Energy Performance Contracts

Energy Service Plus and Energy performance contract
The so called  Energy Service Plus, as defined in Italy by  Decree n. 115/2008 could be consider a typology of Energy Performance Contract namely as contracts aiming at improving the energy efficiency and decreasing the carbon emissions, paying at the same time the measure through the achieved energy saving.

In practice the public body identifies one or more existing buildings with potentials of energy saving, then invites the skilled companies in such sector (ESCO, Energy Saving Companies) to present offers for measures which could be of different nature and typology but aiming at reaching a defined % of energy saving compared to the consumption level provided by the public body (baseline).
 
In the offer the company guarantees the energy saving %, declares the amount of investment it can cover, indicates what % of financial saving will acknowledged to the client and set the contract duration. The call is assessed through the criteria of the value for money, taking into account the overall economic and technical elements.
The call winner is obliged to undertake the measures and to provide other services (maintenance, training, communication, …) but normally does not provide the fuel and it does not have the responsibility on all the energy systems (in charge of the ordinary manager). The company is in charge only for the part of the system it has implement measures on. The guarantee is expressed through formulas foreseeing a payment to the client in case consumption are higher than the amount set in the call. In case of energy saving higher than the guaranteed ones, a % of this is kept by the client (Sharing savings).

Implementing in Italy the "Performance Contract" model
In order to implement the Performance Contract models in the Italian framework, it should be taken into account that public bodies tend to sign contracts for global service with the same provider, thus avoiding not only to waste time in the preparation of the call for tenders but also conflicts of responsibilities. Therefore the most feasible way is the one of including within the same call 2 separate services: one traditional for the fuel provision, operation and maintenance (as a supply contract) and the other more innovative concerning the saving goals to be reached through measures to be undertaken on the building/systems (from CHP to RES, to thermal insulation). This last one should be paid on the basis of the guaranteed saving.   
In the assessment of the offers, the main part will concern costs and quality of the service, while for the energy performance part the key issue (beyond to the quantity and quality of the foreseen investments) will be the percentage of guaranteed saving (compared to the contract duration and to the percentage paid over the minimum saving). Among the different contract typologies the sharing saving (sharing the guaranteed saving between customer and ESCO) is also foreseen.

AESS role
In the process of the Energy Plus Service awarding, AESS normally represents the technical partner the public bodies rely on, carrying out the energy analysis on the buildings included in the service (both for their future management as well as for improvements on electrical and thermal systems). The energy analysis aims at identifying concrete energy and economic saving measures, providing the local authority a detailed framework about the priorities and their effectiveness both at financial and environmental level. As next step AESS works out an overall financial plan and, together with to the local authority, the Technical Specifications of the Call.
AESS is furthermore able to ask for and trade the White Certificates connected with the energy efficiency measures undertaken by the public body on its buildings or systems and provides assistance after the Call, checking the compliance of the conditions established in the Technical Specifications, the sound application of the Maintenance Plan through on site inspections and the updating of the technical specifications in order to extend the service to new systems.

EPC contracts worked out:
Province of Modena (27 schools e 3 offices venues)
Town of Formigine

Town of Budrio
Town of Maranello
Town of Savignano Sul Panaro
Town of Fiorano Modenese
Town of Pavullo nel Frignano
Geovest Consortium (Local public utility
) – link to EPC project