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  1. 1. Facilitating Energy Efficiency – the Role of Energy Agencies <ul><ul><li>Dipl.-Geogr. Alexandra Waldmann </li></ul></ul><ul><ul><li>Berliner Energieagentur GmbH </li></ul></ul><ul><ul><li>Local Renewables 2007 </li></ul></ul><ul><ul><li>Freiburg i.Br. 14 June 2007 </li></ul></ul>
  2. 2. <ul><li>Foundation </li></ul><ul><li>in 1992 as Public-Private Partnership </li></ul><ul><li>Shareholders </li></ul><ul><li>Federal State of Berlin </li></ul><ul><li>Vattenfall Europe </li></ul><ul><li>GASAG </li></ul><ul><li>KfW Banking Group </li></ul><ul><li>Disposes of </li></ul><ul><li>2.5 million € of capital stock </li></ul><ul><li>Annual Turn-Over </li></ul><ul><li>5.5 million € </li></ul><ul><li>Know-how </li></ul><ul><li>45 members of staff </li></ul>Facilitating Energy Efficiency <ul><li>Energy Services </li></ul><ul><li>Consulting </li></ul><ul><li>Contracting </li></ul><ul><li>International Know-How Transfer </li></ul><ul><li>Based in </li></ul><ul><li>Französische Straße 23 </li></ul><ul><li>10117 Berlin </li></ul><ul><li>Phone: (030) 29 33 30 - 0 </li></ul><ul><li>e-mail: [email_address] </li></ul><ul><li>Internet: </li></ul>© Berliner Energieagentur GmbH, May 2007 General Company Profile
  3. 3. <ul><li>Energy Services </li></ul><ul><li>Contracting: Planning, financing, construction, and operation of Combined Heat and Power and Heat stations, of special supply components such as emergency power, cooling energy and compressed air as well as lighting systems </li></ul><ul><li>Consulting: Advice to the public sector, the housing industry and business enterprises on the conception of an efficient energy supply management and the use of new economical technologies </li></ul><ul><li>International Know-How Transfer: Transfer of successful models of efficient use of energy and of the deployment of renewable energy to developing markets </li></ul>Facilitating Energy Efficiency © Berliner Energieagentur GmbH, May 2007 General Company Profile
  4. 4. The European Energy Policy Context Facilitating Energy Efficiency Competitiveness: Lisbon Environment: Kyoto Security of Supply Target: minus 8% Co2 by 2012 Status: increase +0,4% 2003-04 Business as usual scenario: 80% -90% import dependency by 2030 Investment needed over next 20 years: 1 trillion euros
  5. 5. Facilitating Energy Efficiency Market Potential - Estimation <ul><li>Energy Consumption: </li></ul><ul><li>2004: 13,281 TWh </li></ul><ul><li>20% higher than economically feasible </li></ul><ul><li>40% higher than technically possible </li></ul><ul><li>building sector  major part </li></ul><ul><li>Energy Services: </li></ul><ul><li>long term prospect – 25 billion € </li></ul>
  6. 6. Facilitating Energy Efficiency <ul><li>Energy Efficiency pays off, it is </li></ul><ul><ul><li>A hedge against rising energy prices </li></ul></ul><ul><ul><li>En.Effiicency upgrade stops deterioration and value loss of buildings </li></ul></ul><ul><ul><li>Helps keep locla work places </li></ul></ul><ul><li>Energy Efficiency can be done internally or with the support of external know- how (and money) </li></ul><ul><li>Energy Services are one instrument that work </li></ul>Tools, instruments for energy efficiency
  7. 7. Facilitating Energy Efficiency <ul><li>Lack of targeted Information (e.g. lack of know how on energy consumption and economic efficiency of efficient products) </li></ul><ul><li>Legal issues (e.g. housing /rent laws - Investor-User-Dilemma) </li></ul><ul><li>Financial barriers (e.g. short term budgets versus long term investments) </li></ul><ul><li>Organisational/Structural barriers (e.g. Kameralistik, lack of responsibilites) </li></ul>Market Barriers to Energy Efficiency
  8. 8. <ul><li>In principle </li></ul><ul><li>Procurement legislation flexible to allow EPC </li></ul><ul><li>In practice </li></ul><ul><li>Lack of clarity of administrative and budgetary regulations on issue of EPC on all levels </li></ul><ul><li>Resulting in </li></ul><ul><li>Varying interpretation of legislation </li></ul><ul><li>Uncertainties among potential customers </li></ul>Procurement Framework Facilitating Energy Efficiency
  9. 9. <ul><li>Arguments and Issues </li></ul><ul><li>Loss of Work Places </li></ul><ul><li>Loss of Control over Public duties </li></ul><ul><li>Human Nature (Persistence against changes) </li></ul><ul><li>Minimum Requirement: </li></ul><ul><li>Need for political leadership : „loud, long and legal“ </li></ul>Facilitating Energy Efficiency Capacity Building Needs <ul><li>Facts </li></ul><ul><li>Geopolitical and World Energy Situation </li></ul><ul><ul><li>Energy efficiency moved up on political agenda </li></ul></ul><ul><ul><li>Acceptance of energy efficiency as economic issue on implementation level is slow </li></ul></ul>
