Georgia‘s building sector NAMAAnna Sikharulidze ,Marina Shvangiradze
Sustainable Development Center –Remissia
2 February 2017
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Georgia’s building sector NAMA
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NAMA long-term vision – to bring Georgia’s buildings sector to EC
standards for low carbon
New buildings
at high
standard
Existing
buildings
refurbished
Low carbon
heating
Efficient
appliances
Highest potential
Aims
NAMA 1
• Whole building renovation of public buildings –
use income from energy cost savings to offset
part of capital cost
• Build experience and supply chain for energy
efficient building renovation
• Build capacity in energy performance
contracting/ESCOs
NAMA 2
→ Next step move towards the renovation in
domestic buildings
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NAMA1: Phase 1 Readiness
Phase 1 Activities
Characterisation of the public building
stock
Capacity building on energy
performance contracting
Financial, regulatory and
legal set up
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What is Energy Performance Contracting (EPC)
• EPC is a turnkey service, sometimes compared to design/build
construction contracting which provides customers with a
comprehensive set of energy efficiency, renewable energy and
distributed generation measures and often is accompanied with
guarantees that the savings produced by a project will be sufficient to
finance the full cost of the project. A typical EPC project is delivered
by an Energy Service Company (ESCO) and consists of the following
elements:
• Turnkey Service – The ESCO provides all of the services required to
design and implement a comprehensive project at the customer
facility, from the initial energy audit through long-term Monitoring and
Verification (M&V) of project savings.
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• Comprehensive Measures – The ESCO tailors a comprehensive set
of measures to fit the needs of a particular facility, and can include
energy efficiency, renewables, distributed generation, water
conservation and sustainable materials and operations.
• Project financing – The ESCO arranges for long-term project
financing that is provided by a third-party financing company.
Financing is typically in the form of an operating lease or municipal
lease.
• Project Savings Guarantee – The ESCO provides a guarantee that
the savings produced by the project will be sufficient to cover the
cost of project financing for the life of the project.
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Characterisation of public
building stock
Data collection and energy audits
Database/registry and monitoring
Shortlist of buildings for
renovation in pilot
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Capacity building on energy
performance contracting
Writing terms of reference and
evaluating renovation tenders
Writing terms of reference and
evaluating EPC tenders
Financing and managing EPC
MRV
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Financial regulatory
legal set up
Legal environment
for ESCO
Public procurement
rules
Financing strategy and
authority
Financial mechanism
for loans
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Phase 2 Activities
Preparation and tendering
of ESCO
Renovation of 15 buildings
Outreach and communication
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Preparation and tendering
of ESCO
Identify pilot CoM cities
Prepare terms of reference and tender
ESCO
Contract ESCO
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Renovation of 60,000 sq.m
public buildings
Renovation of the building
Overseeing renovation contract
Monitoring financial
performance of ESCO
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Outreach and communication
Design of information campaign
Development of promotion
material
Awareness raising
(occupants)
Impacts
• Small direct impact on GHG emissions
• Necessary step to scale up to residential –
higher savings in that sector
• Economic benefits – e.g. job creation, increase in
asset value
• Social and health benefits
• Energy security
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Costs
• Programme costs Phase I: € 635,000 and
€ 53,000 staff costs
• Programme costs Phase II € 137,000 and
€ 31,000 staff costs
• Deep renovation investment costs € 2-3 million
based on 150 – 200 EURO/m2
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