remida energy agency of la ribera - gorizia 13.5.2015

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REMIDA PROJECT Final project meeting 12-13 May 2015 Gorizia (Italy) Plàcid Madramany Energy Agency of la Ribera (València, SPAIN) [email protected] Carlet (la Ribera) Pilot Action

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REMIDA PROJECT Final project meeting

12-13 May 2015 Gorizia (Italy)

Plàcid Madramany

Energy Agency of la Ribera (València, SPAIN)

[email protected]

Carlet (la Ribera) Pilot Action

Selection of Pilot Action (I)

Objective: Go beyond REMIDA foreseen outputs and implement PA during project lifetime through an ESCO

Key selection criteria:

1. Prioritize the most energy saving/RES production or most relevant. IMP if ESCO contract

2. Focusing on those sectors where city council was able to decide on their own

• Municipal buildings, equipment and facilities

• Public street lighting

3. Pilot intervention must be attractive enough for private sector.

4. WG must decide the intervention. AER/Carlet proposed 2 options!!

Selection of Pilot Action (II)

Municipal buildings, equipment/facilities represents a global energy consumption of. 1% approx.

Public street lighting (PSL) facility achieve barely 2% of municipality total energy consumption

Our proposals are projects based on:

A. EE improvement of street lighting

B. Self-consumption PV plant in municipal buildings

Why??

In our area PSL has been always the most likely intervention (high energy consuming facility!!!)

1. Inventory and energy consumption per sector

2. Lighting level map

Selection of Pilot Action (III)

But….some actions, in the meantime, implemented for reducing PSL consumption

1. City center facility refurbishment (LED) and

2. Industrial areas: went out approx. 50% lighting columns/lamps

Thus, it implies the impossibility of launching an ESCO contract addressed to PSL

Finally, PA focuses on “promoting the installation of PV plants in municipal buildings”. Why?

1. Local energy production represented 2% of demand

2. Successful previous experience of Carlet

3. ESCO contract feasible

4. AER: if succeed, willing to replicate PA through la Ribera municipalities

Pilot Action (I)

PV self-consumption??

Definition: Possibility for any kind of electricity consumer to connect a photovoltaic system, with a capacity corresponding to his/her consumption, to his/her own system or to the grid, for his/her own or for on-site consumption, while receiving value for the non-consumed electricity which is fed into to the grid

Town Hall electricity consumption profile (2014):

1. Yearly energy demand (active) 179,225 kWh

2. Electricity bill 20,662 €/y

3. Tariff 3.1.A

Pilot Action (II)

Proposed technical solution:

1. Power (peak): 11,52 kWp

2. Power (rated): 10 kW

3. Surface: 100 m2

Estimated savings:

1. Yearly energy production (estimated): 15,068 kWh

2. Rate energy consumption/produced: 7,28%

3. Economic savings: 1,601,80 €/y

4. Rate total cost/savings: 7,75%

Estimated economic details:

1. Total investment: 43,032 €

2. Payback: 14 years

Pilot Action (III)

Several PV location possibilities examined

GHG and fossil fuels savings:

1. 2,011 L oil yearly

2. 4 T CO2/y avoided

PPP(P) model

agreement

tender process (contract scheme)

Decision-making body

Carlet City

Council

+

Working Group

AER (technical

assistance)

Prívate sector

(ESCO)

EPC contract Energy Performance Contracting (EPC) is defined in 2006/32/CE on energy end-use efficiency and energy service

EPC a contractual arrangement between the beneficiary and the provider (normally an ESCO) of an energy efficiency improvement measure, where investments in that measure are paid for in relation to a contractually agreed level of energy efficiency improvement

Energy service company (ESCO): a natural or legal person that delivers energy services and/or other energy efficiency improvement measures in a user's facility or premises, and accepts some degree of financial risk in so doing. The payment for the services delivered is based (either wholly or in part) on the achievement of energy efficiency improvements and on the meeting of the other agreed performance criteria

Energy Service Contract (ESC). Focused in providing energy services through subcontracting of energy supply. ESCO is the installation owner and sells energy produced (steam, electricity, hot water,…). At the end of contract, client becomes the final owner. ESCO assumes financial risks.

• Private party will provide a technical/economical solution

• Public tendering process containing:

Legal requirements and rules (specific from each country)

Technical issues

• Action will consider:

• Installation of PV self-consumption

• Shifting from grid electricity to PV electricity

• 100% € savings to reimburse intervention cost

• First payment of approx. 80% out of total budget

• 2nd payment bimonthly according to the energy produced

ESC contract proposed

Status of PA implementation

To date, AER has analyzed municipal premises to select the most suitable:

1. Hourly/weekly energy demand data

2. Roof surface size and shape

Meetings with private sector in order to determine their interest and discussing about ESC contract features

Request of connection point licenses (end February)

Definition of ESCO contract (TOR)

Next steps:

1. Launch of bidding process (after elections)

2. Signature of the contract (before 2015 end)

3. Commissioning of PV plant (before 2015 end)

Lessons learned - SEAP

S&M size municipalities faced several basic shortcomings :

1. Ignorance about CoM initiative

2. Lack of technical skilled personnel

3. Economic resources constraints

Main difficulty for SEAP design is BEI elaboration. Data are not easily available. External support is essential

Collection of data followed a bottom-up approach

WG members represented the decision-making body

Representatives of local economic sectors didn’t show great interest. But most of them attended WG meetings

Local energy awareness actions were well received and the feedback was very positive

Devoted and enthusiastic participants within the education sector

Lessons learned – PPP(P)

Contracts between public administration and private parties are regulated by the Spanish Law on Public Sector Contracts Recast (TRLCSP). RD 3/2011.

Typologies that better fit are: services, contract of collaboration between public and private sector (CPP) and mixed contracts

Most suitable for project specific PA is a mixed contract

Preparation of call for tenders requires technical skills about concrete features of PA. S&M municipalities need external support

IMP to exchange info with private sector in order to define a reasonable and appropriate bid docs and, of course, a service or project

Commitment of local government is crucial for succeeding!

Thank you very much

Plàcid Madramany

Energy Agency of la Ribera (SPAIN)

[email protected]