EXPERIENCES ON EPC IN PUBLIC BUILDINGS SECTOR IN GERMANY

Transcription

1 EXPERIENCES ON EPC IN PUBLIC BUILDINGS SECTOR IN GERMANY Roadshow event in Slovenia 12 October 2016 Konstanze Stein Climate Protection and Energy Agency Baden-Württemberg, Germany

2 Slide N 2 Development of EPC business cases Main stages of an EPC project: Source of the chart above: Transparense.eu

3 Slide N 3 Short check A short check can be used to evaluate if a building is eligible for contracting

4 Slide N 4 Project identification Assessment of basic requirements Success factors for EPC projects Selection criteria for EPC projects Analysis of the current situation Data collection and evaluation: On-site inspection Benchmarks and indicators Preliminary assessment of economic and technical feasibility of potential energy saving measures. Photo: Holly publicdomainpictures.net Strategy development EPC or building owner s own implementation

5 Slide N 5 Success factors for EPC Political will at national level Political will at local level Available know-how Available resources Suitable project If any of these success factors are missing, it is recommended to first develop those factors prior to entering into the development of EPC projects.

6 Slide N 6 Best practice project in Germany 7 buildings Schools, kindergarten, gyms Baseline energy and maintenance cost: Euro/y

7 Slide N 7 Analysis of the current situation (procedure ) Data collection and evaluation: Energy consumption and energy cost of the last 3 years. Building type, size (m² of total floor space), and shape. Type, profile and frequency of building use. On-site inspection of the building: Important energy facilities and energy consumers. Status of the building and of installed facilities, including rehabilitation needs. Use checklists (example included in the manual) in order to ensure systematic inspection. Calculation of energy performance indicators: Heating and electricity demand usually calculated in kwh/m²*y. Analysis of benchmarks and assessment of saving potentials Preliminary assessment of economic and technical feasibility of potential (bundles of) energy saving measures.

8 Calculation of energy performance indicators (EnPIs) Slide N 9 The most common EnPI for public buildings is: EnPI = Total energy consumption (kwh/y) Gross floor space of the building (m²) kwh/m²*y unit Bonhoeffer high school kindergarten canteen building 1 building 2 middle school 2 buildings elementary school 2 buildings Ivo-Frueth school musical school Kameralstraße structure heated gross floor space m² ,950 4, ,633 1, year of construction [heating system] averaged final energy demand [room and water heating] (LHV) final energy index figure (LHV) parameter of comparison [average] (AGES) abbreviations: MWh/y kwh/m²*y kwh/m²*y LHV: lower heating value

9 Calculation of energy performance indicators (EnPIs) final energy index figure (LHV) [kwh/m²*y] Slide N Bonhoeffer kindergarten Bonhoeffer canteen high school building 1 high school building 2 middle school 2 buildings elementary school 2 buildings Ivo-Frueth school musical school Kameralstraße

10 Slide N 11 Recommendations for technical measures: Calculation of the measures on the demand side (heating distributors, the pumps, the thermostatic valves, lighting, ventilation systems, warm water generation systems and control systems, refurbishment of the swimming pool) Calculation of reduced energy demand Calculation of district heating system and heating generation system Comparison of different heating generation options

11 Calculation of energy saving measures annual costs, gross [ /y] Costs (planning, investement, financing, maintenance, energy management) Savings (energy and maintenance) Comparison of heat generation options reference variant gas 400 kw woodchips 200 kwel CHP 400 kwel CHP total cost capital costs operating cost energy costs Slide N 12

12 Economic pre-feasibility assessment of EPC projects Slide N 13 Challenge: In order to attract qualified bids, projects must be economically feasible from an ESCO s point of view. A demonstration tool for the pre-assessment of economic feasibility of EPC projects is available for free download from

13 Slide N 14 Financing models for EPC projects Third party financing Credit of ESCO (pure credit or credit with sale of claims/forfaiting/factoring) Credit of building owner ESCO financing Financing with interal funds of the ESCO (own equity, loans, leasing, renting) Building owner s financing Financing with internal funds of the building owner, backed by an energy savings guarantee provided by the ESCO. From the public building owner s internal capital expenditure budget and from existing lines of credit.

