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Combining energy services with subsidy schemes to finance energy efficiency in Central Europe

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NEWS

The great launch of the CombinES / 2 in Poland CombinES Comprehensive Renovation of Buildings Focus group in Milan / 3 Workshop at AGRA fair in Slovenia Slovak signatories of Covenant of / 4 Mayors are interested in EPC BEA workshop / 5

Best Practice in Poland / 2 This project is implemented through the CENTRAL EUROPE Programme co-financed by the ERDF.


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The great launch of the CombinES in Poland The issue of energy services is in Poland still in its infancy. The overcome of many legal, administrative and economic barriers is essential in order to develop a functioning market for energy performance contracting. This became clear at the 1st Polish-German conference on

energy services that has launched the CombinES in Poland. It has finally been conducted by the Polish Ministry of Economy with the German Federal Environment Ministry BMU and attended by 50 representatives from the energy industry, local authorities, associations

Best Practice in Poland As the CombinES project makes it clear, there are already some good examples of energy efficiency gains in Poland, that can be achieved under private energy services.  The industrial town Radzionków in Upper Silesia region in 2010 concluded an energy performance contract (EPC) and implemented it as part of a public private partnership with a guaranteed energy savings. The electricity consumption savings were 42 percent, the savings of heat consumption has reached 57 percent. Another successful Polish best practice example presented has been the municipality Karczew. This community has been completing (in 2013) an EPC project over the term of 14 years in which savings of 56 percent on heating and 21 percent for electricity are guaranteed. Both projects are run within PPP – the Public Private Partnerships and has been concluded after the Competitive Dialogue Procedure.

and ministries. This international event was opened by the Secretary of State in the Polish Ministry of Economy – Hanna Trojanowska and the German Ambassador to Poland – Rüdiger Freiherr von Fritsch. The participants were informed that the government in Warsaw had set a goal to establish a uniform framework for energy service models and would inform communities about the economic benefits of EPC. Michael Geissler, CEO of BEA presented the successful Berlin Energy Saving Partnership (ESP) with about 1,300 energy-managed buildings by private energy service providers. FEWE, another CombinES partner, has presented the ideas and the outcomes of the Project. As the result of the well performed launch event the project CombinES has been appreciated by the Ministry of Economy in person. Since the 4th December 2013 the Polish part of the Combines’ project activities has been awarded by the honour patronage of the Ministry of Economy.

All the presentations can be downloaded on the pages of the Polish Ministry of Economy.

CombinES Comprehensive Renovation of Buildings In order to fully exploit the energy saving potential, a building renovation should ideally comprise both of thermal envelope measures and technology measures and energy management. To this end, SEVEn, The Energy Efficiency Center, partner of the CombinES project in the Czech Republic, has prepared the first detailed proposal on how to successfully combine these two types of measures. The proposed “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).

The main advantage of such approach is that it allows inter-optimizing timing and choice of the measures when implementing both groups of measures. This leads to optimal result bringing maximum energy savings under the given volume of investment costs. Furthermore, if carefully prepared, the interventions in the building can be made as short as possible and the least interfering with the regular operation of the building. On the other hand, organization of comprehensive renovation is demanding and requires detailed planning, preparation and implementation in order to achieve optimum results. Comprehensive renovation also brings additional costs for organization and coordination of both parts; however, this can be well outweighed by greater economic savings resulting from higher energy savings.

The current proposal suggests that the “CombinES Comprehensive Renovation” is implemented in two separate procurements. Such approach allows to clearly distinct the rules and principles of tender evaluation for both thermal envelope and technology measures. It also reflects the fact that the preparation and implementation of technology part and thermal envelope part of the renovation are two very different processes. Last, but not least, two specialized suppliers can be selected. SEVEn, The Energy Efficiency Center For more information and full report, please contact your local CombinES project partners (www.combines-ce.eu).

