Czech Republic
Contact person: Hana Zábranská, zabranska@eav.cz
Building and Civil Engineering Institute ZRMK
Dimičeva 12
SI-1000 Ljubljana, Slovenia
Web: www.gi-zrmk.si/ZRMKinstitut/
Energy Centre Bratislava
Ambrova 35
831 01 Bratislava, Slovakia
Web: www.ecb.sk
COMPREHENSIVE RENOVATION
OF BUILDINGS
Combining
Energy Performance Contracting
with subsidies
Photo / FreeDigitalPhotos.net by Koookkai_nak
Design / TRIDESIGN d. o. o. Ljubljana / www.tridesign.si
Polish Foundation for Energy Efficiency
Fundacja na rzecz Efektywnego Wykorzystania Energii
Ul Rymera 3/4
40-048 Katowice, Poland
Web: www.fewe.pl
VITAL FACTS and SELECTED STORIES
www.combines-ce.eu
This project is implemented through the
CENTRAL EUROPE Programme co-financed by the ERDF.