Good Practice SummaryMid West Regional Authority

April 2013, Finland

Good Practice Proposal

Innovative Financing and Operation of Small Scale Biomass Energy Supply and Energy Efficiency Upgrades in Public Facilities

Potential• Biomass presents strong potential to significantly reduce the heating

bill for public body facilities as a whole and to bring the heating and hot water portion of each site’s energy consumption to zero carbon emissions. To date, financial restrictions on public bodies in the MWRA has significantly deterred uptake of Renewable Energy Systems (RES), including Biomass. The innovative financial model developed by the Tipperary Energy Agency offers public bodies the opportunity to reduce their annual energy costs along with their carbon footprint, without the need for significant capital investment. The benefits of this risk removal model for the authority have been successfully demonstrated in four case studies within the region to date (Nenagh Leisure Centre, Thurles Leisure Centre, LIT Tipperary and Coolbawn Water Treatment Facility).

Problems Addressed

• Capital costs of investment

• Project risk factors

• Lack of demonstration of successfully implemented, alternative financial models

• Lack of market demand for energy service companies

• Public private partnerships are rare in the energy supply market

Key Aspects

• Energy Services Contract (ESCO)• Three to five year heat supply, operate and maintain

contract • Alternative model is where the local authority can sign a

long term (5 to 15yr) energy supply contract• Risk analysis scenarios • Energy efficiency measures• Liability for and maintenance of physical assets • Liability for the use of backup fuels • Liability and impact of energy demand change

Nenagh & Thurles Leisure Centres Biomass Heat supply

Proven solution

• Nenagh & Thurles Leisure Centres   Thurles

Leisure Centre

NenaghLeisureCentre

Rate per kWh on heat meter. (€) 0.038 0.039

Capital Cost 146,330 180,147

Annual Load in kWh 1,800,000 840,000

Annual heating cost – Biomass 68,400 3 32,760

Annual Heating Cost Oil/LPGEquivalent

152,000 79,800

Annual Heat Saving € (%) 83,600(55%)

47,040(58%)

Simple Payback (yrs.) 1.75 3.8

Coolbawn Water Treatment Plant

-Energy efficiency first-Air tightness-Cavity Wall insulation-Heating time, temperature and zone control

-Renewable energy-Wood Pellet

Coolbawn Water Treatment Plant

Project Evaluation

• Coolbawn Water Treatment Plant

Savings over 7 yrs. of ESCO €20,300

Annual Savings after ESCO ends

€13,700

Capital Investment by NTCC €0

7 year NPV €18,500

10 year NPV €39,900

15 year NPV €93,000

Net Impact of Project

Savings Prediction for Consumer• Effect of fuel inflation rates on payback

  Fuel Oil Wood ChipPer Annum Inflation 10% 4%Inflation from 2006 to 2013 53% 30%

Risk Assessment

Combined effect of risks

•The cost inflation rate of fuel reduces below the conservative 4% value. •The oil price for 2013 is reduced by 10c/litre.•The energy saved by the ESCO is reduced by 20%.•The energy consumed in the Pre-Filtration Building is increased by 15%

Further Savings Analysis

Contacts

• Tipperary Energy Agency

• Craft Granary• Church St• Cahir• Co. Tipperary • Ireland

• Paula Gallagher• Energy Manager• T: 052 744 3090• F: 052 744 3012• E: info@tea.ie • W: www.tea.ie

Thank you.