Good practice impact evaluation: tender on Energy efficiency in public administration (ECO.AP)
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1 Second meeting of the project ODYSSEE-MURE, a decision support tool for energy efficiency policy evaluation Good practice impact evaluation: tender on Energy efficiency in public administration (ECO.AP) 22/06/2017 Rui Fragoso Head of Buildings Department ADENE Portuguese Energy Agency rui.fragoso@adene.pt
2 AGENDA SUBJECT 1 MAIN OBJECTIVES SUBJECT 2 LEGAL FRAMEWORK SUBJECT 3 ENERGY PERFORMANCE CONTRACTS SUBJECT 4 EXAMPLES SUBJECT 5 OTHER ISSUES
3 NATIONAL ENERGY TARGETS Portugal established ambitious targets The 2020 EU targets represents real objectives to be achieved. Additionally the Portuguese Government established new targets that go beyond the initial objectives revealing the nation ambition on climate change prevention. UE-27 targets 20% of reduction in energy consumption 20% of RES in final energy consumption 20% of GHG reduction Targets for Portugal 31% of RES in gross final energy consumption (1) 10% of RES in transport sector (1) 20% of reduction in primary energy consumption (2) Government targets Idem Idem 25% of reduction in primary energy consumption (2)(3) 30% of reduction in the central government setor (3) (1) Meta vinculativa da UE; (2) Redução sobre o consumo de energia primária em 2020 em relação ao Baseline 2007 do modelo PRIMES da Comissão; (3) Meta do Governo de Portugal 2020
4 31% RES in gross final energy consumption 19,5 20,8 21, ,4 24,2 24, , % % 10% RES in transport sector 0,2 1,3 2,2 2,3 3,6 5,3 0,4 0,4 0,7 3, % Reduction in primary energy consumption 26% Cenario BAU Primes 2007 (Mtep) Primary Energy consumtion without non energetic uses % 30 MTEP 22,5 MTEP Source: Directorate-General for Energy and Geology
5 ECO.AP PROGRAM Main Objectives Promote the efficient use of energy in Central Government; Promote the development of the ESCO market in Portugal, both on the public and private sector; Contribute to achieve the goals established in NEEAP to reduce energy consumption in Public Administration Sector in 30% until Existence of an Energy Manager in all Central Government Bodies; Development of the Barometer Eco.AP in order to evaluate the energy efficiency of the Central Government Sector Development of Energy Performance Contracts in the buildings/equipments with higher energy consumption (or inefficiency);
6 AGENDA SUBJECT 1 MAIN OBJECTIVES SUBJECT 2 LEGAL FRAMEWORK SUBJECT 3 ENERGY PERFORMANCE CONTRACTS SUBJECT 4 EXAMPLES SUBJECT 5 OTHER ISSUES
7 ECO.AP PROGRAM Legal framework RCM n.º 2/2011, from January 12 th Creates the ECO.AP program DL n.º 29/2011, from January 28 th Develop the legal framework for energy performance contracts in the public sector, in coordination with the remaining procedures for public contracting Normative Order nº 15/2012, from July 3 rd Creates a ESCO pre-qualification system RCM n.º 67/2012, from August 9 th Established that all EPC in the Central Government must coordinated by the Energy Ministry Ordinance n.º 60/2013, from February 5t h Publish the tender specification model to be used by the public sector in tender for energy performance contracts development (EED obligation) DL n.º 68/2015, from April 30 th Clarifies the application of Eco.AP to the regional local public administration
8 ECO.AP PROGRAM ESCO Pre Qualification system Driver Levels Technical Requirements Financial Requirements Level 1 3 GWh eq 2 Energy Expert (EPBD) 1 Energy Auditor Turnover 200 k Financial Autonomy 15% Complexity of buildings / Equipments Level 2 > 3 GWh eq 2 Energy Expert (EPBD) 1 Energy Auditor 1 CMVP 2 Engineer (SGCIE) Turnover 1 M Financial Autonomy 15%
9 ECO.AP PROGRAM Tender procedure Tender Specifications and Tender Program adaptation ESCOs Tendering Invitation Walkthrough Audit Preliminary Proposals Selection of 2 ESCOs Energy Audit Final Proposals Negotiation Final Selection and Contract Celebration
