Street Public lighting refurbishment – Project financing tool
Published on 09 April 2018
Italy
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About this good practice
The practice, born within the framework of Guidonia Montecelio municipality’s Energy Efficiency Action Plan, is based on feasibility preliminary study, that made also a quantification of expected results. Due to a constrained budgets and a lack of borrowing capacity, Guidonia Montecelio municipality decided to undertake the substitution, in street public illumination, of around 10.000 traditional lamps (SAP) with LED technology, by a public/private partnership.
So a public call to tender was issued to choose the executive undertaking (Esco). All phases were managed by the Esco: economic and financial feasibility, works planning and execution, facilities operation and maintenance, and financial provision. The contract spans 20 years. The intervention was able to achieve 45% of electric energy consumption reduction, and to reduce 33% the whole installed power. Mostly energy saving was used for the reimbursement of the investment of the executive undertaking (shared savings). Esco financed the investments based on their own funds.
So a public call to tender was issued to choose the executive undertaking (Esco). All phases were managed by the Esco: economic and financial feasibility, works planning and execution, facilities operation and maintenance, and financial provision. The contract spans 20 years. The intervention was able to achieve 45% of electric energy consumption reduction, and to reduce 33% the whole installed power. Mostly energy saving was used for the reimbursement of the investment of the executive undertaking (shared savings). Esco financed the investments based on their own funds.
Resources needed
Sources and amount of funding: € 10.000.000,00.
Executive undertaking Esco provided to finance the energy efficiency interventions and, conversely, they have got the most of energy savings.
Executive undertaking Esco provided to finance the energy efficiency interventions and, conversely, they have got the most of energy savings.
Evidence of success
The intervention was able to achieved 45% reduction of electric energy consumption, and to reduce of 33% the whole installed power. The municipality has achieved 1.5 GWh per year of energy saving, equal to 617 toe per year.
Potential for learning or transfer
The main success factors of the practice (which can be transferred to other contexts) can be thus synthesized:
• good use of a combination of public and private funding, and use of the opportunities offered by public/private partnership.
• good use of a combination of public and private funding, and use of the opportunities offered by public/private partnership.
Good practice owner
You can contact the good practice owner below for more detailed information.
Organisation
Guidonia Montecelio municipality and Metropolitan City of Capital Rome
Italy
Lazio
Contact
Technical expert