  10. 10. Facilitating Energy Efficiency <ul><li>Energy & Environment Agencies have a unique position and know-how on energy & environmental issues </li></ul><ul><ul><li>They work on the implementation of EU policies delivering results </li></ul></ul><ul><ul><li>They are the link between the public, policy and the market </li></ul></ul><ul><ul><li>They have a role as mediators between local players, experts, decision makers and consumers </li></ul></ul><ul><ul><li>They provide best practice and lesso ns learned </li></ul></ul>Energy Agencies
  11. 11. Facilitating Energy Efficiency Neutral Process Management - Energy Agencies as Market Drivers Energy Agencies Information on technology & economy, partnerships Know-how and Experience Procurement process Economics of Energy Services Public Mandate Ownership structure Public – Private- Partnerships Customer needs/ Procurement Procedures
  12. 12. Facilitating Energy Efficiency sites/buildings © Berlin er Energieagentur GmbH, May 2007 PPP – Energy Saving Partnership Remuneration guaranteed savings Co-ordination Supply Technical issues Energy Saving Service Energy Saving Partner payment natural gas district heat electricity oil Utilities Gas, electricity and/or fuel supply companies building owner General Maintenance
  13. 13. Energy Saving Partnerships Berlin – A Model of Success Total number of Pools: 20 comprising >1,300 buildings Guaranteed savings in total: € 10.6 million (26%) Annual plus to the public household: € 2.5 million Annual CO 2 -Reduction 60,500 t Total Investment: € 43.13 million Facilitating Energy Efficiency
  14. 14. <ul><li>Driving Force: </li></ul><ul><ul><li>Political will and decision makers who take responsibility </li></ul></ul><ul><li>Reliable legal framework: </li></ul><ul><ul><li>Clear information on use of energy services (tender &award procedure, budgetary handling) </li></ul></ul><ul><li>Harmonised procedures and contracts: </li></ul><ul><ul><li>Time and cost effectiveness for implementation, reliability </li></ul></ul><ul><ul><li>Competition and transparency for market development </li></ul></ul><ul><li>Neutral process management </li></ul><ul><ul><li>Trustworthiness, both technical and economic know-how </li></ul></ul><ul><ul><li>Potential mediator in conflict situation </li></ul></ul>Facilitatiing Energy Efficiency Review - Criteria & Conditions for Success of Energy Services
  15. 15. Energy Efficiency and Energy Services © Berliner Energieagentur GmbH, May 2007 Auftraggeber (Land, Krankenhaus, etc.) Client (State, hospital, etc.) Berliner Energieagentur Projektmanager Project Manager Energiesparpartner Contractor Energy Saving Partner Contractor Beauftragung Assignment Beratung Consultancy Technisch-wirtschaftliche Vorgaben, Verhandlungen Technical-economic requirements, Negotiations Energiespar-Garantievertrag/ Energy Saving Guarantee Contract Energy Saving Partnership – Project Management
  16. 16. The Berlin Energy Agency <ul><li>Organized under private law </li></ul><ul><li>A model of Public-Private Partnership </li></ul><ul><ul><li>Joined forces of policy, public financing and the energy industry </li></ul></ul><ul><li>Policy backing </li></ul><ul><li>Combining public interest with market driven business approach </li></ul>Success Criteria
  17. 17. Berlin experience transferred <ul><li>Slovenia, Bulgaria, Romania </li></ul><ul><li>Chile, India </li></ul>Transferrability - International Know-how Transfer Clear contract – Clearinghouse for Energy Contracting in CEE <ul><ul><li>Model contracts and tender documents incl. Hungary </li></ul></ul><ul><ul><li>Local capacity building </li></ul></ul><ul><ul><li>CZ: 10 contracts signed since 2003 </li></ul></ul><ul><li>Model contracts and tender documents </li></ul><ul><li>Core aim: getting projects off the ground (to date: 7) </li></ul>Facilitating Energy Efficiency
  18. 18. Summary <ul><li>Innovative financing schemes help decrease the need for subsidies </li></ul><ul><li>Energy agencies play an important role as intermediaries between players </li></ul><ul><li>Support from public sector still needed </li></ul><ul><ul><li>Political will </li></ul></ul><ul><ul><li>Clear unequivocal mandate </li></ul></ul><ul><li>Cooperation and exchange is essential to leverage synergies between funding instruments on all levels (EU– National – Regional/Local) </li></ul>
  19. 19. Facilitating Energy Efficiency <ul><li>FEDARENE has 65 members in 15 countries of the EU </li></ul><ul><li>A network of local and regional actors in sustainable development with a special focus on energy & the environment </li></ul><ul><li>FEDARENE facilitates cooperation, and initiates projects, fosters the exchange of ideas and know-how, promotes best practices </li></ul><ul><li>Vice versa, FEADRENE informs its members on relevant EU developments, moderates discussion and exchange. </li></ul><ul><li>FEDARENE seeks to build a European policy environment that fosters the local & regional dimension </li></ul><ul><li> </li></ul>Join the network
  20. 20. Thank you for your attention For more information: [email_address]
  21. 21. Energy Saving Guarantees for the Public Sector Energy Services - Third Party Financing / participation model Contracting rate Share of customer