Energy Services - PU-BENEFS
Contents: (click on titles below to jump to section)
Introduction
Objectives
Outcomes
Impacts
Participants
Workplan
UK Country Report
UK Case Study 1 -
LANGDON HILLS HOUSING ESTATE, ESSEX,
UK
UK Case Study 2 -
Woking Borough Council’s Thamesway
Joint Venture Project
PU Benefs Guidelines for
feasibility studies
For
further information please visit:
www.pubenefs.org
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Introduction
This EU
funded project intends to develop a suitable management
framework for assisting public bodies and especially
local authorities to implement energy services including
energy efficiency, and thus to enhance the market of
energy efficiency and energy services, by providing efficient
tools to meet the needs of public bodies and
facilitating the work of ESCOs.
Opening of
energy markets and use of energy services represents a good
opportunity for local authorities to include energy efficiency
measures in their management, but several problems can occur,
such as lack of knowledge of existing mechanisms, as third party
financing, specificities inducing difficulties to implement
energy services (legislation, accounting schemes...), risk of
losing the knowledge on the energy consumptions.
Concrete
assistance will help the local authorities overcoming their
non-technological barriers, to create a new market for
energy services and thus realise the high energy
efficiency potential in their building stock.
As the
quality of contractual relationships is crucial; model
contracts will be elaborated, taking into account the acquired
know-how in Europe, in a way that public bodies can adapt
them rapidly. Tools (brochure, CD-ROM, web sites) will be
produced facilitating the implementation of energy services.
The
dissemination will ensure an efficient replication of the work
carried out directed to the target groups while associating the
key actors (specific advisory committees). Organisation
of training and dissemination seminars at different
levels complete the promotion.
Expected
result is to create and develop market conditions for third
party financing and energy performance contracting in 8 regions
in 8 countries targeted to public bodies and local authorities
by :
-
disseminating of 8 000 brochures and leaflets (including
best practice examples) in seven languages
-
involving the major stakeholders of public buildings
and ESCOs in eight advisory committees at the regional level
from the beginning of the project run time on
-
inciting through the realisation of fourteen feasibility
studies to concrete project implementation
-
training the civil servants of local authorities and
public bodies in dedicated seminars in each
region/country, touching a minimum of 160 persons with a set
of contract models adapted to the specific needs of local
authorities
-
spreading the projects results and demonstrate the benefits
of energy performance contracting through eight well known
existing web sites, the organisation of eight national
seminars and a European seminar
______________________________________________________________
Objectives
The
objective of the project is to develop a suitable management
framework for assisting public bodies and especially local
authorities to implement energy services including energy
efficiency. This project is intended to have a large effect
on the market of energy efficiency and energy services, by
providing efficient tools to meet the needs of public bodies and
local authorities with the propositions of the ESCOs.
The use of
energy services represents a good opportunity for local
authorities and public bodies to include energy efficiency
measures, but several problems can occur:
-
lack
of knowledge of existing mechanisms, as third part financing
-
specificities that induce difficulties to implement energy
services, due to legislation, accounting schemes, etc.
-
risk
of losing the knowledge on the energy consumptions and its
controlling.
The best practices documents will show public buildings as
shining examples.
This
project is foreseen to have concrete results, to help the
local authorities and public bodies overcoming their non-technological barriers and thus realise the high energy
efficiency potential in their building stock.
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Outcomes of the project
-
Create and develop market conditions for third party
financing and energy performance contracting in 8 regions in
8 countries targeted to public bodies and local authorities
by:
-
Disseminate
8,000 brochures and leaflets (including best
practice examples) in 7 seven languages (English,
Finnish, French, German, Italian, Spanish, Swedish) to a
targeted public
-
Involve the
major stakeholders of public buildings
and ESCOs in eight advisory committees at the
regional level from the beginning of the project run time on
-
Train
the civil servants of local authorities and public bodies in
dedicated seminars in each region/country, touching a
minimum of 120 persons with a set of contract models
adapted to the specific needs of local authorities
-
Spread the project results and demonstrate the benefits of
energy performance contracting through eight well known and
already existing web sites, the organisation of eight seminars with
national wide invitation and a European seminar in cooperation with the European
network of regional energy and environment agencies.
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Impacts of the project
The action will help to improve the market condition for energy
performance contracting and third party investment in the
participating regions/countries. By providing large-scale
information and useful tools, it will have the following
impacts:
-
better apprehension of the importance of energy management
by public bodies and local authorities
-
request for energy efficiency performance in more energy
services contracts
-
implementation of new financing schemes.
The final means is to mobilise the huge energy saving potential
with in the public buildings, which can amount as stated in
several studies to economies between 15 and 35%.
The obtained results in this project will give a new impetus in
the participating regions and countries and create the
conditions for replication demand and dissemination of the
energy efficiency services concept. The implementation oriented
approach in this project will facilitate the transferability of
the project outcomes.
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The target groups are:
· local
authorities (municipalities and their groupings, districts,
regions; directed to the technical and financial services )
· public
bodies (especially those having important buildings : hospitals,
social housing companies, …).
