Energy Performance Contracts
Annual savings of 130,900 kWh
Complete refurbishment of the public lighting system
Complete refurbishment of the street lighting system of the Municipality of Bad Schallerbach (791 lighting points)
Energy efficiency improvement measures, such as street lighting refurbishment with LEDs, often require significant upfront investments. This is a major barrier for most municipalities in Europe. In many cases, Energy Performance Contracting (EPC) can offer a solution to overcome this obstacle. EPC works best where technologies with short payback times are available.
The regional government of Upper Austria started it first programme for EPC market development in 1998.
Two fold approach:
- financial support for contracting projects
- facilitation service by the regional energy agency (ESV)
Facilitation service in Upper Austria:
-Focus on delivering information and specific support to EPC clients, (potential) ESCOs and other financing bodies
-Working closely helps to increase know-how and trust in the EPC model
-More than 200 contracting projects supported
-Areas: street lighting, EPC in buildings and industry, renewable heat contracting
-More than 30 ESCOs offer service in the region
Municipality of Bad Schallerbach, Upper Austria
The original objective was to refurbish only the sections of the street lighting system that were in dire need of replacement. However, after realizing the extend of the work required, the municipality decided to develop a holistic refurbishment concept for the entire street lighting system. The decision was taken to carry out the project using an EPC model. Among others, reasons for this were the availability of an EPC facilitation service and a dedicated regional support programme in Upper Austria.
-354,600 Euro (total investment)
-196,400 Euro (financed by the EPC project)
EPC contract duration: 10 years
TECHNICAL & FINANCIAL DETAILS
Energy Performance Contracting (EPC) - ESCO
KEY SUCCESS FACTORS (REPLICATION POTENTIAL)
A strategic approach in reaching out to all target groups and stakeholders and providing them with concrete and situation-specific information is needed in early phases of the EPC market development. “Explain, explain, explain” is the motto to be followed. Good practice examples relevant for the specific context (such as this one) are very helpful.