Harnessing the Power of the Public Purse · 2014. 6. 25. · of the public purse”. By doing so, it emphasises that energy efﬁciency in the public sector goes far beyond energy

Harnessing the Power of the Public PurseFinal report from the European PROST study on energy efficiency in the public sector

Further copies of this report can be ordered from the co-ordinator of the study:

Borg & Co AB, Sveavägen 98, 4 tr

SE-113 50 stockholm

Tel: +46 8 673 11 30 Fax: +46 8 673 04 44

[email protected]

Harnessing the Power of the Public Purse

This report is based on the PROST study carried

out under the auspices of the European

Commission’s SAVE programme

TYPESETTING AND REPORT LAYOUT: YRSA WESTERLUND, TYPATEXT, SWEDEN COVER PHOTO: LENA PATERSON/TIOFOTO PRINTED IN MARCH 2003

ISBN 91-631-3772-0

Final report from the European PROST study on energy efficiency in the public sector

Acronyms and abbreviations VI

Acknowledgements, description of project team and responsibilities VII

Executive summary IX

Part 1 Energy efficiency in the public sector today

Introduction

. It is possible, allowed and practised

. Methodology and scope of the study

. What is the public sector?

. Barriers

. Considerations on improving energy efficiency

National targets, policies and programmes

. National targets and strategies

. Energy efficiency policies and programmes in public administrations

. Policies and programmes in EU

. Policies and programmes in EU Candidate Countries

. Policies and programmes in other countries

Co-operative purchasing by public administrations

. EU Countries

. EU Candidate Countries

. Non-EU countries

Energy management in public administrations

. Aims of energy management

. Technical focus areas

. Barriers for energy management

. Energy management units

. Problems and solutions

Laws, regulations and guidelines for energy efficiency in the public sector

. Laws on energy-efficient procurement and energy management

. Building-specific regulations

. Special energy-efficiency guidelines for public purchasing

III

Contents

Product purchasing, building investments and financial management

. Financial management

. The “traditional management model”

. The “budgeted model”

. Financing energy efficiency and balancing budgets

. Purchasing channels and information requirements

Success stories and good examples of energy efficiency in the public sector

. Finland

. France

. Germany

. Italy

. Sweden

. Switzerland

. UK

. USA

Part 2 Policies and tools for energy efficiency in the public sector

Policies for an energy intelligent public sector

. Summary of policy proposals

. Policy targets

. A co-ordinated network of national public sector energy efficiency information centres

. Energy efficiency specifications and life-cycle cost methods for products

. Energy efficiency specifications and life-cycle cost methods for buildings

. Helping buying agencies supply energy efficient products

. Energy efficient procurement information desks within public administrations

. Energy efficiency management units

. Energy efficiency budgets

. Third-party financing and energy performance contracting

. Public internal performance contracting (PICO)

. Sharing savings

. Bringing energy efficiency to outsourcing

. Linking energy efficiency and public administration reform

. Barriers addressed and synergies

Life-cycle costs, performance standards or purchase specifications?

. The three main technical tools to improve energy efficiency

. Communication packages

Specific energy efficiency criteria and life-cycle costs for products

. Introduction

. Specific energy efficiency criteria for appliances and products

. Life-cycle costs for appliances and products

. Life-cycle costs versus specifications for each product

. Summary and conclusions

IV

Measures and tools for improving the energy efficiency of buildings

. Purchase specifications

. Minimum performance standards

. Best practice guidelines

. Requirements for passive cooling

. Life-cycle cost methods for buildings

Part 3 Scenarios and potentials

The energy, and fiscal potential of a European programme

. Objectives and scope

. Modeling approach and structure

. Energy use in the public sector

. Energy use in the public sector in selected Candidate Countries

. An example of disaggregated energy use

. Summary

References and Internet resources

Appendices

Appendix

Possibilities for integrating environmental considerations into public procurement. Legal memorandum

Appendix

Examples of information sheets on glazing and ballast purchase specifications

Appendix a-e

Detailed Purchase Specifications

a Fluorescent lamp specifications

b Fluorescent lamp ballast specifications

c Luminaire efficiency specifications

d System specifications

e Window specifications

Appendix

Recommendations for minimum performance standards for new and refurbished buildings in the public sector

Appendix

Summary of costs and benefits from using electronic ballasts (Printout of spreadsheet)

Appendix

Swiss regulations for proof of cooling demand

Appendix 7

German recommendations for municipal energy management

Unofficial translation of the recommendations from ”Deutscher Städtetag” (Association of German cities)

Appendix

The feasibility of public internal contracting () in a number of countries

All PROST Country Studies are found in a separate electronic appendix volume found on the PROST cd. The full PROST

report will also be available in electronic format on www.eceee.org/library_links (see procurement).

V

AC Air conditioner

Ademe The French Agency for Environment and Energy Management

EC European Commission

EEB Energy efficiency budget

EEMU Energy efficiency management unit

EPC Energy performance contracting

ESCO Energy service company

ESPC Energy-savings performance contracting

GEEA Group for Energy Efficient Appliances (co-operation between some European energy agencies)

HVAC Heating, ventilation and cooling

ICLEI International Council for Local Environmental Initiatives

IEC International Electrotechnical Commission

LCC Life-cycle cost

MEPS Minimum energy performance standards

MPS Minimum performance standards

MS Member State

Novem The Netherlands Agency for Energy and the Environment

NPV Net present value

O&M Operations and maintenance

PA Public administration

PICO Public internal performance contracting

PPS PROST Purchase Specifications

ROI Return on investment(s)

STEM Swedish Energy Agency

SHGC Solar heat gain coefficient

TOE Tonnes of oil equivalent

TPF Third party financing

VFM Value for money

VI

Acronyms and abbreviations

Acknowledgements and sponsors

“Harnessing the Power of the Public Purse” is the title of the final report delivered by the project.The project was originally conceived as a study on Public Procurement of Energy Saving Technologies inEurope, hence the acronym . Although all of the areas covered in this report indeed are subject topublic procurement legislation, the study deals with energy efficiency in the public sector as a whole,ranging from day-to-day product purchasing to building energy management and investments.Consequently, the scope of is defined as “energy efficiency in the public sector”.

The study was carried out within the European Commission’s programme (Contract op/.//-/) with financial support from a number of national institutions, to which theproject group is extremely grateful.

The following institutions contributed financially to the project:

The European Commission’s ProgrammeMinistero dell’Ambiente e della Tutela del Territorio (Italy)Umweltbundesamt, The German Agency for the EnvironmentAdeme, The French Agency for Environment and Energy ManagementNovem, The Netherlands Agency for Energy and the Environment

Project team

The following partners participated in the PROST project:

Borg & Co , Sweden (project co-ordinator); Nils Borg (overall project management) and Ylva Blume

Wuppertal Institut für Klima Umwelt Energie GmbH im Wissenschaftszentrum Nordrhein-Westfalen,Germany; Stefan Thomas (responsible for co-ordinating the building-related parts of the study) andWolfgang Irrek

..., Energieverwertungsagentur, The Austrian Energy Agency; Herbert Ritter

Fewe, Fundacja na rzecz Efektywnego Wykorzystania Energii (Polish Foundation for Energy Efficiency),Poland; Adam Gula and Arkadiusz Figórski

, International Consulting on Energy, France; Sophie Attali

, International Council for Local Environmental Initiatives, Germany; Alexandra Waldmann

Novem, The Netherlands Agency for Energy and the Environment; Annemie Loozen

Politecnico di Milano, Italy; Lorenzo Pagliano and Andrew Pindar

, Finland; Heidrun-Faninger Lund and Peter Lund

, Swedish Energy Agency; Lotta Bångens

Jeffrey Harris, head of the Washington office of Lawrence Berkeley National Laboratory, was closelyinvolved in the whole study as a special expert

Other experts employed by the project group:

Eje Sandberg, Energi; Gösta Westring, legal adviser, Sweden

VII

Acknowledgements, description ofproject team and responsibilities

Responsibilities and authorship

The study is a result of the truly collective effort by the entire project team. Various parts havespecific authors, but all partners have been involved in commenting, suggesting and co-authoring thedifferent chapters. Nevertheless, particular responsibilities were assigned as follows.

