This document discusses how local authorities can support the development and integration of SEAPs (Sustainable Energy Action Plans) with energy management systems according to ISO 50001. It provides an overview of energy performance contracting and ESCO models for financing energy efficiency projects in municipalities. A case study of the municipality of Ādaži in Latvia is presented, where an energy audit identified 1.33 million euros in needed investments for refurbishing public buildings. Options for implementing the projects through an ESCO using an energy performance contract are analyzed, including costs, benefits and financial modeling. Main conclusions are that grant funding and low interest rates are needed to attract private ESCO investment, and bundling multiple building projects can help refurbish

1. Supporting Local Authoritites in the Development and Integration of SEAPs with
Energy management SystemsAccording to ISO 500001
www.500001seaps.eu
@500001SEAPs
PPPs and ESCOs – financing
EnMS+SEAPs
Marika Rošā, Ekodoma
Webinar – Implementation of integrated energy
management and Sustainable action plans
3 November 2016

2. Supporting Local Authoritites in the Development and Integration of SEAPs with
Energy management SystemsAccording to ISO 500001
www.500001seaps.eu
@500001SEAPs 2
MAIN POINTS OF THE PRESENTATION
Current experience of ESCOs in Latvia
Benefits of EnMS for financing SEAP
Case study – evaluation of use of ESCO for public
buildings
Start
Evaluate
Target

3. Supporting Local Authoritites in the Development and Integration of SEAPs with
Energy management SystemsAccording to ISO 500001
www.500001seaps.eu
@500001SEAPs 3
WHERE AND WHAT TO FINANCE IN A MUNICIPALITY
energy
production
energy
resources
heat
network
energy
consumers

4. Supporting Local Authoritites in the Development and Integration of SEAPs with
Energy management SystemsAccording to ISO 500001
www.500001seaps.eu
@500001SEAPs 4
ENERGY PERFORMANCE CONTRACTING
Costs
Time
Energy Performance Contracting
Present Energy Performance Contract Service life investment
Starts Ends
Energy costs
O&M
Repair
O&M = operation and maintenance
EPC= Energy Performance Contracting
Contracting rate toEPC provider:
- implementation of energy efficiency measures
- Financing costs
- Administration
- O&M of implmented measures
- Risk premium
Energy cost saving
tobuilding owner
Source: Deep renovation of multifamily residential buildings MARKET ASSESSMENT REPORT; Project SUNShINE; www.sharex.lv

5. Supporting Local Authoritites in the Development and Integration of SEAPs with
Energy management SystemsAccording to ISO 500001
www.500001seaps.eu
@500001SEAPs 5
WHAT HAS ONE LATVIAN RESIDENTIAL ESCO DONE SO
FAR?
In 5 years Renesco 100% financed and performed deep
renovations of 15 typical soviet-era apartment
buildings using EPC’s. Bank provides 60% co-financing
solely based on the EPC, no other collateral
Apartment owners have not, and will not, pay anything,
nor assume any risks
All investments are covered by future energy savings
(20 years) and support from the national renovation
program (ERDF)
Measures: full building envelope, new hot water networks,
new heating network, new ventilation recovery systems,
cosmetic repairs, switching to renewables (geo-thermal)

6. Supporting Local Authoritites in the Development and Integration of SEAPs with
Energy management SystemsAccording to ISO 500001
www.500001seaps.eu
@500001SEAPs 6
ENERGY CONSUMPTION BEFORE AND AFTER RENOVATION
170
74.7
123
69.3
134
72.1
142
82
142
84.4
147
76.2
176
86.9
188
86.6
193
96.9
143
71.5
35
2
42
3
39
2
35
2
49
3
41
3
38
7
68
3
20
1
21
21
21
18
24
24
30
23
29
21
31
30
21
21
17
17
19
19
0
50
100
150
200
250
300
Ex-Ante Ex-Post Ex-Ante Ex-Post Ex-Ante Ex-Post Ex-Ante Ex-Post Ex-Ante Ex-Post Ex-Ante Ex-Post Ex-Ante Ex-Post Ex-Ante Ex-Post Ex-Ante Ex-Post Ex-Ante Ex-Post
Specificenergyconsumption,kWh/m²year
Space heating Circulation losses DHW
Energy consumption before and after renovation
Gaujas 13
Valmiera
Kovarņu 31
Cesis
Saules 17B
Cesis
Viestura 8A
Cesis
Viestura 10A
Cesis
Vilku 5
Cesis
Zirņu 21
Cesis
Stacijas 28
Sigulda
Kaijas 6
Sigulda
Mastu 8/1
Riga
Source: Deep renovation of multifamily residential buildings ANALYSIS OF CASE STUDIES; Project SUNShINE; www.sharex.lv

7. Supporting Local Authoritites in the Development and Integration of SEAPs with
Energy management SystemsAccording to ISO 500001
www.500001seaps.eu
@500001SEAPs 7
CAN WE APPLY THE SAME PRINCIPLES
FOR PUBLIC BUILDINGS?
HOW DOES THE ENMS + SEAP APPROACH
HELP?

