Different approaches for ESCO
development. The example of Germany.
Dr. Daniel Hesse
Berliner Energieagentur GmbH
Bucharest, 8 May 2015
Looking into different approaches for ESCO
development. The example of Germany.
Different approaches for ESCO
development. The example of Germany.
Established
in 1992 as Public-Private Partnership
Shareholders
Federal State of Berlin
Vattenfall Europe
GASAG
KfW Banking Group
Disposes of
2.5 million € of capital stock
Annual Turn-Over
12.9 million €
1.0 million € Company earnings (EBIT)
Know-how
58 members of staff
Company divisions
Contracting
Consulting
International Know-how Transfer
Based in
Französische Straße 23
10117 Berlin
Phone: (030) 29 33 30 - 0
E-mail: [email protected]
Internet: www.berliner-e-agentur.de
BEA – Facts and Figures
Different approaches for ESCO
development. The example of Germany.
3
Agenda
Energy Services in general
Energy Supply Contracting (ESC)
Energy Performance Contracting (EPC)
Facilitators
Different approaches for ESCO
development. The example of Germany.
4
Agenda
Energy Services in general
Energy Supply Contracting (ESC)
Energy Performance Contracting (EPC)
Facilitators
Different approaches for ESCO
development. The example of Germany.
5
Benefits of energy efficient technologies or systems (for energy consumers)
Reduction of operational cost
Improved profits
Tap potentials to (co-)finance investments
Reduced dependency on volatile or rising energy prices
Improved system performance, e.g.,
Reduced number of failures/down times
Reduced exposure to black-outs
Improved comfort/performance levels
Increased asset value
Reduced environmental foot-print
© Berliner Energieagentur GmbH
Different approaches for ESCO
development. The example of Germany.
6
Barriers to implementation of energy efficiency
measures:
Lack of capacities
Lack of information
Lack of motivation (energy not core business)
High upfront investment costs
Solution: Energy Services
Motivation for energy services
© Berliner Energieagentur GmbH
Different approaches for ESCO
development. The example of Germany.
7
Performance
related
remuneration
and/or risk
transfer
Application of
energy
efficiency
know-how by
third party
+
Energy Services
Energy Service Company (ESCO) = Provider of Energy Services
Energy Services – A simple definition
© Berliner Energieagentur GmbH
Different approaches for ESCO
development. The example of Germany.
8
Agenda
Energy Services in general
Energy Supply Contracting (ESC)
Main principle
Project examples
Energy Performance Contracting (EPC)
Facilitators
Different approaches for ESCO
development. The example of Germany.
9
Typical energy supply situation without Energy Services
© Berliner Energieagentur GmbH
Different approaches for ESCO
development. The example of Germany.
10
Energy Supply Contracting (ESC) – General Project Scheme
© Berliner Energieagentur GmbH
Different approaches for ESCO
development. The example of Germany.
11
Agenda
Energy Services in general
Energy Supply Contracting (ESC)
Main principles
Project examples
Energy Performance Contracting (EPC)
Facilitators
Different approaches for ESCO
development. The example of Germany.
12
ESC Best Practice – Combined Heat and Power
City Carré / Commerzbank,
Commercial Complex, Berlin
Heated floor space approx. 36,000 m²
Shopping mall, offices and hotel
CHP unit in existing heating system
Start of supply: 2006
Technical data:
CHP unit with 50 kWel and 97 kWth
Environmental effects:
Amount of energy savings 548 MWh/a
Reduction of CO2 emissions: 200 t/a
© Berliner Energieagentur GmbH
Different approaches for ESCO
development. The example of Germany.
13
Residential complex “Meller Bogen”
Largest solar thermal plant in combination with boiler
Object: multi-family house (563 units)
Collector surface: 600 m2
Type of use: room heating and hot water heating
Solar yield: 205,000 kWh/a
ESC Best Practice – CHP + PV + Solar Thermal Energy
Different approaches for ESCO
development. The example of Germany.
14
Energy Services in general
Energy Supply Contracting (ESC)
Energy Performance Contacting (EPC)
Main principles
Project examples
Facilitators
Agenda
Different approaches for ESCO
development. The example of Germany.
15
Typical energy supply situation without Energy Services
© Berliner Energieagentur GmbH
Different approaches for ESCO
development. The example of Germany.
16
Energy Performance Contracting (EPC) – General Project Scheme
© Berliner Energieagentur GmbH
Different approaches for ESCO
development. The example of Germany.
17
Energy Saving Guarantee Contract: Remuneration to the ESCO
250.000
500.000
750.000
1.000.000
Baseline
year2016 2017 ... ... 2024 2025 2026 2027
Energy costs before implementation of EE measures
Energy costs after implementation of EE measures
Performance-based remuneration to the ESCO (share of guaranteed savings)
Budget relief to the client (share of guaranteed savings)
Real reduction in energy
costs (to the full benefit of the
client after end of contract)
End of contractImplementation of measures
€/year
Guara
nte
ed
savin
gs
© Berliner Energieagentur GmbH
Different approaches for ESCO
development. The example of Germany.