The key participants, apart the target groups, include:
·
energy service companies (ESCO)
·
technical consultants and planners
·
energy suppliers
·
banking institutions.
In each partner region/country will be set up an advisory
committee, including the key actors and also
representatives of the target groups. A certain number of
partners are legally conceived as associations or governmental
organisms, which have as members partly or completely these key
actors already present. This committee will be asked advice for:
·
conduction of the feasibility studies
·
designing of the contract models
· conception,
production and spreading of the dissemination tools.
This mixed
composition of this advisory committee will be helpful to
elaborate really useful and implementation oriented tools, and
will help to disseminate them.
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Work Plan
The project will be divided into 5 work packages:
-
WP 1 :
Study on the specificity of public bodies, their
legal framework and capacity for third party finance
contracting.
This is important, due to the various legislations in the
different countries, but also to the necessarily adaptation
of the contracts and purchasing procedures to public bodies.
This is not “another” basic research, but the use of “best
practise” will help to develop it further, facilitate the
utilisation of present EU work and drive actual adaptation
and implementation in local authorities and public bodies.
-
WP 2 :
Feasibility studies.
These studies intend to find out what specific problems
could be encountered while implementing energy services. The
specifications elaborated in this WP are important, because
they should be further used by public bodies willing to
implement energy services. This is an important part in the
procedure of public tendering, because it defines
clearly the scope of services needed by the public body.
These specifications will serve for the consultation of
ESCOs.
-
WP 3 :
Contracts design.
The contractual nature of energy services is a key
determinant of its success. It is therefore important to
consider and propose models of contracts, because models
proposed by ESCOs will not be necessarily well adapted to
the specificities of public bodies and needs
to adapted to their context. The partners will consider and
valorise the model contracts developed already in the member
states.
-
WP 4 :
Tools for replication.
The objective of this WP is to provide to public bodies and
local authorities in the partner countries tools allowing
them to implement energy efficiency services like a brochure
with best practice examples or a CD-ROM containing the
developed model contracts.
-
WP 5 :
Dissemination and advisory committee :
The project dissemination is designed to ensure an efficient
implementation of the work to the target groups while
associating the key actors. That is why it will include a specific advisory committee,
training seminars
and dissemination seminars at the regional/national
and the European level.
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UK Country Report
Country Specific report
regarding Specificity of public bodies
Download report
HERE
(PDF format)
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UK Case
Study 1
LANGDON HILLS HOUSING ESTATE, ESSEX, UK.
Client: Basildon District
Council
Contractor: Thames Energy Ltd (formerly Waltham Forest Energy
Services)
Project Outline:
Providing efficient and
affordable heating/Hot Water for 556 dwellings and a primary
school. Total heating system was upgraded and new plant
installed including a combined heat and power system.
Objectives.
To provide the most cost
effective solution to the problems associated with the previous
heating and hot water provisions to the site over the past 30
years.
Problems encountered on previous
system.
· Breakdown
to the main plant and including distribution pipe work.
· Fragility
of previous system, incidents of failure across the site.
· High
cost of replacement, given the Council’s legal position to
provide a high level of service to its residents
Description of the scheme
556 Dwellings Comprising 2 Bed, 3
Bed,4 Bed & 6 Bed Houses. The Heating options appraisal
evaluated individual gas boiler systems, electric Night Storage
Heaters and the refurbishment of the old communal heating
system. A cost and benefits analysis showed that a refurbishment
option, with CHP had the lowest whole life cost and had the
least running costs to both the residents and for the housing
authority. With the integration of CHP into the refurbished CH
system the Energy Performance ratings for the 556 houses
improved from 35 to 75 thus leading to warmer homes. The
appraisal had included heat supply to all dwellings on the
estate and also all public buildings. The scheme which
eventually took place did not however include all dwellings and
public buildings due to financial constraints, nor did the
proposed hard wire of the electricity produced from the CHP
happen at the initial stage (Please note that the proposed
scheme is planned to be extended to an additional 17 dwellings
and to provide private wired electricity to all 556 dwellings).
Use of dual fuel for CHP and boilers has been considered in case
of gas supply interruptions and scope for fuel switching should
gas prices escalate in the future. After extensive resident
consultation, Basildon District Council members granted approval
for the scheme implementation in March 1999. Thames Energy Ltd
(formerly Waltham Forest Energy Services), were selected as the
private sector partner and an energy supply and management
agreement was signed with the Council in August 1999 for a 10
year period. Works on site commenced in Jan 2000 and was been
phased through to ensure minimum disruption to the residents
service.
The project became fully
operational in January 2001. The scheme capital costs were
co-financed with an allocation of 20% by the Local Authority,
80% funded by the ESCO. From the financial analysis it was noted
that the upgraded DH/CHP option presented a payback period
superior to the individual heating system option. This was
because the CHP plant has a net income through the sale of
electricity.
Works carried out:
-
Full boiler house plant
upgrading and control modifications.
-
Upgrading the distribution
pipe work including re-insulation.
-
Replacement of hot water
cylinders, heat meter controls in dwellings.
