The document discusses supporting local authorities in developing and integrating Sustainable Energy Action Plans (SEAPs) according to the ISO 50001 energy management system. It provides information on the Association of Municipalities Polish Network "Energie Cités" which supports sustainable energy planning for municipalities. It then outlines the process for integrating SEAPs with energy management systems and discusses actions, financing sources, and examples of projects utilizing the ESCO (energy service company) model for alternative project financing.

1. Supporting Local Authoritites in the Development and Integration of SEAPs with
Energy management SystemsAccording to ISO 500001
www.500001seaps.eu
@500001SEAPs
SEAP+EnMS approach
and funding opportunities
Patrycja Płonka, Project Manager
patrycja.plonka @pnec.org.pl
Association of Municipalities Polish Network
„Energie Cités”

2. Supporting Local Authoritites in the Development and Integration of SEAPs with
Energy management SystemsAccording to ISO 500001
www.500001seaps.eu
@500001SEAPs 2
ASSOCIATION OF MUNICIPALITIES POLISH NETWORK
„ENERGIE CITÉS” …
it is a Polish non-governmental organisation operating since 1994 and supporting
sustainable energy planning and implementation on the local level;
its activities include:
• promotion of energy efficiency and use of renewable energy sources;
• implementation of projects supporting sustainable energy development of Polish municipalities;
• organization of conferences, seminars, workshops, study tours etc. devoted to energy-related
issues;
• supporting exchange of experience and ideas between its members;
• helping in identifying and obtaining funds for energy-related projects.
its members are local and regional authorities from all over Poland
since April 2009 the organisation is an official Covenant Supporter and as
such supports Polish CoM signatories in the development and implementation
of SEAPs.

3. Supporting Local Authoritites in the Development and Integration of SEAPs with
Energy management SystemsAccording to ISO 500001
www.500001seaps.eu
@500001SEAPs 3
SEAP + ENMS APPROACH
Definition of the
long-term vision
of the city
Definition of
Energy Policy
Adaptation of
city structures,
definition of
roles &
competences,
trainings
Development
of BEI
Development
of Energy
Review
Engaging
relevant
stkeholders
(local forums)
Development
of SEAP
Development
of AP
Definition of
monitoring
procedures
& tools
Adoption
of SEAP
Certification of
EnMS
SEAP
ENMS

4. Supporting Local Authoritites in the Development and Integration of SEAPs with
Energy management SystemsAccording to ISO 500001
www.500001seaps.eu
@500001SEAPs 4
ACTIONS TRIGGERED
Actions in the public sector (e.g. thermal retrofitting of public buildings, change of
the heating source, modernistion of internal installations)
Actions in the private sector (e.g. co-financing change of the heating source in
private households
Actions aiming at improving energy efficiency (e.g. modernisation of public lighting)
Actions aiming at changing local energy mix (e.g. installation of solar collectors,
connecting new buildings to the grid)
Investment actions (e.g. purchase of environmentally-friendly vehicles)
Soft measures (e.g. educational campaigns)
Actions directly reducing GHG emissions (e.g. replacement
of old equipment with energy efficient one)
Actions indirectly reducing GHG emissions (e.g. energy monitoring
systems)

5. Supporting Local Authoritites in the Development and Integration of SEAPs with
Energy management SystemsAccording to ISO 500001
www.500001seaps.eu
@500001SEAPs 5
Municipal budget
• operational costs (i.e. costs of energy consumption in municipal facilities)
• investment costs (i.e. costs related to the implementation of SEAP actions)
FINANCING SEAP ACTIONS – KEY ASPECTS
Sources of financing of sustainable energy actions

6. Supporting Local Authoritites in the Development and Integration of SEAPs with
Energy management SystemsAccording to ISO 500001
www.500001seaps.eu
@500001SEAPs 6
FINANCING SEAP ACTIONS – KEY ASPECTS
Initialisation Preparation Implementation Monitoring
Prioritisation of actions,
also based on financial
aspects
Development of detailed
project documentation,
including budget, buisiness
plan, etc.
Selection of funding
sources
Risk analysis
Selection of contractors (→
best value for money,
green public procurement)
Implementation of action
according to the schedule
& budget
Monitoring of
economic/financial
indicators
Development of relevant
reports (money spent,
resilts achieved)

7. Supporting Local Authoritites in the Development and Integration of SEAPs with
Energy management SystemsAccording to ISO 500001
www.500001seaps.eu
@500001SEAPs 7
FIRST STEPS
Prioritization of actions (financial perspective):
• financial aspects considered: implementation cost, payback period, IRR/ERR (factors measuring
profitabilty of investments), NPV
• selection criteria: relatively low cost of investment, availability of financing sources, interest of
potential investors, economic benefits
Project profitability assessment based on simple payback – initial investment divided by cummulative
costs savings over project life-time:
• 3-5 years – very good profitability
• 6-10 years – average profitability
• over 11 years – low profitability (hard to find external financing)
Actions with large investment costs may be challenging for small and medium municipalities (harder to
secure commercial funding; bigger guarantees reqquired) – possible solutions:
• risk sharing between different financing sources
• bundling similar projects implemented by several neighbouring municipalities