Country studies (compiled in a separate Appendix volume)Austria: Herbert Ritter, ..., Bettina Lackner, /

Estonia: Heidrun Faninger-Lund,

Finland: Heidrun Faninger-Lund,

France: Sophie Attali,

Germany: Stefan Thomas, Wolfgang Irrek, Lars Kirchner and Sabine Nanning with support by FousiehBalaghi-Mobayen, Wuppertal Institut für Klima Umwelt EnergieGreece: Herbert Ritter, ...Hungary: Adam Gula and Arkadiusz Figórski, FeweIreland: Ylva Blume, Borg & Co

Italy: Andrew Pindar and Marta Papetti, Politecnico di MilanoJapan: Alexandra Waldmann,

Korea: Annemie Loozen, NovemPoland: Adam Gula and Arkadiusz Figórski, Fewe, with support by Polish Network “Energie Cités”Slovakia: Adam Gula, Arkadiusz Figórski and Silvia Kyselicova, Fewe, with support by Agency forRegional Development in ZilinaSweden: Ylva Blume and Nils Borg, Borg & Co , with support by Lotta Bångens,

Switzerland: Wolfgang Irrek, with support from Lars Kirchner, Wuppertal Institut für Klima UmweltEnergieThe Netherlands: Annemie Loozen and Tim Skelton, Novem, with support from G.W.P.J. Kempen andP.J.M. Neelis, Arpas Energy Contracting

: Harry Fitch, independent consultant for the Politecnico di Milano: Jeffrey Harris, Lawrence Berkeley National Laboratory ()

Main report

Chapters - (Part ), which summarises findings from the Country studies, was compiled by Ylva Blumewith assistance from Nils Borg, Andrew Pindar (who drafted a number of sections including the summaryof the buildings-related chapters) and Stefan Thomas.Chapter was originally written as separate policy proposals by individual members or the project team.The proposals were compiled and edited by Nils Borg with support from Stefan Thomas.Chapter was written by Andrew Pindar with input from Herbert Ritter, Wolfgang Irrek and StefanThomas.Chapter was written by Herbert Ritter.Chapter was written by Andrew Pindar, who also produced the corresponding appendices -. StefanThomas provided inputs both for Chapter and its appendices.Chapter was written by Heidrun Faninger-Lund and Peter Lund, with assistance from Adam Gula andArkadiusz Figorsky. In Chapter , Andrew Pindar gathered the information on Internet resources.

Appendices

Appendix (a legal memorandum on environmental concerns in public procurement) was written byGösta Westring, legal adviser and procurement specialist.Appendices - were written and produced by Andrew Pindar.Appendix was translated from German by Stefan Thomas.Appendix was written by Christian Radtke, Wuppertal Institut für Klima Umwelt Energie.

VIII

Harnessing the power of the public purse

How can procurement and building energy manage-ment in the European public sector be directed towardsbuying energy efficient products and making publicbuildings consume less energy? This is the main ques-tion answered by the report.

The study was conducted by a seven-countryteam under the auspices of the European Commission’s programme from early until the end of .The study team identified barriers and opportunitiesfor public sector energy efficiency. It reports on goodexamples and describes a set of tools that can be usedby public administrations without any particular na-tional or policy decision, but it also proposes impor-tant policies for the European Union and the MemberStates. Without such policies, European public admin-istrations will fall short of capturing the full potentialof energy and financial savings, and associated green-house gas reductions.

The report argues in favour of “harnessing the powerof the public purse”. By doing so, it emphasises that energy efficiency in the public sector goes far beyondenergy savings and climate protection. It is sometimesargued that energy efficiency is a luxury for the publicsector. However, the opposite is true: energy efficiencyis a strategy to deal with scarce public funds while atthe same time addressing serious energy and climate

IX

Executive summary

30

35

40

45

50

55

2001 2010 2020

year

billion euro

(a) baseline(b) EU(c) strong

150

175

200

225

2001 2010 2020

year

million t CO2

(a) baseline

(b) EU(c) strong

Reduced CO2 emissions and fiscal savings from public sector energy efficiency in EU-15, compared to the baseline. Where-as the baseline (a) assumes a 0,5% annual improvement in energy efficiency, the EU-case (b) illustrates the outcome fromimplementing measures already proposed by the EU (a 1.5% annual efficiency improvement). The “strong” scenario (c), illustrates the outcome of a programme for energy efficiency in the public sector, with annual efficiency improvements of 2%. Additional investments of only 80 million Euro can generate savings in the order of 12 billion Euro.

challenges. The question is thus whether the publicsector can afford not to capture the savings.

The gains to be made are substantial. With addi-tional annual investments in energy efficiency as smallas million Euro, energy savings in the public sectorworth up to billion Euro per year could be achievedin ’s current Member States (-). Similar gains arepossible in the Candidate Countries covered by .

The savings estimates are based on the major oppor-tunities for public sector energy efficiency identified inthe study. The public sector typically represents-% of the whole energy use in Member States,and its annual energy bill is billion Euro. Public pro-curement in the is growing. Today it is in excess of billion Euro or about % of total . Public ad-ministrations are thus important market actors in energy issues. This is true for purchased energy, buteven more so for the procurement of products, systemsand services that influence the use of this energy.

The report outlines a number of policy scenarios forthe public sector in the to demonstrate how theirpurchasing and energy management practices could in-fluence energy efficiency. quantifies the potentialfor energy and cost savings and the greenhouse gas() reductions that are linked to these savings. Tothe knowledge of the study team, this is the first timesuch an analysis has been carried out for the Europeanpublic sector.

Compared to a “business as usual” scenario, the re-sults of the analysis indicate that public administrationsin Member States can save up to % of their energyuse (heat and electricity) by , if a stronger empha-sis is placed on energy efficiency aspects in procure-ment, investment, and energy management routines.The related reductions are in the same order ormagnitude, and it is clear that active strategies for energy efficiency in the public sector could contributesignificantly to the task of Europe meeting its commit-ments within the Kyoto protocol (see figures).

Looking beyond the public sector

Perhaps the most important effect of systematic and co-ordinated energy efficiency efforts in the public sectoris the possibility of a much larger impact on the marketas a whole. Arguably, the market volume of theEuropean public sector is fragmented. But given a com-mon direction, manifested in common practices, en-ergy efficiency targets and purchase specificationsapplied throughout Europe, suppliers would start to re-gard all public entities in Europe as part of one virtualentity and adapt to that market. To reach economy ofscale, it will be profitable to sell the same efficient prod-ucts to private companies and consumers as well.

Office equipment is an example of the business po-tential that could be triggered by energy-efficient pub-lic purchasing. The Country studies indicatethat around % of the electricity savings in the publicsector could come from more energy-efficient personalcomputers and screens alone. This represents publicpurchasing of more than million personal computersover years, or on an annual basis. Valuing apersonal computer for Euro each, the total valuewould be billion Euro per year. Thus, if the publicsector would purchase products and services with moreenergy efficiency features, its purchasing power wouldcertainly influence the product range of any supplierwishing to satisfy this demand.

How can we get there? Part of the report ac-tually concludes that the public sector gradually islearning to ask for efficient solutions, but that the ef-forts are scattered and seldom co-ordinated. The study covered public administrations on various levelsin Members States, Candidate Countries and other nations. The study identified a number of barri-ers to broad-scale implementation of energy efficiencyin public administrations. None of these barriers are ofa truly legal nature: In fact, one of the most hinderingfactors is the misconception that explicit energy effi-ciency requirements in public procurement would notbe allowed. In fact, it is allowed, and energy efficientpublic procurement is practiced by a number of entitieswho face no legal problems in doing so. The real barri-ers are related to the absence of clear policies and tar-gets, unclear information, insufficient knowledge, splitincentives, lack of motivation and lack of financial andstaff resources. These are barriers we can overcome by

policy decisions, information, training and develop-ment of common methods. It is also necessary to makefunds available through a number of financing vehicles;all of them will have positive net benefits on the publicsector’s finances.

Good examples

The study identified a number of excellent ex-amples from central, regional, and local governments.Among these is the City of Pori in Finland, which hasbased its “green” purchase decisions on life-cycle costprinciples and lists of efficient products for more thanten years. In France, the City of Montpellier has an en-ergy management department, which keeps track of thecity’s or so energy bills and acts to lower them. InGermany, a large number of cities have energy effi-ciency management units that are saving tax payer’smoney through a number of innovative ways to organ-ise activities and investments based on low life-cyclecosts. The energy manager of the City of Modena inItaly provides a splendid example of how to undertakeeffective energy management by unifying investmentand management budgets. In Sweden, the City ofSundsvall undertook a large-scale procurement to re-place street lighting luminaires with more effi-cient ones within a year. In Sundsvall, the city councilmade a special provision to finance this, knowing thatthat the life-cycle cost based approach would bring themoney back in a few year’s time. Finally, and impor-tantly, the government has set an annual -percentreduction target of 2 emissions that applies to allagencies and departments of the central government.The government also requires that all governmentagencies base their purchase decisions on “Value forMoney”, rather than low first costs.

