Opportunities and barriers to unlock the financing of energy efficiency investment Experience with energy performance contracting to finance investment in Poland Janusz Mazur Prezes Zarządu POE ESCO Sp. z o.o
DEVELOPING OF ESCO FORMULA IN POLAND First steps of esco formula in Poland 1990-2000 (Dalkia, Prowinex, Finesco, ESCO, Ministry of Defense, Harpen, DZT, MVV, ES System, etc.) Second stage (support from: The World Bank, The EBRD: POE ESCO Krakow, Siemens, Dalkia),ECO Opole, CZE Eltast, Ryszard Śnieżyk, Cofely (Auxima) and many others)
THE BIGGEST ESCO PROJECTS IN POLAND Street lighting in Krakow (40 000 lamps) 1997-2007, realization consortium of companies ES-System, Elektrim. GEF Program (thermal-modernization 33 public buildings in Krakow and Malopolska region), 2005-2008, repayment till 2017, realization Przedsiębiorstwo Oszczędzania Energii ESCO. Radzionków Community, thermal and electricalmodernization 5 educational buildings in formula PPP Public Private Partnership combined with esco formula, 2010, repayment till 2020, realization Siemens.
MAIN AREAS OF ESCO ACTIVITIES IN POLAND Street lightings: communities Thermal modernization: hospitals, schools, residentials (insulation of walls and roofs, modernization of district heating installations new radiators and thermostatic valves, replacement of windows, Demand Side Management fully automated heating nodes or boilers) Heat sources (HOBs): communities, government, the Ministry of Defence, industry Small CHP mainly industry Interior Lighting - halls, warehouses, offices, schools Energy management (optimization of tariffs and demanded power, negotiations of prices, purchasing of energy in balancing group for many customers) Boiler houses fired by biomass (very small scope - biomass market is broken by the big CHP fired by coal) Industry (lighting, passive electric power, CHP, electric motor driving, HVAC, compressed air, technological processes, energy recovery and ventilation.
ESCO IN POLAND Type of ESCOs - Energy services and supply companies, manufacturers of building automation & control systems Potential of market 30 companies, between 5-10 very active Euro10-25 mln ESCO Association only unformal meetings 3-5 companies ISO 9001:20008
BARRIERS FOR ESCO FORMULA DEVELOPMENT Regulation of the Minister of Finance of 2010 PPP, project in esco formula increases public debt, even though neutral for their budget Competition with thermal renovation subsidies, EU grants and other cheap money Street lighting - shameful hindering the modernization by the energy suppliers - owners of luminaires Lack of bank products for long term financing (guarantees, factoring, loans) Lack of legal regulations for esco
OPPORTUNITIES Energy Efficiency Act 2011 (very difficult unfortunately) Activities of EBRD, KAPE, NFOŚiGW and several associates and foundations (European Climate Foundation, Instytut Ekonomii Środowiska, Instytut na Rzecz Ekorozwoju, FEWE). Popularization of energy efficiency policy. Translation to Polish and dissemination by FEWE The International Performance Measurementand Verification Protocol - IPMVP
CONCLUSIONS PROPOPOSITIONS OF CHANGINGS IN THE LAW ESCO / EPC titles needs to find place in the Polish law on: Energy Energy efficiency Tax Financial Accounting Financing in formula ESCO must be officially sanctioned by the Ministry of Regional Development and Ministry of Environment as a form of collection of own resources by potential beneficiaries of grant programs (such as credit and leasing).
THANKS FOR YOUR ATTENTION Janusz.Mazur@esco.krakow.pl