1. NATIONAL ROADSHOW EVENT The basic concept of EnPC-INTRANS project
Croatia/ Slovenia/ Latvia
Radoslav Vician
e-code, Slovakia
The basic concept of EnPC-INTRANS project 1

2. 10 Partners from 9 Countries
10 Partners from 9 Countries
Germany
Ukraine
Croatia
Greece
Slovenia
Slovakia
Serbia
Romania
Latvia

3. Objective of the Project
Objective of the Project
Develop local capacities of municipalities to set-up and use Energy Performance Contracting (EPC) for the financing of investments in energy efficiency improvements in public buildings and services.
Scope:
Evaluation and adaptation of best practices,
Stakeholder consultations,
Road shows,
Training of trainers,
Webinars,
E-learning,
Seminars.

4. Project profile Project duration: March 2015 - February 2017
Project profile
Project duration: March February 2017
Project budget: Million Euro
Major milestones:
Project kick-off meeting (April 2015),
Baseline study completed and website operational (August 2015),
Adapted business models approved (November 2015),
Training concepts and programme approved (December 2015),
Training programme completed (February 2016).
Expected results:
2,000 experts trained on the demand side of EPC for public buildings and services,
500 new buildings covered by EPC projects triggered by trained experts.
Expected impacts:
60-90 GWh energy saved per year,
60-90 million new investments triggered.

5. Energy Performance Contracting (EPC)
Energy Performance Contracting (EPC)
“… is a form of ‘creative financing’ for capital improvement which allows funding energy upgrades [in whole or in part] from cost reductions.” (JRC-IET)
“… is the procurement of works and services on the basis of net present value.“ (EBRD)
Annual energy cost
ESCO investment (20-40% guaranteed energy savings)
EPC contract period (5-10 years)
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
JRC-IET = Joint Research Centre – Institute für Energy and Transport
The mission of the JRC Institute for Energy and Transport (JRC-IET) is to provide support to European Union policies and technology innovation to ensure sustainable, safe, secure and efficient energy production, distribution and use and to foster sustainable and efficient transport in Europe.
JRC-IET is carrying out research in both nuclear and non-nuclear energy domains, with partners from the Member States and beyond. In state-of-the-art experimental facilities, IET carries out key scientific activities in the following fields: renewable energies including solar, photovoltaics and biomass; sustainable & safe nuclear energy for current & future reactor systems; energy infrastructures and security of supply; sustainable transport, fuels and technologies including hydrogen and fuel cells as well as clean fossil fuel; energy techno/economic assessment; bioenergy including biofuels; energy efficiency in buildings, industry, transport and end-use. It is based both in Petten, the Netherlands, and Ispra, Italy, and has a multidisciplinary team of around 300 academic, technical, and support staff.
EBRD = European Bank for Reconstruction and Development

6. EPC full service spectrum
Energy Performance Contracting (EPC)
Public building owners can finance energy efficiency measures in general by means of:
Commercial and bank credit (loans)
National or international subsidy programs and schemes, if available
Own financing (budget-financed)
Energy Performance contracting (EPC)
MAINTENANCE & REPAIR
FINANCING
Financing is an important part of the services covered in an EPC.
For many potential customers financing is the most attractive part of EPC services for public buildings.
EPC full service spectrum
PLANNING
OPERATIONS
RISK TRANSFER
CONSTRUCTION
ENERGY MANAGEMENT

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

8. Current results of the project
Stakeholder consultations – 443 stakeholders provided their feedback.
Baseline study – used as baseline for the monitoring of impacts achieved by the project in terms of new EPC projects triggered in public buildings.
Trainings of trainers – 51 trainers in Bratislava, Slovakia.
Training programme:
Webinars (A, B, C),
on-site trainings (local languages),
e-learning courses.
Road show events – scheduled in the 2nd reporting period.
Final conference – 15th November, 2016 in Stuttgart-Esslingen/ Germany.

9. EPC in public buildings in Slovakia
Current situation
Still low energy performance of public buildings
Energy costs of public buildings in Slovakia – more than 300 mil. €
Estimated savings
Minimum 35% with the utilisation of EPC
At least 60% after complex reconstruction
In principle no EPC projects

10. EPC in public buildings in Slovakia
Main findings from Slovakia regarding EPC
Lack of information and understanding of EPC projects
With good return rate but not attractive enough
Structural funds (SF) seen by municipalities as a “magic potion”
SF – 5% co-financing
SF will not be for everyone
SF will not be here forever

11. EPC in public buildings in Slovakia
Main findings from Slovakia regarding EPC
Less attractive but systematic and consistent
Cheaper is not always better
Business – business relationship – quality matters
SF projects often financially overvalued and technically underdeveloped
SF projects – no energy saving guarancies for the future

12. EPC in public buildings in Slovakia
Main findings from Slovakia regarding EPC
There is no way to do it without proper analysis
Contracts are the crucial point
Savings must be verifiable
Templates help
The supplier bears the risk

13. EPC in public buildings in Slovakia
Main findings from Slovakia regarding EPC
Monitoring pays back
System cannot guarantee savings by itself
Qualified human resources are another crucial point

14. EPC in public buildings in Slovakia
Main findings from Slovakia regarding EPC
Financial intensity of EPC projects makes them not always suitable for every situation
Complex building reconstructions
40 – 60 % savings
But long term return rates
Technological renovations
20 – 30 % savings
Return rates typically 8 years and lower

15. EPC in public buildings in Slovakia
Psychiatric ward in the town of Plešivec
Reconstruction of heating systems and water heating systems – replacement of the heating system combined with the water heating system, installation of regulatory heating systems, installation of an inteligent monitoring and regulatory system
Reconstruction of laundry washing systems – complex reconstruction
Use of own drinking water source – installation of new technology for the safety use of the water from own well

16. EPC in public buildings in Slovakia
Psychiatric ward in the town of Plešivec
Guaranteed savings – 1,484 Mwh/year
Total savings in EUR – 132,000 EUR without VAT/year
Total investment - 1,22 mil. EUR without VAT fully covered by the supplier
Project preparation – 2009 – 2010
Project implementation
Contractual period – 10 years

17. EPC in public buildings in Slovakia
Psychiatric ward in the town of Plešivec
Preparatory phase
Analysis of technical state of the buildings and energy systems
Preparation of documentation for public procurement
Public procurement
EPC supplier – Siemens s.r.o.
Financing
40% project European Energy Service Initiative
60% EPC supplier

18. EPC in public buildings in Slovakia
Psychiatric ward in the town of Plešivec

19. EPC in public buildings in Slovakia
Psychiatric ward in the town of Plešivec

20. EPC in public buildings in Slovakia
Modernisation of heating systems and buildings in the city of Malacky
City sports hall – modernisation of central heating system, heating systems overall (pipelines, etc.), ventilation and lighting
City cinema – optimising of heating system, building insulation, replacement of windows and doors
Centre of social services - optimising of heating system

21. EPC in public buildings in Slovakia
Modernisation of heating systems and buildings in the city of Malacky
Total investment – mil. EUR without VAT fully covered by the supplier
Project preparation – 2013
Project implementation
Contractual period – 10 years
In the first 2 years the city of Malacky will co-finance investments in the amount of 68,898 EUR by the means of increased payments

22. EPC in public buildings in Slovakia
Modernisation of heating systems and buildings in the city of Malacky

23. Thank You for Your Attention!!!
More about EnPC INTRANS project:
Radoslav Vician