Alenka Loose, Ļubļanas pilsētas energopārvaldniece, 2019.gada 27.-28.marts

1. Alenka Loose, City Energy Manager, City of Ljubljana
Petra Šeme, City of Ljubljana
alenka.loose@ljubljana.si, petra.seme@ljubljana.si
PPC EPC Approach for Retrofit of
Buildings Owned by City of Ljubljana
EOL Project
TAIEX-REGIO
Workshop on Energy Performance Contracting Market
Development in Public Sector: Regulatory, Legal and Financial
Challenges
Riga, 28.03.2019

2. Off-balance sheet EPC model for large scale
building renovations in Ljubljana city:
‒ Preparation of projects
‒ Accounting and statistical treatment
‒ Financing

3. 1. COL was selected to be EGC 2016 due to the
fastest sustainable development among candidate
cities;
2. To reach our strategic goals (incl. SEAP) huge
investments have been and will be further prepared
and realised;
3. We have used all possible financing options
besides city budget, through:
• TA ELENA (EIB) for pre-investment activities,
COHESION funding for energy retrofit of COL‘s
public buildings – PPP EPC approach.
INVESTMENTS IN THE SUSTAINABLE
ENERGY ISSUES IN COL

4. Sustainable Energy Action Plan (after COP 21)
Goals 2020: 25% RES, 20% EE, -30% GHG
Main reason for EOL activities in Ljubljana

5. With the help of TA ELENA (aprox. 1 mio
EUR), investments of aprox. 50 mio EUR in
energy retrofit of public buildings and
infrastructure were realised withih the EOL
project.
EOL PROJECT
represents
THE BIGGEST ON-GOING INVESTMENT
PROJECT FOR ENERGY RETROFIT IN
SLOVENIA
WHAT IS THE EOL PROJECT?

6. January 1, 2013 - December 31, 2016 – pre-
investment activities EOL.
EOL - PRE-INVESTMENT ACTIVITIES
ON

7. At the beginning of the EOL project, we:
- were enthusiastic as we obtained TA ELENA;
- have established the EOL team;
- started with the;
• preparation of all necessary documents to
start the PPP EPC procedures;
• non EPC investments in energy infrastructure
and refurbishments of objects.
THE FIRST YEAR

8. We faced the facts of:
- non-availabilty of legal bases for PPP EPC in
Slovenia;
- only few ESCOs present in Slovenia;
- no experiences of local and state administration
with EPC approach;
- a new way of work within city administration;
- lack or incomplete data on energy use for
majority of objects;
- resistance to change/innovation in public
procurement approach;
- non-availability of high quality construction
companies.
RUN OVER THE HURDLES

9. OVERCOMING THE HURDLES
Despite the complexity of the project and
challenges that caused considerable delays, the
EOL project played significant role in the
process of adopting necessary legal basis,
including the publication of PPP EPC guidelines
(December 24, 2014) by Slovenian Government,
that made PPP EPC approach feasible.

10. PROCEDURE

11. PPP EPC PROCEDURE
ACTIVITY – PPP EPC 1 until the end of
project (December 31, 2016)
DATES/TIME SLOTS
Preparation activities
First call for promoters – published
Deadline for submission
October 14, 2014
November 20, 2014
Guidelines on PPP EPC published December 24, 2014
Second (upgraded) call for promoters -
published
(40 buildings added)
Deadline for submission
December 24, 2014
February 25, 2015
Decree on PPP EPC, City of Ljubljana -
procedure
Draft Decree presented at the City Council
Decree adopted by the City Council
Published in Official Gazette RS (OG RS)
July 6, 2015
September 28, 2015
October 6, 2015

12. PPP EPC 1
Public tender PPP EPC EOL –
published
Submission deadline
Extended deadline
December 18, 2015
March 10, 2016
April 7, 2016
Two offers arrived within the
deadline
Public opening of the two offers
received within the deadline:
1. Consortium Petrol d.d. and
GGE d.o.o.
2. Istrabenz plini d.o.o.
April 11, 2016

13. The first phase: Recognition of
qualification
Activities within the period until
the deadline to receive initial
bids (on-site inspections of the
buildings, additional
explanations to the bidders,
eventual changes of the tender
documentation)
January – April 7,
2016
Period of hibernation (finality of
decision on recognition of
qualification)
May 30 - June 10,
2016
PPP EPC 1

14. The second phase:
Competitive dialogue (CD)
*The reports are
available in Office for
Public Procurement,
City of Ljubljana
CD 1 – 16 with the bidder Petrol d.d.
and GGE d.o.o. consortium:
- discussing the Initial bid (for all
four groups of buildings)
June 20, 2016 –
December 15, 2016
CD 1 – 6 with the bidder Istrabenz
plini d.o.o.:
- discussing initial bid (given for the
second group of buildings only)
July 4, 2016 – December
22, 2016
The bidder has resigned
PPP EPC 1

15. From 106 to 48 objects
During the competetive dialogue the 106 objects were
divided in three groups:
A – deep energy retrofit
B – partial energy retrofit
C – not suitable for EPC

16. OBJECTS INCLUDED IN RETROFIT ACTIVITIES
A B Σ
Kindergartens 9 1 10
Primary schools 10 10 20
Sports objects 2 2 4
Health Centres 2 4 6
Culture objects - 3 3
Objects City Admin. 2 3 5
Together : 25 23 48

