ENERGY PERFORMANCE CONTRACTING IN GREECE. National Roadshow Event Zagreb, Croatia - 28 September 2016

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1 CAPACITY BUILDING ON ENERGY PERFORMANCE CONTRACTING IN EUROPEAN MARKETS IN TRANSITION (ENPC-INTRANS) ENERGY PERFORMANCE CONTRACTING IN GREECE National Roadshow Event Zagreb, Croatia - 28 September 2016 Fotini Karamani, Chemical Engineer, MSc Centre For Renewable Energy Sources and Saving,Greece 1

2 The legal framework for EPC in Greece Law 3855/2010 transpose in Greek Legislative Framework the Directive 2006/32/EC on energy end-use efficiency and energy services. Low 4342/2015/2015 transpose in Greek Legislative Framework the Directive 2012/27/EE on Energy Efficiency. Establish the institutional framework for the provision of energy services. Introduce the requirement to establish an ESCO Registry for the registration of ESCOs providing energy services and other measures to improve energy efficiency. Provides a detailed description of the issues relating to the Energy Performance Contract (EPC) 2

3 The legal framework for EPC in Greece Ministerial Decision for the operation of the ESCO Registry [D6/13280/ ]. This Ministerial Decision determines: the establishment and organization of the ESCO Registry its content the registration procedure the criteria for inclusion and supporting documents for registration of ESCOs in the Registry the conditions of establishment and operation of ESCOs the energy services provided the criteria for the proper performance of their duties incompatibilities with their duties the Code of Ethics 3

4 ESCO Registry The companies registered in the ESCO Registry are classified in the following categories: Category A, which includes all the companies registered in the ESCO Registry: Subcategory A1, if they have implemented projects with ESCOs with a total budget of at least EUR for the last five years. Subcategory A2, if they have implemented energy projects with a total budget of at least EUR 1 million for the last five years. Subcategory A3, for all other companies registered in the ESCO Registry. Category B, which includes all the natural persons registered in the ESCO Registry 4

5 ESCO Registry Procedure for a company to be registered in the ESCO Registry: Fill in an online application and send the relevant supporting documents to the competent department. The competent department of Ministry of Energy crosschecks and verifies the validity of the submitted documents. At this stage, it may request additional information from companies, protecting their business secrets. After the supporting documents are checked and if the registration criteria are met, the company is registered in the ESCO Registry and will be sent the following: the registration certificate, which includes the registration number allocated to the company, the password for the relevant information system. 5

6 ESCO Registry The details are posted on the website of ESCO Registry ( These details of the ESCOs registered include: Name and registration number, Contact details, ESCO category and subcategory. The registration in the ESCO Registry is optional. It provides information to consumers on energy services. 47 companies are included in the registry 6

7 Contract template for EPC in public buildings in the country The Directorate for Energy Policy and Energy Efficiency of the Ministry of Energy and Environment prepared and posted two EPC models: Guaranteed savings EPC: Template of guaranteed savings EPC model ( Shared savings EPC: Template of shared savings EPC model (in ( *Available in Greek 7

8 Contract template for EPC in public buildings in the country Both models specify, among others: The design and management of the energy service. The methodology for assessing energy savings and valuing the resulting overall financial benefit. The purchase, installation and commissioning of the necessary energy-using equipment, The management, the operating method and the maintenance of the equipment. The overall cost of the project, which consists of the cost of supply and installation of the necessary equipment, the cost of its operation and maintenance, the financing cost and the fee paid to the ESCO. The procedure for assessing the energy benefit. The duration of the contract 8

9 Contract template for EPC in public buildings in the country Major differences among Guaranteed Savings and Shared savings EPC models: Guaranteed savings Shared Savings Performance related to level of energy saved Value of energy saved is guaranteed to meet debt service obligations down to a floor price ESCO carries performance risk Energy-user/customer carries credit risk Performance related to cost of energy saved; the ESCO bills upon actual results Value of payments to ESCO is linked to energy price; betting on price of energy can be risky ESCO carries performance and credit risk as it typically carries out the financing 9

10 National and international programs promoting the use of EPC in public buildings in Greece In Greece, besides EnPC-INTRANS, another three national and international cooperation projects are currently promoting the use of EPC in the country: National project: Supporting and monitoring of the pilot implementation of energy efficiency improvement projects in public buildings by Energy Service Companies (ESCOs). STATUS: Ongoing Energy Performance Contracting Plus European Project (HORIZON): STATUS: Ongoing TRANSPARENSE - European Project. STATUS: Finished 10

11 National Project Project Objectives: Support the Ministry of Energy in developing the ESCO market Identifying technical, procedural and regulatory parameters and conditions for the implementation of these kinds of contracts and projects, through selected pilot applications standardize procedures and remove regulatory barriers for EPC implementation in public sector Ensure that ESCOs have access to energy efficiency programmes for public sector buildings and make use of Third Party Financing (TPF) Disseminate the results of the project so they serve as a guide and to specify the implementation framework for the developing ESCO market and to implement energy projects in the remainder of the public sector and broader public sector buildings 11

12 National Project CRES has undertaken to determine: major public energy consumers the technical specifications and preparation of the process, the methodology for measuring and verification of energy savings (DONE, based on IPMVP) to monitor the implementation of contracts, to assess the benefits of energy interventions and to organize example actions. ESCOs will implement energy efficiency improvement measures in 5 selected public sector buildings. 12

13 National Project Expected results: The processing of energy audits in 5 of the buildings, led to the following conclusions regarding the benefits that will result from this project through the implementation of the proposed energy saving interventions. Annual energy savings: 5,184 MWh Total saving percentage: 23% Average payback period: 5.1 years Job creation: 38 man-years Total investment cost for the energy saving interventions: EUR 3.4 million Total annual economic benefit for public bodies: EUR

14 Current state of the EPC in Greece The market for energy services is still in the early steps of development. No ESCO has implemented so far an EPC project in public buildings in Greece, despite the fact that the necessary legislative framework is in place. Major barriers: The economic recession the administrative barriers in the public sector Complicated tendering procedure No quantitative estimates for the future development, but the market for energy services has significant growth potential. The removal of regulatory barriers to the conclusion of EPCs in the public sector should lead to the implementation of interventions to improve energy efficiency in public sector buildings, which are characterized by a very high potential for energy saving. 14

15 Thank You for Your Attention!!!! More about EnPC INTRANS project: Fotini Karamani Chemical Engineer, MSc Centre for Renewable Energy Sources and Saving (CRES) Energy Policy Analysis Dpt. Phone: fkaramani@cres.gr / This project receives funding from the Horizon 2020 European Union Research and Innovation Programme under Grant Agreement N