8. Supporting Local Authoritites in the Development and Integration of SEAPs with
Energy management SystemsAccording to ISO 500001
www.500001seaps.eu
@500001SEAPs 8
EXAMPLE OF NIEPOŁOMICE – JOINT RES PROJECT
4 neighbouring municipalities join forces, prepare a common
RES project and obtain co-financing form the Polish – Swiss
Cooperation Fund:
• municipality of Niepołomice – lead partner
• municipality of Wieliczka
• municipality of Skawina
• municipality of Miechów
RES systems are installed in 3841 households and 32 public buildings
In case of private buildings, owners cover 30% of the costs
RES systems include solar thermal panels, PV modules and heat pumps
Source:
www.niepolomicesolary.eu

9. Supporting Local Authoritites in the Development and Integration of SEAPs with
Energy management SystemsAccording to ISO 500001
www.500001seaps.eu
@500001SEAPs 9
EU-LEVEL FUNDING
HORIZON 2020
biggest EU Research and Innovation-funding programme
nearly €80 billion of funding available over 7 years (2014 to 2020)
focus areas: secure, clean and efficient energy; smart, green and
integrated transport; climate & environmental actions, resource efficiency
next calls for proposals close 19 of January 2017
INTERREGs (EUROPE, BSR, CE)
IE: supporting RAs & LAs across Europe to develop and deliver better
policies by sharing solutions, know-how and best practices
ICE: supporting partners from CE to work together to improve their cities
and regions (also in terms of CO2 reducion and natural resources
preservation)
IBSR: facilitates transnational cooperation in the Baltic Sea Region
addressing common challenges (priorities include: management of natural
resources and sustainable transport)

10. Supporting Local Authoritites in the Development and Integration of SEAPs with
Energy management SystemsAccording to ISO 500001
www.500001seaps.eu
@500001SEAPs 10
EU-LEVEL FUNDING
LIFE
financial instrument supporting environmental, nature conservation and
climate action projects throughout the EU;
nearly €3.4 billion of funding available over 7 years (2014 to 2020)
(1) nature and biodiversity, (2) environment and (3) climate action)
next call for proposals should be launched in 2017
URBAN INNOVATIVE ACTIONS (UIA)
provides urban areas throughout Europe with resources to test new and
unproven solutions to solve their urban challenges (impact on innovation,
not results)
Only cities can be lead partners!
Only for cities over 50 000 inhabitants
12 topics in 3 rounds
The 2nd Call for Proposals will be launched in November 2016 and will
be dedicated to three topics: Urban Mobility, Circular Economy and
Integration of Migrants and Refugees.

11. Supporting Local Authoritites in the Development and Integration of SEAPs with
Energy management SystemsAccording to ISO 500001
www.500001seaps.eu
@500001SEAPs 11
FUND DISTRIBUTED ON THE NATIONAL AND REGIONAL LEVEL
(EXAMPLE OF POLAND)
Operational Programmes
• Operational Programme „Infastructure and Environment”
Regional Operational Programmes
• 16 programmes in 16 voivodeships
National Fund for Environmental Protection and Water Management
• provides financing to environmentally-friendly projects and initiatives implemented by
different Polish stakeholders.
• together with voivodeship funds it is the pillar of the Polish system of financing
environmental protection and water management activities.
Voivodeship Funds for Environmental Protection and Water Management
• 16 funds in 16 voivodeships
Environmental Protection Bank
• offers preferential loans for environmental investments, as well as other banking
products with „green benefits”

12. Supporting Local Authoritites in the Development and Integration of SEAPs with
Energy management SystemsAccording to ISO 500001
www.500001seaps.eu
@500001SEAPs 12
ALTERNATIVE FUNDING SOURCES – ESCO SCHEME
Within the ESCO scheme investment projects are implemented together by the
municipality and private investor (Enegy Services Company). The investor usually
finances the project without any up-front investment costs for the municiplity and the
costs are recovered and the profit is made from the energy savings achieved during the
contract period.
The contract guarantees certain amount of savings for the municipality at the same time
helping them to avoid large investment costs.
The key benefit for the municipality is removal of project non-perfrmance risk, while
keeping the operating costs at relatively low level.
Financing is arranged so that the energy savings cover both the costs of investments
and of contractors services.
Accurate and relibale monitoring and verification of energy savins is crucial – easier
with EnMS in place!

