1. Agentia pentru Eficienta Energetica si Energii Regenerabile Ploiesti- Prahova

2. Energy intensity in Romania: 335.5 kgoe/1000 € Energy intensity at the EU level: 141.7 kgoe/1000 € High potential of energy efficiency improvement Energy Performance in Romania EnPC-INTRANS 2

4. Energy Performance in Romania EnPC-INTRANS 4 Energy consumption of the total in tertiary sector in Romania : 38% > 60 mil m 2 of buildings in tertiary area Energy consumption of the total in tertiary sector EU : 21.5%

5. Legislation Increase the EPC awareness in the public sector Implement EPC models What to do? EnPC-INTRANS 5

6. 6 ENERGY PERFORMANCE CONTRACTING (EPC) This project receives funding from the Horizon 2020 European Union Research and Innovation Programme under Grant Agreement No 649639

7. 10 Partners from 9 countries Germania Grecia Slovenia Serbia Letonia Romania Slovacia Croatia Ucraina

8.  Estimated results  2.000 trained experts in 9 countries for EPC for buildings and public services  500 public buildings with EPC projects proposed by the trained experts  Estimated impact  60 – 90 GWh saved each year  60 – 90 mil. EUROS in new investments Project Profile

9. Main critical aspects encountered  Lack of knowledge and expertise of the municipalities and of public services suppliers in what concerns the development and implementation of EPC.  Insufficient budgetary allocations by the public authorities => no complete thermal rehabilitation.  Reference line (reference consumptions) – incorrectly assessed.  Thermal rehabilitation consists mostly (80%) in civil works (thermal insulation)  Incoherency between investment recovery durations and contract durations

10. Main critical aspects encountered  Reticence of the decision makers to consider the EPC business models as financing options.  The proposed contracts – unbalanced, not win-win type, all risks assumed only by ESCO.  Local administrations don’t launch public acquisition requests for EPC.  Renovation of the public buildings is delayed.  Development of a local market for EPC in public buildings is limited.

11. 11 Actual energy cost ESCO investment (20-40% guaranteed energy savings) EPC contract period time Energy cost prior to EE investment Energy cost after EE investment Continuous energy cost savings of the public building owner (20-40 %) End of EPC contract (investment paid back) Saved energy cost used for the repayment of ESCO investment (contracting fees) ESCO invests in EE improvements of public buildings on the basis of an EPC business model ESCO = Energy Service Company EPC = Energy Performance Contracting EE = Energy efficiency Source: GIZ The concept of EPC

12. Development of EPC business cases 12 Source of the underlying chart: Transparense.eu Main stages of an EPC project:

13. Financing as a part of EPC services 13 EPC full service spectrum MAINTENANCE & REPAIR FINANCING ENERGY MANAGEMENT RISK TRANSFER OPERATIONS CONSTRUCTION PLANNING

14. 14 EPC business models Guaranteed energy savings (compared to baseline) Planned investments No investment (prior to investment stage)

15. So… why EPC contracts? Because they are….. Helpful to meet the energy efficiency objectives Source of guaranteed energy savings => lower energy costs No or low CAPEX for the public authorities Risk mitigation source for the public authorities 15

16. Thank you! www.ae3r-ploiesti.ro office@ae3r-ploiesti.ro + 40 787 61 61 82 + 40 244 51 54 54 www.ae3r-ploiesti.rooffice@ae3r-ploiesti.ro EnPC-INTRANS 16