energy performance contracting – the example of berlin and eu-wide experiences michael geissler...

Energy Performance Contracting –

The Example of Berlin andEU-wide Experiences

Michael Geissler

CEO Berliner Energieagentur GmbH

26 November 2013

EPC – The Example of Berlin andEU-wide Experiences

Berlin Energy Agency (BEA)

Energy Saving Partnership Berlin

EU-wide Experiences with EPC

Lessons Learned and Outlook

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Contents


Berlin Energy Agency (BEA)

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Established in 1992 as Public Private Partnership

Shareholders Federal State of Berlin Vattenfall Europe GASAG KfW Banking Group

Equity2.5 million €

Annual total turnover 12.9 million €

Company earnings (EBIT)905 k €

Know-how53 members of staff

Energy Services Contracting Consulting International Know-How Transfer

Based in Französische Straße 2310117 BerlinPhone: (030) 29 33 30 - 0e-mail: [email protected]: www.berliner-e-agentur.de

© Berliner Energieagentur GmbH

Berlin Energy Agency (BEA) – Facts and Figures


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Energy Saving Partnership Berlin


Client(State, hospital, etc.)

Berlin Energy Agency(BEA)

Project Manager

Energy Saving PartnerESCO

Assignment

Consultancy

Technical-economic requirements, Negotiations

Energy Saving Guarantee Contract


Energy Saving Partnership Berlin – BEA as Facilitator of EPC


Schools, Universities

Sports facilities

Administrative buildings

Cultural centres

HospitalsPrisons© Berliner Energieagentur GmbH

Energy Saving Partnership Berlin – Main Clients


Total number of Pools: 26 more than 1,400 buildings

Guaranteed savings in total: € 11.9 million (26%) Annual plus to the public household: € 2.7 million

Total CO2 reduction (1996-2012) : approx. 600,000 t

Total net Investment: € 53 million

Energy Saving Partnership Berlin – A Role Model for EPC



Facilities/sites

ESCO

Energy saving service

Co-ordinationSupply

Technical issues

remuneration

saving guarantee

remuneration

natural gas district heat electricity oil

UtilitiesGas, electricity and/or fuel supply

companies

Public Authority/

Building owner

General maintenance

Energy Saving Partnership Berlin – General Project Scheme




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



Best Practice – Deutsche Oper Berlin (German Opera house)

Building: building complex with playhouse, studios, administration etc. (approx. 60,000 sqm GFA)

Baseline 2005/06: 651 K€/a

Guaranteed savings: 35.8% = 233,155 €/a

Invest (hardware): 1.48 m €


Contract duration: 12 years

Obligatory measures: refurbishment of VAC installations, optimization of cooling plant, hot water generation and CBCS

Special features: contribution of 1 m € to construction costs by DOB, resulting in increase of budget relief from

14,992 €/a to 126,021 €/a



Best Practice – Berliner Bäder-Betriebe (public swimming pools)

Pool 12: 11 buildings/swimming pools

Baseline: 4.9 m €/a (incl. water costs)

Guaranteed savings: 33.5% = 1.6 Mio. €/a

Invest: 7.9 m €


Duration of contract: 10 years (start in 2001)

Measures: water saving technology, optimizing filter flushes, separating water circulations, modernisation of hot water generation renovation of air conditioning and lighting

Costs [€/a]

Start of 1. contract End of 1. contract = Sart of 2. contract

Time [years]

Reduced energy costs after EPC

Share of customer

Contracting rate

Share of customer

Contracting rate

Energy costs before EPC

Reduced costs 1. EPC

Reduced costs 2. EPC

Pool: 18 office buildings (about 300,000 sqm GFA)

2008End of 1st contract

= Start of 2nd contract

1996Start of 1st contract

2018End of 2nd contract

Time [years]

Energy costs before EPC2.755 m €

Savings 1st contract25 %

Savings 2nd contract21 %


• Renewal of heating pumps and heating circuit• Use of electronic regulation and building

automation systems for heating and ventilation

• Use of highly efficient heating pumps• Hydraulic compensation of heating system• Use of CHP

