1. An overview of the National Energy Services Framework Alan Ryan Public Sector Programme Manager

2. SEAI project supports overview The core principles what would you invest in The framework The project development process SEAI supports for project development Where to start ESCO marketplace supports What left to develop as part of the framework Agenda 3. Buying / using services, products or facilities that use energy Equipment Low / no cost Retrofit assets (Dont pay for performance) Retrofit assets (Pay for performance) New build (Dont Pay for Performance) New build (Pay for Performance) Simple to spec / procure Complex to spec / procure SEAI supports advisory services and grants Structured energy management NEW to EM Advice mentoring and assessment service Large Industry Network Public sector partnerships Triple E register 4. Buying / using services, products or facilities that use energy Equipment Low / no cost Retrofit assets (Dont pay for performance) Retrofit assets (Pay for performance) New build (Dont Pay for Performance) New build (Pay for Performance) Simple to spec / procure Complex to spec / procure SEAI supports advisory services and grants Better Energy Communities 13.5m Technical Assistance 2m Projects with pay for performance elements R&D / Horizon 2020 Participating Energy Supplier Scheme Energy Efficient Design (TBC) 5. Buying a guaranteed energy saving For kWh saving projects If they dont meet the saving target, until target achieved, then Dont pay them part of what their owed Energy Performance Related Payment (EPRP) Dont pay them at all Energy Performance contracting (EPC) For cost per kWh saving projects Pay for a guaranteed cost per kWh Local Energy Supply Contracting Buying energy performance aka ESCO services 6. Which has a best chance of getting internal funding ? If no internal funding, which stands the best chance of getting financed ? All With Client Client Risk All With ESCO Traditional EPRP EPC ESCO Risk PerformanceRisk EPRP transfers some performance risk to the ESCO ESCO pain/gain share for savings less/greater than target ESCO guarantees 15%savings and puts 10% ofits costs at stake ESCO guarantees 15% savings and puts 100% ofits costs at stake pending verification ESCO guarantees 20%savings and covers/ absorbscost ofany savings shortfalls over life of contract Energy Performance Risk Transfer All With Client Client Risk All With ESCO Traditional EPRP EPC ESCO Risk PerformanceRisk EPRP transfers some performance risk to the ESCO ESCO pain/gain share for savings less/greater than target ESCO guarantees 15%savings and puts 10% ofits costs at stake ESCO guarantees 15% savings and puts 100% ofits costs at stake pending verification ESCO guarantees 20%savings and covers/ absorbscost ofany savings shortfalls over life of contract All With Client Client Risk All With ESCO Traditional EPRP EPC ESCO Risk PerformanceRisk EPRP transfers some performance risk to the ESCO ESCO pain/gain share for savings less/greater than target ESCO guarantees 15%savings and puts 10% ofits costs at stake ESCO guarantees 15% savings and puts 100% ofits costs at stake pending verification ESCO guarantees 20%savings and covers/ absorbscost ofany savings shortfalls over life of contract All With Client Client Risk All With ESCO Traditional EPRP EPC ESCO Risk PerformanceRisk EPRP transfers some performance risk to the ESCO ESCO pain/gain share for savings less/greater than target ESCO guarantees 15%savings and puts 10% ofits costs at stake ESCO guarantees 15% savings and puts 100% ofits costs at stake pending verification ESCO guarantees 20%savings and covers/ absorbscost ofany savings shortfalls over life of contract t Client Risk All With ESCO onal EPRP EPC ESCO Risk EPRP transfers some performance risk to the ESCO ESCO pain/gain share for savings less/greater than target ESCO guarantees 15%savings and puts 10% ofits costs at stake ESCO guarantees 15% savings and puts 100% ofits costs at stake pending verification ESCO guarantees 20%savings and covers/ absorbscost ofany savings shortfalls over life of contract No Performance payment 7. What is an ESCO ? Energy Services Directive (replaced with Energy Efficiency Directive) 8. Energy services in more detail The Framework 4 elements Energy Performance Contracting (EPC) Energy Performance Related Payments (EPRP) Local Energy Supply Contracting (LESC) 20 public & private sector exemplar projects Project Support grants 9. Three project processes / project contracting routes Contractor/Supplier part or wholly paid based on predefined Energy Performance Improvement Contractor/Supplier wholly paid based on predefined Energy Performance Improvement 10. EPRP LESC / EPC Exemplar Projects Training, tailored advice and networking Technical Assistance Stage 2 - Initial Appraisal Up to 50% of eligible costs, max 7,500 energy bill < 1m 15,000 energy bill > 1m LIEN, SME and Public Sector Programmes Early Advice on route selection Technical Assistance Stage 3 & 4 - Detailed Appraisal & Procurement Up to 75% of eligible costs, max EPRP 15,000 EPC 37,500 Technical Assistance Stage 4 Investment Grade Audit - Base payment for IGA report, for ESCOs, unsuccessful bidders in a formal procurement process - Larger projects only Open TBC Mid April TBC April/May 11. Public Sector Exemplars 20-30m investment, 2-3m savings Fingal County Council University College Cork 12. New to energy management ? Energy Advice and Assessment LIEN / AP What to get organised ? Energy MAP training Want to formally commit to 2020 targets ? Partnership programme Basis of all programmes implement and maintain a structured energy management programme And only then Have a project use the Framework! Where to start ? 13. Energy Managers Professionals of Ireland (EMPI) One day course on Energy Performance Contracting for consultants ESCOs SEAI Session with existing and potential ESCOs at the energy show IEI facilitated - Two day course So you want to be an ESCO April / May M&V 3rd parties Certified M&V Professional courses March, June Masterclass - June Esco market support 14. Draft Local Energy Supply Contract consultation March/April 2014 EPRP guide Communications April Energy Services Projects Hotline Web enhancements Online application & guidance for Technical Assistance Supports Exemplars success stories The Framework 15. SEAI project supports overview The core principles what would you invest in The framework The project development process SEAI supports for project development Where to start ESCO marketplace supports What left to develop as part of the framework Recap 16. Thank you business@seai.ie publicsector@seai.ie www.seai.ie/Your_Business/Public_Sector/ Alan Ryan Programme Manager 086 8136735 alan.ryan@seai.ie