ELENA-Modena project for technical assistance to enhance energy saving in the Public Sector *** The Modena Energy Agency s experience and results

ELENA-Modena project for technical assistance to enhance energy saving in the Public Sector *** The Modena Energy Agency s experience and results

1) Short introductory presentation ELENA- Modena project ELENA-Modena The ELENA-Modena project provided 1.4 m for technical assistance to Municipalities with an European Investment Bank contribution; this should have led to a total amount of 54 m in energy investments on municipal property with a minimum leverage factor of 25. The project ended on August 2015 with a total amount of 27 m in energy investments, 0.9 m spent for technical assistance and a leverage factor of 33,28%. 2

1) Short introductory presentation ELENA- Modena project ELENA-Modena Concerning the original total amount of the investment costs (54 M ), this evaluation was developed in 2009 / 2010, especially for the PV investments, in a different situation of the market (the PV prices are decreased about 75% from the evaluation to the real application). Investments reduction (suspended/deleted) after the 2012 earthquake. 3

1) Short introductory presentation ELENA- Modena project ELENA-Modena As shown in the next slides, the project has supported several investments, renewable energy, public lightning and in energy saving for buildings; several performance contracts for buildings were developed by AESS before Elena s start. Energy performance contract (EPC) duration ranges from 7 to 20 years; AESS started its work on EPCs 13 years ago; now, as well, it s was very interesting for us to perform in some cases, these kinds of project for the second time! 4

1) Short introductory presentation ELENA- Modena project The Italian context Italian Local Administrations are generally in a condition of financial stress, due to the limitations imposed by the so-called Stability Pact. Similarly, the capacity of investment is limited by the formula: (net current cost balance) (cash flow of the year for investments) 0 As a consequence there is no option for investing internal cash (all available cash flow is used for emergency investments ), nor with loans (there is no anyway room for payment of works in the year), even if the Municipality has money from the yearly profit and loss balance. The only solution is EPC. The internal personnel is not skilled in EPC. 5

1) Short introductory presentation ELENA- Modena project ELENA- Modena approach The Municipalities need technical assistance to draft an EPC and usually lack money to purchase it at market costs. The Province acts as collector of requests of investments from the Municipalities signatories of the Covenant of Mayors. The provincial Energy Agency AESS undersigned the ELENA agreement with EIB and created a Supporting Unit for the supply of technical assistance. Procurement procedures are EPC, leasing, a few direct investments, some mixed solutions. The procuring agents are the single Municipalities or clusters of them. 6

1) Short introductory presentation ELENA- Modena project Procedure for assigning tasks to technical and legal consultants http://www.aessmodena.it/it/component/cont ent/article/88-bandi/327- avviso-pubblico-per-laselezione-di-tecnici-inmateria-di-efficienzaenergetica.html AESS proceeded to select a list of qualified technical and legal consultants call was published on website. On the base of the received CV, technical and legal consultants showing an adequate experience in the specific fields were selected and inserted in a public short list, published available on the website. [A3 Interim Report] 7

1) Short introductory presentation ELENA- Modena project Replication of project in Italy Now we focus on the peculiar characteristics of ELENA Modena project: We decided from the start to keep free the ESCo's choice to use EIB financial help (using other banks with the help of public revolving funds, regionals and national); We customized the first three EPC tender schemes adapting them to the specific contest of the market and local conditions (preparing many call for tenders and not only two or three big). We didn't use the whole EIB financing at the start of the project, but before every project decreasing the risk in case of desert call. 8

1) Short introductory presentation ELENA- Modena project Replication of project in Italy We researched the critical size of the projects (not too small but not too big) in order to enlarge the ESCo's participation, fractionate the risks in case of desert call and decreasing the risks of legal appeals after the signing of the contract. This approach is very expensive and it was possible only thanks to the whole AESS staff that worked supporting with his experience the project managers. In the ELENA's project these "external" costs are not eligible, but for us has determined the success of our project, despite the difficulties due to the economic crisis and due to force majeure problems. 9

1) Short introductory presentation ELENA- Modena project Way forward The Elena's Project represent for AESS and the Modena Province a great opportunity to give "the legs" to the Covenant of Mayors realizing concretely the items of Sustainable Energy Action Plans. We will try to continue using the ELENA's model in two different ways: Direct insertion in the call for tenders of the preparing costs, paid by the ESCo after the signing of the contract (in that case all the risks are allocated to the advisor); we are applying this model outside the Modena Province in EPC contracts and for renewable energy plants. Financing of the preparing costs of the call for tenders by banks, covered by an insurance (at the moment we are talking with many stakeholders in order to built a pilot case with the help of public revolving funds). 10

2) Project progress and its implementation General overview Some Statistics PARTICIPATION: Local GOVs in Modena province: 47 Local GOVs in Modena joining ELENA facility: 24 ELENA breakdown for sectors: 11

2) Project progress and its implementation General overview Some Statistics PARTICIPATION: Investments suspended/deleted after the 2012 earthquake: 4.320.000 In additional to earthquake some Municipalities in North Modena were affected by flooding in January 19, 2014. 12

