SCI-Network - Sustainable Construction @ Innovation through Procurement

SCI Network - SCI-Network - Sustainable Construction @ Innovation through Procurement

EPC for social housing - Emilia Romagna, Italy

The Emilia Romagna public housing association ACER carried out a pilot in the framework of European FRESH project 7 in 2011 to demonstrate that energy performance contracting (EPC) can be used for upgrading energy efficiency in the social housing sector on a large scale.

The pilot site consists of 13 public dwellings built in 1981 in the town of Reggio Emilia in a quarter called which needed complete renovation to improve both comfort and energy efficiency. ACER, the management entity of the buildings, acted as the leading authority in the process on behalf of the tenants.

The EPC was awarded to an ESCo (Energy Services Company) through the competitive dialogue process. The final 12 year contract included a guarantee of 35% energy savings per year. This would be sufficient to repay the initial investment costs, cover winter fuel bills, and provide a fee for the ESCo, as well as providing an immediate 7% reduction in tenants annual energy bills. Any savings exceeding 35% during the duration of the contract will be evenly shared between ESCo and the residents. At the end of the 12 year contract, all benefits will accrue to the tenants. To reduce the risk of default by tenants, ACER provided a guarantee to the ESCo.

The competitive dialogue procedure based on open, performance-based specification was deemed successful in allowing the ESCo to optimise its offer, with final proposals differing considerably from the original proposal.

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