ELENA Modena project for technical assistance to enhance energy saving in the Public Sector. The Modena Energy Agency s experience ad results
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1 ELENA Modena project for technical assistance to enhance energy saving in the Public Sector The Modena Energy Agency s experience ad results Piergabriele Andreoli Bruxelles, 26 June
2 Main topics Emilia-Romagna region and the Province of Modena: some figures AESS a short presentation ELENA - Modena 2
3 Emilia-Romagna region: some figures -Total surface area: 22,446 km2 -Population: 4,405,486 inhabitants -Population density: 196.3/km2 -Nine provinces: Piacenza, Parma, Reggio Emilia, Modena, Bologna, Ferrara, Ravenna, Rimini, Forlì- Cesena 3
4 Emilia-Romagna region: some figures Emilia Romagna is a major Italian cultural centre, being the home of the oldest university in the Western World (the Alma Mater Studiorum - Università di Bologna was founded in year 1088), It counts numerous Renaissance cities such as Modena, Parma and Ferrara It is a major centre for food industry, due to its gastronomical tradition Emilia Romagna is home of numerous automotive industries, such as Ferrari, Lamborghini, Maserati, Ducati and De Tomaso 4
5 The Province of Modena The province of Modena stretches from North (Lombardy) to south (Tuscany): plains to the north, hills in the centre and mountains to the south, with the highest peak being Monte Cimone (2.165m). Surface area: 2,689 km² Population: 659,925 inhabitants. The province counts 47 municipalities. 5
6 The Province of Modena It is a dynamic province with a long history of independence and strong initiative: the Duchy of Modena and Reggio was an independent state for many centuries. Presently it is an area with one of the highest living standards in Italy, thanks to its strong food industry, a leading manufacturing sector: mechanical industry, automotive, ceramic tyles, fashion district, biomedical. Mostly SMEs. 6
7 Main topics Emilia-Romagna region and the Province of Modena: some figures AESS a short presentation ELENA - Modena 7
8 AESS a short presentation AESS was born in 1999 as a Local Energy Agency within a EC SAVE II Programme. As an association, it counts today 31 public members, (Province and Municipality of Modena, several municipalities, local communities; the University of Modena and Reggio Emilia; consumer s and environmental associations). Member of the Italian Energy Agency network RENAEL. Since Jan 2010 AESS embraced BIOECOLAB and its staff, with competences on bio-building. Its staff has grown to 15 people. Its major area of interest is the Province of Modena, but it operates at regional and Italian level too. 8
9 AESS Main activity lines URBAN PLANNING: energy appendix to urban building code Sustainable Energy Planning Assistance to municipalities inside the Covenant of Mayors ENERGY AUDITING AND CERTIFICATION of private and public buildings. Energy audits (even through thermo graphic tools). Promotion of ESCOs at local level Promotion and preparation of performance contracting for energy saving in public buildings and street lighting (IEE project PU-BENEFS ) District heating and CHP Boiler inspection services in the Modena Municipality area 9
10 AESS Main activity lines RENEWABLES Photovoltaic, solar thermal, biomass Feasibility studies, design of RES plants, work supervision and monitoring TRAINING, EDUCATION, INFORMATION Training, education, information and advice on energy efficiency, RES; information and access to public subsidies. PV and solar thermal purchasing Groups EU PROJECTS Project management in the framework of IEE, INTERREG, 7 FP financing programmes (either as partner or coordinator) 10
11 EU projects Since its creation, AESS has been partner of nearly 30 EU projects, in the framework of interregional programmes such as INTERREG, MED, as well as Intelligent Energy Europe and the 7th Frame Programme. The main activities concerned communication, dissemination, information, training, awareness raising to citizens, professionals, technicians and schools about energy efficiency and renewables issues. Furthermore through EU projects, plans and monitoring tools for reducing energy consumption have been produced as well a number of energy audits carried out and Energy Performance Contracts implemented at local level. 11
