looking into different approaches for esco development...

Different approaches for ESCO

development. The example of Germany.

Dr. Daniel Hesse

Berliner Energieagentur GmbH

Bucharest, 8 May 2015

Looking into different approaches for ESCO




Established

in 1992 as Public-Private Partnership

Shareholders

Federal State of Berlin

Vattenfall Europe

GASAG

KfW Banking Group

Disposes of

2.5 million € of capital stock

Annual Turn-Over

12.9 million €

1.0 million € Company earnings (EBIT)

Know-how

58 members of staff

Company divisions

Contracting

Consulting

International Know-how Transfer

Based in

Französische Straße 23

10117 Berlin

Phone: (030) 29 33 30 - 0

E-mail: [email protected]

Internet: www.berliner-e-agentur.de

BEA – Facts and Figures



3

Agenda

Energy Services in general

Energy Supply Contracting (ESC)

Energy Performance Contracting (EPC)

Facilitators



4

Agenda




Facilitators



5

Benefits of energy efficient technologies or systems (for energy consumers)

Reduction of operational cost

Improved profits

Tap potentials to (co-)finance investments

Reduced dependency on volatile or rising energy prices

Improved system performance, e.g.,

Reduced number of failures/down times

Reduced exposure to black-outs

Improved comfort/performance levels

Increased asset value

Reduced environmental foot-print

© Berliner Energieagentur GmbH



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Barriers to implementation of energy efficiency

measures:

Lack of capacities

Lack of information

Lack of motivation (energy not core business)

High upfront investment costs

Solution: Energy Services

Motivation for energy services


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Performance

related

remuneration

and/or risk

transfer

Application of

energy

efficiency

know-how by

third party

+

Energy Services

Energy Service Company (ESCO) = Provider of Energy Services

Energy Services – A simple definition




8

Agenda



Main principle

Project examples


Facilitators



9

Typical energy supply situation without Energy Services




10

Energy Supply Contracting (ESC) – General Project Scheme




11

Agenda



Main principles

Project examples


Facilitators



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ESC Best Practice – Combined Heat and Power

City Carré / Commerzbank,

Commercial Complex, Berlin

Heated floor space approx. 36,000 m²

Shopping mall, offices and hotel

CHP unit in existing heating system

Start of supply: 2006

Technical data:

CHP unit with 50 kWel and 97 kWth

Environmental effects:

Amount of energy savings 548 MWh/a

Reduction of CO2 emissions: 200 t/a




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Residential complex “Meller Bogen”

Largest solar thermal plant in combination with boiler

Object: multi-family house (563 units)

Collector surface: 600 m2

Type of use: room heating and hot water heating

Solar yield: 205,000 kWh/a

ESC Best Practice – CHP + PV + Solar Thermal Energy



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Energy Performance Contacting (EPC)

Main principles

Project examples

Facilitators

Agenda



15

Typical energy supply situation without Energy Services




16

Energy Performance Contracting (EPC) – General Project Scheme




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Energy Saving Guarantee Contract: Remuneration to the ESCO

250.000

500.000

750.000

1.000.000

Baseline

year2016 2017 ... ... 2024 2025 2026 2027

Energy costs before implementation of EE measures

Energy costs after implementation of EE measures

Performance-based remuneration to the ESCO (share of guaranteed savings)

Budget relief to the client (share of guaranteed savings)

Real reduction in energy

costs (to the full benefit of the

client after end of contract)

End of contractImplementation of measures

€/year

Guara

nte

ed

savin

gs




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General financing options for energy services

Financing through client

Financing through ESCO

(credit)

Financing through ESCO

(forfaiting)

Sale of

receivables

Cash

Advance

Renumeration

of ESCO

investment

Renumeration of services and investment


Services & Investment

Services & Investment Services & Investment



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Energy Performance Contacting (EPC)

Main principles

Project examples

Facilitators

Agenda




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Best Practice – Wenckebach Hospital Berlin

