1. 1 E F F I C I E N C Y D E C I D E S State Properties and public Buildings. Energy costs: about 3.5 billion €/year Source: Umweltbundesamt, 2000 and own calculations Local authorities 58% Aprox. 2.000.000 €/year Federal States 29% Aprox. 1.000.000 €/year Federal Republic 13% Aprox. 500.000 €/year

2. 2 E F F I C I E N C Y D E C I D E S Reasons for high Energy Consumption. Missing economical incentive for technical staff to save energy Separation of public budget into investments and running costs Tight public budgets with little room for strategic investments No efficient use of technical equipment Deficit in or missing energy management High energy consumption in public buildings 10 – 30 % potential for energy and cost saving

3. 3 E F F I C I E N C Y D E C I D E S Prospects of Contracting. Budget relief, no use of own funds Organizational relief Outsourcing of risks (investment, technology, conservation success) Use of the contractor's specialization and expertise Initiation of competition (ideas, know-how, financing) Preservation of value of buildings Energy conservation, reduction of CO 2 emissions

4. Contracting Models.

5. 5 E F F I C I E N C Y D E C I D E S Performance Contracting. Owner of building or property (public body) Electricity Supplier Heat Energy Supplier Guaranteed reduction of energy costs Contractor participates on cost savings Realisation of measures reducing energy consumption: - Planning - Financing - Realisation - Operation Management - Service / Maintenance an instrument to optimize energy supplies and consumption