Practices and opportunities for Energy Performance Contracting in the public sector in EU Member States Paolo Bertoldi

Transcription

1 Practices and opportunities for Energy Performance Contracting in the public sector in EU Member States Paolo Bertoldi European Commission, JRC Directorate Energy, Transport and Climate

2 JRC monitor ESCO market since 2015

3 Introduction 1

4 Introduction 2

5 Introduction 3

6 Introduction 4

7 Introduction 5

8 EU Public Sector Building Stock 1

9 EU Public Sector Building Stock 2

10 EU Public Sector Building Stock 3

11 Assessment of the energy saving potential by EPC As average European references, we estimate that: EPC renovation measures are applicable to the 60% of existing public buildings; a right mix of these technology (in function of the building type and main end-uses) can lead to an average energy saving rate (r) of 25%; their maximum simple payback period is 8 years. Starting from these assumptions it is possible to calculate the investment costs associated to these renovation measures in a reverse way. In fact they can be simply obtained multiplying the annual economic savings (s) per the payback period, as follows:

12 Assessment of the energy saving potential by EPC We estimated that: 34 and 58,5 TWh can be saved in the EU public buildings respectively larger than 1000 and 500m2; economic savings of Billions of Euro at European level are associated to these energy savings; to achieve this, a total investment of Billions of Euro is needed. This total amount can be translated in an average renovation cost per building of about and an average cost per square meter of around 17.5 /m2.

13 Overview of the size of the ESCO markets across Europe.

14 Overview of the size of the ESCO markets across Europe.

15 EPC market status in the public sector

16 Public sector as a client for EPC

17 Expected future development of EPC in the public sector

18 Most common target areas of EPC projects in the public sector

19 Most common target areas of EPC projects in the public sector

20 Average duration of EPC projects in the public sector (years)

21 Key barriers to the development of EPC in the public sector

22 The European System of National and Regional Accounts The European System of National and Regional Accounts (referred to as ESA 2010) entered into force in September 2014, and raised concerns about how to treat Energy Performance Contracting (EPC) in public accounts. As a response on 7 August 2015, the Eurostat published a guidance note on the impact of Energy Performance Contracts on government accounts. In line with this guidance, capital expenditure undertaken as part of EPCs should be - in most cases accounted ''on balance sheet'' for National Accounts purposes despite the fact that the government liability is conditional on a guaranteed service, involving a revenue. Exceptions to this rule are cases where such contracts can be associated with PPPs and operating leases. Given the nature of EPCs, these options remain limited except for certain specific cases. This is considered a major burden to EPC, as public administrations will hesitate to engage in EPC as they might fear of increasing public debt. (Source Litiu et al. 2016)

23 Conclusions 1 Buildings owned and/or managed by the public sector make up more than 10% of the overall EU building stock. Very often public buildings also need maintenance, refurbishment and have a low efficiency. The public sector proceeds slowly in improving energy efficiency due to a number of barriers, including limited financial resources, limited human resources in numbers and in profession, split incentives, etc. The sector is an excellent target for Energy Performance Contracting (EPC), because EPC brings in private funds for financing a public project The picture of the current status of using EPC in the public sector is very diverse. There are only a few countries, where a well-developed EPC market could be identified in the public sector (DK, DE, UK), and several which are well advanced (FI, CZ, NL). France is special case, with a moderately advanced EPC market in the public sector, because the EPC definition actually misses the core EPC value, i.e. repayment from the savings, as a result of the French legislation.

24 Conclusions 2 The economic final energy demand savings potentials are around 34 and 58,5 TWh in the public buildings of EU Member States, in building larger than 1000 and 500 m2 respectively, with economic savings of a total of 2,7 5 Billions of Euro, that would mean a need for total investments of 21,3 39,4 Billions of Euro is needed. This total amount can be translated in an average renovation cost per building of about and an average cost per square meter of around 17,5 /m2. The outlook for the EPC market in the public sector is good. Most of the markets are expected to grow in the near future, even those that are still in a preliminary phase. This especially considering that one of the barriers identified, the ESA 2010 definition, as been removed.

25 Thank you! Joint Research Centre (JRC)