2. Local authorities’ perspective
EPC uptake in Cities and Regions

3. Introduction about STEPPING project
Step up for energy efficiency
9 Partners coming from 8 regions of 7 EU countries of MED area, committed in testing and transfeering EPC implementation at local level
1.6 M€ of ERDF for delivering:
at least 8 Investment Plans involving more than 60 Local Authorities
4 Procurement Tenders for awarding energy efficiency works
transferring results into ordinary tender procedures of partners
engagement of largest audience with dissemination and training activities

4. Pilot implementation Case study from Italy - Piemonte
4 Investment Plans drafted, bundling 39 buildings (maily schools, office buildings and gyms) belonging 20 Municipalities
3 tender procedures (public calls) envisaged before October 2019 for an overall investment foreseen of at least 3M€ (leverage factor of about 20) by an EPC with Third Party Financing and PPP
Average expected energy savings are above 40%
Typical contract duration is years.

5. Pilot implementation Case study from France – Auvergne Rhône Alpes
Involvement of 5 municipalities and 1 Gathering of municipalities
5 schools renovation plan drafted
2,2 M€ investments planned with average energy savings >45%
Demonstration of the economic interest for local SME’s and market sourcing
Extension of the services of a local public society to take the role of a public ESCO

6. Pilot implementation Case study from Italy – Emilia-Romagna Region
1+1 Investment Plans, bundling buildings (mainly schools and office buildings) belonging to 3+7 Municipalities
1 tender procedure (public call) launched and awarded for an overall investment of 6.3M€ by an EPC with Energy Service contract.
Average expected energy savings: 30%
Typical contract duration is 9-15 years.

7. Pilot implementation Case study from Portugal - AREANATejo
Buildings Pictures
Pilot implementation
Case study from Portugal - AREANATejo
Involvement of 11 Municipalities
12 energy monitoring systems implemented (8 sports buidings; 3 cultural buldings; and 1 education building)
Investment of more than 700 k€
Reduction of energy consumption with an overall payback of about 4 years

8. Pilot implementation
Case study from Spain – Province of Huelva (Andalusia Region)
1 Investment Plan drafted, bundling 15 buildings (schools) belonging to 11 Municipalities
low profibiality of EPC model in the tipology of selected buildings although expected energy savings are above 42%
low interest by ESCOS side due to low internal rate of return and lack of public subsidies

9. Pilot implementation Case study from Slovinia - Upper Carniola Region
Preparation of joint EPC investment plan, for 3 buildings belonging to 2 Municipalities
Average expected energy savings are about 17% with payback period of about 15 years due to the high prices currently in the market
Evaluation of different procurement procedure to implement the invetsments

10. Lessons learnt Constraints for EPC (MED Public Authority perspective)
Legal and general framework
EPC is considered risky and time-consuming procedure
Lack of public subsidies in some countries hinder the potentialities of EPC
Although more attractive to the market, the bundling process is still a very complex one (from a cultural, administrative, management and technical point of view)
Level of maturity of the market
Lack of knowledge regarding the EPC mechanism by municipal decision-makers and market operators
Guaranteed savings are considered a risky business
ESCO market not solid enough from financial point of view in most of MED area

11. Lessons learnt Constraints for EPC (MED Public Authority perspective)
Lack of internal capacity in Public Authorities
Poor project management capacity
Selection of buildings and type of measures is a key aspect in order to create a profitable bundling for the market and ensure acceptable internal rates of return
Climate conditions
in a mild Mediterranean climate the energy demand for space heating/cooling is sometimes not so significant, thus energy retrofit is not ranked as a priority of a PA

12. Lessons learnt Recommendations
One-stop shop approach, offering Project Development Assistance is crucial to set up interesting investment for the market
Standardization (methods, documents and procedures) is needed to contribute to a feasible EPC model for every part involved
Work on motivation: “payback” and accountability should not be the only point of discussion. Environmental motivations and the strengthening of the internal market can play a key role;
Training (PA and professionals) should be boosted in order to create a potential market and improve the common understanding

13. Key project outputs https://stepping.interreg-med.eu/ @SteppingMed
PROCUREMENT PROCEDURE FOR AWARDING ENERGY EFFICIENCY WORKS
EPC SIMULATION TOOL FOR FINANCIAL ASSESSMENT OF BUNDLING PROJECTS
MED EPC GUIDELINES (tbd)
POLICY RECOMMENDATIONS (tbd)
@SteppingMed