Photo / FreeDigitalPhotos.net by Ambro (top), by ponsulak (bottom)

1st Polish-German conference on energy services in Warsaw, 16th October 2013.


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Focus group in Milan – January 2014 On 22nd January 2014 eERG-Polimi and the publishing house Greenplanner organized a focus group with the topic: “ESCo, the Public Administration is waiting for you! – The business of energy requalification at the light of new contractual modalities”. Fifteen representatives from the ESCO market joined the meeting in order to discuss the proposal of amendments to the current management of requalification projects. Dr. Filippo Baretti from the Energy Policy Sector – Piedmont Region presented the format for EPC tenders recently developed by Piedmont Region in order to foster EPC market, while Dr. Antonio Lumicisi summarized the current situation of Italian municipalities joining the Convenant of Mayors. One of the main conclusions is that Italian EPC market needs specific financial tools

to help ESCOs have access to credit, such as guarantee funds and revolving funds (such as the guarantee fund which will be soon implemented in Sicily Region). ESCOs should take upon themselves the technical risk of EPC projects, while it is questionable whether the whole financial risk can be afforded by ESCOs, which usually do not have a strong financial situation.On the other side, financial institutions would greatly benefit from setting up technical offices which can objectively evaluate energy efficiency projects. Another hot issue lies in the correct definition of the baseline of energy consumptions, which is the basic first step for evaluating energy savings deriving from requalification. All participants agreed on the strong necessity of addressing both interventions on the building envelope and measures on the generation, distribution and regulation systems.

Complete requalification with integrated design is thus the fundamental strategy to allow for a full exploitation of energy saving potential.

Workshop at the AGRA fair in Slovenia In August 2013 at the fair AGRA 2013 (International Fair Of Agriculture And Food) in Gornja Radgona, the Slovenian partner ZRMK successfully organized first CombinES workshop. Overview of the existing programmes offering subsidies for the energy efficiency projects were presented as well as international best practice examples of efficient utilization of the energy efficiency potential through combination of private financing through EPC method and public financing through subsidy programmes. More than 15 representatives from Slovenian municipalities and energy agencies discussed about the barriers and potentialities of the energy performance contracting and development of ESCO

market in Slovenia. A key goal of the workshop was to follow the project basic idea – to support the reduction in energy consumption, to increase sustainability, and also to improve the quality of usage of both public and commercial buildings. At the round table that followed the workshop a wide range of knowledge and day-today experiences were shared by all the participants.


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Slovak signatories of Covenant of Mayors are interested in EPC sive refurbishment of buildings have been presented while the guaranties provided through EPC should be maintained. As financing of the construction measures with longer payback period is not possible from private resources of ESCOs and it is also difficult for the muidentified within preparation of their nicipalities, utilization of support from Sustainable Energy Action Plans. Within the EU Structural funds 2014 – 2020 was following discussion the participants desuggested for this purpose. clared their interest in the EPC method as interesting tool. At other hand they presented reservations for the standard focus of the EPC on technological measures as these are not enough for solving operational problems of majority of their buildings resulting from technical obsolete state. Clear requirements for comprehen-

Project CombinES was presented at the meeting of the Slovak National Platform of Covenant of Mayors in Bratislava on November 6th, 2013.

The National Platform was established within Intelligent Energy Europe project NET-COM (NETworking the Covenant Of Mayors). The platform brings together local authorities, public administration and other subjects of public and private sector with the aim to facilitate coordinated support for fulfilling the targets of the Covenant of Mayors at local as well as national level. The representatives of Slovak CoM signatories as well as other interested municipalities were provided with the overview of possibilities and benefits of utilization of Energy Performance Contracting as a tool for implementation of measures

Consequently the basic approach developed within the CombinES project was discussed. The useful information and knowledge gathered will be utilized within preparation of the final recommendations for combination of EPC with subsidies in Slovakia.


