1. ENERGY-SAVING PPP CONTRACTS: PUBLIC LIGHTING Petra Ferk, M.Sc. Institute for Public-Private Partnerships, Slovenia E: petra.ferk@pppforum.si, S: www.pppforum.si@pppforum.siwww.pppforum.si UNIDO Global South-West Development Expo 2012, Hofburg, Vienna 22 November 2012

2. Energy Saving Contract / See:, http://www.google.si/imgres?hl=sl&client=firefox- a&hs=NGG&sa=X&rls=org.mozilla:sl:official&biw=1562&bih=847&tbm=isch&prmd=imvnsb&tbnid=jWl1WbAJEoRbvM:&imgrefurl=http://www.treehugger.com/renewable-energy/40-efficient-solar-cells-they-are-being-used-back-on-earth.html&docid=ZfDU_6K0mPWKTM&imgurl=http://media.treehugger.com/assets/images/2011/10/nrel- photovoltaic.jpg&w=468&h=294&ei=mCOcUOfkFKSF4gT5_oCYDw&zoom=1&iact=hc&vpx=493&vpy=314&dur=480&hovh=178&hovw=283&tx=98&ty=85&sig=104978600055491085287&page=1&tbnh=148&tbnw=212&start=0&ndsp=34&ved=1t:429,r:7,s:0,i:86,>,,.=148&tbnw=212&start=0&ndsp=34&ved=1t:429,r:7,s:0,i:86 Energy Saving COmpany

3. WHY ENERGY-SAVING PUBLIC LIGHTING AS PPP? UN: United Nations Environment Programme (UNEP) - Efficient Lighting Initiative: Electricity for lighting accounts for 19 % of global power consumption and 6 - 8 % of worldwide greenhouse gas (GHG) emissions. /../ If a global transition to efficient lighting occurred, these emissions could be reduced by half - by simply replacing all incandescent lamps with energy-efficient compact fluorescent lamps (CFLs) around the world … See:. EU: Directive on Energy End Use Efficiency and Energy Services 2006/32/EC – 9 % improvement in energy efficiency by 2016; Commission Regulation (EU) No 347/2010. LACK OF: - PUBLIC FUNDS, - KNOWLEDGE. ON THE OTHER HAND: - technically challenging projects, - possibility to involve private sector in all phases of the project, - potential risk sharing, - private financing.

4. HEADLINE PERFORMANCE REQUIREMENTS WITH KEY IMPLEMETATION DATES – Commission Regulation (EU) No 347/2010 Source: The Institution of Lighting Professionals, Guidance on current and forth coming legislation within the lighting sector, 2011, p. 5. Legend: P - Phased improvement targets F - Final targets

5. COMPARISON OF DIFFERENT LIGHTS BY VARIOUS PARAMETERS See:.

6. THE COST OF THE PUBLIC LIGHTING SYSTEM 1) Initial material costs of: - bulbs, - poles, - electrical wires, - labor cost of installing the light; 2) Costs of energy consumed by the bulbs; 3) Costs of replacing burnt out bulbs ( use of the cherry picker! ) and disposal of bulbs; 4) Environmental impacts of lights ( carbon dioxide emissions, mercury and heavy metal release in the environment, cost of treating water, land and light pollution, impact on ecosystems and human health ).

7. SOURCES OF FINANCE FOR GREEN PUBLIC PROJECTS SELF- FINANCING Public Procurement (public sources) SELF- FINANCING Public-Private Partnership (public and private sources) SELF- FINANCING EU Funds + public sources SELF- FINANCING COMBINATION (PPP + EU Funds)

8. RENOVATION OF THE PUBLIC LIGHTNING typical “green PPP project” suitable for PROJECT FINANCING PRIVATE PARTNER Financing, Planning, Installation (Renovation), Maintenance + option to include electricity supply PUBLIC PARTNER periodical payments after renovation

9. CASE STUDY - PRINCIPLE OF THE DURATION AND PARTICIPATION MODEL* *Sourse: Guideline for Saving Contracting in Street Lighting, 2006

10. LIFE CYCLE COSTS OF THE PROJECT MUST NOT EXCEED FUTURE SAVINGS

11. CHALLENGE: HOW TO DEFINE FUTURE SAVINGS?

13. WRONG, but mostly used: comparison of the cost of electricity before/after the project; it is impossible to predict exact future savings; future cost of electricity depends on: price of electricity, number of lights, efficiency of lighting technology, active time, failures etc. See:.

14. The solution lies not in turning the lights off, but in using the light where necessary, when necessary, and in appropriate intensity. Karin Košak

15. HOW TO AVOID MISTAKES IN PPP FOR PUBLIC LIGHTING? involving private partner in all phases of the project involving INDEPENDEN T technical expert exact overview of the existing situation

16. contracts should include mechanisms to deal with future conflicts balanced allocation of risks See: <http://www.investmenteurope.net/investment- europe/feature/2141355/invesco-risk-handling-economic-scenarios>.

17. Petra Ferk, M.Sc. Institute for Public-Private Partnerships, Slovenia E: petra.ferk@pppforum.si, S: www.pppforum.si@pppforum.siwww.pppforum.si