2) Project progress and its implementation Tenders & investment already implemented Summary of some benchmarks included in the ELENA contract Investment programme for sector ( ): original WP achieved results BUILDINGS 22.400.000 9.180.575,27 PV ROOFS 22.600.000 4.677.921,01 STREET LIGHTING 9.000.000 13.821.357,49 54.000.000 27.679.853,77 (51% of the target) Investment programme for typology ( ): original WP achieved results Energy efficiency 24.000.000 22.791.744,09 RES in buildings 30.000.000 4.888.109,68 54.000.000 27.679.853,77 Energy saved or RES generated (MWh): original WP achieved results BUILDINGS 16.000 12.431,05 PV ROOFS 6.400 2.423,23 STREET LIGHTING 7.000 7.042,04 29.400 21.896,32 (74% of the target) Avoided CO 2 (ton): original WP achieved results BUILDINGS 3.200 3.494,03 PV ROOFS 3.200 1.169,12 STREET LIGHTING 3.500 3.668,45 9.900 8.331,60 (84% of the target) 13

2) Project progress and its implementation General overview Some Statistics Implementation plan IP identification Name of IP Sep.2011 Oct-2011 Nov.2011 Dec.2011 Jan.2012 Feb.2012 Mar.2012 Apr.2012 May 2012 June 2012 July 2012 Aug.2012 Sept.2012 Oct.2012 Nov.2012 Dec.2012 Jan.2013 Feb.2013 Mar.2013 Apr.2013 May 2013 June 2013 July 2013 Aug.2013 Sept.2013 Oct.2013 Nov.2013 Dec.2013 Jan.2014 Feb.2014 Mar.2014 Apr.2014 May 2014 June 2014 July 2014 Aug.2014 Sept.2014 Oct.2014 Nov.2014 Dec.2014 Jan.2015 Feb.2015 Mar.2015 Apr.2015 Majy2015 June 2015 B.01 Castelfranco Emilia B.05.1 Polinago B.04.1 ACER: Albareto B.06 Lama Mocogno B.04.4 ACER: Baggiovara B.02 Soliera B.07 Province of Modena B.10 Carpi B.24 Campogalliano B.03 Castelnuovo Rangone B.04.2 ACER: San Damaso B.04.3 ACER: Modena B.14 Fiumalbo B.18 Modena B.22 Riolunato PV.08 Fanano PV.02 Fiumalbo PV.05 Soliera PV.11 Modena PV.18 Modena PV.09 Modena PV.14 Finale Emilia PV.16 Nonantola PV.17 Ravarino PV.01 Vignola PV.04 Medolla PV.12 Campogalliano PV.13 Castelnuovo Rangone PV.03 Castelfranco Emilia PV.06 Province of Modena PV.07 San Prospero PV.19 Riolunato SL.02 Vignola SL.01 Lama Mocogno SL.03 Riolunato SL.04 Fiumalbo B.05.1 Polinago SL.05 Pavullo n/f SL.07 Castelvetro di Modena SL.09 Sassuolo SL.10 Castelnuovo Rangone SL.06 San Possidonio_Area Nord SL.17 Mirandola_Area Nord SL.18 Concordia_Area Nord SL.20 Carpi SL.13 Fanano 66.258 268.486 17.703 EARTHQUAKE 499.969 510.955 510.955 510.955 EARTHQUAKE 832.688 1.112.492 EARTHQUAKE EARTHQUAKE EARTHQUAKE 215.038 156.343 161.622 180.446 554.851 0 1.443.111 2.227.385 464.648 163.912 449.026 65.451 0 387.214 3.900.000 433.100 0 169.000 381.641 131.008 130.478-1.220.000 609.848 2.025.682 2.019.720 275.671 1.286.868 327.373 3.650.000 319.957-14

2) Project progress and its implementation Tenders & investment already implemented Summary of some benchmarks included in the ELENA contract Estimated annual final energy saved for EE projects, production by RES & EE+RES [MWh] 15

2) Project progress and its implementation General overview Energy Saving approach in calls for tenders 1. Compliance with national laws 2. Technology compliance 3. Energy retrofitting 16

2) Project progress and its implementation General overview Technological measures (on buildings and systems) Reduction of the solar radiation on windows through shielding or solar films; Replacement of heating and Domestic Hot Water (DHW) systems with high energy efficiency systems/condensing boilers; Installation of thermostatic radiator valves; Remote sensed control and adjustment of the heating system; Improvement of energy efficiency on existing appliances (heat recovery, etc.); Street lighting renewal/upgrade; Building automation systems (time, light, occupancy devices) in common spaces; Installation of PV, solar-thermal, geothermal, biomass systems, hydropower systems, etc. 17

2) Project progress and its implementation General overview Main goals Identify one only organization in charge of management, maintenance and/or energy supply for systems; Keep systems working; Comply with obligations in planned maintenance activities; Energy saving through energy efficiency measures; Reduce the sources of light pollution; Bring up to code and compliant with regulations (safety and efficiency). 18

2) Project progress and its implementation Tenders & investment already implemented TOTAL BUILDINGS: (about) BUILDINGS original WP 180 = 50 MWt, of which: - 2,5 MWt from biomass boiler; - 1,9 MWt from geothermal heat pump system; - 2.000 mq from Solar Thermal system; - external insulation. achieved results 361 MWt with: - 333 buildings with renovation heating system; - 150 kw from biomass boiler; - 122 mq of Solar Thermal; - 13.195 mq from external insulation; - 94 kw from micro hydropower station; 19

2) Project progress and its implementation Tenders & investment already implemented PV ROOFS TOTAL SOLAR PV ROOFS: (about) original WP 170 with an average power of 33 kwp (tot. 5.5 MWp) achieved results 5.0 MWp 20

2) Project progress and its implementation Tenders & investment already implemented STREET LIGHTING TOTAL LIGHT SPOTS: (about) original WP achieved results 27.000 37.437 21

Ing. Piergabriele Andreoli Tel.: +39 059 453212 E-mail: gandreoli@aess-modena.it Bruxelles, 13/10/2015 22