KAJAANI 10- 11 APRIL 20133 Steering committee and interregional managementGroup meeting.

INDEX

Thematic area Good Practice

Programa de Desarrollo RuralOBJECTIVE

DESCRIPTION GOOD PRACTICE

ENERGETIC AUDIT

The introduction of a Renewable Energies Plan in 12 regions is allowing:

More than 70 solar photovoltaic energy installations have been executed, with an installed power of more than 1,200 MW of distributed energy

IMPLEMENTACIÓN DE EERR A NIVEL LOCALIMPLEMENTACIÓN DE EERR A NIVEL LOCALProject implementation (I)

A 400-kW wind farm installation has been projected

Project implementation (II)

More than 65 solar thermal energy installations of different kinds have been executed.

The number of solar collectors varies from 2 to 96 per installation, with the aim of covering at least 40% of the demand of ACS from the public building where it is installed

Project implementation (III)

Good Practice Conclusions

REQUIRED A REGULATORY MARKET ABOUT NET BALANCE

•The current techology has reached the network equality. This implies an excellent opportunity to develop photovoltaic self-consumption market in domestic consumers. •It is economically viable to generate electricity between 12/15 ctEur/Kwh •Changes in the structure of the electrical invoices can imply a great impact.•Equality should not mean to take out the regulatory support to the distributed generation, but to take out the support to the grants and subsidies.

REGULATORY STATUS. RES

Atypical position in Spain. Regulation doe not benefit the market.

ENERGY SERVICE PROVIDER (2012/27/EU definition) A natural or legal person who delivers energy services or other energy efficiency improvement measures in a final customer’s facility or premises.

ENERGY SERVICE PROVIDER (2012/27/EU definition) A natural or legal person who delivers energy services or other energy efficiency improvement measures in a final customer’s facility or premises.

(ENERGY SERVICE COMPANIES) ESCO (2006/32/EC definition)

•A natural or legal person •that delivers energy services and/or other energy efficiency improvement measures •in a user’s facility or premises, •and accepts some degree of financial risk in so doing. The payment for the services delivered is based (either wholly or in part) •on the achievement of energy efficiency improvements •and on the meeting of the other agreed performance criteria.

(ENERGY SERVICE COMPANIES) ESCO (2006/32/EC definition)

•A natural or legal person •that delivers energy services and/or other energy efficiency improvement measures •in a user’s facility or premises, •and accepts some degree of financial risk in so doing. The payment for the services delivered is based (either wholly or in part) •on the achievement of energy efficiency improvements •and on the meeting of the other agreed performance criteria.

DIRECTIVES - from ESD to EED

DIRECTIVES - from ESD to EED

ESCO characteristics Guarantee the energy savings. A performance guarantee can:

Revolve around the actual flow of energy savings from a project

Or can stipulate that the energy savings will be sufficient to repay monthly debt service costs.

The remuneration of ESCOs is directly tied the energy savings achievedESCOs can finance, os assist in arranging financing for the operation of an energy sy stem by providing a savings guaranteeMay retain an on-going operational role in M&V over the financing term

ESCO characteristics Guarantee the energy savings. A performance guarantee can:

Revolve around the actual flow of energy savings from a project

Or can stipulate that the energy savings will be sufficient to repay monthly debt service costs.

The remuneration of ESCOs is directly tied the energy savings achievedESCOs can finance, os assist in arranging financing for the operation of an energy sy stem by providing a savings guaranteeMay retain an on-going operational role in M&V over the financing term

DIRECTIVES - from ESD to EED

ESCO - (ESPCs).

ESPCs provide a service for a fixed fee or as added value to the supply of equipment. ESPC may have some incentives to reduce consumption, but these are not as clear as in the ESCO approach. Often the full cost of energy services is recovered in the fee, so the ESPC does not assume any risk in case of underperformance. EPSC is paid a fee for their advice or equipment rather than being paid based on the results of their recommendations.

ESCO - (ESPCs).