13. Supporting Local Authoritites in the Development and Integration of SEAPs with
Energy management SystemsAccording to ISO 500001
www.500001seaps.eu
@500001SEAPs 13
ESCO SCHEME – EXAMPLES FROM POLAND
Przytyk
(7300 inhabitants)
Project: Modernisation of street lighting
ESCO: ELAST company
Initial situation: high cost and low
quality of public lighing, frequent
failures
Project scope: replacement of current
lamps with LED lamps, installation of
street light controllers with astronomical
timer; individual reduction of power
over night
Result: reducing CO2 emissions by
550 t, electricity consumption by 67%
and electricity costs by 384 000 PLN
Sosnowiec
(214 488 inhabitants)
Project: Energy modernisation of
educational facilities (EnMS)
ESCO: Siemens company
Initial situation: high operating costs
of the facilities
Project scope: installation of energy
monitoring and energy management
system in all educational facilities,
allowing also for remote control of the
heating system
Result (as in contract): reducing heat
consumption by 30% and electricity
consumption by 25%; annual financial
savings - 2 294 395 PLN

14. Supporting Local Authoritites in the Development and Integration of SEAPs with
Energy management SystemsAccording to ISO 500001
www.500001seaps.eu
@500001SEAPs 14
ALTERNATIVE FUNDING SOURCES – REVOLVING FUNDS
Financial scheme aimed at establishing sustainable set of financing for a set of investment
projects. It may include loans or grants and aims at becoming self-sustainable after its first
capitalisation.
The objective is to invest in profitable projects, with short payback time, be repaid and use the
same funds to finance new projects.
The owners / managers of the fund can be public or private companies, organisations,
institutions or public authorities.
„Mini-revolving funds” created within
EURONET 50/50 MAX project
EURONET 50/50 MAX was an IEE-funded project aiming at mobilizing energy savings in public buildings
through the implementation of the 50/50 methodology, which actively involves building users in energy
management. Achieved financial savings are shared equally between the school and the local authority which
covers the energy bills.
Participating municipalities/schools were encouraged to use their 50% of the savings to invest in
further energy efficiency measures in the building.

15. Supporting Local Authoritites in the Development and Integration of SEAPs with
Energy management SystemsAccording to ISO 500001
www.500001seaps.eu
@500001SEAPs 15
SOME FOOD FOR THOUGHT – BEST SOURCE OF MONEY ARE SAVINGS!
Adopt Energy Manager, who will be responsible for:
monitoring and managing energy consumption in public buildings and facilities
cooperation with energy utilities and reviewing contracts with them (to better adapt them to actual
demand)
develop , implement and monitor local energy strategies and action plans
develop and implement sustainable energy projects
educate citizens in the field of energy and help them in launching their own initiatives
Implement energy management system that will help you to:
optimize energy consumption within the municipality and this reduce energy costs
get better control over implemented energy saving measures
give good example to citizens and local stakeholders
The costs and efforts invested pay off quickly!!

16. Supporting Local Authoritites in the Development and Integration of SEAPs with
Energy management SystemsAccording to ISO 500001
www.500001seaps.eu
@500001SEAPs 16
ALTERNATIVE FUNDING SOURCES – OTHER
PICO Scheme – works similarily as the ESCO model but here it is one of the LAs’ departments that acts
as an ESCO unit for another department(s). The ESCO department organises, finances and
implements energy-efficiency improvements mostly through a fund made up of municipal money,
and using existing know-how.
On-bill financing - Energy suppliers give a loan for EE investments and collect the repayment through
energy bills. It leverages the relationship existing between a utility and its customer; this model is
developed mostly in UK.
Green bonds - LAs can issue green bonds to fund their sustainable energy projects. A green bond can
operate as a normal bond, which is a debt that will be paid back, depending on the characteristics of
the bond, with interest.
Community energy projects - pooling resources from different local actors and sharing benefits
between them (e.g. energy cooperatives)
„Our energy” cooperative near Zamość (PL)
The cooperative is composed of 4 municipalities and 2 private companies. Invitation to join was also issued to the
citizens and local stakeholders. The cooperative is planning to build a complex of biogas-fueled power plants
connected with autonomic network (it will supply with energy public buildings, public lighting and households).

17. Supporting Local Authoritites in the Development and Integration of SEAPs with
Energy management SystemsAccording to ISO 500001
www.500001seaps.eu
@500001SEAPs 17
IMPLEMENTATION PHASE
Selection of contractor
 ensuring best value for money
 green public procurement
 good definition of requirements
 good municipal energy manager
Ensuring project implementation according to the schedule and budget
MONITORING PHASE
Selection of monitoring indicators (also economic/financial ones)
Identification of data sources
Definition of monitoring & reporting procedures / tools
Economic performace indicators: payback period, cost/benefit ratio, net present value (NPV),
internal rate of return (IRR)

18. Supporting Local Authoritites in the Development and Integration of SEAPs with
Energy management SystemsAccording to ISO 500001
www.500001seaps.eu
@500001SEAPs 18
Thank you!
Patrycja Płonka, Project Manager
patrycja.plonka@pnec.org.pl
Association of Municipalities Polish Network „Energie Cités”