the role of escos - eu-merci...2017/02/11 · representing and promoting the energy efficiency...

The role of ESCosDimitra Mintsidis

Federesco

EU-MERCI open conferenceRome, February 23rd 2017

connecting energiesraising efficiency

Summary

EU-MERCI open conference - Rome -February, 23rd 2017

} Federesco

} Current and future scenarios of Energy Efficiency

} The role of Energy Service Companies

Federesco


Federesco is the national trade organization representing and promoting the energy efficiency industry in Italy,

it has been created in 2006 and it includes around 50 Escos.

EU Projects and activities - 1

EU-MERCI open conference - Rome - February, 23rd 2017

Ø EPC+ (Energy performance Contracting Plus)

Ø Small Medium Enterprises cooperation in order to optimize and simplifiy the supply ofenergy efficiency interventions through Energy Performance Contracting withinthe Small Medium Enterprise market.

Ø Trust EPC South (Building Trust in Energy Performance Contracting inSouthern European Countries)

Ø Raising interest and trust of financial institutions for supporting EPC withinthe tertiary sector in the Southern European Countries.

Ø TransparEnSe (IncreasingTransparency of Energy Service Markets)

Ø Improving the transparency and the reliability of the EPC market in Europethrough the implementation of a European Code of Conduct for EPC.

EU Projects and activities - 2

EU-MERCI open conference -Rome - February, 23rd 2017

Ø Board Energy H2020 e SET Plan – Regulatory framework support and advocacy.

Ø EnergyEfficiencyNetworkEurope – Marketplace platform for internationalbusiness opportunity exchange and cooperation.

Ø European Utility Week – Yearly EU event for qualified operators and bestpractices.

Ø EU MERCI – Esco Stakeholders’ representation.

Energy consumption in industry


Energy balance (January 2017 edition)

ktoe Total all products Solid fuels Oil (total) Gas

Total Renewabl

es

Wastes (non ren.)

Industrial wastes

Nuclear heat

Derived heat Electricity

Final energy cons. 116.444 1.720 44.338 33.182 8.365 269 269 3.851 24.719Industry 26.023 1.720 2.777 8.471 402 269 269 2.696 9.687

Final energy consumption 116.444+ Industry 26.023

+ Iron & steel industry 4.716+ Chemical and Petrochemical industry 3.292+ Non-ferrous metal industry 625+ Non-metallic Minerals (Glass, pottery & building mat. Industry) 4.971+ Transport Equipment 398+ Machinery 3.357+ Mining and Quarrying 111+ Food and Tabasco 2.708+ Paper, Pulp and Print 2.372+ Wood and Wood Products 453+ Construction 350+ Textile and Leather 1.106+ Non-specif ied (Industry) 1.564

ktoe Italy Total all products -3.3% ref. y 2014

of which:

-20,0% solid fuels-3,4% oil+0,5% gas+215,6% res-0,3% electricity

Source: Lazard 2008 for NARUC

Energy saving: the best energy source


Energy saving: the best energy source


Emission reduction

Cost effectiveness

Financial incentives

Reputation enhancement

EC «Winter package»


COM(2016) 860

Putting energy efficiency first } A binding 30% EU-wide target for energy efficiency by 2030 aiming to

reduce our dependency on energy imports, boost economy and create jobs, cut more emissions (cut CO2 emissions by at least 40% by 2030)

} Efficient buildings, clarified ecodesign framework and measures, smarter finance.

} Extension beyond 2020 of the energy savings requirement to 2030 (specified in Article 7).

National Energy Plan Audition (SEN 932)


} Federesco asks for the commitment of the Government in the implementation

of:

• effective EE measures and policies

• a new National Energy Plan and a unique Authority for the EE topics

• a clear, integrated and defined system of incentives

• EPC schemes and TPF instruments

• a favorable background for ESCos as the key actors for Energy Efficiency

ESCo – definition


2006/32/EC DIRECTIVE

"ENERGY SERVICE COMPANY" (E.S.CO.): A NATURAL OR LEGALTHAT DELIVERS ENERGY SERVICES AND/OR OTHEREFFICIENCY IMPROVEMENT MEASURES IN A USER'S

PERSONENERGYFACILITY OR PREMISES, AND ACCEPTS SOME DEGREE OFFINANCIAL RISK IN SO DOING. THE PAYMENT FOR THE SERVICES

DELIVERED IS BASED (EITHER WHOLLY OR IN PART) ON THEACHIEVEMENT OF ENERGY EFFICIENCY IMPROVEMENTS AND ON

THE MEETING OF THE OTHER AGREED PERFORMANCE CRITERIA

Third-party Financing (TPF)


WITHOUTTPF

identifies suppliers and allocates its financial resources to carry out the work

the initial cost of the work iseverything on THE CUSTOMER

A client, public or private, wants to take action to reduce their energy consumption

WITHTPF

identifies an ESCO that provides to search for both suppliers and financial resources

the initial cost of the work is everythingLOAD OF ESCO *

* depending on the availability banking

The contract with the formula TPF is the best guarantee for the end user that the plant will be built in the year with the highest possible efficiency, as it is the energy that remuneration, day after day, the amount invested. The duration of the contract and the repayment plan is agreed with the customer. The third-party financing is therefore a system that enables companies to improve energy efficiency without the use of equity, even while saving money.