14 Slide N 15 The implementation of EPC-projects Please take into account: Intention of the EPC projects Responsibilities National procurement regulations One- or two-stage procedure Specifications (additional offers, number of bidders, ) Special requirements of the buildings (room temperature, energy concept ) Funding by the ESCO or the building owner Selection and Eligibility criteria Forming a working group Pre-clarification with the approval authorities

15 Two-stage negotiated tendering procedure (based on EUROCONTRACT project development models) Supporting the build owner (project control committee), or acting on its behalf Invitation to tender, rough analysis, award of contract Fine analysis Start of Stage 2 of contract Project preparations Contracting local facilitators recommended Setting up of project control committee Selection of buildings Evaluation of Building data Determination of energy costs baseline Determination minimum saving guarantee requested * According to national legislation a minimum number of bidders and/or received bids may be requested at first and/or second stage of the tendering process. Compilation of tender dossier Project-specific adjustment of the EPC contract template Publication of contract notice Expression of interest from ESCOs Selection of 3-10 qualified bidders (short list)* Request for tenders if no qualified bidder Cancellation of the tendering procedure Tender preparation based on rough analysis and submission by ESCOs Vetting and assessment of received bids* Negotiations & selection of most economic offer(s)* if no economic offer Contract stage 1: Project planning contract Cancellation of the tendering procedure Stage 1: Fine analysis with regard to energy Detailed validation of potential energy and cost savings Comparison of results, final decision of client Non-confirmation of rough an analysis, or confirmation, but decision against EPC Contract Stage 2: Implementation of EPC Cancellation of the tendering procedure Compensation for planning cost Slide N 16

16 Slide N 17 Tendering procedures Typical timeline (two-step procedure experience of KEA) Tendering process step Preparation of tender dossiers Duration (source: KEA) 1-3 months Publication of the contract notice and invitation of expressions of interest - Call for expressions of interest and selection of tenderers months Notification of shortlisted tenderers and invitation to tender - Tender preparation and tenderers rough analysis of the project Evaluation of tenders, negotiations with best tenderers, selection of the winning tender Economic comparison of the EPC with standard solutions (own implementation) Selection of the winning tender and awarding meeting of the local council Approval of the supervising authority Notification of the winning tenderer of the award of contract, and contract signature Fine analysis including detailed planning of the project by the contractor Review, revision if necessary, and approval of the results of the final analysis Implementation of agreed measures and installation of facilities Total duration from the start of preparation of tender dossier to start of the guarantee period 2-4 months months 0.5 months 0.5 months 1-3 months 2-4 months 1-2 months 4-12 months months

17 Slide N 18 Tendering procedures Typical steps of the process Publication of contract notice / Expression of interest from ESCOs Selection of qualified bidders (short list) Criteria for the selection of qualified bidders, for example: Qualification criteria: Economic capacity measured in turnover in energy services, and in particular in EPC. Number and relevance of,reference projects based on ESCO/EPC business models. Eligibility criteria: Professional or trade register extract, and legally required licenses and certificates Proof of liability insurance (with minimum coverage level) Corporate structure (legal status, statutes, shareholders) Declaration concerning payment of legal taxes and duties Number of employees, economic, technical, and financial capacities. Additional criteria, for example: Commitment to the European EPC Code of Conduct Clear information on the selection criteria and ratings must be included in the tender dossier, resp. in the Call for Expressions of Interest.

18 Slide N 19 Tendering procedures Typical steps of the process Publication of contract notice / Expression of interest from ESCOs Selection of 3-10 qualified bidders (short list) Selection criteria for the identification of best tenders: PROPOSAL A (Source KEA) Project concept (weight 50%) Assessed may be the quality and comprehensiveness of measures which were not declared to be mandatory. (Tenders which do not provide all mandatory measures will not be further evaluated.) Net present value (NPV) of guaranteed savings (weight 20%) NPV of guaranteed savings achieved during a standard period of e.g. 20 years (fixed prices, fixed discount rate) Net present value (NPV) of net income of building owner (weight 20%) Difference between the NPV of guaranteed savings and the total expenses of the public building owner (EPC fees etc.) during a standard period of e.g. 20 years (fixed prices, fixed discount rate) CO 2 emission reduction in tons/ y (weight 10%)

