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Joint procurement for energy efficiency in public buildings and street lighting
Published on 25 April 2020
Portugal
This is the good practice's implementation level. It can be national, regional or local.
About this good practice
The context which triggered the introduction of the practice was that many projects with great energy efficiency potential and economic viability, both in the private and public sector, do not reach the implementation phase for three main reasons: (I) It is hard to find funding through traditional ways, (II) the scale is generally insufficient to attract professional investors and (III) the restrictive bureaucratic processes make the entire process expensive.
The methodology of implementation starts with BundleUp financing the first technical analysis to estimate the potential assessment and the initial financial proposal. Next step is moving forward to the contracting and funding support. Contracting support means training the municipalities and assist them through legal procedures. At last, they connect the actors that will together establish the investment type (that could be own equities, loan or external investor, known as off-balance sheet).
BundleUp is a Consortium of 8 Portuguese entjties, therefore the main stakeholders are: AdEPorto, GoParity, Eupportunity, Energaia, Ageneal, ENA, Cascais Municipality and SRS Lawyers. Some of the inter-sectorial pact key-stakeholders are the European Comission, the ADENE (Agency for Energy) and the CIP (Confederation of Portuguese Business). Moreover, there is varied niche of entities part of the inter-sectorial pact from different research, private and public sectors and experts
The methodology of implementation starts with BundleUp financing the first technical analysis to estimate the potential assessment and the initial financial proposal. Next step is moving forward to the contracting and funding support. Contracting support means training the municipalities and assist them through legal procedures. At last, they connect the actors that will together establish the investment type (that could be own equities, loan or external investor, known as off-balance sheet).
BundleUp is a Consortium of 8 Portuguese entjties, therefore the main stakeholders are: AdEPorto, GoParity, Eupportunity, Energaia, Ageneal, ENA, Cascais Municipality and SRS Lawyers. Some of the inter-sectorial pact key-stakeholders are the European Comission, the ADENE (Agency for Energy) and the CIP (Confederation of Portuguese Business). Moreover, there is varied niche of entities part of the inter-sectorial pact from different research, private and public sectors and experts
Resources needed
The overall EU contribution to the project was 999 437,50€. From the starting point they expect a 49M€ funding investment from promoters. Indeed, main investment forms in the ongoing process have been coming from own equity/capitals, loans (debt) and external investor (off balance sheet).
Evidence of success
The overall amount BundleUp helped investing in energy efficiency was 21 784 889,5€ although they stimulated more than 1M€ in transactions. In 2019, the expectations were that if all projects were successfully implemented there would be an energy saving of 143,81 GWh per year, which means 67 590 Ton C02 per year.
Currently, there are already 32 projects funded, a beta-version platform, 2000 platform users, 15 concluded investor meetings and tendering templates.
Currently, there are already 32 projects funded, a beta-version platform, 2000 platform users, 15 concluded investor meetings and tendering templates.
Potential for learning or transfer
Every partnership that BundleUp stimulates require a legal framework in standard contract for EE in public administration or group of contracting entities. Providing contracting support is a vital part of BundleUp activities, which counts with the help of a legal partner, SRS Lawyers. Therefore, considering stiff bureaucratic procedures one of the main challenges of IPP, these experiences with legal framework can serve as a base and motivation to future contracting procedures.
On the energy savings projects, BundleUP will make use of existing and innovative financing instruments, combine them with institutional investors while stimulating the engagement of citizens and local communities by using crowdfunding and cooperative business models to share the benefits of sustainable energy investment.
Moreover, BundleUP will promote the replication of the developed methodology and business-models with knowledge transfer workshops aimed at sharing the knowledge gathered during the project.
On the energy savings projects, BundleUP will make use of existing and innovative financing instruments, combine them with institutional investors while stimulating the engagement of citizens and local communities by using crowdfunding and cooperative business models to share the benefits of sustainable energy investment.
Moreover, BundleUP will promote the replication of the developed methodology and business-models with knowledge transfer workshops aimed at sharing the knowledge gathered during the project.
Further information
Website
Good practice owner
Organisation
Go Parity
Portugal
Área Metropolitana de Lisboa
Contact