OÖ Energiesparverband (ESV) is mentoring about EPC for public lighting

The mentor ‘OÖ Energiesparverband (ESV) (AT)’ and mentees ‘Western Development Commission(ΙΕ)’, ‘AE3R Ploiesti/Prahova (RO)’, ‘Municipality of Maia (PT)’, ‘Coimbra Region (PT)’  and ‘Black Sea Energy Cluster (BG)’ of the 3^rd Learning Group for Public Lighting participated in two online peer learning sessions. +Mentors' Corner

Energy efficiency improvement measures often require significant upfront investments. In many cases, Energy Performance Contracting (EPC) can offer a solution to overcome this obstacle. A well-functioning contracting market can contribute to achieving significant increase in energy efficiency and long-term energy and cost savings. Upper Austria was the first region to implement a dedicated programme to overcome barriers of Energy Contracting market development.

The regional government started its first programme for EPC market development in 1998.

The programme supports energy efficiency projects and investments in renewable energy technologies in the public and business sectors. The key to the programme's success is the combination of a strong supporting facilitation service (information & advice services offered by the regional energy agency) and a financial incentive offered by the regional government. Overall, this has led to a functional and well developed EPC market in Upper Austria with many EPC projects implemented each year. More than 200 contracting projects were supported (about 100 in municipalities, 50 in companies and 50 in institutions), with a total investment of around 65 million Euros. In Upper Austria more than 30 ESCOs offer services in the region.

The mentor ESV presented how EPC has found its place in the portfolio of sustainable energy solutions in Upper Austria.The learning activities officially started on the 24^th of July 2018 (Step 1)

During Step 2 of the Learning Programme, a second online session took place on the 20^th of November 2018. The mentees presented a number of energy efficiency projects in their cities and specific needs to be addressed by the mentor during the physical meeting visit.

Mentees visited ESV in Upper Austria to learn about EPC in public lighting

The 3^rd PROSPECT learning group for public lighting conducted a physical meeting in Upper Austria on the 26^th and 27^th of March 2019, in order to exchange experience and knowledge about setting up Energy Performance Contracting (EPC). The scheme, which is considered both a financial and operational mechanism, has been implemented in Upper Austria for more than 20 years with the support of the mentor OÖ Energiesparverband (ESV).

Western Development Commission (Ireland) was represented by O. Nic Suibhne, AE3R Ploiesti-Prahova (Romania) was represented by B. Potlogia, R. Sorokin and C. Csaszar, Black Sea Energy Cluster (Bulgaria) was represented by T. Tonev and Coimbra Region (Portugal) was represented by L. Santa and N. Pomar.

In the context of the learning programme, the participants had the chance to enhance their expertise on how to finance and implement street lighting through Energy Performance Contracting. The programme included a mix of short online sessions and a 2-day hands-on visit. More specifically, the first day included an introductory seminar on EPC including streetlighting and calculation of concrete examples of the mentees. The second day included a site-visit. Participants had the opportunity to visit an experienced ESCO and have an overview of different street lighting types. Finally, the following projects were presented:

• LED Street Lighting, City of Wels: conversion of 3,860 lighting points to LED technology, energy savings of more than 1,251,000 kWh/a, energy cost savings of 200,000 €, overall investment costs of 1,656,000 €.
• LED Street Lighting, Municipality of Gunskirchen: 80% renovation of the entire lighting system, energy savings of more than 78,300 kWh/a, energy cost savings of 12,500 €/a, overall investment costs of 796,400 €.

Replication/Transferability

During the 4th step the Mentor and Mentees of the group participated in the transferability and evaluation session on the 20^th of May 2019.

During the meeting, a transferability analysis was conducted outlining the mentees’ point of view for the conditions of success of possible future endeavors funded by EPC. All mentees thought that the Financial framework and the Legislative/regulatory framework would not be an issue going forward with the implementation of their projects. On the other hand, all mentees agreed that the lack of own pre-financing, the lack of experience or capacity to undertake all the coordination needed with stakeholders are issues that can imped the success of their projects. On all the other parameters the mentees declared variable facts, depended on their specific case.