Third-party Financing (TPF)


TPF EXAMPLE

8 9 10 11 12 13 14 15 16 17 18 19 20

RECOVERY OF THE INVESTMENT FOR THE

ESCO

SAVING FOR THE COUSTOMER

SAVING FOR THE CUSTOMER

-3 -2 -1 0 1 2 3 4 5 6 7

ENERGY BILL

BEFORE THE

INTERVENTI ON

0%

70%

95%

YEARS

LE

VE

L

OF

E

NE

RG

Y

EX

PE

NS

E

ENERGY BILL AFTER THE INTERVENTION

100%

Activities of Escos


EE - RES - DG

Incentivesmanagement

Training

ESCOs

give a 360° integrated

and tailored solution and

support to professionals

and operators

in performing

Energy efficiency.

Process flow chart


The role of Escos


} Strategic and operational approach on all the energy chain to obtain the maximum energy saving

} Compensation according to the obtained energy saving} Direct or indirect financing of the project: Third Part Financing

(TPF)} Warranty for the client on the obtained energy saving} Interventions using few capital assets} Design, realization and maintenance assigned to qualified and

technical experts} Consumption and management costs reduction} Energy Management System Development (ISO 50001)

Benefits


q Qualified technical specifi know how

q Integrated proposal and management

q Reduced financial immobilizations

q Reduced consumption and expenditures

q Incentives availability

q Monitoring and Energy Management System

Monitoring project


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one

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As s egnaz ione

R ic ez ione R dP

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Ricezione e Invio par er econsul tazione

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Sì

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s o

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finaleS i

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R i es am e? N o M odi fi ca P finale

•Collection and display of consumption data through the creation of a historical database

•Visualization, navigation and alert on dataconsumption and spending

•Simulation scenarios tariff plans, unit cost

Dashboards Reporting and analysis

Receiving bills and storage

Analysis of consumption

data

Collecting data relating to electrical

measurements

•Receiving File on contracts, bills, etc..

•Reading and interpretation of data (OCR)

•Archiving data with their metadata

•Analysis and predictive reports

•Optimization in case of abnormal consumption between measured and calculated consumption

Support guidelines for optimization

Monitoring


Control andmanagement

Compliance check

The monitoring system has a fundamental role in the realization of energy efficiency projects, especially in industrial system and production cycle.

• Energy consumption control andmanagement

• Services and supply contracts check• Lump sum projects

• Compliance check of services and supply contracts

• Identification and realization ofoptimizationprojects.

Optimization

Control and Management

Compliancecheck

Monitoring


… giving the clients information on their real energy consumptionà 10% reduction

Source: CE 7604/2009 recommendation

Energy management


à Monitoring and managingenergy expenditure

à Gaining higher incomeby technical solutions

The main objective consists in supporting companies and organizations in

realizing processes and systems helpful for the improvement of energy

efficiency.

Energy management systems


Consumptionreduction

Spending reduction Optimization

Afteranalysinglossesandwaste,anenergymanagementsystemgivesthepossibilitytooptimizetheenergyuseandtotransformtheenergycostsineconomic availability.

The ISO 50001 rule specifies the qualificationsto realize, improve and keep active an EnergyManagement System.

Energy management systems


1Establishmen t Monitoring

2Production monitoring

3Energy

registration during

the production

4 Modeling tools

5Check

6Response

7Evaluation

Evaluations and checks of energymanagement can be helpful forcompanies for the identification ofthe changes to implement in orderto reduce energy consumption andcosts.

It is not strictly necessary to realize all phases, but it is important to know that the number of advantages increases proportionally with the number of implemented phases.

Esco model and EPC


Risks and mitigation of risks


Ø Due diligence of financing institution

Ø Standardised methodologies and results

Ø Technical commitment and guarantee of the Esco

Ø Lack of financial resources by the Esco side

Ø Clients are not willing to finance by equity

Ø Lack of financial guarantees both by Escos and by client

Verification e validation

Performance bond

FTT fund

Agreementswith banks

Verification and validation of EE projects


Minimizing the risk of failure of an intervention for an energy efficiency project:

Ø Non correct goalsØ Design lackingØ Non correct assessment of incentivesØ Inadequate contractual schemesØ Risk management not providedØ Non correct evaluation of possible future scenarios



In order to support the stakeholders of an energy efficiency intervantion, itis necessary to have a third party having the following features:ü Independency and impartialityü ISO/IEC 17020 certificationü Standard check list for each stage of the project

Organism of verification

and validation

Client

E.S.CoCredit institute



Process flow



Goals:

ü Compliance to contract and rules

ü Trasparency and effectiveness

ü Risk reduction

ü Higher quality of the work

Guaranteed energy performance and finance


Ø Of energyperformance

Ø Of financing

à Performance Bond

àAgreementswith banks

A model of framework agreement with banks


Energy efficiency

Bank

Finaluser

Check-upProject designImplementationManagement

Final user with EPC

Contract with the ESCOCan ask for financiang

Standardized approach

Contract Esco - Client Contract Bank - Client Coherent but separate contracts

E.S.CO.

The Italian ESCo Association

Viale Antonio Gramsci, 42 – 50132 Firenze - Italy

Tel: +39 055 2344262 - Fax: +39 055 2639736

[email protected] - [email protected]

Thank you for kind your attention


the role of escos - eu-merci...2017/02/11 · representing and promoting the energy efficiency...

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