12 Running EU projects ELENA ( ) "European Local ENergy Assistance"; 2nd project approved by BEI at Italian level: it supports energy efficiency and renewables investments by Local Authorities; VERYSCHOOL ( ) "Valuable Energy for a smart school" (as project coordinator); a public-private partnership at European level aimed at develop, implement and standardize ICT solutions for energy saving in school buildings; RELACS ( ) "REnewabLe energy for tourist ACcommodation buildings" (as project coordinator); RES and RUE measures in the accommodation buildings of 10 EU Countries. GRACE ( ) Grants and other incentives for cost and energy efficiency - The aim is to analyse costs and real impact of public and private funding schemes focused on energy efficiency for citizens and communities in the participating regions. SMART MED PARKS ( ) - Improvement of Energy Efficiency in Technology Parks of the Med Area through Intelligent Models and Uses 12
13 AESS ROLE AESS is a technical instrument for his public members, supporting also citizens (energy building s audits, RES purchasing groups) and SMEs (feasibility studies for energy saving in buildings and manifacturing processes) The EU projects have often involved a number of local authorities making available both economic resources for local projects and successful models and experiences to be replicated at local level or to be shared at EU level, this way also getting visibility to the most committed local authorities. 13
14 AESS has also been representing on the Modena territory the technical partner needed for undertaking innovative initiatives in the energy field and the link at local level with EU projects, such as the Modena Club of the Covenant of Mayors, effectively creating a network of municipalities committed to implement Sustainable Energy Action Plans (in order to increase energy efficiency and use of renewable energy sources on their territories). 14
15 AESS ROLE The Covenant of Mayors gives a strong awareness of local issues regarding energy and environmental sustainability, and the assurance to resolve them locally thanks, first of all, to Energy Planning. AESS helps the partners in the first phase of energy planning and after within creation of specific energy performance contracts. AESS provides technical support to towns in developing their Energy Plan or SEAP (Sustainable Energy Action Plan), upgrading their building regulations, planning new urban districts, controlling compliance on building documents. 15
16 Main topics Emilia-Romagna region and the Province of Modena: some figures AESS a short presentation ELENA - MODENA 16
17 The Italian Context The financial condition of the Italian Local Administrations is under stress, due to the limitations imposed by the internal stability Pact. Similarly, the capacity of investment is limited by the formula: (net current cost balance) minus (cash flow of the year for investments) greater or equal zero. Consequence is that there is no option for investing internal cash (all available cash is used for emergency investments), nor with loans (there is no anyway room for payment of works in the year), even if the Municipality has money from the yearly profit and loss balance. The only solution is EPC. The internal personnel is not skilled in EPC. 17
18 ELENA Modena approach The Municipalities need technical assistance for EPC and lack money to purchase it at market costs. The Province acts as collector of requests of investments from the Municipality having signed the Covenant of Mayors. The provincial Energy Agency AESS signs the ELENA agreement with EIB and creates a Supporting Unit for the supply of technical assistance. Procurement procedures are EPC, leasing, a few direct investments, some mixed solutions. The procuring agents are the single Municipalities or clusters of them. 18
19 ELENA MODENA The project "ELENA-Modena" is a proposal approved by the EU, that gives 1.4 millions for technical assistance to municipalities with an European Investment Bank contribution; this help will lead to a total amount of 54 millions in energy investments on municipal property. As you can see in the next slides, this project has been contributed in several investments, renewable energy, public lightning and less in energy saving for buildings; the works are in progress and a lot of performance contracts for buildings were developed by AESS before Elena s start up. The duration of energy performance contract is quite long, from 7 to 20 years, and we started our work 10 years ago; now, as well, it s very interesting for us to perform these kinds of project for the second time! 19
