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ENERGY-SAVING PPP CONTRACTS : PUBLIC LIGHTNING. Boštjan Ferk, Director Institute for Public - Private Partnerships , Slovenia E: bostjan.ferk @pppforum.si ,  S:  www.pppforum.si. GREEN PPP PROJECTS. Public lightning Solar Power Stations Energy Efficiency in the Building Sector

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Energy saving ppp contracts public lightning

ENERGY-SAVING PPP CONTRACTS: PUBLIC LIGHTNING

Boštjan Ferk, Director

Institute forPublic-PrivatePartnerships, Slovenia

E:[email protected], S: www.pppforum.si


Green ppp projects
GREEN PPP PROJECTS

  • Public lightning

  • Solar Power Stations

  • Energy Efficiency in the Building Sector

  • Cogeneration


Sources of finance for green projects
SOURCES OF FINANCE FOR GREEN PROJECTS

  • Public Procurement (public sources)

  • Public-Private Partnerships (private sources)

  • EU Funds

  • “Self-financing “


Renovation of public lightning system
RENOVATION OF PUBLIC LIGHTNING SYSTEM

typical green PPP project

suitable for project financing

Financing, Planning, Installation (Renovation), Maintenance (private partner) + option to include supply of electricity

periodical payments after renovation (public partner)


Project financing of public lightning project
PROJECT FINANCING OF PUBLIC LIGHTNING PROJECT

financing the project with FUTURE savings

life cycle costs of the project must not exceed future savings


P rinciple of duration and participation model
PRINCIPLE OF DURATION AND PARTICIPATION MODEL*

*Sourse: Guideline for Saving Contracting in Street Lighting, 2006


Challenge how to define future savings
CHALLENGE: HOW TO DEFINE FUTURE SAVINGS

  • mostly used: comparison of the cost of electricitybefore/after the project - WRONG

  • it is impossible to exactly predict future savings

  • future cost of electricity depends on:

    • price of electricity

    • number of lights

    • efficiency of lights technology

    • active time

    • failures of lights

    • ...


How to avoid mistakes in ppp for public lightning
HOW TO AVOID MISTAKES IN PPP FOR PUBLIC LIGHTNING?

involving INDEPENDENT technical expert

exact overview of the existing situation

involving private partner in all phases of the project

contract should include mechanisms to deal with future conflicts


Why ppp for green projects
WHY PPP FOR GREEN PROJECTS?

  • tehnically challenging projects

  • possibility to involve private sector in all phases of the project

  • potential risk sharing

  • private financing


Thank you for your attention!

Boštjan Ferk, Director

Institute forPublic-PrivatePartnerships, Slovenia

E:[email protected], S: www.pppforum.si


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