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EXPERTS’ MEETING

Notes from the ExCo meeting in Seoul discussing the review of Task X work on performance contracting, including definitions, barriers, opportunities, and recommendations for expanding the market.

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EXPERTS’ MEETING

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  1. EXPERTS’ MEETING Graz, Austria 10-11.5.2007 Seppo Silvonen

  2. 1/2 Notes from the ExCo meeting in Seoul 19-20 April Concept paper on smart metering to be prepared by Tasks XI and XVI Concept paper on branding of energy efficiency to be prepared by India, assisted by FI, NL, SE, UK Task XVI subtask on financing: considerations by A, FI

  3. 2/2 Notes from the ExCo meeting in Seoul 19-20 April Task definition meeting on DSM and Climate Change in September Next ExCo meeting in Brygge, Belgium, on Oct. 10-12, 2007 End of term for the DSM IA at the end of 2008: considerations of the continuation

  4. Subtask 1: Review of Task X work´Performance Contracting´ The objectives of Subtask 1: - to review and internally evaluate the Task X work done to propose definitions and classification of approaches for different types of energy services to summarize other major international work done and ongoing to summarize results achieved and lessons learned to provide a menu of possible market development activities to help the new participants in the Task to catch up and start from the same level

  5. Subtask 1: Review of Task X work´Performance Contracting´ The participating countries and organisations: France ADEME Finland MOTIVA Italy CESI, SFR Japan NEDO, HPTCJ the Netherlands NOVEM Norway NVE, ENOVA Sweden SEA USA NAESCO

  6. Subtask 1: Review of Task X work´Performance Contracting´ The objective of the Task: ´to facilitate the greater use of Performance Contracting between professional building owners and service companies´

  7. Subtask 1: Review of Task X work´Performance Contracting´ Issues studied: - types of ESCOs - services and products offered - market segments - EPC process - size of ESCO industry in different countries - contract models and arrangements - barriers and opportunities - government policy

  8. Subtask 1: Review of Task X work´Performance Contracting´ Structure of the Country Reports: General energy context Definition of ESCO/Performance Contracting How ESCOs operate Main issues in Performance Contracting Legal context Obstacles and opportunities Government policies Lessons learned Case studies

  9. Subtask 1: Review of Task X work´Performance Contracting´ Working postulate: Raising the credibility of EPC and expanding the market can be done through information demonstration projects accreditation of ESCOs performance guarantees procurement guidelines EPC process

  10. Subtask 1: Review of Task X work´Performance Contracting´ Barriers pointed out in the Country Reports: slow movement on the buyers’ side lack of understanding of the opportunities lack of information time-consuming work for raising interest cost-consuming work for establishing a baseline lack of public recognition lack of generally accepted procedures for EPC projects

  11. Subtask 1: Review of Task X work´Performance Contracting´ Barriers pointed out in the Country Reports: absence of a bidding system (procurement rules) lack of general contract conditions lack of technical experts lack of suitable financial institutions different responsibilities for investment and operation low energy prices costly tendering procedure

  12. Subtask 1: Review of Task X work´Performance Contracting´ List of contents TASK X 1. Purpose of the Review 2. Objective of Task X 3. Definitions Types of ESCOs Services offered Barriers Opportunities 4. Procurement&Contracting ESCO project cases in Task X countries

  13. Subtask 1: Review of Task X work´Performance Contracting´ List of contents TASK X (continued) 5. Recommendations of Task X Credibility and trust Process&procurement Contracts Financing Measurement&Verification Market 5. Conclusions

  14. Congruence of Task X Results with Task XVI Targets

  15. Subtask 1: Review of Task X work´Performance Contracting´ List of contents(continued) OTHER INTERNATIONAL PROJECTS IN THE FIELD OF ENERGY SERVICES Eurocontract www.eurocontract.net CUBENet www.sisailmatieto.com/cubenet IEA ECBCS Annex 46 www.ecbcs.org/annexes/annex46.htm

  16. The various bids can be made commesurable by calculating the net present values of the cost savings from the set time period QUBENet - Municipal ESCO Concept Report

  17. Task XVI: Subtask 2 (NIAs) -Targets, Activities and Instruments prioritized by the participants prioritised targets and expected results by the national experts prioritised activities by the national experts for reaching the targets prioritised instruments by the national experts for the common activities

  18. Subtask 2: National Implementation ActivitiesPriorities Activity areas A. Capacity build-up, training of market actors B. Development of standards/templates, model contracts, procurement C. Participation in the activities of the centre of excellence D. Adoption of the manuals E. General market information and development F. Developing model projects, projects for selected market segments G. Designing, elaborating and testing of innovative ES´s and financing models

  19. Subtask 2: National Implementation ActivitiesPriorities Targets and expected results 1. Enlargement of the ES-market 2. Higher qualilty of ES´s and implementation capacity 3. Contribution to the implementation of the Energy Services Directive 4. Integration with the international ES-community

  20. Subtask 2: National Implementation ActivitiesTarget sectors

  21. Subtask 2: National Implementation Activities Barriers to the implementation of ES´s lack of information and knowledge: B, FI, NL lack of technical readiness (audits, evaluation of the savings): B insufficient legal framework: B lack of financing: B lack of resources in the implementing organisations: B lack of interest in co-operation between the key actors: A convincing the private sector target groups of the value of ES´s: A, FI, J difficulty in making the ES-products understood among the potential clients: A, FI, J large diversity in offered products/services: NL few ES-service suppliers. FI, NL duration of the project cycle: NL difficulty in including the ES-costs in the rents by the housing associations: NL

  22. Subtask 2: National Implementation Activities

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