Audit on Public Administration Energy Efficiency Program (Eco.AP) Page ▪ 1 Eco.AP Program The Eco.AP Program is part of the National Energy Efficiency Action Plan for (NEEAP) and also of the National Energy Strategy 2020 (ENE 2020). The Eco.AP aims to promote the rational management of energy consumption in public administration, increasing energy efficiency by 20% until 2020. The program consists of a set of measures to implement by public services in the short, medium and long-term, in public buildings and equipments. (Resolution of the Council of Ministers n.º 2/2011, from January 28th) Page ▪ 2 Eco.AP Program Main objectives: ❖ Reduction of energy bills of public services and agencies; ❖ Reduction of the greenhouse gas emissions; ❖ Economic stimulus, by enabling a legal framework for Energy Saving Companies (ESCo’s) and public procurement of energy efficiency services; ❖ Contribution to the achievement of the objectives set out by the National Program on Climate Change. Coordination and Monitoring: Ministry of Economy. Page ▪ 3 Eco.AP Program Audit question: Fulfillment of the actions included in the ECO.AP program with performance scheduled for the year audited. Audit criteria: Resolution of the Council n.º 2/2011, from January 12th. of Ministers Audit object: ❖ Achievement of the targets set in the ECO.AP Program scheduled for the year audited; ❖ Actions developed for energy efficiency measures implementation through energy efficiency services, foreseen to be implemented; ❖ A survey of the entities belonging to the domain of Audit Department III* was also carried out (70 entities) * Departments and agencies in the areas of Agriculture, Sea, Environment, Spatial Planning, and Economy. Page ▪ 4 Eco.AP Program measures Program measures: ❖ Appointment of a local energy manager, within 90 days, by all departments and agencies of the direct and indirect state administration, public enterprises, universities, corporate public entities, public foundations, public or private associations with a majority of public capital. Page ▪ 5 Eco.AP Program measures ❖ Obligation of each ministry to select, by the end of the 1st half of 2011, the entities under its authority with an higher energy consumption (or inefficiency), in order to fulfill energy performance contracts. ❖ Obligation of each ministry to implement, by the end of 2013, energy efficiency measures in all entities under its authority, through energy performance contracts, where it is deemed appropriate. ❖ Obligation of each ministry to order all entities or services not covered by the above measure, to adopt and implement an energy efficiency action plan by the end of 2011. Page ▪ 6 Eco.AP Program measures ❖ Creation of the Public Administration Energy Efficiency Barometer, by the end of the 1st half of 2011, aiming to compare and to publicly disclose the energy performance of public entities. ❖ Implementation, within 180 days, of a white certificates trade system, providing for its application to public authorities, to develop by Directorate-General for Energy and Geology with relevant stakeholders. ❖ Promotion of a program to increase energy efficiency in street lighting. Page ▪ 7 Audit findings ❖ Appointment of a local energy manager, within 90 days, by all departments and agencies of the direct and indirect state administration, public enterprises, universities, corporate public entities, public foundations, public or private associations with a majority of public capital. Ministry of Environment Ministry of Economy Most services (58%) appointed the Manager on time and only one had no appointed Manager. Only 27% of the services appointed the Manager on time, although most had appointed them in 2011, and 7 services had not appointed a Manager yet. Page ▪ 8 Audit findings ❖ Appointment of a local energy manager, within 90 days, by all departments and agencies of the direct and indirect state administration, public enterprises, universities, corporate public entities, public foundations, public or private associations with a majority of public capital. It was observed that there was lack of adequate professional qualifications among many of the designated Local Energy Managers, and the planned training courses had not started yet. Page ▪ 9 Audit findings ❖ Obligation of each ministry to select, by the end of the 1st half of 2011, the entities under its authority with an higher energy consumption (or inefficiency), in order to fulfill energy performance contracts. The deadline for selecting entities "by the end of 2011” failed to fulfill, and by the time of the completion of the audit, was not yet selected any entity for the opening of a procurement procedure for an energy performance contract award, within the scope of the ECO.AP. Page ▪ 10 Audit findings ❖ Obligation of each ministry to implement, by the end of 2013, energy efficiency measures in all entities under its authority, through energy performance contracts, where it is deemed appropriate. In January 2013 the legal framework for energy savings performance contracts was ready: Decree-Law n.º 29/2011, from January 28th ❖ Developed the legal framework for energy performance contracts in the public sector. Normative Order n.º 15/2012, from June 26th ❖ Created the ESCo’s pre-qualification system. Ordinance n.º 60/2013, from January 23th ❖ Published the tender specification model to be used by the public sector for energy performance contract awards. Page ▪ 11 Audit findings ❖ Obligation of each ministry to implement, by the end of 2013, energy efficiency measures in all entities under its authority, through energy performance contracts, where it is deemed appropriate. In April 2013, twelve Energy Saving Companies were already qualified, five of which qualified for buildings. August 2015 Converting Lisbon’s 20 000 traffic lights from incandescent bulbs to LED technology was the first ESCo contract with a public administration body under the Eco.AP program. This contract brought energy savings of 94%, as well as significant savings in maintenance and replacement costs (1,5 M€ investment (100% private) / 2 years contract / 6,5 GWh annual savings). Page ▪ 12 Audit findings ❖ Obligation of each ministry to order all entities or services not covered by the above measure, to adopt and implement an energy efficiency action plan by the end of 2011. It was concluded that most services did not develop nor implement an Energy Efficiency