19 Slide N 20 Tendering procedures Typical steps of the process Contract negotiations Selection of the most economic offer and comparison with non-epc options Subject of negotiations with ESCOs, for example: Extent and quality of the designed measures Preserving requested the parameters of internal environment, observing the existing standards and laws, compatibility with the existing equipment Time schedule of activities Calculation of guaranteed savings in referential and real prices Determining the reward for the applicant, and the share of the contracting entity on extra savings Contracting entity requirements, call to adjust the tender What else could be subject of negotiations with ESCOs? A negotiation protocol, i.e. a record of all agreed arrangements, shall be provided by the building owner, resp. by the involved facilitator, to each ESCO.

20 Slide N 21 Analysis of tenders unit bidder 1 main offer bidder 2 main offer bidder 2 add. offer bidder 3 main offer guaranteed savings duration of the operating phase Euro/y (plus VAT) 179, , , ,910 y one time building Euro cost subsidy (plus VAT) total cost Euro (plus VAT) 546, ,237,274 2,308,913 2,248,549 2,623,760

21 Slide N 22 Cost benefit analysis rating based on bidder 1 bidder 2 bidder 2 bidder 3 weighting criterias main offer main offer add. offer main offer 1 integral concept ,5 weighting 0,5 points net present value attainment 2 total savings with 1,849,643 2,301,606 2,351,138 2,148,175 building cost subsidy Euro weighting 0,2 points net present value of savings for the client Euro -52, , , ,074 weighting 0,2 points amount of CO2 saved t/y weighting 0,1 points evaluation

22 Slide N 23 Detailed planning guaranteed savings in Euro/y guaranteed energy savings in Euro/y maintenance in Euro/y operating phase in months total cost in Euro rough analysis best bidder detailed analysis best bidder 210, , , ,793 21,780 21, ,248,549 2,521,038 The results of the rough analysis are proven by the detailed analysis Recommendation: Signing the EPC contract

23 Slide N 24 Technical measures of the best offer Instalment of a CHP, a woodchip boiler and a gas-fired boiler New ventilation systems New district heating system and heat exchange units New heat distribution units Central building control system Insulation of the top ceiling in one building

24 Comparison EPC / owner directed way net present value over 18 years Slide N 25 Cash flow calculation Period of time Total cost Costs for facilitator Energy savings VAT Risks EPC owner directed

25 Slide N 26 District heating system School 4 School 3 Photo district heating system Wood chip boiler Peak load boiler and CHP Heating water storage 90 m³ School 1 School 2 Kindergarten

26 District heating system Implementation of the district heating system Construction of the heating cellar and wood chip storage Excavation Wood chip storage with cover Slide N 27

27 MWh/month Heat generation Target and real value Slide N 28 Local heat network school complex Am Rosenberg target (left) and real (right) heat consumption total 1,464 MWh/y total 1,346 MWh/y 5 % gas peak load boiler 42 % wood chip boiler 53 % CHP 10 % gas peak load boiler 40 % wood chip boiler 50 % CHP

28 Slide N 29 Assessement of the EPC model Confirmation of the saving guarantee (101%) and of the CO2-savings (98%) in the first year Partnership between ESCO and municipality Further optimizations in the next years additional savings (50/50 for ESCO/ municipality) Municipality considers to expand the district heating system EPC is applied very successful.

29 Slide N 30 ESCO vs. owner directed way Maybe you ll ask yourself: Why would a contractor be more economic than ourselves? 1. Because saving energy is his core competence! 2. Because it can plan and build more cost efficient! 3. Because it only gets remuneration by performance! source: Microsoft win win situation for client, ESCO and the environment

30 Slide N 31 Support from project developers Independent project developers are able to give support on every step of the process. Starting with the project identification up to the signing of the contract, auditing the detailed analysis, controlling the building process and assist the audit of the invoice of savings Local intermediaries can be: Local und regional energy agencies Engineering firms Legal advisors Architects Economists They should have an adequate knowledge and understanding in the following topics: Technology and economic efficiency of energy saving measures in buildings Public procurement procedures and the EPC code of conduct EPC concepts and business models

31 THANKS A LOT FOR YOUR COOPERATION! And good success in your future efforts promoting energy performance contracting in public buildings!