8. Supporting Local Authoritites in the Development and Integration of SEAPs with
Energy management SystemsAccording to ISO 500001
www.500001seaps.eu
@500001SEAPs 8
WHAT ARE THE MAIN BENEFITS OF ENMS
FOR FINANCING?
Availability of historic and detailed energy consumption
data to develop a baseline
Clear idea of significant energy users and energy
performance indicators
Responsibilities are clear
Involvement of more employees from different
departments, including procurement
Increased awareness and knowledge

9. Supporting Local Authoritites in the Development and Integration of SEAPs with
Energy management SystemsAccording to ISO 500001
www.500001seaps.eu
@500001SEAPs 9
CASE STUDY OF MUNICIPALITY OF ĀDAŽI
• Population of 10 000 with increasing trend
• Territory of 162.9 m2
• Public infrastructure:
• 6 PUBLIC BUILDINGS
• PUBLIC LIGHTING
• MUNICIPAL FLEET

10. Supporting Local Authoritites in the Development and Integration of SEAPs with
Energy management SystemsAccording to ISO 500001
www.500001seaps.eu
@500001SEAPs

11. Supporting Local Authoritites in the Development and Integration of SEAPs with
Energy management SystemsAccording to ISO 500001
www.500001seaps.eu
@500001SEAPs 11
SPECIFIC ENERGY CONSUMPTION

12. Supporting Local Authoritites in the Development and Integration of SEAPs with
Energy management SystemsAccording to ISO 500001
www.500001seaps.eu
@500001SEAPs 12
INVESTMENTS NEEDED FOR REFURBISHMENT
Based on
energy
audits –
1.33 m€

13. Supporting Local Authoritites in the Development and Integration of SEAPs with
Energy management SystemsAccording to ISO 500001
www.500001seaps.eu
@500001SEAPs 13
WHAT TO DO NEXT?
Options for municipality
Municipality implements measures with BAU approach:
• Standard procurement
With an EPC and ESCO:
• Municipal
• Private
• Procurement is based on energy performance

14. Supporting Local Authoritites in the Development and Integration of SEAPs with
Energy management SystemsAccording to ISO 500001
www.500001seaps.eu
@500001SEAPs 14
COST BENEFIT ANALYSIS IN CASE OF PRIVATE ESCO
Main assumptions
Parameter Value
Discount rate 6.5%
Inflation 1%
Loan 70%
Own financing 30%
Terms for loan 20 years
Interest rate 4.5%
Grant 50%

15. Supporting Local Authoritites in the Development and Integration of SEAPs with
Energy management SystemsAccording to ISO 500001
www.500001seaps.eu
@500001SEAPs 15
HOW TO SELECT

16. Supporting Local Authoritites in the Development and Integration of SEAPs with
Energy management SystemsAccording to ISO 500001
www.500001seaps.eu
@500001SEAPs 16
NPV of separate projects and
all together
NPV all buildings with
different loan terms

17. Supporting Local Authoritites in the Development and Integration of SEAPs with
Energy management SystemsAccording to ISO 500001
www.500001seaps.eu
@500001SEAPs 17
MAIN CONCLUSIONS FROM THE CASE STUDY
In order to attract private ESCO, grant level should be 50%; interest
rate not higher than 5.3%
If IRR=12% and higher, municipality can initiate discussions about
sharing energy savings
Only combining all buildings in one package, «bad» buildings can be
refurbished
ESCOs share interest but EPC contract template should be available
Main barriers identified by ESCOs: public procurement, investment
attraction and lack of understanding of ESCO principles
If several municipalities cooperate, can work on options for ELENA

18. Supporting Local Authoritites in the Development and Integration of SEAPs with
Energy management SystemsAccording to ISO 500001
www.500001seaps.eu
@500001SEAPs 18
Ekodoma
Noliktavas street 3-3, Riga
LV-1010 LATVIA
Phone: +371 67323212
E-mail: Marika@ekodoma.lv
www.ekodoma.lv