Energy Performance Contracts
Annual Energy savings: 78,300 kWh
Comprehensive refurbishment of the public lighting system of the Municipality of Gunskirchen
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 municipality of Gunskirchen recognized that their street lighting system required significant refurbishment work and that the technology currently in use would soon be affected by the phasing out of lamps. Furthermore, it would acknowledged that refurbishment the system could offer a large energy saving potential. The local energy group that supports the municipality in the implementation of its local energy strategy was the driver of the project. Political consensus was reached for a comprehensive refurbishment solution covering about 80 % of the municipality’s total street lighting system.
One of the first steps was to undertake a thorough analysis of the lighting points. The operational hours were also analysed and adapted according to the actual needs. In some sections, they could be reduced. In other, due to security reasons, it was necessary to increase operational hours. The objective was to find a good solution for every street.
For the implementation, the municipality hired a planner who carried out a tendering procedure. Five ESCOs were invited to bid and all submitted for the call.
-796,400 Euro (total investment)
-125,300 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.