The Federal Energy Management Program ()provides an excellent example for Europe, both in itsway to address the complexity of product purchasingfor a multitude of products and agencies with differentneeds, as well as in its focus on buildings and integra-tion with other Federal programmes such as EnergyStar. By emphasizing Energy Star and criteria as acommon basis for energy-efficient purchasing, the has already seen some evidence of market responsefrom manufacturers and suppliers. A projection of sev-eral scenarios for energy-efficient purchasing by federaland non-federal government agencies showed energycost savings of $ billion/year in the “most likely”case, based on TWh/year plus million GJ of annualfuel savings. Of this total, % of the savings are at-tributable to state and local purchasing.

Policies and tools

The report describes a number of policy actionsand tools needed to harness the power of the publicpurse. The proposals are made with full regard to thesubsidiarity principle. Certain policy tools are relevant

X

XI

Summary of important focus areas of an EU Directive on energy efficiency in the public sector

The Directive would have to recognise:

• that public administrations are relevant and responsible actors in achieving targets for a more sustainableand efficient economy and society

• the importance of structural changes to consider the requests of an integrated product policy• the importance of principles that allow more sustainable consumption patterns while aiming for “Value for

Money”• that energy efficiency in the public sector is a valuable strategy in achieving targets such as the obligations

under the Kyoto Protocol• the need for European policy targets in terms of energy and greenhouse gases in relation to improved public

sector energy efficiency

The Directive should oblige:

• the European Commission to assume responsibility for a European Co-ordination Board for EnergyEfficiency in the Public Sector

• institutions to integrate energy efficiency considerations in their daily expenses and activities• institutions to establish energy-efficient procurement information desks in order to make procurement

information available to all their internal purchasers of appliances and cars• institutions to establish energy efficiency management units and carefully consider all relevant instru-

ments that help make building-related measures as energy efficient as possible• institutions to create one or more and/or / (third-party financing/energy-performance con-

tracting) schemes for improving the energy efficiency of their building stock

The Directive should further call upon Member States to ensure that:

• they set themselves quantitative targets for additional energy savings for their central government institu-tions, and promote the setting of similar targets by the lower levels of state (regional, local governments)

• public administrations in their countries integrate energy efficiency considerations in their daily expenses andactivities

• buying agencies in their countries provide information that helps :s to make informed choices on energyefficient products

• national public sector energy efficiency information centres are established and given sufficient resources toprovide information, and to develop common -wide specifications, methods and procedures for integrat-ing energy efficiency in public procurement and buildings management

• the national public sector energy efficiency information centres co-operate with each other• public administrations establish energy-efficient procurement information desks in order to make procure-

ment information available to all their internal purchasers of appliances and cars• public administrations above a threshold energy consumption (e.g., /year) operate energy effi-

ciency management units (:s), and that smaller administrations get access to similar services• :s are charged with the responsibility to make refurbished and new buildings respect minimum perfor-

mance standards, and document the savings • there are explicit requirements to introduce cost effective measures to improve energy efficiency service con-

tracts (for public administrations that outsource responsibilities)

The Directive should further call upon Member States to promote:

• the creation of energy efficiency budgets in all levels of public administrations in their country. It should atleast recommend central government and the institutions to dedicate part (%) of their normal build-ing/maintenance budget to energy efficiency investments

• the use of third-party financing and energy performance contracting (/) in public administrations inorder to overcome existing barriers to energy efficiency in public buildings

• the use of the public internal contracting () concept in public administrations • shared savings schemes, which give an incentive to individuals, teams or organisational units to implement

energy efficient improvements• that public administrations link the reform of public administration with actions, incentives, and instru-

ments to improve energy efficiency

for individual Member States and public administra-tions, and the study team calls upon governments andpublic administrations to implement these policies,even in the absence of action at the level. Other pol-icy proposals would clearly benefit from co-ordinationat the level. Where this is the case, the report consid-ers how these policies may be introduced into an Directive on energy efficiency in the public sector.

In particular, -wide co-ordination is important tosecure the development of common specifications andmethods, but also to ensure that the synergies of thevarious policies and tools are maximised. The boxfound in this executive summary as well as in Chapter, outlines possible elements of an Directive.

The report not only points at the importance of com-mon purchase specifications and guidelines. A largeshare of the project was devoted to actually mapping,analysing and proposing such common energy effi-ciency purchase specifications and life-cycle cost meth-ods for “stand-alone” products as well as for buildings.On a principal level, the report discusses when to useenergy efficiency purchase specifications and when life-cycle cost methods are applicable. In the area of prod-ucts and appliances, concrete proposals for -widespecifications were developed for equipment, coldand wet appliances, street lighting and traffic lights,and cars. In the buildings area, purchase specificationsare defined for types of building components.

The report also provides and in-depth discussion onbuilding minimum performance standards, and dis-cusses how and why various target levels can be appliedin public administrations, in light of the EuropeanDirective // on the Energy Performance ofBuildings. Energy performance standards and purchasespecifications are complementary: Purchase specifica-tions make it very easy to identify efficient productsand components, whereas building standards (whethertarget or mandatory) give skilled designers and energymanagers freedom to develop energy-efficient systemsand buildings as long as the specified levels are met.

It is important to note that the policy tools shall beseen as a package, where each tool addresses differentbarriers and hence creates synergy effects with the othertools. The following is a very short overview of the policy toolkit offered by the study:

Setting policy targets An Directive must defineclear policy targets for Member States. These are quan-titative targets for additional energy savings in eachMember State’s central administration, but also a re-quirement for Member states to promote that all publicadministrations set up similar targets.

Creating a European structure based on nationalprogrammes National programmes in each MembersState should be established and co-ordinated by na-tional public sector energy efficiency information centres.These centres will most likely be existing structures,which are given a clear mission and sufficient resourcesto carry out their work. A European Co-ordinationBoard for Energy Efficiency in the Public Sector shall be

established to co-ordinate the work on a Europeanlevel, and the national information centres are the nat-ural contact points in each Member State. ThisEuropean structure shall be responsible for developingand updating common, -wide energy efficiency pur-chase criteria and life-cycle cost methods for products andbuildings. The national information centres shall alsowork in close co-operation with the central buying agen-cies in the country.

Structures and actions within public administra-tions Within public administrations, the function ofenergy efficient procurement information desks must besecured. In the area of buildings, energy efficiency man-agement units (:s) shall be established. These havea host of policy tools at their disposal: Energy efficiencybudgets, third-party financing and energy performancecontracting, public internal performance contracting(PICO), sharing savings, as well as the opportunity tobring energy efficiency to outsourcing. The report alsotakes a closer look at the possible links between energyefficiency and public administration reform.

Leading the way

Everyone has a responsibility for implementing energyefficiency in the public sector: The European Unionand its institutions, Member States and CandidateCountries, individual public administrations on all lev-els, and employees working in all these institutions.The role of the institutions deserves to be high-lighted. No other energy and environment policy areaoffers such an obvious opportunity to provide leader-ship by example than this one. Any Directive askingMember States to ensure that the public sector becomesenergy efficient, should also spell out mandatory re-quirements and actions for the European Union’s owninstitutions.

XII

Part 1

Energy efficiency in the public sector today

1.1 It is possible, allowed and practised

How can the day-to-day procurement and building energy management of public sector entities in Europebe directed towards buying energy-efficient productsand making public buildings more energy-efficient?

This is the main question, which the study setsout to answer. But why bother about the application ofenergy-efficient technologies in the public sector?Obviously, there is the double benefit of reducing life-cycle costs of energy using equipment and buildings,and of reducing negative environmental impactsthrough increased energy efficiency. But perhaps themost important effect of systematic and co-ordinatedenergy efficiency efforts in the public sector is the po-tential of an overall impact on the market. If the publicsector all over Europe were to systematically procureenergy-efficient products and buildings using verymuch the same performance criteria, the market trans-formation towards more efficient and sustainable prod-ucts and building practices of the whole market beyondthe public sector would be boosted significantly. Thisin turn, would have beneficial side effects on energyuse, environment and climate as well as employment 1)

in all sectors. A systematic and forceful programmewould thus not only help the public sector do its part ofthe job to reduce energy use and greenhouse gas emis-sions, but would also make it easier for other parts ofthe market to achieve the same thing.