ESPCs provide a service for a fixed fee or as added value to the supply of equipment. ESPC may have some incentives to reduce consumption, but these are not as clear as in the ESCO approach. Often the full cost of energy services is recovered in the fee, so the ESPC does not assume any risk in case of underperformance. EPSC is paid a fee for their advice or equipment rather than being paid based on the results of their recommendations.

ENERGY PERFORMANCE CONTRACTING - EPC –(ENERGY EFFICIENCY DIRECTIVE 2012/27/UE: )•It is a contractual arrangement•Between the beneficiary and the provider of an energy efficiency improvement measure, •EE is verified and monitored during the whole term of the contract, •where investments (work, supply or service) in that measure are paid for

• is in relation to a contractually agreed level of energy efficiency improvement •or other agreed energy performance criterion, such as financial savings.

ENERGY PERFORMANCE CONTRACTING - EPC –(ENERGY EFFICIENCY DIRECTIVE 2012/27/UE: )•It is a contractual arrangement•Between the beneficiary and the provider of an energy efficiency improvement measure, •EE is verified and monitored during the whole term of the contract, •where investments (work, supply or service) in that measure are paid for

• is in relation to a contractually agreed level of energy efficiency improvement •or other agreed energy performance criterion, such as financial savings.

DIRECTIVES - from ESD to EED

DIRECTIVES - from ESD to EED

-EPC characteristics- Under an energy performance contracting (EPC) arrangement, the ESCO develops, implements and finances (or arranges financing of) an energy effiency projects, and uses the stream of income from the cost savings, to repay the costs of the project, including the costs of the investiment

- Essentially the ESCO will not recover all of its costs unless the project delivers all or more of the energy savings guaranteed

-EPC characteristics- Under an energy performance contracting (EPC) arrangement, the ESCO develops, implements and finances (or arranges financing of) an energy effiency projects, and uses the stream of income from the cost savings, to repay the costs of the project, including the costs of the investiment

- Essentially the ESCO will not recover all of its costs unless the project delivers all or more of the energy savings guaranteed

DIRECTIVES - from ESD to EED

EED – public sector:Article 5.- Exemplary role of public bodies’ buildings

As from 1 january 2014 3% of the total floor area will be renovated each year (buildings >500m2)Article 6.- Purchasing by public bodies

EED :Article 7.- Energy efficiency obligation schemesArticle 18. – Energy services

BARRIERS IMPLEMENTATION (I)

I. Low awaraeness and lack information about the ESCO concept.

II. Lack of trust/ skepticism on the clients, side and little understanding of the opportunities ESCO project and EPC offer.

III. Reluctance to outsource.IV. High transaction costs due to marketing needsV. High perceived risk of the ESCO investment, lack of

expertise on the financial market.VI. Lack of public guarantees.VII. Lack “off-balance sheet “solutions and identifying

energy saving as assets, need more commercial banks financing

VIII. Non-supportive procurement rulesIX. Accounting problems (investment vs. Operating costs)X. Public budgeting rules (pressure to spend and yearly budgetsXI. Lack of M&V protocolsXII. Lack of regular metering and thus difficulty to establish

baseline dataXIII. Administrative hurdles, high transaction cost (especially for

saving guaranteesXIV. Split incentives

VIII. Non-supportive procurement rulesIX. Accounting problems (investment vs. Operating costs)X. Public budgeting rules (pressure to spend and yearly budgetsXI. Lack of M&V protocolsXII. Lack of regular metering and thus difficulty to establish

baseline dataXIII. Administrative hurdles, high transaction cost (especially for

saving guaranteesXIV. Split incentives

BARRIERS IMPLEMENTATION (II)

SARGA’S CONTRIBUTION

Conclusions

THANKS YOU VERY MUCHTHANKS YOU VERY MUCH

IMPLEMENTACIÓN DE EERR A NIVEL LOCALIMPLEMENTACIÓN DE EERR A NIVEL LOCALEstructura del proyecto