SCI-Network - Sustainable Construction @ Innovation through Procurement

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

Rotterdam - EPC for swimming pools, The Netherlands

The City of Rotterdam has set the target of achieving a 50% reduction in CO2 emissions by 2025. In 2010,  as a pilot initiative, the Real Estate Management Department of the Development Corporation Rotterdam (RE  DCR), tendered for an energy performance contract (EPC) covering nine swimming pools, with payments based on actual energy savings delivered.

The 10-year EPC contract, which also included responsibility for maintenance of the facilities as well as operation, was awarded through the competitive dialogue procedure. This procedure was decided upon  due  to  the  uncertainty of the contracting authority regarding potential energy saving measures, and the complexity of possible payment and pricing structures. Energy bills were analysed and checked against real consumption. The baseline measurements and preliminary analysis of potential improvements indicated that a 10 year payback period would be sufficient. The award of the contract was based on the energy savings offered by the tenderers.

The winning contractor (Strukton) guaranteed annual energy savings of 34%, with savings beyond this to be shared by the city and the contractor. The initial investments in energy saving measures will be paid back through the energy savings made over the 10 year contract period. The city pays periodic compensation to ESCo based on the actual delivered savings (bonus/penalties) and annual maintenance budgets.

The inclusion of maintenance responsibility within the contract makes sense as the contractor has a clear incentive for ensuring newly installed equipment is performing correctly and achieving energy savings. The pilot will now be rolled out across the city.

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