In the best of worlds this would already be happeningon a broad scale, but it isn’t. The study rests on a few as-sumptions:

• we do not live in the best of worlds: Even cost-efficient technologies and good energy managementpractices are far from being applied universally in thepublic sector and a large potential remains untapped

• there are significant – real and perceived – barriers,which prevent energy-efficient public procurementand sound energy management from being generallyapplied

• however, these barriers are not impossible to over-come, and in fact, many good examples exist withinthe current legal frameworks

• one way to overcome the barriers is guidelines, simple instructions and model language based on

existing labelling and classification systems. These are not always commonly accepted across Europe but could form the basis for Europe-wide recommen-dations

• life-cycle cost analyses are needed for larger invest-ments, i.e. the public sector needs to become betterat assessing what is economic to own over a period oftime rather than at what is cheap to buy today.Specific financing mechanisms and accounting routines are often needed to make this possible.

• policy measures on European and national level areneeded to tap the potential

On the other hand, a number of good and relevant ex-amples in Europe and elsewhere exist, which make itpossible to claim that public procurement of efficientproducts is possible today, and that it is being done.

Thus, there seems to be a large potential, which thepublic sector leaves untapped. Negative environmentalimpacts and unnecessary expenditure is the conse-quence. The barriers were known in principle, butwhich were the most important ones in the eyes of theprocurers and energy managers?

Further, even if the size of European sector publicprocurement is rather well known, the energy-relatedpart of it remained unclear, and it was not well knownto what extent the public sector does procure efficientproducts. The combination of these two issues equalsthe energy and cost saving potential for the public sec-tor, which is quantitatively estimated for the andCandidate Countries for the first time in this study.

It should be noted that the study makes no attemptat estimating the positive energy and effects thatcould be reached through a wider market transforma-tion, although these effects may be significant.

1.2 Methodology and scope of the study

In order to understand these issues, interviews havebeen performed in most European countries (as well asin a number of countries outside Europe to get someadditional references). The aim has been to get an over-all picture of energy use in public institutions, the rulesand practices that govern it, and to identify the barriers

PROST PART 1 – ENERGY EFFICIENCY IN THE PUBLIC SECTOR TODAY 3

1. Introduction

1) The employment benefits of energy efficiency in the public sector is beyond the scope of the study, but several studies indicate that energy efficiency investments have a positive impact on overall employment.

that stop it from reaching its energy efficiency poten-tial. But equally important, the interviews also servedto identify the good examples and learn from thosepublic administrations that practice energy-efficientprocurement and energy management. This includesboth public building construction and managementpractices and public procurement practices of productsand appliances.

The resulting Country studies are based on detailedstudies and interviews with various key persons in-volved in public procurement and management ofbuildings and facilities in various countries. They rep-resent a valuable source of information for the policy-oriented and concrete recommendation parts of the project, through the thorough descriptions ofthe procurement practices and the presentation of qual-itative and quantitative data.

Institutional agencies of different countries and or-ganisational levels are structured in various ways andhave relatively complex connections of laws and regula-tions that regulate public procurement. Efforts havebeen made to summarise these structures. However,considering the significant diversity of the public sectorthroughout Europe, it is difficult to see clear patterns.

In total countries were studied: in Europe plusthe and Japan. The report concentrates on sum-marising the situation in the eight project partnercountries (see Table . below). Though not covering all Member States the study is nevertheless felt to begenerally representative of the whole of in that itcovers most of the larger countries and a cross section of“active” and “less active” states. Unfortunately the studydoes not cover Denmark, a country that is known tohave matured considerable experience in the field of“green procurement” and energy-efficient procure-ment, especially through the Danish Electricity SavingTrust.

Outside , important experience from the andSwitzerland is highlighted throughout the report. Japanhas also developed practices and programmes that pro-vide significant and relevant experience for the .

This report is divided in three parts:Part serves to provide background information for thewhole work presented as a survey of cross cutting inter-

national experiences. The information is gatheredthrough interviews with public procurement officials,as well as energy managers in the public sector andthrough review of the relevant literature and is pre-sented in Country studies provided as annexes to thisreport. The synthesis of the Country studies aims to:

• identify cross-cutting experiences• provide a description of the situation in different

countries. The survey thus serves as the foundationon which the continued analysis and Policy recom-mendations of Part rests

Part is policy oriented, in the sense that it aims at de-veloping a number of concrete policy proposals for theEuropean Commission as well as for national govern-ments. It includes:

• a summary of the most important policy conclusionsfrom Part

• a summary as well as a detailed description of theproposed policy instruments

• a short justification for the various tools available forpolicy intervention

• transferability and feasibility of innovative methodsfor organising and financing energy-efficient refur-bishment of buildings

• methods and model guidelines for integrated plan-ning of buildings, lighting and systems (including benchmarking and target values)

• energy-efficient product procurement

Part includes developed energy and greenhouse gasmitigation scenarios for public sector procurement andenergy management activities.

The Annexes include Country studies (see above),detailed guidelines for energy-efficiency in buildingsand public procurement of transports.

1.3 What is the public sector?

If programmes defined for the public sector do nothave any specific targets, it is difficult to make evalua-tions and necessary amendments. First, the public sec-tor has to be defined. This is of great importance whenoutsourcing, privatising and deregulation are major

INTRODUCTION

4 PROST PART 1 – ENERGY EFFICIENCY IN THE PUBLIC SECTOR TODAY

Table 1.1. Countries covered in the report.

Countries covered in detail in Other countries covered Countries studied but generally

the synthesis – PROST partners in the synthesis not called upon in the synthesis

Austria Japan Estonia

Finland Switzerland Greece

France UK Hungary

Italy USA Ireland

Germany Slovakia

Netherlands

Poland

Sweden

trends in Europe. The public sector concept is a com-plicated matter that needs to be thoroughly analysed.

The directive on public procurement ( ⁄ ⁄)defines public authorities as the State, regional or localauthorities, bodies governed by public law or associa-tions formed by one or more of such authorities or bodies governed by public law.

A body is considered to be governed by public lawwhere it:

• is established for the specific purpose of meetingneeds in the general interest

• is not of an industrial or commercial nature• has legal personality • is financed for the most part by the State, or regional

or local authorities, or other bodies governed by pub-lic law, or is subject to management supervision bythose bodies, or has an administrative, managerial orsupervisory board more than half of whose membersare appointed by the State, regional or local authori-ties, or other bodies governed by public law

This definition includes the residential multifamilybuildings, that in some member countries are todayhuge parts of the “public sector”, although large sharesof this stock is rapidly being privatised.

One definition to consider is the public sector de-fined as activities that are publicly financed, such aspublic administration, healthcare, schools and publicservice. In this context, privatised utilities such as elec-tricity companies that are financed by the consumer’sfees do not belong to the public sector. On the otherhand, private schools that are mainly public financed,represent a part of the public sector. Thus there is awider public sector as defined in procurement legis-lation, and a narrower public sector of the central state,regional, and local public administrations. This studygenerally covers the wider public sector except whereindicated otherwise. The notion “PublicAdministration”, , is used throughout the report,covering all sorts of public bodies.

1.4 Barriers

The Country studies report several barriers for goodenergy management practices and procurement of en-ergy efficient products:

• Insufficient Priority: The lack of priority results in theabsence of clear mandates to staff to procure energyefficiency, which is considered by top management(at times political level) principally as an environ-mental and not an economic issue. This in part maybe understandable; annual energy costs generally ac-count for only to % of annual budgets of typicalpublic administrations, whereas personnel costsmight account for something in the region of %.Thus reductions in energy use, even significant, re-sult in only marginal annual financial savings com-pared to total annual budgets. However, though

relatively small, in absolute terms the energy savingscan be significant, for example; a city of in-habitants can save some million Euro a yearthrough energy efficiency, and by doing so meet sev-eral environmental aims at no cost.

• Lack of information of energy efficient solutions andtheir evaluation: Staff charged with procuring needindependent, clear information on the full range ofefficient solutions and standard cost benefit analysisprocedures to determine the nature of the energy sav-ings that they provide.

• Legal uncertainty – insufficient knowledge of nationaland international procurement legislation: The inter-pretation of procurement legislation is difficult.There is need for interpretation of national and procurement legislation in accordance to the imple-mentation possibilities of green purchasing practicesincluding energy efficiency aspects. This concerns inparticular the interpretation that the “economicallymost advantageous tender” should be the one withthe lowest life-cycle costs.

