Energy Performance Contracts Street Lighting Pilot Project in Cyprus

Transcription

1 Energy Performance Contracts Street Lighting Pilot Project in Cyprus Anthi Charalambous Director Cyprus Energy Agency (CEA) Dr Venizelos Efthymiou Executive Manager Networks Electricity Authority of Cyprus (EAC) 1

2 Few words about the Cyprus Energy Agency The Cyprus Energy Agency was established in 2009 with the support of the European Commission through the Intelligent Energy Europe programme and the Cyprus Union of Communities Promotion of Renewables Promotion of energy efficiency Promotion of sustainable transport Local Sustainable Energy Planning 2

3 Introduction The European Union has focused interest on security of energy supply, energy reserves, environmental protection, competitiveness of European economy and the local/regional development targets Nowadays, approximately 50% of the energy needs of member states is covered by imported energy. In Cyprus this percentage is 96%. The energy consumption in member states is increasing approximately 1-2% every year. This trend will increase CO 2 emissions estimated to be 18% by 2030 (compared to 1990)! 3

4 Electricity generation forecast for Cyprus The Economic problems in Cyprus have affected the electricity consumption. It is forecasted that growth is expected after 2016 and this is going to be lower than before 4

5 Green Paper: Lighting the Future Based on the Green Paper: Lighting the Future, accelerating the deployment of innovative lighting technologies, COM (2011) 889, the European Commission recognizes the large amount of energy spent on lighting at EU level, which amounts to 14% of total energy consumption in the EU. Proposes the creation of several initiatives to develop a policy on the subject of lighting to increase energy efficiency in street lighting. The "Green Paper reveals that several studies predict that SSL (Solid State Lighting) will account for more than 70% of Europe's general lighting market by

6 Energy Efficiency Directive The recent Directive on Energy Efficiency 2012/27/EU, requires (by decision of the Member State) from energy distribution utilities to achieve cumulative annual savings in final energy use equal to at least 1.5% per year, from 2014 to

7 Existing situation in street lighting Local Authorities Owner of 25% of the SL supports Purchase of electrical energy & maintenance Responsible for street lighting Utility company DSO Maintenance contract Owner of 75% of pole supports 7

8 Existing situation in street lighting The electricity consumption of street lighting is not more than 2% of the total national electricity consumption, It is a priority for local authorities who pay annually a significant amount (5-10%) of their annual budget for energy and maintenance needs of street lighting. 16 Local Authorities of Cyprus are pushing hard for LED adoption. The total consumption of electricity for street lighting in the 16 Local Authorities in 2011 was kwh at a cost of

9 Local Authorities Commitments "Covenant of Mayors : commitment to exceed the EU objective to reduce CO2 emissions by 20% by ( "Pact of Islands : Local authorities have introduced the island s political obligation to help achieve sustainability goals of the European Union for the year ( 9

10 Local Authorities Commitments Local authorities from Cyprus that have signed either the "Covenant of Mayors" or the "Pact of Islands" or both, have developed in collaboration with the Cyprus Energy Agency, Sustainable Energy Action Plans to implement measures to achieve the EU sustainability goals of The most important measure included in the action plans of local authorities is the upgrading of the street lighting with a two-fold target: to save energy and hence reduce carbon emissions, reduce their energy costs. 10

11 Local Authorities Commitments through SEAP implementation Α/Α LOCAL AUTHORITY CoM PoI 1 STROVOLOS 2 LARNACA 3 LEFKOSIA 4 LAKATAMIA 5 PARALIMNI 6 ARADIPPOU 7 AGLANTZIA 8 ENGOMI 9 AGIOS ATHANASIOS 10 LATSIA 11 IDALION 12 YERI 13 ERGATES 14 POLIS CHRYSOCHOU 15 LEFKARA 16 PSIMOLOFOU 11

12 Local Authorities Commitments SEAP EXPECTED CO2 REDUCTION [ton/year] CO2 Emission in baseline year [ton/year] CO2 Emission in 2020 [ton/year] Reduction of CO2 Emission [%] Agios Athanasios 18, ,155 83,744 20% Aradippou 35, , ,676 20% Dali 14,492 67,945 53,169 22% Ergates 5,202 21,077 16,862 20% Geri 14,070 60,871 47,939 21% Lakatamia 57, , ,210 22% Larnaca 105, , ,378 20% Latsia 29, , ,092 22% Lefkara 1,503 6,339 4,412 30% Paralimni 34, , ,277 20% Polis Chrysochou 6,762 27,658 21,753 21% Strovolos 105, , ,952 20% Psimolofou 2,735 11,664 9,167 21% Aglantzia 43, , ,513 20% Engomi 15, , ,039 24% Lefkosia 40, , ,000 22% TOTAL 530,433 2,641,385 2,090,185 21% 12

13 Existing situation in street lighting ,00 S/L EXPENDITURES , , , , ,00 0,00 13

14 kwh Existing situation in street lighting , , Mean annual consumption increase: 3% , , Mean annual expenditure increase 9,7% , , S/L expenditures , S/L consumption

