Work package 3

Work package name Energy Exploitation and Performance Contracting
Work package leader Essent Energiediensten

Objective

Objective of work package 3 is to elaborate the actual energy performance contracts for the pilot locations. This includes an inventory of financial and juridical aspects, the elaboration of the financing structure and the final elaboration of a draft of a specific tailor-made Energy performance Contracts for the pilot locations. End users of this work package are in the first place the occupants/households involved but also possible housing corporations for offering these services to their tenants. For the tasks 3.1 to 3.5 links will be made with following related projects:

• EUROCONTRACT, European platform for the promotion of Energy Performance Contracting
• EC SAVE INTEREB Integrated retrofitting of Buildings
• EC SAVE Third Party Financing expert system to support energy efficiency in buildings
• EC SAVE Promotional campaign of energy efficiency through TPF for the service sector
• EC SAVE EPA-ED Energy performance assessment method – existing dwellings

Description of the work

Task 3.1 Exploitation parameters and feasibility assessment
- definition of the total energy plant and building services for exploitation (using input from WP 2) including settlement of “exploitation boundaries”
- volumes of investments
- return of investments
- economical life span
- inventory of input parameters from WP2
- calculations with exploitation models
- sensibility analyses

Task 3.2 Financial parameter assessment
In this task all financial aspects and boundary conditions will be investigated and documented including:

1. costs of the energy saving measures (including alternatives) (task 2.4)
2. cost for energy, benefits of savings and energy cost scenarios
3. costs for maintenance

After the parameter assessment following exploitation parameters can be settled :
- settlement of a “not more then business as usual” principle for the pilots
- settlement of GJ prices heat (and cold if applicable)
- settlement of connection fees heat (and cold if applicable)
- settlement of one-off contribution fees
- determination of reference costs per pilot

Task 3.3. Legal aspects
In many cases a private owned Energy Exploitation Company, with different types of ownership (organization of owners, corporations, utility, third parties) will invest and take over the exploitation. All local and national juridical constraints and boundary conditions will be investigated and analysed. The legal aspects also include:

Support to end-users on Contracting
This concerns support to end-users and private energy exploitation companies in:
- advice in what way the works and services need to be put out to contract;
- advice about the content of contracts;
- advice about acceptance of non-complying offers.

Study on Comparative Law concerning EPC and forming EEC’s
It is expected that, despite the European efforts in harmonisation, there will be differences in the various legal aspects in different countries involved in ECOLISH. Therefore a study on comparative law in the different countries involved in ECOLISH will be carried out. This study will be analysed on the impact that all addressed legal issues have on the sustainable refurbishments of existing buildings stock.

Task 3.4. Elaboration of financing schemes
The outputs of tasks 3.1 and 3.2 will lead to a proposal for a optimal tailor-made financing scheme for every pilot.

Task 3.5. Elaboration of Energy Performance Contracts
The output of task 3.3 will be transformed to a draft energy contract, to be negotiated with the occupants (WP4, task 4.2)
Task 4.2 must lead to the final contracting on a number of locations. Target of the pilot is that at least three of the four pilot locations succeed to sign a final contract which will be used with the business plan (task 3.5) for the final execution of the measures (the execution itself is considered to be out of the scope of SAVE VKA2, but the signed contracts assure the actual performance of these actions)

Task 3.6. Formation of Energy Exploitation Companies with occupants involved
As a traditional ESCO is normally a profit organisation the envisaged EEC’s are non-profit organisations formed by parties/people involved. These EEC’s to be formed are legal entities but it depends on the local and national situation what exact form and organisation
- investigation of legal structures for the EEC’s
- inventory of possible participants in EEC’s
- forming of the EEC’s
- billing and customer care
- possibilities for (up)scaling

Task 3.7. Introduction and training of a model for feasibility studies for energy exploitation

An easy to use but powerful model is already made to make calculations (for feasibility but also for estimating GJ prices, connection fees etc.) for (private organised) energy exploitation. (Published in the Netherlands as the “Toolkit Sustainable Energy)”. In 2007 a model will be further developed especially for retrofitting and existing residential buildings. This model will be introduced as an extra tool in WP3 Dissemination and training to partners will be organised to use this model in this project.

Outcome of this work package

- Tailor-made energy performance contracts including financial and legal aspects
- Energy Exploitation Companies with occupants and concerned parties involved for the pilot locations.

Deliverable(s) of this work package

D3.1	Report on financial constraints for EPC
D3.2	Report on juridical constraints for EPC
D3.3	Energy Performance Contracts for the pilot locations
D3.4	Energy Exploitation companies for the pilot locations
D3.5	Report on comparative law for EPC and ECC’s
D3.6	Model on energy exploitation and training