• Split incentives to managers to invest in energy-efficiency due to the more or less standard procedureof managing public sector finances by dividing in-vestment and management budgets across different departments (considered in detail in section“Product purchasing, building investments and fi-nancial management”). The standard practice is adisincentive to the user departments, which cannotkeep the return from investments in energy efficiencyin their buildings, and a non-incentive to those incharge of managing the investments.

• The lack of investment culture: Public administrationsinvests in society in the wider sense. Its mission state-ment is directed by service provision. Investmentsaimed at yielding direct future economic returns arenot a natural part of this culture. This is reflected atthe decision level, where priority is directed to im-proved service levels, and within administrations,which often lack the skills to undertake simple costbenefit analyses.

• The complexity of public procurement: Public procure-ment is complex and increasingly decentralised.Procurement officials work in an environment ofconflicting policy objectives, extensive regulationsand a variety of pressures. The complexity tends tofavour relying on past practices, avoiding risks, whichconsequentially stifles innovation.

Other problems are occasionally stated. Apart frombeing less commonly reported than the barriers identi-fied above, they are to some degree consequential tothem. Problems are:

• lack of funds, particularly in building maintenance –this may present a major problem, at least in somecountries

• lack of personnel resources and time – it is difficult tospend time to reach what is perceived as marginalsavings

• lack of motivation

INTRODUCTION


• too much and unclear information (a lot of informa-tion is not understandable and practical for every-dayuse)

1.5 Considerations on improving energy

efficiency

Presented here is a collection of procedures that the in-terviewed purchasers in various public authorities feelmight help to overcome problems for energy efficientprocurement. Comments received were:

• the promotion of energy efficiency in public procure-ment needs a well-balanced mixture of voluntary ef-forts, guidelines, regulations and legislation

• the environmental factors must be transmitted intoeconomic factors additional to direct energy cost sav-ings (However, this would most likely require inter-nalisation of environmental costs, and is beyond thescope of this report.)

• requirements according to a label classification willbe preferable to for all products that use energyless than x kWh/year and for which there is adequate-wide labelling

• target values or standards also for main installed tech-niques in buildings (lighting systems, ventilation sys-tems and electrical heaters and coolers), have to beimplemented in the national building regulations oneither a function or system level

• in order to promote a common European market fortop-efficient products, there is a need of common example calculation prices for gas and electricity rec-ommended when procuring appliances or setting en-ergy efficiency standards for building installations

• some procurement officials stated that it would begood if price examples would include external costs

• there is a strong need of a national infrastructure, forexample a national organisation or programme forenergy-efficient public procurement

There is also a need for:

• clear, specific policies and concrete guidelines at alllevels

• simple examples of available tender documents• tools and data for specific product and product

groups• e-commerce tools that allow inclusion of energy effi-

ciency aspects• bundling the management and financial responsibil-

ity for investments in building energy efficiency andfor energy

The policy tools needed to achieve this are presented inPart of this report.

INTRODUCTION


This chapter sets out to describe national energy reduc-tion and climate targets that are relevant for the publicsector. The chapter then goes on to describe variouspolicy programmes within the public sector. Since sev-eral of the programmes that were found cover morethan the public sector, the policy programme sectionalso covers some general national programmes.

2.1 National targets and strategies

Almost all countries covered in the study have national related targets. However, few countries have de-composed these targets in sectoral and sub-sectoral lev-els. Practically none of the countries has indicatedspecific interim targets for the public sector. Exceptionsto this is the , where central government depart-ments has a goal of % reduction per year in emis-sions for government estates.

Germany, the and Switzerland have set clearly de-fined quantitative targets for reducing and energyconsumption in central (federal) administrations. InSwitzerland, the cantonal and municipal authorities arealso committed to the reduction targets. In Germany,the municipalities have not yet followed and no infor-mation is available regarding lower tiers of the publicadministration in the .

Finland and Italy have imposed energy efficiencyobligations; but these obligations are not linked toglobal performance criteria or national objectives, norare they monitored.

• In Finland, the Ministry of the Industry imposes spe-cific minimum efficiency standards for new and re-structured buildings to be used by the public sector

• In Italy, public administrations consuming morethan /year are required to identify a “man-ager for the conservation and rational use of energy”

Where objectives or clear targets are absent, the countrystudies have identified voluntary commitments to re-duction targets. This is more common among local administrations. These commitments may be made asself-declarations by single administrations to respectnational Kyoto reduction targets, or participation inthe co-ordination of national or international pro-grammes; for example the International Council forLocal Environmental Initiatives’ () Cities forClimate Protection Campaign or Climate Alliance

Network, which has a long-term target of % reduction, not only for the operations of the participat-ing municipalities themselves, but for all energy con-sumption in their territory. In Switzerland, the new“Association of Major Energy Consumers in the PublicSector” (‘Energho’, including hospitals, cantonal build-ings, large federal government energy consumers) plansto reduce the energy demand by % within the nextten years.

Table .. shows energy reduction targets for some partner countries for which central (or federal) sectorcommitments have been identified. The table is not exhaustive and needs to be complemented with targetsfrom all participating countries.

2.2 Energy efficiency policies and

programmes in public administrations

Energy efficiency policies seem to be generally sporadicand based on voluntary agreements. However, there is atrend of raising awareness for energy efficiency in na-tional policies and some interesting examples may serveas inspiration for further policy-making.

In Switzerland, a quality label for advanced energypolicy for municipalities has become widely accepted. has incorporated energy efficiency into public pro-curement for central Government departments, whichhas resulted in a considerable decrease of energy use inthese organisations.

Policy programmes including energy requirementsand eco-labelling in public procurement appear insome of the studied countries. Guides for environmen-tal criteria exist in Austria, Germany, France (under development), Ireland the Netherlands, Japan andSweden. policy programmes provide support to fed-eral, state and local agencies to comply with energy-efficient purchasing requirements.

Some policy programmes include financial incentivesfor energy-efficient measures. Examples given areHungary, where support is given by preferential creditsor non-reimbursable grants, the Netherlands, Polandand Sweden (investments for municipalities). Energyefficiency investments are also funded in Slovakia, however symbolical, compared with member countries.

The presented examples include policy programmeswith activities such as analyses of office equipment, the


2. National targets, policies andprogrammes

development of interactive information systems, educa-tion, research and investments. Common policy toolsare energy management units, procurement guidelinesand building regulations.

In the following chapters, we have tried to summarisesome of the most striking examples of policy pro-grammes for energy efficiency presented in the nationalreports. It may still not be an exhaustive summary, i.e.some important programmes might have been left out.The aim is to provide an overview of recent trends andprovide a starting point for further discussions.

2.3 Policies and programmes in EU

2.3.1 Austria

Policy programmes in Austria include projects targetingdistrict heating, power generation, living, mobility andcity administration. Other items are environmentalpurchasing criteria and a best practice competition formunicipalities, targeting organisational structures andrenewable energy sources.

The Climate Protection Programme of Vienna (), aprogramme prepared by the municipality of Vienna,

NATIONAL TARGETS, POLICIES AND PROGRAMMES


1)Achievement of energy consumption indicators expressed per GDP unit and per production volume in individual production sectors (ex-

pressed as production physical volume or production value) as well as energy consumption indicators in major household equipment and

appliances not exceeding the average indicators in the OECD countries.

Table 2.1. Examples of CO2 and energy reduction targets for central (or federal) government.

Country Kyoto CO2 National Central (Federal) Administration Target Targets for other

Reduction Targets public areas

(burden sharing)

Finland 0% 10-20% improvement in energy efficiency by 2010 10-20% improvement in

energy efficiency by 2010

Germany -21% 25% CO2 reduction between 1990 and 2005 some states same target;

for all federal agencies some municipalities

similar targets

Poland medium-term objectives (by 2010):

reduction of energy consumption per GDP unit

by 25% against the year 2000 level1)

long-term objectives (by 2025): reduction of energy

consumption per GDP unit by 50% against the 2000 level

UK -12.5% 1% per annum reduction target for CO2 limited

(with voluntary goal from 2000 onwards. Previously 20%

of achieving -20%) energy efficiency target w.r.t. 1990

Switzerland -8% 10 % of CO2 reduction below 1990 levels The objectives of the

between 2000 and 2010. “SwissEnergy” pro-

gramme has been

adopted by the federal,

government, all cantons

and all municipalities.

USA - Reduce energy intensity by 30% in 2005 and

35% in 2010, compared with 1985 levels.

Reduce greenhouse gas emissions from facilities

and other operations (mainly vehicles and “weapons

platforms”) by 30% in 2010, compared with

1990 levels.

