Energy saving performance contracts: public
lighting versus building
Frédéric Bougrain
.
Content
1.
Definition
2.
Case studies – methodology
3.
Main characteristics of the contracts
4.
Main results
5.
Challenges for integrated solutions providers
6.
Conclusion
ICE - 24 septembre 2014 - ESH
2
1/ Definition
“Energy performance contracting 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” (DIRECTIVE 2012/27/EU
on energy efficiency – art. 2 (27))
3
2/ Case studies - methodology


ESPC for public lighting
o
face to face interviews with lawyer, public authorities,
service integrators
ESPC for high schools
o follow-up of two contracts for three years – interviews
and meetings with project managers (public and
private sides), consultants, operators, users;
o project financed by ADEME and CSTB. Within CSTB
collaboration between two divisions: “Energy and
Environment” and “Economics and Social Sciences”.
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3/ Main characteristics of the contracts
Public lighting
Region Centre
Region Alsace
Scope
2 cities
18 high schools (330000m²)
14 high schools (280000m²)
Contract period
20 years
15 years
20 years
Global investment
86 M€
80 M€ (with taxes)
77 M€ (with taxes)
Procurement
process
PPP with a competitive dialog in 3 rounds
Organisational
structure
Integrated service
provider
Special project vehicle
Goal
Reduction of the
power by 38% +
cumulated energy
consumption of
94GWh
Reduction of final energy
consumption by 42% and
greenhouse gas emissions
by 58%
Reduction of primary energy
consumption by 34% and
greenhouse gas emissions
by 65%
Main renovation
works
change 70% of
the existing lights
within 3.5 years
Insulation works,
optimisation of energy
systems
Wood boilers, photovoltaic
cells, optimisation of energy
systems, insulation works
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4/ Main results
Public lighting
Innovative
solutions
New technic for civil
engineering (approach used
for fibber optic in the
countryside) + centralised
control station + new
organisation and services
Whole Life cycle
ESPC (Centre)
centralised control
station + new
organisation
(development of new
capabilities)
ESPC (Alsace)
centralised control
station + new
relationship with
specialised component
supplier
Integrated design in order to achieve higher energy savings
Intensity of user
involvement
Communication with the
municipalities and the
residents before the works
Actions to promote environmental awareness (all
users are targeted: children, professors,
administrative employees) during the operation of
the building
Uncertainty
Average during the works –
limited in operation
Strong during the renovation and in operation
Financial results
Gains
Losses (penalties +
energy target is not
reached)
In equilibrium
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5/ Challenges for integrated solutions
providers (Davies, 2001)

To develop new solutions by seeing the problem from
the user’s perspective

To manage fluid boundaries

To design clear contractual agreements

To define new business structures and cultures
around the provision of integrated solutions
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6/ Conclusion

Firms intending to shift to integrated business models
need to rethink the value chain and to develop new
capabilities;

Energy performance is the driver of life cycle cost
approaches;

Integrated solutions require to develop new partnerships
and to integrate the users in the project;

The help desk and a centralised control station are the
backbone of the projects in operation;

Firms encounter cultural difficulties to integrate design,
construction and operation (construction is not anymore
at the core of the value chain).
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