ENERGY PERFORMANCE CONTRACTING IN THE CZECH REPUBLIC EXPERIENCE, PROCEDURES AND STREET LIGHTING

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1 This project has received funding from the European Union s Horizon 2020 research and innovation programme under grant agreement No ENERGY PERFORMANCE CONTRACTING IN THE CZECH REPUBLIC EXPERIENCE, PROCEDURES AND STREET LIGHTING (2 December2016 Stara Zagora) Jiří Karásek SEVEn, The Energy Efficiency Center

2 AGENDA Energy Performance Contracting (EPC) in the Czech Republic Support for ESCO market development Street lighting in the Czech Republic EE & RES 2 2

3 EPC Basics Operating costs (energy, etc.) without EPC (= baseline) guaranteed savings (covering investments) client s (&ESCo s) extra benefit benefit for client with EPC conclusion of EPC contract saving measures implemented years end of EPC contract 3

4 Transparense EPC survey in Europe 4

5 Transparense EPC survey in Europe 5

6 Transparense EPC survey in Europe 6

7 EPC process Main stages of EPC process Decision to use EPC Contract close Implementation of other measures Project identification Preliminary analysis Procurement procedure Installation of measures 7 Guaranteed operation Data collection, negotiations Proposal of EE measures Verification of data, tender dossier Management of installation M&V of energy savings 7

8 EPC process Timing of EPC process 3-6 months 2-4 months Project identification & preliminary negotiation with the management (by facilitator) Preliminary analysis technical & economic feasibility of EPC for the project (by facilitator) Preliminary technical potential Decision to use EPC Financing, legal framework 4-6 months Procurement procedure EPC contract close 2-6 months 1-2 months 6-10 years Installation & implementation of EE measures Trial operation Guaranteed operation Sanctions if non compliance Measurement & Verification Final balance report 8

9 SUPPORT FOR ESCO MARKET DEVELOPMENT Project EPC+ Creation of SME Partnerships for Innovative Energy Services (SPINS). The development of commercial, standardized energy service packages which will target SMEs interested in improving their energy performance. Implementation of pilot projects in each partner country. Development of an international platform to support collaborative networks and innovation. 9 9

10 SUPPORT FOR ESCO MARKET DEVELOPMENT Definition of a SPIN SME Partnerships for Innovative Energy Services (SPINs) SPINs are organized clusters of companies, mainly SME s, which jointly supply energy services and have a structured long-term collaboration with commonly agreed objectives

11 STREET LIGHTING Research on the state of street lighting in the Czech Republic Partners of research were SEVEn, Philips CZ and ČEZ Focused on all villages and cities in the Czech Republic About 350 villages and cities from whole Czech Republic were attended of research The aim was to find out the status of street lighting and trends over the last three years 11 11

12 STREET LIGHTING Research on the state of street lighting in the Czech Republic Research focused on: technical details (type of luminaires and lamps, age of luminaires) method of management and maintenance (regulations, property lists, etc.) economical information (costs, consumption) Within the framework of the research project was drawn Manual of street lighting summarizing basic information about street lighting 12 12

13 STREET LIGHTING Research on the state of street lighting in the Czech Republic 4,0% 6,4% 0,2% vysokotlaká high-pressure sodíková sodium výbojka lamp rtuťová mercury výbojka vapor lamp kompaktní compact zářivka fluorescent lamp 89,4% ostatní others Types of lamps (share of lighting points) 13 13

14 STREET LIGHTING 100% 80% 60% Research on the state of street lighting in the Czech Republic Methods of controlling and turning off ( in 129 municipalities) 40% 20% 0% municipalities obcí municipalities obcí municipalities obcí municipalities obcí municipalities obcí obcí regulating reguluje photocell fotobuňka switch spínací clocks hodiny regulator regulátor half polovina of lighting SB points 14 14

15 STREET LIGHTING The state of street lighting in the Czech Republic Average 8.1 inhabitants/lighting point Average 67 kwh/inhabitant Estimated number of lighting points in the Czech Republic: 1.4 million Estimated annual consumption of street lighting 585 GWh, approximately 0.9% of consumption Czech Republic 15 15

16 STREET LIGHTING The state of street lighting in the Czech Republic - conclusions Marginal representation of mercury vapor lamps, compared to Western countries (e.g. Germany, Sweden) Insignificant representation of regulatory elements (regulators, Intelligent Control) Significant number of municipalities has no evidence of their property and electrical systems revisions Significant number of technologically and physically obsoleted luminaires 16 16

17 STREET LIGHTING The state of street lighting in the Czech Republic - conclusions Maintenance is often done by an external company Costs per light point are increasing, increase is attributable to the price of electricity, increase is not attributable to electricity consumption Third of municipalities intends to invest in street lighting 17 17

18 STREET LIGHTING IN MORAVSKÁ TŘEBOVÁ - EPC PROJECT 18 18

19 STREET LIGHTING IN MORAVSKÁ TŘEBOVÁ Moravská Třebová is a historical town of inhabitants, situated in Pardubice region. Like in many other towns and cities in the Czech Republic the street lighting in Moravská Třebová was fairly obsolete and most of the street lighting equipment (e.g. cables, poles, etc.) was beyond its service life. Apart from high bills for electricity the maintenance and operation costs were increasing as well (over 1 mil. CZK in 2010)

20 STREET LIGHTING IN MORAVSKÁ TŘEBOVÁ Thanks to the employment of method EPC during the reconstruction of the street lighting in Moravská Třebová, The Czech Republic is now able to present a unique approach which is very likely to be employed again in the future. original state state after modernization number of luminaires 118 pieces 118 pieces Upgraded luminaires 680 pieces 680 pieces number of switchboards (all upgraded) 24 pieces 24 pieces avarage power input of 1 lighting point 145 W 84 W Annual energy costs CZK CZK costs of repair and maintenance CZK CZK 20 20

21 SELECTION CRITERIA FOR EPC IN STREET LIGHTING Volume of contract - cost for energy more than Euro Most efficient is changing only the luminaires Increasing price of electricity Payback period of measures less than 10 years Improvement of the situation Potential savings in regulation Needed support for creation of property list and also financial support for the projects 21 21

22 Thank you for your attention! Jiří Karásek 22