Reduce energy intensity in industrial and laboratory

facilities (based on appropriate floor space or output

indicators) by 20% and 25% in 2005 and 2010,

respectively, compared with 1990

was introduced in . It includes sets of measuresin the sectors of district heating, power generation, liv-ing, mobility, city administration and companies. Eachof the measures comprises single projects. Some of the points of the programme are:

• climate protection in municipal authorities: reduc-tion of the heating energy by at least %, stabilisa-tion of the power consumption; reinforcedchangeover to district heating, renewable sources ofenergy and natural gas

• “mobile municipal authorities” i.e. investments to ex-change the vehicles used by municipal authorities tothe best fuel-saving models

• integration of environmental protection when plan-ning and tendering performances of the City ofVienna

• total ban of fluorinated/chlorinated hydrocarbon-foamed building materials

• reduction of material flow, use of reusable products,recycled and renewable raw materials

The Vienna Climate Protection Programme also for-mulated the necessity to offer purchasers an instrumentfor eco-friendly procurement, which resulted in envi-ronmental criteria for products, materials and services.

The “e-Landesprogrammen” for energy-consciousmunicipalities is a best practice competition. It wascommissioned in by the government of theprovince Vorarlberg and is managed by the EnergyInstitute of Vorarlberg.

The targets of the programme are:

• promotion of energy-efficiency• increase of the use of new, renewable energy sources• organisation and maintenance of structures and

processes that guarantee sustainable energy policy

2.3.2 Finland

In Finland, a framework agreement between local andnational administrative levels has been signed by a significant number of authorities. It includes energy-auditing and follow-up activities and aims is to reduceenergy consumption by % until . Energy conser-vation in Finland is part of the Finnish Climate ChangeStrategy, and not a programme co-ordinated separately.

The voluntary framework agreement on energy con-servation was concluded between the Association ofLocal authorities and the Ministry of Trade andIndustry () in . In , approximately mu-nicipalities had signed energy conservation agreementswith the and approximately % of all buildingstock owned by municipalities and local governmentswere covered by the agreement.

The objectives of the agreement are to:

• cover as much as possible of the municipalities’ activities

• reduce heat consumption from by % until and % until

• stop the increase of energy consumption in buildingsand bring it to decrease before

• perform energy auditing and follow-up activities in% of the public buildings in municipalities until

2.3.3 France

In France, a policy programme aims to integrate envi-ronmental concerns in public administrations’ activitiesrelated to issues like buildings, energy management andenvironmentally friendly procurement. Important toolsare information, training and environmental criteria forpublic procurement.

The general objective of the Administration GreeningProgramme is to integrate environmental considerationsinto the activities of public administrations and in-cludes eight fields of activity:

• buildings• developing a management function for the environ-

ment reaching all staff members and activities • undeveloped sites• energy management• water management• waste management • environmentally friendly procurement • vehicle fleet

The Programme focuses on information and training,with the objective of changing the general administra-tion organisation and raising awareness in environmen-tal themes. It is co-ordinated by the Ministry ofEnvironment and Land Management, which is nowpreparing a study targeting product families to es-tablish essential environmental criteria for each familyand guide public procurement services.

Apart from this national programme, (theFrench Agency for Environment and EnergyManagement) has set up various activities to supportpublic administrations in their energy efficiency activi-ties, including funding of energy audits and buildingrefurbishing.

2.3.4 Germany

In Germany, there is a number of activities that provideenergy efficiency information to all public administra-tions and some incentives for local authorities from thestate (Land) level. Examples are guidelines for greenpurchasing, energy agencies and information services toschools. These activities are, however, not integratedthrough a comprehensive programme on energy effi-ciency in public administrations.

• The Federal Environmental Agency (Umwelt-bundesamt) issues a comprehensive guidebook on“green” purchasing, including energy efficiency crite-ria as priority in the area of appliances, cars, andbuildings (see under ..)

• the energy agencies of several States offer advice and



consulting to local authorities, e.g. energy audits forexisting buildings, consulting on energy efficiencyand efficient energy supply for new building projects

• there have also been a number of incentive pro-grammes from the Federal States to local authoritiesfor energy audits, creation of energy managementunits, school energy efficiency projects, and invest-ments in energy efficiency

• in the framework of the project “Energy School NRW –Saving Energy Thought Improved building Use”, theenergy agency of North Rhine-Westphalia () offers services such as advice and information toschools and school administrations

2.3.5 Greece

In Greece, a policy programme that accentuates the useof renewable energy will include institutional and fi-nancial incentives for sustainable development.

The Action Plan Energy is the main action inGreece to comply with the European Directive on re-ducing carbon dioxide emissions through building en-ergy efficiency programmes (Directive //). Theaction plan stresses the use of renewable energy sourcesas a basic prerequisite for sustainable development. Theanticipated measures are combined with institutional,administrative and economic incentives, especially inthe retrofitting of existing buildings.

2.3.6 Ireland

Ireland has policy programmes that include eco-labelling, green procurement and BuildingManagement Systems for public buildings. A numberof energy programmes have been promoted by theIrish Energy Centre, who co-ordinates and implementsnational energy policies and provides research and advice related to energy efficiency.

A programme that include green procurement inIreland is “Comhar – the national sustainable develop-ment partnership” – which was established in . Theprogramme is the forum for national consultation anddialogue on issues referring to sustainable development.The members of Comhar are drawn from a widerrange of representative bodies across Irelands economyand society. Examples of issues that may be examinedby Comhar are eco-labelling, eco-auditing policies andgreen procurement.

The State Building Programme was drawn up in and outlined the framework for the implementation ofaction within public buildings. The last ongoing devel-opment of the programme is the installation of aBuilding Management System, which enables theOffice of Public Works to monitor energy consumptionin a number of public sector buildings.

The Irish Energy Centre () is considered as themain instrument for Ireland’s energy efficiency policy.Together with the energy utilities, the co-ordinatesand implements national objectives and policies relat-ing to energy efficiency and renewable energy sources.

In the period of -, the has promoted a num-ber of energy programmes. Examples of tasks of the are to carry out research relating to consumption ofenergy and to advice the government and ministers onmeasures for economically sustainable use of energy.

2.3.7 Italy

In Italy, the National Energy Plan () has, withthe principle objective of increasing national self-sufficiency, identified the rational use of energy as thefirst of five strategic national objectives. The applica-tion of these requirements predates the concepts of sus-tainability formalised with Agenda and subsequentlythe Kyoto reduction targets.

The resulted in legal requirements for public ad-ministrations to appoint energy managers, apply energyefficient solutions and evaluate energy saving poten-tials. The Federation of Energy Managers (whichgroups public and private sector energy managers) undertakes various activities to support the energymanagers, such as training courses, consultancy andprogrammes.

Post Kyoto, a national policy programme in Italyidentified rational use of energy as one of the most im-portant tools for meeting the national Kyoto targets (tocover roughly % of the total objective). However, nospecific targets were set for the public adminstration ona national level. Where reduction objectives exitswithin the public sector, these have been developed au-tonomously by local government (for example by theTurin City Provincial Administration).

Otherwise there are a number of sporadic activitiesunderway by local government; for example voluntaryagreements between local councils and schools that at-tempt to overcome split incentives in energy reductionhave been tested in the City of Modena and theProvincial Administration of Bolzano.

2.3.8 The Netherlands

Policy programmes for energy efficiency in theNetherlands consider environmental management sys-tems, operated by public administrations, as a startingpoint for the implementation of green procurementpractices. They also include financial incentives, pur-chasing guidelines, advice and a toolbox with environ-mental specifications for public procurement. There isa general consensus of Dutch public administrations asmodels for environmentally sound behaviour.

In the first National Environmental Policy Plan ()in the Netherlands, issued in , the government ex-plicitly acknowledged public procurement as an instru-ment of approaching environmental problems.According to the plan, public administrations shouldset example for environmentally sound behaviour.Environmental Management Systems () were con-sidered to provide a good starting point for the imple-mentation of green procurement practices. Thegovernment has provided financial incentives to stimu-



late compliance with the policy plan.Acknowledgement of the environmental potential ofpublic procurement was backed up by an attempt to setup a product information centre (which unfortunatelyfailed).

Duurzaam Inkopen (Sustainable ProcurementProgramme) was set up to draw up purchasing guide-lines and to provide advice on public procurement,which is given in the form of information (non-compulsory guidelines) about available energy-efficientappliances. Duurzaam Inkopen was established by twonational Ministries (the Ministry of Housing, SpatialPlanning and the Environment and the Ministry ofEconomic Affairs) in order to encourage energy effi-cient procurement in public administrations at govern-mental, regional and local levels.