Action Plan (EEAP), within the specified schedule: Ministry of Agriculture Page ▪ 13 Ministry of Economy Audit findings ❖ Obligation of each ministry to order all entities or services not covered by the above measure, to adopt and implement an energy efficiency action plan by the end of 2011. Almost half the services did not have guidelines for energy efficiency, though most had established targets for reducing consumption Page ▪ 14 Audit findings ❖ Obligation of each ministry to order all entities or services not covered by the above measure, to adopt and implement an energy efficiency action plan by the end of 2011. Electricity consumption was the most monitored of all public utilities, and most services make a monthly control Almost all services control the consumption of fuel of their vehicle fleet (as required by law) It has been observed a "dieselization" of the car fleets: Page ▪ 15 Audit findings ❖ Obligation of each ministry to order all entities or services not covered by the above measure, to adopt and implement an energy efficiency action plan by the end of 2011. The fluorescent lighting is higher than 90% in most buildings (202 of 307). LED were present in 16 buildings, but were a significant percentage of the total only in two. (Obs .: Includes LED lighting) Page ▪ 16 Audit findings ❖ Obligation of each ministry to order all entities or services not covered by the above measure, to adopt and implement an energy efficiency action plan by the end of 2011. One of the conclusions of the survey was that it was possible to improve the energy efficiency of consumption in many areas, especially in the heating, ventilation, and air conditioning equipment. With air conditioned Without air conditioned AC Window-mounted AC split AC multisplit 60 39 233 92 With heating Page ▪ 17 Without heating With AC Without heating Electric heating Heat pump Gas heating Boiler 25 31 91 216 6 35 Audit findings ❖ Obligation of each ministry to order all entities or services not covered by the above measure, to adopt and implement an energy efficiency action plan by the end of 2011. Nevertheless, investment to reduce consumption was low: Total “Yes” 60 Value “Yes” (specifying the value of the investment) 21 “Yes” (specifying the action but without indication of value) 16 “No” (expressed) 141 € 581 402 The investments done aimed almost exclusively to reduce electricity consumption (60 buildings). (Without indication of value: replacement of incandescent bulbs with fluorescent bulbs, computers and peripherals more efficient, energy efficiency audits, wind turbine). The average investment is low (€ 27 686 per building). The greater investment concerned to a geothermal project carried out to support an air condition system, with the amount of € 100 000. Page ▪ 18 Audit findings ❖ Obligation of each ministry to order all entities or services not covered by the above measure, to adopt and implement an energy efficiency action plan by the end of 2011. The use of renewable energy sources was also very low: Renewables were used only in 11 buildings (in 320), and only in one were two ways of harvesting used (solar thermal and solar photovoltaic): •Solar thermal – 7 buildings; •Solar photovoltaic – 2 buildings; •Biomass – 2 buildings; •Geothermal – 1 building. Only 3 of 16 Schools of Hospitality and Tourism buildings used solar collectors for water heating. Only 2 of the 34 buildings of the local services of the Institute for Nature Conservation and Biodiversity (22) and National Forest Authority (12) used biomass (firewood in both cases). None of the 64 local departments of Regional Directorate for Agriculture and Fisheries used biomass as an energy source. Page ▪ 19 Audit findings ❖ Creation of the Public Administration Energy Efficiency Barometer, by the end of the 1st half of 2011, aiming to compare and to publicly disclose the energy performance of public entities. The deadline set was not met, and the availability of the Public Administration Energy Efficiency Barometer, allowing the data collection of energy consumption and emissions in a systematic way, started on June 1th, 2012. Page ▪ 20 Audit findings ❖ Implementation, within 180 days, of a white certificates* trade system, providing for its application to public authorities, to develop by the Directorate-General for Energy and Geology with relevant stakeholders. The implementation of a white certificates trade system has been postponed and is being reconsidered, although there is no formal decision on this matter (Ministry of Economy) . * ‘white certificates’: certificates issued by independent certifying bodies confirming the energy savings claims of market actors as a consequence of energy efficiency improvement measures (Directive 2006/32/EC). Page ▪ 21 Audit findings Energy and Indoor Air Quality Certification of Buildings (Directive 2002/91/EC (Energy Performance of Buildings Directive )): 10 buildings had the energy performance certificate legally required and the certification of others was ongoing. It was received copy of the Certificate of 8 buildings, 2 ranked "B-", 5 "C" and one "D“ (3 state property, 3 owned by a public company and 2 private (leased)). The number of buildings that have not but should have energy certification was 105, within a total of 320 buildings. Page ▪ 22 Audit findings Energy and Indoor Air Quality Certification of Buildings (Directive 2002/91/EC - Energy Performance of Buildings Directive ): The Energy Performance Certificate is based on an assessment of the building energy performance and includes a proposal for energy performance improvement, with suggestions of measures to take, the estimation of the annual reduction of the energy bill, the total cost of investment and return period of the investment. If the law had been duly fulfilled, these certificates could have been a good basis for the public entities and for the Local Energy Managers to plan energy efficiency measures, as well as procedures for the award of energy performance contracts. Page ▪ 23 Audit recommendation To the Government: Provide arrangements for an effective coordination and monitoring of ECO.AP Program and the acceleration of the implementation of these measures, to speed up progress and fulfill the set global objectives. Expected impact A 30% reduction in the energy consumption will save the state 22.5 million euros annually. Page ▪ 24 Eco.AP Program Thank you for your attention! Page ▪ 25