SCI-Network - Sustainable Construction @ Innovation through Procurement

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

Working with the local energy agency in Avigliana, Italy

The City of Avigliana issued a tender in 2009 for HVAC and SHW energy services, with the support of the Energy Agency of the City of Turin. As the first Italian City to approve the SEAP (Sustainable Energy Action  Plan) required of signatories of the “Covenant  of Mayors”, the city wished to set an example of good practice for the citizens.

The three year contract was for the collection of data on the energy performance of the city  building  stock,  together  with  maintenance  requirements and an assessment of end user needs. The contract was planned to provide the necessary baseline and preparation for future third party financing contracts. The tender was awarded the Best Green Tender Award 2010 from CompraVerde Forum. The winning contractor agreed to:

  • Provide the city with all energy audits and building certifications, using the same software used by the city and the Energy Agency, in order to ease data analysis;

  • Provide the city with free access to all data collected by the energy service company on energy consumption, indoor temperature and maintenance of the buildings in real time.


The city then took the option of transforming this contract into a so-called “energy service plus” contract , which allowed third party  interventions  directly to begin retrofitting immediately, rather than waiting  to tender again at the end of the existing contract. This was the first such transformation carried out by a public administration in Italy. Negotiations were assisted by the Turin Energy Agency, and lasted over a year, in order to discuss and optimise the retrofit of each building, and fine tune the legal and financial aspects of the new contract.

The contract, signed in 2011 and running for 25 years, guarantees a minimum global energy consumption reduction of 29%. The upfront investment costs of €674,461 to retrofit 10 buildings, was provided by private investment to be repaid over the course of the contract from the energy saving. The annual payment of €224,327 from the city, covering energy costs and maintenance services, remained the same in the two contracts, the investment of the contractor being financed with the energy savings.

As the potential savings are up to 40%, further points were included in the contract to deal with savings  beyond the  29% guaranteed:

  • For savings from 30 to 35%, the contractor will receive 60% of the extra savings; for savings exceeding 35%, the contractor will receive 75%;

  • The City of Avigliana is entitled to carry out additional energy saving and substitution measures for  any  building, with the corresponding saving being received by the City itself.


The Energy Agency will support the Cityof  Avigliana until the result of the retrofits are monitored and validated.

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