20 Financiang of ELENA Modena The European Energy Efficiency Fund (EEEF), received copy of the ELENA - Modena contract between AESS and EIB. A call for expressions of interest will be launched, requesting also financial minimum criteria to be satisfied. A limited number of ESCos, having expressed interest in participation, will be selected for invitation to bid. The specifications of the invitation will mention the possibility to apply to EEEF for funding. The invited ESCos will be addressed to the EEEF at Deutsche Bank (DB). A list of the necessary documents for addressing a financial request to EEEF at DB will be made available to potential bidders. The ESCos will select the type of financial support required to participate in the calls for tender (leasing, loan, equity or mezzanine). DB will provide a reaction to ESCos applications, accompanied by all annexes, in 2-days time. 20
21 Municipalities participation Buildings PV LGs in Modena province: 47 LGs in Modena joining ELENA facility: 16 Investments made: of which: for BUILDINGS for PV for Public Lighting Investements blocked after the earthquakes: PL ELENA breakdown for sectors: 40% 40% 20% PI PV ED 21
22 Municipalities participation Buildings Public Call: Works, Global Service MEASURES: sqm thermal insulation n. 64 solar thermal collettors PV 6,6 MWh heating systems refurbishment (n.29 school building, sport centres) 150 kw biomass boiler PL 22
23 Municipalities participation Buildings Public Call: Works, Global Service Average power (kwp): INVESTMENTS: PV PL 23
24 Municipalities participation Buildings Public Call: Global Service, Project Financing Average number light points: INVESTMENTS: PV PL 24
25 Energy Saving s approach in calls for tenders 1) COMPLIANCE WITH NATIONAL LAWS 2) TECHNOLOGY COMPLIANCE 3) ENERGY RETROFITTING 25
26 TECHNOLOGICAL MEASURES (on buildings and systems) Reduction of the solar radiation on windows through shielding or solar films, Replacement of heating and DHW (Domestic Hot Water) systems with high energy efficiency systems/condensing boilers, Installation of thermostatic valves on radiators, Remote sensed control and adjustment of the heating system, Improvement of the appliances energy efficiency (heat recovery, etc) Street lighting renewal, Building automation systems (time, light, occupancy devices) in common spaces, Installation of PV, solar-thermal, geothermal, biomass systems, 26
27 MAIN GOALS Identify one only organization in charge of management, maintenance and/or energy supply for systems, Keep systems working, Be compliant with obligations in planned maintenance activities, Electricity saving through energy efficiency measures, Reduce the sources of lighting pollution, Get safe and compliant with laws systems. 27
28 An example of Performance contracting Energy efficiency public lighting in Vignola Considered as one of the most relevant result in the framework of Energy for Mayors project, the energy efficiency public lighting project (action foreseen in the related SEAP) has been launched by the Municipality of Vignola in the early The initiative made real through the free technical assistance provided within the ELENA (European Local Energy Assistance) programme was widely promoted since it is one concrete example of public project financed through ESCOs involvement. Elena s project gives an economic help only for the call for tenders start up and we use it to promote our usually work for Municipalities. Without Elena s support, often, when there aren t economical possibility, call for tender s technical costs are covered directly by the winner. 28
29 An example of Performance contracting Energy efficiency public lighting in Vignola The project foreseen the energy efficient renewal of the existing public lighting network and the extension of the network in not yet covered areas. Led lights will be installed in the public gardens while high energy efficiency lights will be replacing the old ones in the streets. Smart (remote sensed) poles will also be installed, allowing to activate further public services such as wi-fi, video-check of streets and buildings, interactivity with users of other public services. 29
30 An example of Performance contracting Energy efficiency public lighting in Vignola Figures well summarising the results as follows: Final investment by the awarded ESCo (after the public Call): 2.7 Mio Lighting points renewed: 2961 Energy saving: 249 GWh/year CO2 saving: 154 tco2 eq Cost saving: - 60% compared to the previous situation 70% of the current public lighting cement supports and over 20 km of the electric lines will be remade. The contract the Municipality has signed with the awarded ESCO will last 20 years, in order for the ESCO to return of the investment made. 30
31 Via Caruso, Modena (Italy) Tel Fax Thanks for your listening! Piergabriele Andreoli (gandreoli@aess-modena.it) 31
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