ESCO project in Public-Private Partnership formula allows the modernisation of municipal boiler plant for renewable energy.
The purpose of launching the investment was to improve energy efficiency and reducing heating costs. Lack of the municipality’s own resources forced the municipality to look for private sources to finance the necessary investments and change the form of urban management heating plant. ESCO project in Public-Private Partnership was such a solution.
The right to use the boiler plant is the remuneration for the concessionaire (private investor - ESCO company) and sale of thermal energy.
The concessionaire finances modernisation, ongoing repairs and all costs associated with the production of heat and its transmission. The repayment of the funds is made on the basis of the remuneration paid by the municipality.
It is worth emphasizing that the basic reason for the implementation of the PPP project was not only the criterion of raising capital to implement the necessary investment, but also reducing the costs of energy generation and transmission.
Resources needed
Investment of 750 000 euro. The concessionaire finances each stage of the investment on its own - a bank loan. The return of funds provided by the private partner is based on the remuneration paid by the municipality .
The duration of the entire contract is 30 years.
Evidence of success
Other public units encouraged by the example of Piecki, want to carry out similar projects.
ESCO projects in Public-Private Partnership formula is primarily a guarantee of high quality in terms of investment works and the level of public services rendered.
All knowledge in the field of implementation of energy-saving projects is provided by the company implementing the ESCO investment.
After modernisation, the municipality gained a modern, safe and energy-efficient facility.
Potential for learning or transfer
Financial mechanism used in this project is quite easy to copy.
Public-Private Partnership is a sufficiently capacious model of cooperation that allows to implement a wide range of projects, especially in the field of renewable energy or energy efficiency. In addition, these projects become even more attractive in the face of energy price increase and care for the environment.
ESCO company performs a number of activities as part of the investment: it designs, builds, finances, maintains and manages specific public infrastructure.
