Abstract
Public Private Partnership initiatives and models are proven, scalable and internationally-recognized procurement methods for reducing the operating costs and improve environmental quality of public bodies. However, there are still barriers to overcome. Local communities’ engagement, lack of technical knowledge and financing constraints are just some topics that still need reliable solutions. The governance model that is adopted for the “Chieti Towards 2020” Project, which was funded under the European Local Energy Assistance in the 2012-2014 period, try to operate a glocal synthesis between local instances and global issues. A mixed bottom-to-top and top-to-bottom approach involves local communities’ trying to address requirements through centralized, high-level management and coordination activities. To date, the most relevant Project outcomes consist of 87 municipalities involved, a structured database of energy audit and data about 144 buildings and about 46,000 public light points. Moreover, an effective engagement of public and private stakeholders lays the foundation for a strong Energy Performance Contract framework able to leverage financing based on minimum guaranteed energy savings of 20% in respect to baseline values.
Highlights
The IEA report on Energy Efficiency Governance [1] pointed out the importance of engaging the private sector in implementing Energy Efficiency (EE) policies and programmes
That study defined the concept of Public-Private Partnership (PPP) as “voluntary efforts in which government and the private sector collaborate to analyse public policy problems and jointly implement solutions
High transaction costs, considered as a relevant part within the overall production costs supported by an Energy Services Company (ESCO) [10], are often significantly related to information and procurement costs and this makes for unfavourable PPP frameworks
Summary
The IEA report on Energy Efficiency Governance [1] pointed out the importance of engaging the private sector in implementing Energy Efficiency (EE) policies and programmes. The aim is to create a mechanism for the energy efficiency refurbishment of buildings and public lighting system, which could be an undeniable driving force for the local economy in terms of direct and induced labour, without affecting public finances This can be achieved using the ELENA facility to create the legal technical requirements for investment through “tender” and use the investment capacity of eligible private individuals, with the support of the EIB in terms of money loan. The ELENA teamwork of experts allows the Province of Chieti having the appropriate advanced skills and knowhow in order to evaluate investments and interventions, prepare tenders and management contracts advantageous for the public and equitable for private companies Morevoer, this kind of centralized approach reduces notably the costs for implementing EPC schemes. For example it would be unattractive in terms of absolute revenue, for an ESCO, an EPC contract for municipalities with just 100 light points, while an aggregate of 10,000 represents an interesting corpus for public lighting facilities business
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