-
Installation of 420Kwe gas
fired Combined Heat and Power plant.
-
Fabric insulation/ventilation
improvements to current building regulations.
Scheme Appraisal Details
|
System type |
DH + CHP |
|
Agreement type |
TPF CEM |
|
Nominal Fuel use
(kWh)/yr |
26,000 |
|
Av. Cost p/KWh |
0.98 |
|
Emissions/dwelling/year: |
|
|
CO2 kg |
3900 |
|
Nox kg |
5.85 |
|
% CO2
reduction |
91.35 |
|
Annual opportunity
costs: |
|
|
Heat & HWS |
£254.8 |
|
Repair & Maintenance |
£50.0 |
|
Marginal Savings |
£274.8 |
|
Additional
Electricity income/dwelling |
£21.21 |
|
Scheme
cost/contribution |
£1,167,600 |
|
Unit cost or
Contribution/dwelling |
£2,100 |
|
Average Weekly Charge |
£4.90 |
|
Payback (years) |
7.63 |
|
Opportunity value of
Pay Back (years) |
1.74 |
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UK Case Study 2
Woking Borough Council’s Thameswey Joint Venture Project
Introduction
Woking Borough Council
already holds claim to being the most energy efficient
council in the UK and is also the only Local Authority to
supply customers with electricity on private wire combined
heat and power (CHP) networks. The council set up an Energy
and Environmental Service Company (EESCO) to capitalise on
its intellectual property in small scale community CHP to
enable large scale district energy CHP to be implemented,
primarily with private finance.
Who’s involved?
Due to the uncertainty of the
legal issues surrounding public/private partnerships the
Council received £25,000 from EST to explore what was
legally possible for local authorities to participate energy
service companies. Following leading counsel’s opinion and
discussions with the DETR and the DTI, the Council formed
its wholly owned EESCO, Thameswey Ltd (TW), structured to
comply with the legal advice. The purpose of TW is to enter
into public/private joint ventures to deliver its energy and
environmental strategies and targets (primarily energy,
tackling fuel poverty, waste, water and green transport).
TW has set up an unregulated
public/private joint venture Energy Services Company called
Thameswey Energy Ltd (TEL) that brings together the Local
Authority with the Danish Company ESCO International A/S
(wholly owned by Hedeselskabet Miljo og Energi A/S, a Danish
green energy company). Its projects are financed with
shareholding capital and private finance. The joint venture
allows TW to escape capital controls that would be imposed
on a purely local government venture. This means they can
implement large scale projects, primarily with private
fiancé with the Council’s shareholding capital coming from
the Council’s energy efficiency recycled fund, which in
itself is recycled with each Thameswey project. The local
authority ownership must be less than 20% otherwise TEL
would be treated as if it was a local authority company and
caught by central government capital controls. In this case
the Council owns 19% and the Danish company owns 81% of the
private company.
Services offered
Thameswey Energy Limited
provides green energy services to other local authorities,
public bodies and the private sector both within and outside
Woking, within local government wires. TW has taken on the
running of the following existing Woking Borough Council
Schemes, and plans to develop and expand them:
-
Free energy efficiency
advice for local residents and SMEs
-
The Fuel Rich Insulation
Discount Scheme (cavity wall and loft insulation )
-
Fuel poor Energy
Efficiency Schemes (Council grant aided schemes which
top up the HEES and other grants to provide full
insulation and other energy conservation measures)
-
Condensing Boiler Home
Energy Rating Scheme (bulk procurement discount scheme
that also provides energy ratings and energy advice).
Thameswey Energy Ltd schemes
include:
-
The first phase of the
first town centre private wire CHP/absorption cooling
district energy system in the UK. The project comprises
1.46MWe of CHP, 1,4 MW of heat fired absorption cooling
and 160m3 of thermal storage distributed over
5 buildings in Woking Town Centre. Buildings are
interconnected with heat and chilled mains and high
voltage/low voltage private wire networks. The CHP
system achieves a minimum of 130% sustainability in
electricity – i.e. having satisfied its own demand, the
site exports a minimum of 30% surplus power over the
public wires to sheltered housing residents and other
local authority buildings. In the event of a power cut,
the system continues to operate in ‘island’ mode. The
system is fully exempt from the Climate Change Levy and
as the system grows, this benefit will be extended to
other local businesses. This energy is green and fits in
with the Council’s targets on energy and CO2
reduction and environmental targets under the LA21 and
HECA programmes. This project received a grant of
£33,000 from the EST
Progress and next steps
-
TW aims to export the
joint venture concept to other local authorities.
-
TW’s share of any profits
is recycled into other energy and environmental services
projects under its articles of association.
-
As part of its green
energy policy the Council is implementing the first
integrated photovoltaics/CHP system in the UK. The
project at Brockhill will have the largest PV roof in
the South East and should provide all its electricity
needs. A second PV system will be installed at the Civic
Offices connected to the Woking Town centre private wire
CHP district energy system. The project is supported by
a £75,000 grant from the EST under Seeboard’s Energy
Efficiency Standards of Performance 2 programme.
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