NATIONAL ROADSHOW EVENT Croatia/ Slovenia/ Latvia Radoslav Vician e-code, Slovakia

1. NATIONAL ROADSHOW EVENT Croatia/Slovenia/Latvia Radoslav Vician e-code, Slovakia The basic concept of EnPC-INTRANS project

2. 10 Partners from 9 Countries Germany Ukraine Croatia Greece Slovenia Slovakia Romania Serbia Latvia

3. Objective of the Project Develop local capacities of municipalities to set-up and use EnergyPerformance Contracting (EPC) for the financing of investments in energy efficiency improvements in public buildings and services. Scope: • Evaluation and adaptation of best practices, • Stakeholder consultations, • Road shows, • Training of trainers, • Webinars, • E-learning, • Seminars.

4. Project profile • Project duration: March 2015 - February 2017 • Project budget: 1.983 Million Euro • Major milestones: • Project kick-off meeting (April 2015), • Baseline study completed and website operational (August 2015), • Adapted business models approved (November 2015), • Training concepts and programme approved (December 2015), • Training programme completed (February 2016). • Expected results: • 2,000 experts trained on the demand side of EPC for public buildings and services, • 500 new buildings covered by EPC projects triggered by trained experts. • Expected impacts: • 60-90 GWh energy saved per year, • 60-90 million new investments triggered.

5. Saved energy cost used for the repayment of ESCO investment(contracting fees) Continuousenergy cost savings of the public building owner(20-40 %) ESCO invests in EE improvementsof public buildingson the basis of an EPC business model End of EPC contract(investment paid back) ESCO investment (20-40% guaranteed energy savings) Energy costprior to EE investment Annual energy cost Energy cost after EE investment ESCO = Energy Service CompanyEPC = Energy Performance ContractingEE = Energy efficiency EPC contract period(5-10 years) Source: GIZ Energy Performance Contracting (EPC) • “… is a form of ‘creative financing’ for capital improvement which allows funding energy upgrades [in whole or in part] from cost reductions.” (JRC-IET) • “… is the procurement of works and services on the basis of net present value.“ (EBRD)

6. Energy Performance Contracting (EPC) Public building owners can finance energy efficiency measures in general by means of: • Commercial and bank credit (loans) • National or international subsidy programs and schemes, if available • Own financing (budget-financed) • Energy Performance contracting (EPC) MAINTENANCE & REPAIR FINANCING Financing is an important part of the services covered in an EPC. For many potential customers financing is the most attractive part of EPC services for public buildings. EPCfull service spectrum PLANNING OPERATIONS RISK TRANSFER CONSTRUCTION ENERGY MANAGEMENT

7. EPC business models Guaranteed energy savings (compared to baseline) No investment(prior to investment stage) Planned investments

8. Current results of the project • Stakeholder consultations – 443 stakeholders provided their feedback. • Baseline study – used as baseline for the monitoring of impacts achieved by the project in terms of new EPC projects triggered in public buildings. • Trainings of trainers – 51 trainers in Bratislava, Slovakia. • Training programme: • Webinars (A, B, C), • on-site trainings (local languages), • e-learning courses. • Road show events – scheduled in the 2nd reporting period. • Final conference – 15th November, 2016 in Stuttgart-Esslingen/ Germany.

9. Current situation Still low energy performance of public buildings Energy costs of public buildings in Slovakia – more than 300 mil. € Estimated savings Minimum 35% with the utilisation of EPC At least 60% after complex reconstruction In principle no EPC projects EPC in public buildings in Slovakia

10. Main findings from Slovakia regarding EPC Lack of information and understanding of EPC projects With good return rate but not attractive enough Structural funds (SF) seen by municipalities as a “magic potion” SF – 5% co-financing SF will not be for everyone SF will not be here forever EPC in public buildings in Slovakia

11. Main findings from Slovakia regarding EPC Less attractive but systematic and consistent Cheaper is not always better Business – business relationship – quality matters SF projects often financially overvalued and technically underdeveloped SF projects – no energy saving guarancies for the future EPC in public buildings in Slovakia

12. Main findings from Slovakia regarding EPC There is no way to do it without proper analysis Contracts are the crucial point Savings must be verifiable Templates help The supplier bears the risk EPC in public buildings in Slovakia

13. Main findings from Slovakia regarding EPC Monitoring pays back System cannot guarantee savings by itself Qualified human resources are another crucial point EPC in public buildings in Slovakia

14. Main findings from Slovakia regarding EPC Financial intensity of EPC projects makes them not always suitable for every situation Complex building reconstructions 40 – 60 % savings But long term return rates Technological renovations 20 – 30 % savings Return rates typically 8 years and lower EPC in public buildings in Slovakia

15. EPC in public buildings in Slovakia Psychiatric ward in the town of Plešivec Reconstruction of heating systems and water heating systems – replacement of the heating system combined with the water heating system, installation of regulatory heating systems, installation of an inteligent monitoring and regulatory system Reconstruction of laundry washing systems – complex reconstruction Use of own drinking water source – installation of new technology for the safety use of the water from own well

16. EPC in public buildings in Slovakia Psychiatric ward in the town of Plešivec Guaranteed savings – 1,484 Mwh/year Total savings in EUR – 132,000 EUR without VAT/year Total investment - 1,22 mil. EUR without VAT fully covered by the supplier Project preparation – 2009 – 2010 Project implementation - 2013 Contractual period – 10 years

17. EPC in public buildings in Slovakia Psychiatric ward in the town of Plešivec • Preparatory phase • Analysis of technical state of the buildings and energy systems • Preparation of documentation for public procurement • Public procurement • EPC supplier – Siemens s.r.o. • Financing • 40% project European Energy Service Initiative • 60% EPC supplier

18. EPC in public buildings in Slovakia Psychiatric ward in the town of Plešivec

19. EPC in public buildings in Slovakia Psychiatric ward in the town of Plešivec

20. EPC in public buildings in Slovakia Modernisation of heating systems and buildings in the city of Malacky • City sports hall – modernisation of central heating system, heating systems overall (pipelines, etc.), ventilation and lighting • City cinema – optimising of heating system, building insulation, replacement of windows and doors • Centre of social services - optimising of heating system

21. EPC in public buildings in Slovakia Modernisation of heating systems and buildings in the city of Malacky • Total investment – 0.442 mil. EUR without VAT fully covered by the supplier • Project preparation – 2013 • Project implementation - 2014 • Contractual period – 10 years • In the first 2 years the city of Malacky will co-finance investments in the amount of 68,898 EUR by the means of increased payments

22. EPC in public buildings in Slovakia Modernisation of heating systems and buildings in the city of Malacky

23. ThankYoufor Your Attention!!! More about EnPC INTRANS project:www.enpc-intrans.eu Radoslav Vician rado@e-code.sk www.e-code.sk