BEA workshop

“Development of green EPC-Models for municipalities” – November 25th in Frankfurt The 1 day workshop “Development of green EPC-Models for municipalities” has been held in the context of the CombinES project and organized by BEA together with the HMUELV (Federal State of Hessen, Department for Environment & Energy). The Workshop Objectives were: →→ Suggestion for the use of renewable energies with further savings in the context of EPC →→ Opportunities for climate protection and easing budgetary burden by Show energy services based on practical examples →→ Presentation of a Green EPC Model 36 participants – mainly representatives from public authorities – and speakers from the German Ministry of Environment, The Energy Agency of BadenWuerttemberg and BEA discussed during the workshop best practice projects and the possibility of making use of public incentives programs. The special focus laid in the combination of green, sustainable energy production and EPC. A guidance was given by Anton Wetzel who presented the technical conditions for the use of solar thermal, photovoltaic, heat pumps and biomass and gave input on requirements in project preparation phase (e.g. assistance in tendering procedure, use of funding and contractual adjustments).

Experience and results as well as success factors were exchanged intensively during the day. All participants were asked for their feedback: answers from 21 participants were received of which 19 were generally satisfied with the workshop as such. 15 participants gave a “good” score for the content (2 voted for “very good” and 4 for “satisfied”). Some comments were given in which it was made clear, that time restrictions limited to much the tendering and contractual presentation/discussion. Also the chances – especially for small municipalities with little energy consumptions – should be looked at in more detail.

European Parliament press release on new EU procurement rules, 15 January 2014 (extract) New EU rules on public procurement and concession contracts approved by Parliament on Wednesday will ensure better quality and value for money when public authorities buy or lease works, goods or services. They will also make it easier for small and medium-sized firms to bid and include tougher provisions on subcontracting. The new legislation, already agreed with Council in June 2013, overhauls the

current EU public procurement rules and for the first time sets common EU standards on concession contracts to boost fair competition and ensure best value for money by introducing new award criteria that place more emphasis on environmental considerations, social aspects and innovation. Thanks to the new criterion of the „most economically advantageous tender“ (MEAT) in the award procedure, public authorities will be able to put more em-

Photo / FreeDigitalPhotos.net by ponsulak

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6/3 phasis on quality, environmental considerations, social aspects or innovation while still taking into account the price and life-cycle-costs of what is procured. The new „Innovation Partnership“ will allow public authorities to call for tenders to solve a specific problem without pre-empting the solution, thus leaving room for the contracting authority and the tenderer to come up with innovative solutions together. The bidding procedure for companies will be simpler, with a standard „European Single Procurement Document“ based on self-declarations. Only the winning bidder will have to provide original documentation. This should reduce the administrative burden on companies by

over 80%, the Commission estimates. The new rules also encourage the division of contracts into lots to make it easier for smaller firms to bid. The directives will enter into force 20 days after publication in the Official Journal of the European Union. After this date, member states will have 24 months to implement the provisions of the new rules into national law. For full text see: →→ http://www.europarl.europa.eu/news/en/ news-room/content/20140110IPR32386/ html/New-EU-procurement-rules-to-ensure-better-quality-and-value-for-money

Project partners: 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

Lead partner: Energetická agentura Vysočiny Nerudova 1498/8, 586 01 Jihlava, Czech Republic Contact person: Hana Zábranská, zabranska@eav.cz

POLITECNICO DI MILANO - Dipartimento di Energia eERG – end-use Efficiency Research Group Via Lambruschini 4 20156 Milano, Italia Web: www.eerg.polimi.it 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

www.combines-ce.eu This project is implemented through the CENTRAL EUROPE Programme co-financed by the ERDF. Disclaimer / The sole responsibility for the content of this publication lies with the authors. It does not necessarily reflect the opinion of the European Communities. The European Commission is not responsible for any use that may be made of the information contained therein.

Title photo / FreeDigitalPhotos.net by ponsulak Design / TRIDESIGN, B.Ž.B. / 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


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