18
General financing options for energy services
Financing through client
Financing through ESCO
(credit)
Financing through ESCO
(forfaiting)
Sale of
receivables
Cash
Advance
Renumeration
of ESCO
investment
Renumeration of services and investment
© Berliner Energieagentur GmbH
Services & Investment
Services & Investment Services & Investment
Different approaches for ESCO
development. The example of Germany.
19
Energy Services in general
Energy Supply Contracting (ESC)
Energy Performance Contacting (EPC)
Main principles
Project examples
Facilitators
Agenda
© Berliner Energieagentur GmbH
Different approaches for ESCO
development. The example of Germany.
20
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
© Berliner Energieagentur GmbH
Different approaches for ESCO
development. The example of Germany.
21
EPC model variations – EPC light in Pankow, Berlin
Elementary School, Kollwitzplatz
in Pankow
Goal: To reduce energy consumption by mid-2012 in
schools and administration buildings through “light”
measures
Number of buildings: 15
Baseline: 882.714 €/a
Guaranteed savings: 10.2 % (90.037 €/y)
ESCO payment: 44.118 €/y
CO2-reduction: 3.973 t/a
Duration of contract: 2 years
Measures: Energy management, system optimization and
continuous monitoring
© Berliner Energieagentur GmbH
Different approaches for ESCO
development. The example of Germany.
22
Agenda
Energy Services in general
Energy Supply Contracting (ESC)
Energy Performance Contracting (EPC)
Facilitators
© Berliner Energieagentur GmbH
Different approaches for ESCO
development. The example of Germany.
23
Customere.g.,
• Public institution
• Company
ESCOe.g.,
• Energy utility
• Engineering
company
• Energy agency
Facilitatore.g.,
• Energy agency
• Consultant
Energy suppliere.g.,
• Energy utility
Financing
institutione.g.,
• Bank
• Public fund
• Private investor
Institutions setting legal frameworke.g.,
• Parliament
• Energy authority
Subcontractors,
suppliers etc.e.g.
• Builders
• Suppliers
• Insurances
Energy services – Involved stakeholders
© Berliner Energieagentur GmbH
Different approaches for ESCO
development. The example of Germany.
24
Support in building/facility identification and pooling
Baseline elaboration
Tender preparation (incl. Contract) and evaluation
Management of the procurement process
Support in the annual evaluation of savings and assessment of
changes in use
Moderation between client and ESCO
EPC facilitators support client in an EPC project by
© Berliner Energieagentur GmbH
Different approaches for ESCO
development. The example of Germany.
Regional support to 9 large cities and metropolitan regions to establish EPC
Integration of EPC in long-lasting energy and climate plans
EPC task forces
> 20 pilot projects
Focus on the demand side
EPC Best practice database
Marketing material
Focus on EPC project facilitation
Facilitator guidelines (in national language)
ca. 30 Training events/workshops
Promotion of EPC, e.g. through Energy Service Award
Website with useful documents: www.eesi2020.eu
EU funded project: EESI 2020
© Berliner Energieagentur GmbH
Different approaches for ESCO
development. The example of Germany.
EBRD Project: Market development of EPC in Romania
Objective: Supporting market development of energy performance contracting (EPC) for public buildings and street lighting in Romania
Target groups: Municipalities (as potential EPC clients), energy service companies, political and economic decision-makers
Consortium: BEA (Team leader); partners from Romania: TractebelEngineering (technical expert), TUD consulting (financial expert), Tuca Zbarcea(legal expert)
Contents: Implementation of pilot projects, development of model contracts and tender documents, capacity building, adaptation of regulatory framework
Period: 5/2013 – 5/2016
Romania: GEF – Opening the Market for Private
ESCOs – Project Implementation Support
© Berliner Energieagentur GmbH
27
Thank you for your attention!
For more information, please visit:
www.berliner-e-agentur.de
© Berliner Energieagentur GmbH
BACKUP
© Berliner Energieagentur GmbH28
EPC in Germany:
Development, examples, experiences
© Berliner Energieagentur GmbH
Delivery & installation
of equipment/parts of
equipment
Equipment Installation
Invoicing of
installation
Planning, financing,
implementation
Operation
Energy Supply Contracting
Invoicing of energy
delivered
System analysis,
planning, financing,
implementation &
operation
System responsibility for
equipment & users’
behaviour
Controlling
Energy Performance
Contracting
Invoicing of reduced energy
consumption
Energy Services – Typical Models
86%
9%
5%
x%Share in German Market
Volume
www.eesi2020.eu
European Energy Service Initiative, towards the EU 2020 energy saving targets
Project acronym: EESI 2020
Project duration: May 2013 - April 2016
www.eesi2020.eu
SEVEn The Energy Efficiency Center Czech Republic
GEA Graz Energy Agency Austria
NEE Norwegian Energy Efficiency Inc Norway
Codema City of Dublin Energy Management Agency Ireland
ELI European Labour Institute Bulgaria
Factor4 Factor4 Belgium
ICAEN Catalan Energy Institute Spain
REGEA North-West Croatia Regional Energy Agency Croatia
Consortium
Co-Ordinator: BEA Berlin Energy Agency GermanyContact: Laurenz Hermann| [email protected]