REDIBA-ELENA. How to implement energy efficiency investments when from Barcelona province

The Covenant of Mayors - a vector of change for
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REDIBA-ELENA. How to implement
energy efficiency investments when
public funds are scarce- Experiences
from Barcelona province
Albert Vendrell Roca
Barcelona Provincial Council – Diputació de Barcelona
Istanbul, 15 November 2013
Barcelona Provincial Council (DIBA)
is a 2nd level Local Government
whose mission is to promote the
progress and welfare of citizens,
acting in the territory and in
cooperation (technically and
economically) with municipalities.
311 municipalities, with a population of 5.6 m
inhabitants. Area: 7,719 km2
Budget 2013: 690 m EUR
The Scenario that our Municipalities are facing
• Obligation to provide basic services
• Reduction of income
• No investment capability
• No borrowing capacity
MUNICIPALITY
• Forecast energy price increase
• Commitment to carry out SEAP
actions
SEAP - ELENA facility: How do we pull municipalities into the
project?
Convenant of Mayors
On September 2013 (www.eumayors.eu)
5,076 local authorities
171,089,125 inhab
221 Covenant Coordinators and Supporters
Barcelona province
206 Municipalities signed the Covenant
95% Population of the province
183 SEAP finished with 3 M€ cost for DiBa
More than 1,172 M€ potential investments identified
SEAP: Some results
ACTIONS
Number of SEAP considered
Number of actions
Expected energy savings (MWh)
175
8,232
5,517,564
Expected energy production (MWh)
599,945
Expected emissions redaction (tCO2)
2,686,715
Total expected costs (€)
Cost per Municipality (€)
http://www.diba.cat/c/document_library/get_file?uuid=60ff9afa4430-4a54-89aa-7f25b3812abe&groupId=471041
1,172M€
907M€
130,1 % diesel oil for heating litre between 2002 – 2011.
85,9% Natural Gas kWh cost (2002‐2012)
86,7% electrical kWh cost for local public buildings from 2005 a 2012. 78,5 % electrical kWh cost at for street lighting since 2002
How can they implement actions to reduce energy consumption?
Public‐Private Partnership
Own funding resources
Grants from other administrations
Actions based on behavioural changes from users and workers (almost no investment costs) “Projects that create enough incomes or savings to finance themselves with a reasonable payback period ”
ELENA : European Local ENergy Assistance
REDIBA: RENEWABLE AND EFFICIENCY DIPUTACIO DE BARCELONA
Project starts: May 2010
Project ends: June 2014 (1 year
extension)
TECHNICAL SUPPORT:
Executive projects
Feasibility studies
LEGAL SUPPORT:
Tendering clauses
2,6 M€
COACHING
DiBa: 0,6 M€
EC: 2 M€
Staff costs : 586.000€
External support: 2.080.500 €
X25
50 M€
INVESTMENT TARGET REDIBA investments in terms of its legal form
ESCo contracts
EE in Public Lighting
Biomass Thermal
Heating
Renting municipal roofs for PV
Maintenance contracts with
energy efficiency investments
Rentings and leasings
of technology
EE in Public Buildings
Turnkey contracts
Different forms
of
Private-Public
cooperation
Results at September 2013
Economic Impact
Total value of the contracts generated: 70 M €
80 Investments generated according ELENA-EIB
criteria: 36,1 M € (72% target accomplished).
Currently in the tendering phase: 29,9 M €
Total estimated investments at 30th June 2014: 100M €
Environmental Impact of the awarded projects
Estimated annual energy savings: +19 GWh/year
Estimated biomass thermal energy generated:
1,4 GWh/year
Estimated annual tn CO2 emissions saved: 10.214
Results at September 2013 by type of technology and funding source
3%
Investments (€)
1%
3%
Street Lighting SL
4%
Biomass B
Energy Efficiency
Buildings EEB
Photovoltaics PV
Others (SWH systems,
geothermal, etc) Other
89%
€
0%
20%
40%
60%
Own funding ressources
80%
100%
PP Partnership
Public Lighting Projects
Cànoves i Samalús (960 SL)
Duration renting: 10 years
Contract Volume: 0.5 M €
Savings kWh/year: 518,000
Renovation with LED via
renting
Tona (1,800 Street lamps- SL)
Duration ESCo: 13 years
Total investment: 1 M EUR
Savings 52% kWh/year and 10%
EUR of current energy bill
Martorelles (1,100 SL)
Duration ESCo: 10 years
Total investment: 0.6 M
EUR
Savings 49 % kWh/year
and 20% EUR
Santa Susanna (3,200 SL )
Total investment: 2 M EUR
Savings : 1.3 MkWh
Duration ESCo : 10,5 years
Sabadell (29,500 SL)
Duration ESCo: 10 years
Contract Volume: 7.5 M
EUR
Savings kWh/year 3.9
GWh
25% renovation with LED
Polinyà (2,000 SL)
Duration ESCo: 10 years
Contract Volume: 0.4 M
EUR
Savings kWh/year:
410,000
P1 without energy supply
Biomass Thermal Heating
Municipality
Characteristics
Energy
generation
per year
Legal form
Contract
duration/Pay
back
Investment
cost (€)
Vic
District Heating 5
buildings
Power 500 kW
Wood chip
416.8 MWh
ESCo
10
472,000
Sant Salvador
de Guardiola
Power: 500 kW
5 buildings
Wood chip
474.5 MWh
ESCo
6,5
367,877
Caldes de
Montbui
Power: 500 kW
4 buildings
Wood chip
922.6 MWh
Leasing
7
318,907
Les Masies de
Roda
Power: 80 kW
96 MWh
Turnkey
contract
66,787
Main Barriers in Spain for RES and EE investments in public bodies
1. Renewables payment scenario is changing and
uncertain.
2. Credit crunch: high difficulty to access to
conventional financing
3. Low debt capacity by local governments
4. Low previous experience of the energy services
market for the public sector and lack of clear
legal models to promote ESCOs
5. Resistance to change and excessive focus on
issues of municipal ownership
Final conclusions from REDIBA project
•
Although the economical context is very hard, REDIBA
is mobilizing investments in the province.
•
Energy saving potential in public administration is high
•
New models of contracting in public administration
requires time. Once it “clicks” and we have reference
projects, the investments start piling up.
•
The challenge for the near future: small and medium
sized municipalities are more challenging to get
investments because of scale economy effect.
•
Financing is not enough. Municipalities need coaching
throughout the process .
Based on our experience: General conclusions on ELENA facility
•
ELENA way of working is good because is based on real
and quantifiable targets. However, with just energy saving
investment as a goal you rule out interesting “Energy
savings projects” which don’t require big investment.
SOLUTION: Climatic (CO2) leverage?Energetic leverage
(kWh)?
•
Access to funding is one of keys of success of the project.
The link between funding and the TA has to be arranged
before ELENA project starts. Final decision of funding can
not just depend on the conventional banks.
Based on our experience: General conclusions on ELENA facility
(II)
•
What is investment in terms of ELENA criteria? How we
demonstrate it?
That should be clear once the contract is signed
•
The main challenge will be to find ways of funding energy
projects in small and medium municipalities.
Financial mechanism should be adaptable to smaller
projects
Thank you!
Albert Vendrell Roca
Barcelona Provincial Council
[email protected]
http://www.diba.cat/web/mediambient/elena