the guarantee project - european commission · this project has received funding from the european...

This project has received funding from the European Union’sHorizon 2020 research and innovation programme undergrant agreement No 696040.

www.guarantEE-project.eu

The guarantEE ProjectInnovative business and financing models for performance-based ESCO projects

Christoph Lanhenke, Berlin Energy Agency (BEA)

21. February 2018, BrusselsCovenant of Mayors' Investment Forum



Contents

Part I:About „guarantEE“

Part II: Projects‘ outcomes and benefits for public authorities



The guarantEE project

Energy Efficiency withPerformance Guarantees

guarantEE is funded by the European Union’s Horizon 2020 research and innovation programme



Background► The building stock is the

largest energy consumer in Europe

► To reach the CO2- and energy efficiency targets, the modernization rate in buildings needs to be increased

► As public budgets are strained, private capital needs to be activated to implement energy saving measures

► This can be achieved by means of Energy Services



Energy Services► Energy Performance Contracting (EPC) is a proven energy service

model for modernizing mostly public buildings ► Energy saving measures (ESM) are outsourced to an ESCO ► The energy service company (ESCO)

► finances all investments through future energy savings

► guarantees energy and cost savings to the client

► bears the financial, technical and performance risks

► Nevertheless, a broad roll-out of EPC is still facing issues



Objectives of guarantEE► Development and market roll-out of

innovative energy services and financialschemes for sustainable energy

► guarantEE will address prevailingbarriers to EPC in advanced and emerging ESCO markets within the EU

► Within guarantEE, public property administrations ► will be addressed to discuss possible improvements to EPC

► will be supported in the implementation of pilot projects



Project targets of guarantEE► The developed EPC models

will be applied in 33 pilot projects

► The project will► achieve 78 GWh

primary energy savings

► achieve 18,000 t CO2savings per year

► trigger investments of >11 M€.



Project consortium► 14 consortium partners

► Covering large parts of Europe

► Representing a mix of advanced and emerging ESCO markets

► Project Coordination

► http://www.berliner-e-agentur.de/

Advanced markets: DE, AT, NO, CZ, FR

Emerging markets: IE, BE, ES, RO, SK, LT, SI, NL, IT



Contents

Part I:About „guarantEE“

Part II: Projects‘ outcomes and benefits for public authorities



The Split Incentives Dilemma

Triple-Win-Solutions



Triple-Win-Solutions – Options

Trilateral agreements Bilateral agreements► Owner & ESCO

Bilateral agreements► Tenant & ESCO

Further information: http://guarantee-project.eu/knowledgebase/

http://guarantee-project.eu/knowledgebase/



Simplified Measurement & Verification (M&V)The issue:► M&V is crucial to proof the ESCO

has fulfilled its performance guarantee

► At the same time, M&V is often complex, costly and conflict-prone

Further information: http://guarantee-project.eu/knowledgebase/

Solution approach:► Simple M&V for parts of

consumption < 30%

► Restriction to pre- and post-implementation M&V

► Subsequently simple forward projection of initial savings

► Additional M&V only on request by client

► Costs covered by ESCO if savings are below 1st year savings

http://guarantee-project.eu/knowledgebase/



Online Pre-Check for Energy Performance Contracting

http://epccheck.eu/



Online Pre-Check for Energy Performance ContractingLinks

► EPC Pre-Check http://epccheck.eu

► Video, to learn more about the EPC Pre-Check:https://youtu.be/wudenjYm0qo

► Flyer, with more information on the EPC Pre-Check:http://guarantee-project.eu/service/downloads/

► Available in many languages

http://epccheck.eu/

https://youtu.be/wudenjYm0qo

http://guarantee-project.eu/service/downloads/



National pools of qualified EPC facilitators► Role of the facilitator:

Mediator between owner and user

► Function of facilitators pools:Ease the access to well-qualified EPC facilitators on national level

► The facilitator pools will be made public, including contact details, references and specific skills



Quality criteria for EPC facilitator pools

► Technical skills, e.g knowledge of HVAC systems and M&V

► Financial skills, e.g. financial conditions, risk management

► Legal skills, e.g. national law, procurement, contracting conditions

► Project skills, e.g. internal and external process management

► Social skills, e.g. excellent communicator, independent, reliable

Preparation phase Tendering phase



Independency of EPC facilitators► For municipalities, independency is very important - there shall occur

no conflicting interests

► As a consequnce:► EPC facilitators shall not

participate as a tenderer in the relevant tender

► EPC facilitators shall not be affiliated with bidders of the relevant tender

► The client can capture these conditions in the contract



Thank you for your attention!

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@guarantee_H2020

http://www.guarantee-project.eu/

the guarantee project - european commission · this project has received funding from the european...

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