1. Management Board Meeting April 24-25, 2013 Hvar, Croatia SOLUTION is a project of the CONCERTO initiative co-funded by the European Commission under the 7 th Framework Programme ESCo Opportunities on Hvar SOLUTION Management Board Meeting April 23, 2013 Split, Croatia

2. Management Board Meeting April 24-25, 2013 Hvar, Croatia CONTENTS Analysis of island resources Energy balance Future energy demand projections Potential ESCo fields of operation Barriers ESCo examples

3. Management Board Meeting April 24-25, 2013 Hvar, Croatia ANALYSIS OF ISLAND RESOURCES Abundant solar resource ~ 2.800 sunny hours –large potential for solar technologies Biogenic resources –changing climate conditions –more vegetation –exploitable biomass Waste resources –bio-waste from agriculture –bio-waste from households –bio-waste from touristic activities

4. Management Board Meeting April 24-25, 2013 Hvar, Croatia ENERGY BALANCE OF HVAR data obtained from Hrvoje Požar purpose – preparation of the study for Concerto SOLUTION project, community Hvar data source from 2011 used for future demand projections

5. Management Board Meeting April 24-25, 2013 Hvar, Croatia ENERGY BALANCE OF HVAR by fuels: –Electricity – 53% –Fuel oil – 15% –LPG – 7% –Biomass – 25%

6. Management Board Meeting April 24-25, 2013 Hvar, Croatia ENERGY BALANCE OF HVAR by sector (without transport): –residential – 66,3% –services – 33,3 –industry – 0,3%

7. Management Board Meeting April 24-25, 2013 Hvar, Croatia ENERGY BALANCE OF HVAR by municipality: –Hvar – 44% –Stari Grad – 24% –Jelsa – 28% –Sućuraj – 4%

8. Management Board Meeting April 24-25, 2013 Hvar, Croatia ENERGY BALANCE OF HVAR

9. Management Board Meeting April 24-25, 2013 Hvar, Croatia FUTURE ENERGY DEMAND PROJECTIONS hourly values of energy consumption (E el, E heat, E cool ) hourly values of solar irradiation, wind EnergyPLAN tool for energy system examination and planning EnergyPLAN model (Source: http://energy.plan.aau.dk/)

10. Management Board Meeting April 24-25, 2013 Hvar, Croatia FUTURE ENERGY DEMAND PROJECTIONS consumption profiles production profiles

11. Management Board Meeting April 24-25, 2013 Hvar, Croatia FUTURE ENERGY DEMAND PROJECTIONS Scenarios up to 2030: –include energy efficiency improvements (EU) –include renewable energy sources (PV, Tsol & Wind) –heating switching completely to electricity with support from biomass and Tsol by 2030 –transport completely electrical by 2030 objective – cover complete energy demand with local resources and energy sources

12. Management Board Meeting April 24-25, 2013 Hvar, Croatia FUTURE ENERGY DEMAND PROJECTIONS Scenario 1 – only Photovoltaics (38 MW) in 2030 and energy storage (7,4 GWh) Scenario 2 – only Wind (17,5 MW) in 2030 and energy storage (7 GWh) Scenario 3- PV (13,5 MW) & Wind (10,5 MW) and energy storage (4 GWh)

13. Management Board Meeting April 24-25, 2013 Hvar, Croatia ESCo POTENTIAL

14. Management Board Meeting April 24-25, 2013 Hvar, Croatia ESCo POTENTIAL ESCo markets – US 5 bil.$, Germany 150 mil.$, Brazil 100 mil.$, Japan 63 mil. $, etc. energy efficiency market Croatia ~ 2.4 billion HRK, and increasing growing energy prices (electricity, oil, gas) ESCo’s in line with the national EE strategy general fields of operation: –buildings –public lighting –industry –energy supply systems (CHP, DH)

15. Management Board Meeting April 24-25, 2013 Hvar, Croatia ESCo POTENTIAL Hvar has potential to become an ESCo market very favorable climate conditions seasonality, tourism energy infrastructure problem large touristic capacities formed island initiative problematic investment climate bad status of buildings on the island

16. Management Board Meeting April 24-25, 2013 Hvar, Croatia ESCo POTENTIAL ESCo’s could make a breakthrough with: –energy efficiency measures in buildings (public and private) –public lighting projects –solar thermal projects –solar cooling projects weak industry on the island

17. Management Board Meeting April 24-25, 2013 Hvar, Croatia ESCo BARRIERS MARKET: –ownership relations –low support for EE projects –public procurement – public ESCo’s –budgetary issues FINANCIAL: –banks & ESCo’s –insufficient knowledge of financing institutions –expensive loans –unavailability of longer term loans

18. Management Board Meeting April 24-25, 2013 Hvar, Croatia ESCo BARRIERS REGULATORY: –EE seen as a product –slow decision making –public procurement SUPPORT: –unfamiliarity with the ESCo concepts –lack of experience –data unavailability

19. Management Board Meeting April 24-25, 2013 Hvar, Croatia ESCo BARRIERS TECHNICAL: –baseline definition –technology definition –risk allocation (equipment performance & energy savings) –human factor!!!

20. Management Board Meeting April 24-25, 2013 Hvar, Croatia ESCo Examples TRANSPORT FOR LONDON: –EE in buildings – 16% cost savings, electricity savings 25%, gas savings 20%, 3.500 tons less ghg emission NYKOPING: –123 buildings, EE and EM measures, 21% in energy costs, 4.300 tons less ghg emissions HEP ESCO: –public lighting (Zagreb, Varaždin, Karlovac, etc.) –buildings (schools, offices, hotels, etc.) –industry –CHP

21. Management Board Meeting April 24-25, 2013 Hvar, Croatia ESCo Examples SOLID PepsiCo Gatorade, Phoenix, USA preheating of water for process Collector area: 3,793 m² Storage volume: 114 m³

22. Management Board Meeting April 24-25, 2013 Hvar, Croatia THANK YOU!!! iC CES GesmbH/iC artprojekt d.o.o. a.helbl@ic-group.org i.vrankovic@ic-group.org z.bacelic@ic-group.org