Periodic Reporting for period 2 - FESTA (Fostering local energy investments in the Province of Matera)
Reporting period: 2016-09-01 to 2017-11-30
The main specific objectives of the action are:
1. to define technical, financial, legal and administrative specifications of a package of investments projects that are economically sustainable and attractive for private investors;
2. to assess a PPP scheme and to define an EPC model for the energy efficiency of public buildings, in particular of existing school buildings also to accelerate and create better condition to renewal this aged buildings, in average, more than 30 years;
3. to publish the call for tender and to procure the bundled investments through Energy performance contracting and sign the investment contracts;
4. to aspire to become a best practice for the mobilization of energy investments for the local public authority of the region;
5. to share all this advances with other MLEI European partners.
The action aims to “enable investments in flagship initiatives” within the province, in this specific case of the “climate neutral” provincial schools by 2020, through technological innovations and “method innovations”. Specifically, the project aims to promote a first series of interventions (regarding a complex of the schools and a Province office building in Matera and a complex of school with the neighboring hospital in Policoro) in order to experiment with technological and method approaches the achievement of the objective that all schools in the province become “climate neutral” by 2020.
The project also aim to generate capacity building in the field of renewable energy and energy saving through:
-the inter-institutional collaboration;
-special attention to the potential of the PPP in the field of energy;
-development an innovative approach that the project should have in order to be attractive to both lenders and ESCOs.
• Interpretation and application of law
-Problem in the interpretation and application of the new national procurement code, the Legislative Decree 50/2016, with reference to art. 23, relating to ""Levels of engineering procurement and works concessions and services” that impacts on the minimum content of the ""feasibility study"" referred to deliverable ""Feasibility studies"" (D2.2 D2.3 D2 .4 and D2.5);
In this regard, it has been considered appropriate an assessment on the fulfillment of the essential requirements laid down by the national and European regulatory framework particularly for the interpretation and application of the new national procurement code (DLgs n.50/2016). Therefore, a new deliverable has been introduced, D2.6 “Update of Feasibility Study complex of buildings” which contents consist in the evaluation of the completeness and of the compliance of the feasibility studies with the European and national regulatory framework in relation to the tender procedure for the investments to be procured.
-The status of implementation of the Law n. 56/2014, with exclusive regard to the reallocation of functions between the Region, Provinces and Municipalities, caused initially some delay in the execution of the project concerning regulations applicable to the Province.
In fact, the project also aims to develop a new procurement approach through the inter-institutional collaboration between different public authorities, setting up a tendering procedure for the investments by a unique Contracting Authority. In this regard, the partner ASM (Azienda Sanitaria Locale di Matera), raised the matter to manage the planning and the execution of the tendering procedure for the hospital in Policoro (Istituto Ospedaliero Civile “Giovanni Paolo II”) through the institutional bodies of the Basilicata Region - also those responsible for managing energy issues for regional public bodies. Recently this issue has been overcame and the partner agreed to follow the original contract provisions of the project.
-Change in the destination of the building “AGEFORMA” (within the complex of buildings n. 3 of the project) and the need to find a new building in place, the order to ensure the achievement of minimum investment of 7,5mln euro.
It has been replaced by the Province Office building.
Thus, thanks to the amendment of the G.A. and to the renewed commitment of the partner and subcontractors, the activities are resumed on regular basis and the feasibility studies foreseen under deliverable D2.2 D2.3 D2.4 and D2.5 have been completed.
Moreover, partners and the subcontracted financial and legal advisors have started the preliminary activities in laid down the deliverable D2.6 “Update of Feasibility Study complex of buildings”, completed in December 2017.
The action fixes a credible pipeline of a bankable large-scale EE project: the signature of the investment contract before the end of the action. The contribution requested triggers investments in EE for € 7,5 M, with a leverage factor of 15 and relevant impacts in terms of energy savings and renewable energy production. The innovative organization of the investment package will consent to simplify the tender procedures, grouping the investments in one tender even if they belong to two different municipalities of the same province, making the investment scenario more favourable and reducing time and costs of tender management through the use of innovative PPP and EPC schemes. The financial institutions will be involved during the project lifetime, in launching financial facilities tailored to enterprises interested in investing as third party in EE projects of the public sector.
The electric energy savings triggered by the project within its duration are equal to 11,977 GWh/year. Regarding the current electricity, diesel and natural gas consumptions, the project will allow respectively the following percentages of savings:
-66% of electric energy savings;
-100% of diesel savings;
-55% of natural gas savings.
Given the expected savings, it has been estimated 62 % of CO2 reduction.
The total renewable electricity produced is equal to 1,434 GWh/year and the total renewable thermal energy production amounts to 2,377 GWh/year.
Another project’s impact is represented by the generation of capacity building in the development of renewable energy and energy saving interventions with particular reference to:
-the inter-institutional collaboration between different public authorities in order to increase the interventions scale and make the investments in the energy sector for the private sector more attractive,
-the development of innovative approaches that pay special attention to the potential offered by the PPP in the field of energy;
-better understanding, both by public and private operators (with particular reference to the construction industry) of the features the projects in the field of sustainable energy and energy conservation should have in order to be attractive to both lenders and ESCOs.