Best Practice – Berliner Immobilienmanagement GmbH (1)




Best Practice – Berliner Immobilienmanagement GmbH (2)

Re-tender after expiration of first ESP contracts (Pools 1 + 2)

Pool 24: 18 office buildings (approx. 300,000 m² GFA)

Baseline 2007: 2.07 million €/a

Guaranteed savings: 21% = 433,757 €/a

Invest: approx. 2.4 million €


Duration: 10 years

Measures (selected): boiler replacement, CHP-unit, optimizing of ventilation systems, renewal of CBCS special feature: obligation of maintenance of all old systems


Energy Saving Partnership Berlin – Proven Project Schedule

Project preparation and development

Project implementation

Competitive Tendering

Involvement of decision-makers: information and training workshops for public authorities concerned

Research of building data (energy cost baseline, user requirements) and framework conditions (e.g. ESCO market)

Pre-selection of buildings → on-site visits and energy audits

Adaptation of EPC model contract to national legislation

(Pre-tender) ESCO workshop for potential bidders on project (tender documents, model contract, assessment criteria)

Call for tender with pre-selected ESCOs

Evaluation of offers (cost-benefit analysis and evaluation of technical concept), pre-selection of best offers

2 rounds of negotiations and determination of best offer

→ Technical and procedural advice throughout the process© Berliner Energieagentur GmbH


guaranteed energy savings achieved in most contracts, high savings up to 35 % feasible

26 contracts operated by 15 different ESCOs, around 100 subcontractors (regional SMEs) involved in implementation and maintenance

good quality of saving measures because of expertise of ESCOs, rising experience and improvement of cost-effectiveness

additional improvement of maintenance situation by central coordination through ESCO

no legal proceedings or need to use bank guarantees so far

re-tendering after end of contract leads to new investments and additional savings

Energy Saving Partnership Berlin – Experiences and Results

→ Success thanks to reliable legal framework, standardized procedures and contracts together with professional process management



Additional Challenges for EPC

Experiences with EPC projects have shown the need for a focus on

integration of building refurbishment measuresinvolving the building envelope

energy management systemsas low-cost investment measure

use of Renewable Energy Sources



EPC plus

Integration of (comprehensive) building refurbishmentmeasures

Shared financing instruments First EPC with (small) share of construction measures

EPC light

Operation and energy management of buildings with saving guarantee

Green EPC

Focus on renewable energy technologies Specific tender objectives and link to subsidy programs Primary energy consumption as guaranteed element

Additional Types of EPC



Buildings: 12 schools, 1 art centre, 1 youth facility, 1 office building

Baseline 2009: € 883,000 €/a

Guaranteed savings: 10.2% = € 90,037/a

Share/payment to ESCO: 5.00% = € 44,118/a


Contract duration: 2 years

Service of the ESCO: active optimization of heating and ventilation by building control systems; analysis of consumption, monitoring of meters; control of

the invoices of supply companies; energy reporting every 6 months, weak-point analysis

Best Practice EPC light – Building pool in Berlin district Pankow

„Tesla“ secondary school



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EU-wide Experiences with EPC


• Project duration: 2005-2007• Model contracts and tender documents (A, D, F, FIN, GR, I, N, S)• Results: 17 new EPC projects kick-started

• Project duration: 2003-2004• Model contracts and tender documents (LV, LT, PL, CZ, SLO, SK, BG, H)• Results: > 10 contracts signed

• Project duration: 2009-2012• Improving EPC and energy efficiency standards (B, SE, NO, CZ, SK, SI, RO, A, F)• Results: assistance of 24 EPC pilot projects (incl. 6 advanced EPC), 57 trainings/workshops

Clearcontract – Clearinghouse for Energy Contracting in CEE

Clearcontract – European Energy Service Initiative (EESI)