17. For the 48 selected objects
Invitation for final bid:
27.2.2017
Signature of the concession contracts: 6.4.2017
For all tasks the special expert groups were
nominated by the Mayor of COL

18. 4 GROUPS (A, B) OBJECTS
8 concession contracts – shares of reached E savings:
Private partner - Public partner COL
60 - 40 bonus savings
90 - 10 regular savings

19. ACTIVITY – PPP EPC 2 DATES/TIME SLOTS
Call for promoters – published
Deadline for submission of the offers
November 22, 2016
December 13, 2016
Proposal of the Decree on Amending
the Decree on PPP for Implementation
of EPC with an Aim of Energy
Retrofitting of Public Buildings owned
by the City of Ljubljana adopted by the
City Council
Decree on Amending the Decree
published in OG RS
December 19, 2016
December 23, 2016
Public tender PPP EPC EOL2 published
December 30, 2016
CD with the bidder Petrol d.d.,
RESALTA d.o.o. and Javna
razsvetljava d.o.o. consortium
PPP EPC 2

20. For the 11 selected objects
During the competetive dialogue the 24 objects were
divided in three groups:
A – deep energy retrofit
B – partial energy retrofit
C – not suitable for EPC
Signature of the concession contracts for 11 objects:
4.10.2018

21. Within energy retrofit of the buildings, where possible,
renewable energy sources are introduced :
1. geothermal HP (4) are istalled in HC, PS (2) and
kindergarten; one geothermal HP planned in EOL 2
2. solar collectors installed on the roof of the
Swimming pool centre;
3. PV plant is planned on parking of the Public
Transport company roof (14.000 sq. m).
INVESTMENTS IN THE SUSTAINABLE
ENERGY ISSUES IN COL

22. ENERGY RETROFIT PROGRAMME OF
PUBLIC BUILDINGS IN LJUBLJANA
EOL 1 and 2
ESCO CONTRACT FOR ENERGY RETROFIT OF 48 +
11 PUBLIC BUILDINGS
• schools;
• kindergartens;
• health centres;
• sport halls;
• city administrative buildings.
25 EOL 1 buildings deep energy retrofit, 7 EOL2
23 EOL1 buildings partial energy retrofit, 4 EOL2

23. ADVANTAGES OF ESCO MODEL FOR THE
PUBLIC PARTNER
• Small financial contribution;
• Full scale thermal comfort according to the state and EU standards
(ambient temperature, humidity, air exchange);
• All risks regarding renovation, maintenance, energy management
and energy savings taken by private partner;
• Guaranteed energy savings;
• No payment if realised savings are not according to the contract
savings;
• Low maintenance costs.
DISADVANTAGES OF THE ESCO MODEL FOR PUBLIC
PARTNER
• Deep renovation of buildings and concept of nearly zero
energy houses are not feasible;
• Low financial share of savings (10 %).

24. LESSONS LEARNT
• Not many ESCO companies available at the beginning;
• Long pay back periods;
• Difficult and time consuming checking of energy consumption
baselines;
• Use of different co-financing funds and mechanisms (TA ELENA;
cohesion funds, …);
• Optimum mix of energy savings and investment costs
(acceptable pay back periods);
• ESCO model is more effective than usual practice of public
procurement approach;
• Public partner must control energy retrofit costs before signing
the contract;
• Highest potential show non insulated houses, built before 1975.

25. EOL PROJECT IN FIGURES
After completion of first city owned 48 objects within EOL 1
(25 objects deep energy retrofit and 23 partial) – PPP EPC
approach (14.9 mio EUR) (consortioum Petrol Resalta),
we are continuing with the energy retrofit of another 11 city
owned objects (7 deep and 4 partial retrofit) within EOL2 (4.8
mio EUR) (consortium Petrol, Resalta and Public lighting
company- PPP EPC approach ).
Both projects are co-financed by Cohesion
funds

26. • Are legal basis for PPP EPC available?
• Do the practices regarding the budgetary issues
exist?
• Are the necessary data on energy performance of the
objects available?
• Are the ESCOs available? If not, check the market!
Check the compatibility of already planned projects
with the goals of proposed project – internal
cooperation!
• Are the concerned stakeholders and city
administration employees aware of PPP EPC
approach benefits?
• Do they recognise weaknesses?
QUESTIONS TO BE ANSWERED
BEFORE APPLYING FOR TA

27. WE WERE AWARDED FOR OUR
EFFORTS
NEW EOL3 IS BEING PREPARED

28. IF YOU DO NOT BELIEVE IN
SUCCESS
IT
WILL NOT HAPPEN
alenka.loose@ljubljana.si
https://www.youtube.com/watch?v=P1VQA3EY_LQ

29. INTRODUCTION OF RES – KINDERGARTEN
PEDENJPED, UNIT ZALOG
P 57,6 kW

30. MORE RES – INCLUDED IN COL MASTER
PLAN
14.000 – 21.000 m2 for PV available
Expected annual el. production up to 1000 MWh

31. RETROFIT - HEALTH CENTRE POLJE
BEFORE
AFTER

32. RETROFIT - HEALTH CENTRE ŠIŠKA

33. RETROFIT – KINDERGARTEN NAJDIHOJCA, UNIT ČENČA

34. RETROFIT – PRIMARY SCHOOL NOVE JARŠE
BEFORE
AFTER