The core of the Sustainable Procurement Programmeis a web site providing a toolbox with environmentalspecifications (http://www.inkopers.net). It is largelybased on a bottom-up approach centred on the idea ofexchanging experiences between procurement officers.

The objectives of the programme are to:

• set an example for others• achieve direct environmental benefits• influence the market by creating a demand for envi-

ronmentally less harmful products and to stimulateproduct innovation

2.3.9 Sweden

In Sweden, voluntary programmes provide financialsupport, training courses and information to munici-palities. Other tools are green procurement activitiesand a labelling system including targets for low energyconsumption.

The Local Investment Programmes () has been anincentive for municipalities to make energy efficient in-vestments. Financial support has been available for mu-nicipalities awarded after quality control from relevantauthorities. is currently being reorganised as theClimate Investment Programme () and entirelytargeted towards climate change prevention measures.

A voluntary programme for municipalities – EKO

Energy Programme – aims to encourage municipalitiesto improve energy and climate work within municipalproperties, administrations and companies. Benefits astraining courses, information on energy systems andtools to obtain energy statistics are offered the partici-pating municipalities.

The Committee for Ecologically SustainableProcurement – -delegationen (active during -) was given the task of promoting ecologically sus-tainable procurement within public administration. Itconsisted of representatives from various state holdergroups, such as local authorities, county councils, gov-ernment agencies and the suppliers of goods to thepublic sector. One of the main tasks of the Committeehas been to influence legislation in order to make

environmental requirements applicable on all publicprocurement. It has also developed an instrument forgreen procurement (see under ..).

The Swedish Confederation of professionalEmployees () has developed a labelling system – the’, later revised as ’. The requirements referto external environment and work environment and in-clude targets for low energy consumption and minimis-ing of chlorinated and brominated flame retardingsubstances and heavy metals. Although this programmeis not targeted towards the public sector it has great im-pact due to the public sector’s large market share of equipment procurement.

2.3.10 United Kingdom

In the , a policy programme of green procurementincludes energy efficiency aspects. However, purchasingof energy-efficient products in Government depart-ments is limited and is only just beginning to develop.In public administrations outside central Governmentdepartments, procurement of energy-efficient productsis uncoordinated but some authorities have set out pro-cedures, which are actively in operation.

According to the Second Annual Report of the GreenMinisters Committee, by March , an improvementof .% in energy consumption had been achievedagainst / levels in Government Departments.These have an ongoing target to reduce energy con-sumption by % per annum from /. They mustalso comply with the legal target to reduce its green-house gas emissions to .% below levels by- and reach a domestic goal of % reduction incarbon dioxide emissions by . GovernmentDepartments must make an annual monetary efficiencysavings of %.

To meet its targets, the Government has instigated apolicy of green procurement in line with Value formoney (), following procurement policy. Withinthis context, central Government places a high priorityon the introduction of environmental issues in pur-chasing decisions. As part of this rationale, theGovernment has incorporated energy efficiency objec-tives into procurement.

2.4 Policies and programmes in

EU Candidate Countries

2.4.1 Hungary

A Hungarian action programme for energy efficiencyhas defined energy saving targets and includes educa-tion, research and financial support. A pro-gramme aims to remove barriers for energy efficiency inpublic buildings and to identify and finance energy effi-ciency projects in municipalities.

In , a new Energy Saving and Energy EfficiencyAction Programme was adopted in Hungary. This new



programme defines energy saving and other targetsuntil and includes a number of specific actions, inthe areas of:

• fund rising• education and awareness promotion• research and development• industrial energy audits and energy-related moderni-

sation• energy management in municipalities, least cost

planning• energy efficiency in transport• heating system modernisation and promotion of

renewable energy sources

The Programme intends to mobilise some billion ( million Euro) of investments, by providing billion ( million Euro) of support over a ten-year period. Support is provided either by preferentialcredit (subsidised interest rate) or as non-reimbursablegrants.

In parallel to the Energy Saving and EnergyEfficiency Action Programme, the ⁄ PublicSector Energy Efficiency Programme aims at helpingHungary to improve energy efficiency in the public sec-tor. The programme seeks to remove barriers to im-prove energy efficiency in municipal buildings,including schools, hospitals and other public buildings.The Programme, which has a budget of approx. . million Euro, also intends to reach out to munici-palities and local advice centres and networks.

The main objectives of the programme are:

• to improve the development of energy efficiency pol-icy, increase awareness and improve co-ordination ofenergy efficiency policy

• the identification, development and financing of energy efficiency projects in municipalities

• to improve the knowledge base on energy manage-ment and energy efficiency technologies. The EnergyCentre is the implementing agency of the project,under the authority of the Ministry of EconomicAffairs.

2.4.2 Poland

In Poland, there is no official programme on energy efficiency but a systematic increase of public share(state budget and other funds) in implementation ofenergy-efficiency-focused programmes. A modernisa-tion fund for energy savings in buildings and a fund forenvironmental protection supports ecological activitiesadapting Poland to standards.

In , the Polish Parliament established a ThermalModernisation Fund () to promote energy savings inbuildings in . support is granted if an energyaudit shows that the investment can be paid backwithin years using energy savings. The investor is re-quired to contribute % of the total project cost, in-cluding the cost of the audit. After commissioning ofthe investment, % of the loan is forgiven. Projects in

conversion to renewable fuels can also be considered bythe .

Additionally, Poland appears to have an efficient wayof supporting selected energy efficiency investments bythe National Fund for Environmental Protection andWater Management () and the EnvironmentalProtection Bank (). Through subsidies and preferen-tial loans, the National Fund supports initiatives thatserve the improvement of the state of nature. Special at-tention is given to ecological activities adapting Polandto the European Union Standards and fuel conversionfrom coal to gas and biomass. The National Fund is thelargest institution financing environmental protectionprojects in Poland. The mission of the Fund is to pro-vide financial support for undertakings on a national orinterregional scale.

2.4.3 Slovakia

There are not many effective legislative, economic orfiscal instruments to influence energy consumption orreduce energy intensity in Slovakia. The funds allo-cated in the state budget supporting national energyuse are only symbolical, especially compared with countries.

The most recent comprehensive National Policy Planof the Slovak Republic was prepared in and in-cludes targets as:

• transformation of the energy sector• establishment of the Slovak Independent Regulation

Office (regulation of prices, conditions for market-ing, issuing permission for fuel conversion etc.)

• increase the use of renewable energy sources and energy efficiency

• decrease the consumption of primary energy sources

Other policy programmes are the National Programmefor Regional Development, the Programme for theSupport of Energy Efficiency and the Use of AlternativeEnergy Sources ().

2.4.4 Estonia

In Estonia, a national policy programme includes certi-fication of building consumption, energy auditingschemes and optimisation of heating systems.

The Energy Conservation Target Programme started in and has resulted in decreased energy consumptionfrom . TWh/a in to . TWh/a in . Thenew energy conservation target programme was draftedin the year and is quite in line with the directives and recommendations. The main points ofthe proposed activities are the following:

• certification of building energy consumption• energy auditing schemes• improved energy metering• revised building code• boiler testing• optimisation of heating systems• training campaigns and international co-operation



2.5 Policies and programmes in other

countries

2.5.1 Japan

In Japan, a programme for purchasing and building energy management includes eco-labelled purchasing,guidelines and target values for energy efficiency.Another programme sets targets for energy-efficientproducts, representing some % of the total residen-tial power consumption.

Japan is implementing a Top Runner programme,which sets targets for products (passenger vehicles,motor trucks, air conditioners, fluorescent lamps, tele-vision receivers, copy machines, computers, magneticdisc devices, video cassette recorders, refrigerators andfreezers). These products represent some % of thetotal residential power consumption and about % ofthe total power consumption of office automationequipment. The target values are based on whether aproduct has the highest energy efficiency of all theproducts in the same group, which are currently in themarket.

The “Action Plan for Greening GovernmentOperations” contains regulations for training of officers,a scheme for product databases, guidelines and targetvalues for energy efficiency. The programme, whichrefers to both purchasing and building energy manage-ment, was succeeded in with the Law onPromoting Green Purchasing (see under ..).

Examples of actions specified in the programme are:

• purchasing of eco-labelled products• promoting of use of electronic mail• installing energy-efficient lights• utilising rain water• conditioning appropriate temperature in office space

2.5.2 Switzerland

Switzerland has a policy programme including a qual-ity label for advanced energy policy, the implementa-tion of energy management systems, seminars andenergy monitoring systems.

