Assessment of the Energy Performance Contracting
Features favourable for municipalities |
Features NOT favourable for municipalities |
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BOO (Build - Operate - Own) specifics
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BOO (Build - Operate - Own) specifics
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BOT (Build - Operate - Transfer) specifics
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BOT (Build - Operate - Transfer) specifics
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BOOT (Build - Own - Operate - Transfer) specifics
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BOOT (Build - Own - Operate - Transfer) specifics
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Types of EE projects or EE services suitable to be financed this way
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Generally, the projects with a high energy cost savings potential
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New heating systems or improvements and optimization in heating systems, public lighting, thermal insulation of buildings
BOO (Build - Operate - Own)
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Useful where the municipality wants to outsource facility services and investment (building heating, public lighting, roads maintenance etc.)
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Usable for projects with long payback period for which the contractual duration coincides with the useful life of the asset.
BOT (Build - Operate - Transfer)
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Popular type of co-operations with ESCOs. Usually these investments contain energy generation based on renewables (heat-pumps, solar panels, biomass-based district heating, geothermal heating, etc.).
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Interventions of new construction of medium-large sized technological systems and public services structures.
BOOT (Build - Own - Operate - Transfer)
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Large projects for public services with long contractual durations
Recommendations for deployment
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This tool is considered the most useful for the effective implementation of interventions in EE, the financial scheme should be chosen accordingly to it: for this reason it is deemed necessary to have a clear legal definition of the EPC in accordance with national and EU legislation(https://www.eib.org/attachments/pj/guide_to_statistical_treatment_of_epcs_en.pdf)
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It requires an administrative structure with adequate skills to manage project finance of long duration and technical skills for O&M.
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For all kinds of contracting there is a strong need for a clear definition of the goal, intended and experienced energy experts for project definition and development of technical solution and contract. Different offers should be obtained and compared!
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Design of comprehensive EPC demonstration projects for pools of public buildings to provide market development on demand side
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Development of innovative financing schemes targeting small and medium ESCOs
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Provision of improved standardized contracts, procurement procedures, savings measurements and verification protocols
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Establishment of focal point in charge of the EPC in the public sector
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Introduction of permanent training of key actors (decision makers in the public sector, officials in public sectors, project developers)
Examples
In Austria the Energy performance contracting is probably the most favorable way to finance energetic improvements in public buildings like change of heating system, energetic refurbishment, thermal insulation and lighting etc.
Municipalities can choose from different models. For the development of a contracting model, an independent consultant like an energy agency should assist the municipality in the development of the actions and measures, and analyzing the best fitting contracting model and contract for the needs of the municipality.
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A lot of success stories are available in Austria just like District heating grid based on waste heat from pulp&paper mill Zellstoff Pöls AG. Some other examples can be provided by Energieagentur Obersteiermark upon request.
In Tolna County, Hungary, BOT (Build - Operate - Transfer) energy performance contracting will be suggested by integrating also the savings generated by consumer behavior campaigns. This special type of EPC is referred as EPIC, Energy Performance Integrated Contract. At EPIC, technical and social aspects of energy consumption are considered together, and an improved energy performance of buildings is guaranteed not only by technological investments, but also by a better organization of the use of spaces and by the involvement of building users towards a more aware behavior in the use of buildings. According to the experiences of demand side management campaigns in different countries’ public buildings, further 4-5% energy saving can be achieved beyond the savings generated by the technological interventions.
In Slovenia, the Ministry responsible for energy publishes a list of energy service providers that already provide energy contracting services according to the model of contractual provision of energy savings (updated November 2018):
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Petrol d.d. Bled
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Resalta d.o.o. Ljubljana
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Stin d.o.o. Dravograd
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Tames d.o.o. Ptuj
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Plistor d.o.o. Ptuj
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Interenergo d.o.o. Ljubljana