15 Existing situation in street lighting 0,25 kwh average cost 0,20 0,15 Mean annual cost increase kwh: 6,5% 0,10 All the costs of the tariff have been included 0,

16 Existing situation in street lighting Total number of lamps juin-12 2% Mean annual energy consumption rate increase kwh: 3,8% This rate differs between the developed and less developed areas as regards the construction. For instance this rate for developing areas of Psimolofou and Idalion is 11,1% while for more developed areas of Nicosia and Larnaca just 1,1%. 7% 7% 13% Other 71% HPS50W HPS70W HPS150W HPS250W HPS lamps: 98% of total 16

17 Expected results Summary of the action Total number of light fixtures to be replaced: Types of new light fixtures to be installed: 13% LED 30W - 72% LED 40W - 8% LED 80W - 7% LED 130W Cost of purchase: Labour Cost of replacement : Expected energy saving per year: 48% (12-18 GWh) Expected CO 2 reduction per year: tones Cost reduction due to CO2 allowances per year Elimination of maintenance cost per year Cost reduction for street lighting electricity purchase per year: * Το εύρος εξοικονομήσεων περιγράφει τις εξοικονομήσεις στις αρχές τις περιόδου (2014) και στο τέλος (2025) 17

18 HARD WORK Project idea Money box (Banks) Studies 18

19 EU Instruments to finance projects 19

20 Flexible instrument covering a range of projects 20

21 eeef The European Energy Efficiency Fund (EEE-F) was created to assist investments in order to save energy, increase energy efficiency and promote renewable energy sources, especially in urban areas, to achieve at least 20% energy savings and reduction greenhouse gas emissions / carbon dioxide (GHG/CO2). The Fund offers a broad range of financial products such as loans, guarantees, technical assistance or participation in local, regional level to promote sustainable energy investments. 21

22 eeef The Technical Assistance (TA) supports stakeholders to implement viable investment projects to finance energy saving (technical assistance) up to 90% by the European Commission. Eligible costs are those necessary for the preparation, implementation and financing of the investment program. This TA can be provided, for example, feasibility and market studies, for carrying out energy audits, engineering design fees, preparing tenders etc. 22

23 Contract Economic Model proposed CEA is the beneficiary of receiving the TA TA Financing 90% Loan payback Loan 23

24 Technical Assistance (TA) Facility attached to eeef Selection process After you have spent 1 minute to create your account, you have to be ready to fill in the data requested for the online questionnaire! For the Street Lighting Project we spent 8 months to prepare the preliminary study and collect the necessary political and other approvals In July 2012 the preliminary online application was submitted 24

25 Technical Assistance (TA) Facility attached to eeef Selection process The investment advisor sends the full TA application if the preliminary application is approved The investment advisor may request info related with TA The Beneficiary (CEA) had to provide total cost, contribution to 2020 targets And other info requested in the TA doc The Deutsche Bank performs the eligibility checks Investment size at least 20 times The TA request, other instruments, 10% co-financing etc European Commission Decision Approval under conditions 25

26 Failure to secure the support of eeef Although the partnership (CEA+16 Mayors / Communities + DSO as ESCO) agreed on all issues of the project the financial support from eeef did not materialize due to high interest rate from the site of the bankers. This was attributed to the bad economic situation in Cyprus. The partners are not giving in however, and our decision is to include project financing in the tender procedure. 26

27 Street Lighting Pilot Project Steps to follow Preliminary study and securing of formal approvals of all partners Comprehensive study on the street lighting situation Mapping of existing street lights (using GIS) Market research of available technologies Evaluation of results Scenarios for replacement of existing lights Feasibility study/analysis Evaluation of results/selection of the best scenario Implementation schedule Terms of reference Tender Evaluation of the tenders and award Project execution 27

28 Street Lighting Pilot Project Type Height Distance between luminance Width of the road Choose the most appropriate 28

29 Street Lighting Pilot Project Black spots in avenues Black spots in avenues 29

30 Street Lighting Pilot Project Black spots in urban areas 30

31 Street Lighting Pilot Project Insufficient lighting in urban areas Insufficient lighting in urban areas 31

32 Street Lighting Pilot Project Best result 32

33 Annual Energy cost ( ) Expected results Baseline scenario Energy Efficiency scenario 33

34 Annual Energy cost ( ) Expected results Baseline scenario Energy Efficiency scenario 34

35 Annual Energy cost ( ) Expected results Energy Saving Contract *Example of illustration only 1 st option Short term contract Baseline scenario Energy Efficiency scenario 35

36 Annual Energy cost ( ) Expected results Energy Saving Contract 2 nd option Long term contract *Example of illustration only Baseline scenario Energy Efficiency scenario 36

37 Thank you for your attention MAKING A FUTURE TOGETHER WITH ENERGY EFFICIENCY Electricity Authority of Cyprus 11 Amfipoleos, 2025 Nicosia Cyprus Energy Agency Lefkonos, 1011 Lefkosia Tel , Fax [email protected] 37