Carlet (la Ribera) Pilot Action

1. REMIDA PROJECT
Final project meeting
12-13 May 2015
Gorizia (Italy)
Plàcid Madramany
Energy Agency of la Ribera (València, SPAIN)
placid@aer-ribera.com
Carlet (la Ribera) Pilot Action

2. Selection of Pilot Action (I)
Objective: Go beyond REMIDA foreseen outputs and
implement PA during project lifetime through an ESCO
Key selection criteria:
1. Prioritize the most energy saving/RES production
or most relevant. IMP if ESCO contract
2. Focusing on those sectors where city council was
able to decide on their own
• Municipal buildings, equipment and facilities
• Public street lighting
3. Pilot intervention must be attractive enough for
private sector.
4. WG must decide the intervention. AER/Carlet
proposed 2 options!!

3. Selection of Pilot Action (II)
Municipal buildings, equipment/facilities represents a global
energy consumption of. 1% approx.
Public street lighting (PSL) facility achieve barely 2% of
municipality total energy consumption
Our proposals are projects based on:
A. EE improvement of street lighting
B. Self-consumption PV plant in municipal buildings
Why??
In our area PSL has been always the most likely
intervention (high energy consuming facility!!!)
1. Inventory and energy consumption per sector
2. Lighting level map

4. Selection of Pilot Action (III)
But….some actions, in the meantime, implemented for
reducing PSL consumption
1. City center facility refurbishment (LED) and
2. Industrial areas: went out approx. 50% lighting
columns/lamps
Thus, it implies the impossibility of launching an ESCO
contract addressed to PSL
Finally, PA focuses on “promoting the installation of PV
plants in municipal buildings”. Why?
1. Local energy production represented 2% of demand
2. Successful previous experience of Carlet
3. ESCO contract feasible
4. AER: if succeed, willing to replicate PA through la
Ribera municipalities

5. Pilot Action (I)
PV self-consumption??
Definition: Possibility for any kind of electricity consumer to
connect a photovoltaic system, with a capacity
corresponding to his/her consumption, to his/her own
system or to the grid, for his/her own or for on-site
consumption, while receiving value for the non-consumed
electricity which is fed into to the grid
Town Hall electricity consumption profile (2014):
1. Yearly energy demand (active) 179,225 kWh
2. Electricity bill 20,662 €/y
3. Tariff 3.1.A

6. Pilot Action (II)
Proposed technical solution:
1. Power (peak): 11,52 kWp
2. Power (rated): 10 kW
3. Surface: 100 m2
Estimated savings:
1. Yearly energy production (estimated): 15,068 kWh
2. Rate energy consumption/produced: 7,28%
3. Economic savings: 1,601,80 €/y
4. Rate total cost/savings: 7,75%
Estimated economic details:
1. Total investment: 43,032 €
2. Payback: 14 years

7. Pilot Action (III)
Several PV location possibilities
examined
GHG and fossil fuels savings:
1. 2,011 L oil yearly
2. 4 T CO2/y avoided

8. PPP(P) model
agreement
tender process (contract scheme)
Decision-making body
Carlet City
Council
+
Working Group
AER (technical
assistance)
Prívate sector
(ESCO)

9. EPC contract
Energy Performance Contracting (EPC) is defined in
2006/32/CE on energy end-use efficiency and energy
service
EPC a contractual arrangement between the beneficiary
and the provider (normally an ESCO) of an energy
efficiency improvement measure, where investments in that
measure are paid for in relation to a contractually agreed
level of energy efficiency improvement
Energy service company (ESCO): a natural or legal person
that delivers energy services and/or other energy efficiency
improvement measures in a user's facility or premises, and
accepts some degree of financial risk in so doing. The
payment for the services delivered is based (either wholly
or in part) on the achievement of energy efficiency
improvements and on the meeting of the other agreed
performance criteria

10. Energy Service Contract (ESC). Focused in providing
energy services through subcontracting of energy supply.
ESCO is the installation owner and sells energy produced
(steam, electricity, hot water,…). At the end of contract,
client becomes the final owner. ESCO assumes financial
risks.
• Private party will provide a technical/economical solution
• Public tendering process containing:
 Legal requirements and rules (specific from each country)
 Technical issues
• Action will consider:
• Installation of PV self-consumption
• Shifting from grid electricity to PV electricity
• 100% € savings to reimburse intervention cost
• First payment of approx. 80% out of total budget
• 2nd payment bimonthly according to the energy produced
ESC contract proposed

11. Status of PA implementation
To date, AER has analyzed municipal premises to select
the most suitable:
1. Hourly/weekly energy demand data
2. Roof surface size and shape
Meetings with private sector in order to determine their
interest and discussing about ESC contract features
Request of connection point licenses (end February)
Definition of ESCO contract (TOR)
Next steps:
1. Launch of bidding process (after elections)
2. Signature of the contract (before 2015 end)
3. Commissioning of PV plant (before 2015 end)

12. Lessons learned - SEAP
S&M size municipalities faced several basic shortcomings :
1. Ignorance about CoM initiative
2. Lack of technical skilled personnel
3. Economic resources constraints
Main difficulty for SEAP design is BEI elaboration. Data are
not easily available. External support is essential
Collection of data followed a bottom-up approach
WG members represented the decision-making body
Representatives of local economic sectors didn’t show
great interest. But most of them attended WG meetings
Local energy awareness actions were well received and
the feedback was very positive
Devoted and enthusiastic participants within the education
sector

13. Lessons learned – PPP(P)
Contracts between public administration and private parties
are regulated by the Spanish Law on Public Sector
Contracts Recast (TRLCSP). RD 3/2011.
Typologies that better fit are: services, contract of
collaboration between public and private sector (CPP) and
mixed contracts
Most suitable for project specific PA is a mixed contract
Preparation of call for tenders requires technical skills
about concrete features of PA. S&M municipalities need
external support
IMP to exchange info with private sector in order to
define a reasonable and appropriate bid docs and, of
course, a service or project
Commitment of local government is crucial for succeeding!

14. Thank you very much
Plàcid Madramany
Energy Agency of la Ribera (SPAIN)
placid@aer-ribera.com