Georgia‘s building sector NAMAAnna Sikharulidze ,Marina Shvangiradze

Sustainable Development Center –Remissia

2 February 2017

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Georgia’s building sector NAMA

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NAMA long-term vision – to bring Georgia’s buildings sector to EC

standards for low carbon

New buildings

at high

standard

Existing

buildings

refurbished

Low carbon

heating

Efficient

appliances

Highest potential

Aims

NAMA 1

• Whole building renovation of public buildings –

use income from energy cost savings to offset

part of capital cost

• Build experience and supply chain for energy

efficient building renovation

• Build capacity in energy performance

contracting/ESCOs

NAMA 2

→ Next step move towards the renovation in

domestic buildings

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NAMA1: Phase 1 Readiness

Phase 1 Activities

Characterisation of the public building

stock

Capacity building on energy

performance contracting

Financial, regulatory and

legal set up

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What is Energy Performance Contracting (EPC)

• EPC is a turnkey service, sometimes compared to design/build

construction contracting which provides customers with a

comprehensive set of energy efficiency, renewable energy and

distributed generation measures and often is accompanied with

guarantees that the savings produced by a project will be sufficient to

finance the full cost of the project. A typical EPC project is delivered

by an Energy Service Company (ESCO) and consists of the following

elements:

• Turnkey Service – The ESCO provides all of the services required to

design and implement a comprehensive project at the customer

facility, from the initial energy audit through long-term Monitoring and

Verification (M&V) of project savings.

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• Comprehensive Measures – The ESCO tailors a comprehensive set

of measures to fit the needs of a particular facility, and can include

energy efficiency, renewables, distributed generation, water

conservation and sustainable materials and operations.

• Project financing – The ESCO arranges for long-term project

financing that is provided by a third-party financing company.

Financing is typically in the form of an operating lease or municipal

lease.

• Project Savings Guarantee – The ESCO provides a guarantee that

the savings produced by the project will be sufficient to cover the

cost of project financing for the life of the project.

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NAMA 1: Phase 1

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Characterisation of public

building stock

Data collection and energy audits

Database/registry and monitoring

Shortlist of buildings for

renovation in pilot

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Capacity building on energy

performance contracting

Writing terms of reference and

evaluating renovation tenders

Writing terms of reference and

evaluating EPC tenders

Financing and managing EPC

MRV

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Financial regulatory

legal set up

Legal environment

for ESCO

Public procurement

rules

Financing strategy and

authority

Financial mechanism

for loans

NAMA 1: Phase 2

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Phase 2 Activities

Preparation and tendering

of ESCO

Renovation of 15 buildings

Outreach and communication

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Preparation and tendering

of ESCO

Identify pilot CoM cities

Prepare terms of reference and tender

ESCO

Contract ESCO

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Renovation of 60,000 sq.m

public buildings

Renovation of the building

Overseeing renovation contract

Monitoring financial

performance of ESCO

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Outreach and communication

Design of information campaign

Development of promotion

material

Awareness raising

(occupants)

Impacts

• Small direct impact on GHG emissions

• Necessary step to scale up to residential –

higher savings in that sector

• Economic benefits – e.g. job creation, increase in

asset value

• Social and health benefits

• Energy security

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CO2 emissions from building sub-sectors

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Costs

• Programme costs Phase I: € 635,000 and

€ 53,000 staff costs

• Programme costs Phase II € 137,000 and

€ 31,000 staff costs

• Deep renovation investment costs € 2-3 million

based on 150 – 200 EURO/m2

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Implementation plan

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Thank you!

Ecofys GermanyAm Wassermann 3650829 CologneGermany

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