10 AGENDA SUBJECT 1 MAIN OBJECTIVES SUBJECT 2 LEGAL FRAMEWORK SUBJECT 3 ENERGY PERFORMANCE CONTRACTS SUBJECT 4 EXAMPLES SUBJECT 5 OTHER ISSUES
11 ENERGY PERFORMANCE CONTRACTS Business model 100% 0% X X INVESTMENT SAVINGS ESCO PUBLIC ESCO PUBLIC
12 ENERGY PERFORMANCE CONTRACTS Business model Energy costs Economias Savings (Público) (Public) Payments (ESCO) Fatura Energética Energy costs Savings (Public) Fatura Energética Energy costs Before EPC In EPC After EPC
13 ENERGY PERFORMANCE CONTRACTS Business model % guaranteed savings to the Public Body Contractual Savings % shared between the ESCO and the Public Body Non Contractual Savings Total Energy Savings [kwh] Savings going beyond the contractual savings are shared between ESCO and the Public body
14 AGENDA SUBJECT 1 MAIN OBJECTIVES SUBJECT 2 LEGAL FRAMEWORK SUBJECT 3 ENERGY PERFORMANCE CONTRACTS SUBJECT 4 EXAMPLES SUBJECT 5 OTHER ISSUES
15 ENERGY PERFORMANCE CONTRACTS Projects developed / ongoing Lisbon Municipality: Traffic Lighting; Peniche Municipality: Public Lighting; Vouzela Municipality: Public Lighting; Valongo Municipality: Public Lighting; Paços de Ferreira Municipality: Public Lighting; Vila Nova de Poiares Municipality: Public Lighting; West Inter-municipal Community: Public Lighting; Vila Nova de Gaia Municipality: Public Lighting; Central Alentejo Inter-municipal Community: Public Lighting; [11 th March 2016] 15
16 ENERGY PERFORMANCE CONTRACTS Lisbon municipality: Traffic lighting system GALP/VIVAPOWER MANVIA Energy Savings 94,36 % 94,10 % Municipality Contractual Savings 26,40 % 23,00 % Contract Period 2 years 2,5 years NPV , ,34 NPV min , , 36 Final Evaluation 69% 54% 16
17 ENERGY PERFORMANCE CONTRACTS Vouzela Municipality: Public Lighting PROPOSALS PROPOSALS OVERVIEW SUBMISSIO N ORDER ESCOS ENERGY SAVINGS CONTRACTUAL SAVINGS CONTRACT PERIOD 1.ª 2.ª CME Construção e Manutenção Eletromecânica S.A. 70,40% 25,00% 9 EDP Comercial Comercialização de Energia S.A. 70,00% 28,76% 12 3.ª Ferrovial Serviços S.A. 70,40% 35,27% 12 4.ª HEN, Engenharia e Eficiência Energética Lda. 70,40% 10,00% 12
18 ENERGY PERFORMANCE CONTRACTS how about buildings? Abrantes Hospital; Covilhã Hospital; Lisbon Subway; Seixal Swimming pools.
19 AGENDA SUBJECT 1 MAIN OBJECTIVES SUBJECT 2 LEGAL FRAMEWORK SUBJECT 3 ENERGY PERFORMANCE CONTRACTS SUBJECT 4 EXAMPLES SUBJECT 5 OTHER ISSUES
20 ENERGY PERFORMANCE CONTRACTS Challenges 1 Knowledge: a) Buildings/equipment; b) Lack of expertise of the staff; c) EPC model; d) Low potential in same cases or changes in buildings use pattern 2 Investment capacity: a) Energy audits; b) EE investments;
21 ENERGY PERFORMANCE CONTRACTS Technical Assistance to support EPC Location Beneficiary CoM signatory Sector Lisbon Region (extended to West Region) Agencia para Energia (ADENE) No EE in buildings, street and traffic lighting Total PDS cost EUR 721, Elena contribution EUR 649, Project development services (PDS) financed by ELENA The objective of the ELEnA assistance is to deploy the necessary technical, financial and legal expertise that will allow developing the investment programme involving ESCOs and using EPC between the Portuguese public administration and private ESCOs.
22 ENERGY PERFORMANCE CONTRACTS Conclusions PRO 1. Possibility to solve financial problems in the public administration (PA); 2. The association between the ESCOs financial income and the effective energy savings achieved; 3. ESCO as the only responsible for the managing the contracted energy savings level; CON 1. Guidance note from Eurostat concerning the impact of energy performance contracts on government accounts; 2. Low level of knowledge from the PA regarding this type of contracts; 3. Time it takes to step up the process;
23
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