EU-wide Capacity Building in Energy Services



Municipality of Kranj, Slovenia

Pool: 14 buildings (office, schools, sport centres)

Baseline: € 350,000/a

Guaranteed savings: 15%

Invest: € 340,000

CO2 reduction: 60 t/a

Contract duration: 15 years (from 2001)

Measures: Replacement of boilers and thermostats, installation of new control centers, adjustment of heating system,

renovation of heat distribution systems, fitting of thermostats to radiators

Best Practice – clearcontract



Municipality of Nyköping, Sweden

Pool: 130 buildings, all public remises

Baseline: about € 4.7 m/a

Guaranteed savings: 17% = € 800,000/aAchieved savings: 25% = € 1.2 m/a

Invest: € 5.5 m

Contract duration: 6.5 years (from 2003)

Measures: Renovation of heating systems, optimization and retrofit of HVAC system, building control,

operation and maintenance system, targeted training for the operational staff

Best Practice – EUROCONTRACT

© Berliner Energieagentur GmbHSource: Schneider Electric


Characteristics: 9-storey buildings with singlestaircase (36 apartments), built in 1980

Guaranteed savings: 56.9% = 245.9 MWh/a

CO2 reduction:64.9 t/a

Measures: comprehensive renovation (general insulation ofbuilding, replacement of windows, renovation ofheating and hot water system, reconstruction ofroof, energy monitoring system)

Renovation of 7 buildings by the end of 2012with consortium of financial partners andEU structural funding (23 by the end of 2014)

Best Practice – EESI (EPC plus)

© Berliner Energieagentur GmbHSource: Ekodoma


Pool: 14 buildings, high schools

Baseline: about € 2.4 m/a

Guaranteed savings: 35% = € 606,000/a

Invest: € 36 m


Contract duration: 20 years (PPP contract, start 2009)

Measures: 6 wood boilers, 1 heat pump, other new boilers, district heating connection, insulation of

windows, photovoltaic plants (5,000 m²)

Best Practice – EESI (Green EPC)



Driving force:

Political decision makers and public authorities who take on responsibility

Reliable legal framework:

Clear information that EPC is possible

Favourable public procurement rules, tender procedure and accounting treatment

Standardized procedures and contracts (while adaptable):

Time and cost-effectiveness for implementation → reliability

Competition and transparency

Promotion and capacity building

Information and assistance through independent EPC market facilitators

Lessons Learned – Criteria and Conditions of Success

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Market Development for Energy Services – Principality of Monaco

Objectives Support the Principality of Monaco in introducing

a suitable EPC model Call for tenders for a pilot project with contract award

Role of BEA: Consultant Develop and adapt the EPC model to Monaco Select public buildings Train administration officials Prepare tendering documents Support the call for tenders and the award of contract for a pilot project

→ establish a framework for EPC projects in Monaco

Result:

EPC contract (12 years) for 5 public buildings Guarantee on 27% annual energy cost savings (35% in CO2 emissions) total project cost: € 2+ million © Berliner Energieagentur GmbH


Outlook


European Energy Service Initiative towards the EU 2020 energy saving targets (EESI 2020)

Objective: Europe-wide dissemination of EPC as contribution to EU 2020 targets

Target group: demand side = public institutions (as potential EPC clients) and

project developers in 9 European cities/metropolitan regions –

with EU project „Transparense“ focusing in parallel on supply side (ESCOs)

Consortium: BEA as coordinator; partners from Antwerp, Barcelona, Dublin,

Graz, Oslo, Prague, Sofia, Zagreb

Contents: best-practice database, marketing tools for EPC project developers,

implementation of at least 20 EPC projects, European Energy Service Awards

Duration: 36 months (4/2013 – 4/2016)

energy performance contracting – the example of berlin and eu-wide experiences michael geissler...

Documents

example of berlin

partnership berlin slide

berlin phone

partnership berlin bea

euwide experiences schools

facilitator of epc slide

negotiations energy

energy performance