Building: public-owned hospital with 438 beds

Baseline: 808,359 €/a

Guaranteed savings: 39.6 % = 320,000 €/a

Invest: 2.44 m €

CO2 reduction : 1,789 t/a

Duration of contract: 12 years (start in 2011)

Measures: modernisation of heat distribution, cooling and

ventilation system, installation of CHP unit, web-

based energy management system, user trainings

Special feature: insulation of top storey ceilings




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EPC model variations – EPC light in Pankow, Berlin

Elementary School, Kollwitzplatz

in Pankow

Goal: To reduce energy consumption by mid-2012 in

schools and administration buildings through “light”

measures

Number of buildings: 15

Baseline: 882.714 €/a

Guaranteed savings: 10.2 % (90.037 €/y)

ESCO payment: 44.118 €/y

CO2-reduction: 3.973 t/a

Duration of contract: 2 years

Measures: Energy management, system optimization and

continuous monitoring




22

Agenda




Facilitators




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Customere.g.,

• Public institution

• Company

ESCOe.g.,

• Energy utility

• Engineering

company

• Energy agency

Facilitatore.g.,

• Energy agency

• Consultant

Energy suppliere.g.,

• Energy utility

Financing

institutione.g.,

• Bank

• Public fund

• Private investor

Institutions setting legal frameworke.g.,

• Parliament

• Energy authority

Subcontractors,

suppliers etc.e.g.

• Builders

• Suppliers

• Insurances

Energy services – Involved stakeholders




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Support in building/facility identification and pooling

Baseline elaboration

Tender preparation (incl. Contract) and evaluation

Management of the procurement process

Support in the annual evaluation of savings and assessment of

changes in use

Moderation between client and ESCO

EPC facilitators support client in an EPC project by




Regional support to 9 large cities and metropolitan regions to establish EPC

Integration of EPC in long-lasting energy and climate plans

EPC task forces

> 20 pilot projects

Focus on the demand side

EPC Best practice database

Marketing material

Focus on EPC project facilitation

Facilitator guidelines (in national language)

ca. 30 Training events/workshops

Promotion of EPC, e.g. through Energy Service Award

Website with useful documents: www.eesi2020.eu

EU funded project: EESI 2020




EBRD Project: Market development of EPC in Romania

Objective: Supporting market development of energy performance contracting (EPC) for public buildings and street lighting in Romania

Target groups: Municipalities (as potential EPC clients), energy service companies, political and economic decision-makers

Consortium: BEA (Team leader); partners from Romania: TractebelEngineering (technical expert), TUD consulting (financial expert), Tuca Zbarcea(legal expert)

Contents: Implementation of pilot projects, development of model contracts and tender documents, capacity building, adaptation of regulatory framework

Period: 5/2013 – 5/2016

Romania: GEF – Opening the Market for Private

ESCOs – Project Implementation Support


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Thank you for your attention!

For more information, please visit:

www.berliner-e-agentur.de

[email protected]


EPC in Germany:

Development, examples, experiences


Delivery & installation

of equipment/parts of

equipment

Equipment Installation

Invoicing of

installation

Planning, financing,

implementation

Operation

Energy Supply Contracting

Invoicing of energy

delivered

System analysis,

planning, financing,

implementation &

operation

System responsibility for

equipment & users’

behaviour

Controlling

Energy Performance

Contracting

Invoicing of reduced energy

consumption

Energy Services – Typical Models

86%

9%

5%

x%Share in German Market

Volume

www.eesi2020.eu

European Energy Service Initiative, towards the EU 2020 energy saving targets

Project acronym: EESI 2020

Project duration: May 2013 - April 2016

www.eesi2020.eu

SEVEn The Energy Efficiency Center Czech Republic

GEA Graz Energy Agency Austria

NEE Norwegian Energy Efficiency Inc Norway

Codema City of Dublin Energy Management Agency Ireland

ELI European Labour Institute Bulgaria

Factor4 Factor4 Belgium

ICAEN Catalan Energy Institute Spain

REGEA North-West Croatia Regional Energy Agency Croatia

Consortium

Co-Ordinator: BEA Berlin Energy Agency GermanyContact: Laurenz Hermann| [email protected]

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