Switzerland has over the ten past years followed anenergy policy under the programme “Energy ”.However, only a part of the quantitative goals of theprogramme have been met, wherefore the “SwissEnergy” programme was launched in in collabora-tion with cantons, municipalities, industry and envi-ronmental organisations. Policy programmes on energyefficiency are a part of the programme, for which theFederal Council exercises supreme authority. The taskof Swiss Energy is to fulfil the national climate and en-ergy objectives and to initiate a sustainable energy sup-ply based on innovation and new technologies.

The Federal Office of Energy () manages theday-to-day affairs of Swiss Energy and co-ordinates allthe activities of the programme nation-wide. It will alsoimplement an environmental management system

called “Resource and Environmental Management inthe Federal Administration” (). Initially, offices,office equipment and official journeys will be analysedin each organisational unit with respect to their directand indirect environmental impacts.

A part of the Energy programme – the EnergyTown project – has become a widely accepted qualitylabel for advanced energy policy. An “Energy Town”has to fulfil specific criteria defined according to a stan-dardised catalogue of energy policy measures. The catalogue comprises six important areas:

• building and planning• energy supply• water and heat• traffic and transport • public relations• internal organisation

municipalities are members of the Energy Town organisation and of them have received the qualitylabel. In order to achieve the fullest possible participa-tion, the programme will be promoted and further developed under the name “Swiss Energy at the locallevel”.

Swiss Energy also provides other activities to munici-palities, e.g. energy conservation weeks, seminars forschools and the implementation of energy monitoring,and accounting systems.

2.5.3 USA

In the , energy-efficient purchasing is promoted bya federal programme, providing technical support, de-sign assistance and support to comply with energy-efficient purchasing requirements.

The Department of Energy’s Federal EnergyManagement Programme () promotes energy-effi-cient purchasing by helping federal agencies to complywith the energy-efficient purchasing requirements ofthe Energy Policy Act (among others). Major ele-ments of the include facility issues like on-site audits to identify energy- and water-saving measures,technical support in planning and undertaking energy-saving performance contracts, design assistance to helpagencies build more energy-efficient and sustainable fa-cilities (see under ..).

Another programme is the / Energy StarPurchasing Program, which encourages similar policiesand practices for energy-efficient purchasing by stateand local agencies, with the help of the utility-spon-sored Consortium for Energy Efficiency.





Table 2.2. Overview of policy programmes for energy efficiency with focus on the public sector

National Programmes for energy efficiency Activities

Austria Climate Protection Programme of Vienna Measures in the sectors district heating, power

generation, living, mobility, city administration

and companies

e5-Programme Best practice competition

Estonia Estonian Energy Conservation Target Programme Certification, energy auditing schemes, revised

building code, training, campaigns etc.

Finland The Government Energy Conservation Programme Energy efficient requirements for public pro-

curement, voluntary framework agreement on

energy conservation

France The Administration Greening Programme Training, raising awareness in environmental

themes

The National Programme Against Climate Change Provide public administrations with best prac-

tice, ideas about funding

The National Programme for Energy Efficient Improvement Promotion of energy efficient activities and

investments

Germany No specific energy efficiency programme but the Umwelt- Länder energy agencies providing consulting

bundesamt guidebook on “green” procurement and and advice to local authorities

energy efficiency activities on the Länder level

Greece The Action Plan Energy 2001 Anticipated measures of institutional, administra-

tive and economic incentives

Hungary Energy Efficiency Action Programme Education, research, investments etc.

Ireland Comhar Eco-labelling, green procurement

Irish Energy Centre Research, advice, implementation and co-

ordination of policies, advice

State Building Programme Building Management Systems

Italy Energy managers

Voluntary agreements

Japan Top Runner Programme Sets target values for 12 products

Poland No policy programme but a Thermal Modernization Fund

(TMF) for energy savings in buildings and the National Fund

for Environmental Protection and Water Management

Slovakia Energy Policy of the Slovak Republic

National Programme for Regional Development

Programme for the Support of Energy Efficiency and the

Use of Alternative Energy Sources

Sweden Climate Investment Programme (KLIMP) Grants for energy efficient investments

The Committee for Ecologically Sustainable Procurement Environmental purchasing guidelines

TCO’95 Labelling system

EKO Energy Programme Seminars, information, education

Switzerland Swiss Energy Analyses of office equipment, developing an

interactive information system, labelling

(Energy Town)

National Programmes for energy efficiency Activities



UK VFM administered by Treasury Circular quantified reduction target for central govern-

Government departments requirement ment

Government departmental regulation to

buy on basis of ”Value for Money”

(lifetime least cost)

”Green Ministers” for each government depart-

ment with annual review

USA The Department of Energy’s Federal Energy Management Technical support, facility audits, design assis-

Programme (FEMP) tance, technical assistance, training,

recommendations, tracking and reporting

EPA/DOE Energy Star Purchasing Program Encourages energy efficient purchasing by

state and local agencies

The Nether- Duurzaam Inkopen (Sustainable Procurement Programme) Development of a toolbox for procurement offi-

lands cers including environmental specifications

The use of co-operative purchasing varies between dif-ferent countries and is not thoroughly treated in this report. It has been difficult to extract the needed infor-mation for making systematic comparisons and exhaus-tive summaries for each country.

Central buying agencies exist in most countries andoffer a variety of services. Their aim may be to achieveoptimal purchase conditions and the stimulation ofproduct innovation. Others may serve as advisors onprocurement issues, buying agencies and operators forthe promotion of green purchasing.

It is not possible to distinguish a clear pattern, basedof findings from the Country studies, of the actual useof central buying agencies. Some of them have begun toconsider energy efficiency in public procurement(Germany, Italy, and Sweden). Others refer to greenpurchasing (Austria), but these activities still seem to bein an initial stage.

With considerable experience of public procurementprocedures, central buying agencies could be an impor-tant tool for energy-efficiency procurement. A coupleof the main barriers for energy-efficient procurementbeing lack of information and the complexity of pro-curement procedures, central buying agencies have thepotential to help purchasers to overcome these barriers.

The following section exemplifies some of the pro-curement organisations and central buying agencies.Estonia, Greece and are not included in this sum-mary, since public buying agencies have not beenanalysed in these countries. A brief summary of thecentral eastern European countries also indicates theabsence of public purchasing agencies/organisations.

3.1 EU countries

3.1.1 Austria

In Austria, central buying agencies aim to achieve opti-mal purchase conditions for public administrations andsets targets and examples for environmentally friendlyprocurement. A local ecological procurement service isalso under development.

The Bundesbeschaffungsgesellschaft () includesproduct groups for different sectors, for example nat-ural gas and heat energy, cleaning services and trans-portation. The main target is to obtain optimalpurchase conditions for the Republic of Austria. It alsoaims to set examples, achieve environmental benefits,

influence the market by creating demands for environ-mentally friendly products and to stimulate product in-novation.

In the context of the “ÖkobeschaffungService” () –ecological procurement service – common tenderingand procurement of products and services according toecological and economic criteria shall be offered themunicipalities of the province of Vorarlberg. A productcatalogue based on e-commerce and electronic orderingshall also be developed.

3.1.2 Finland

In Finland, a public-owned network company handlesframework agreements, tendering and decision makingof some % of public procurements, but does not con-sider energy-efficient procurement.

The Trading House Hansel, a public-owned networkcompany, is the buying agency and operator for pro-curement and materials management in the public sector. The Hansel agency, which also provides tailor-made procurement, handles approximately % of allpublic procurement in Finland. In the frame of theagreements concluded, public administrations can re-quire special criteria for procured products and servicesand Hansel handles all further tendering and decisionmaking on their behalf.

3.1.3 France

In France, the main central buying agency is not com-monly utilised and does not include energy efficiencyaspects. There are also some central buying agencies forspecific sectors.

The main public buying agency is called (Union des Groupements d’Achats Publics), and is placedunder the responsibility of the Ministry of Economy.The agency is not systematically used and has for thelast decade concentrated on concerns of public pro-curement rules.

Other public buying agencies focus on specific sec-tors. One example is the buying agency of Paris publichospitals. This agency is the only one to be certified bythe norm for its entire market, which aims toensure the respect of the procurement procedures and agood price for a good service. Energy efficiency is not apart of the agency’s mandate, but is sometimes men-tioned in the call for tenders.


3. Co-operative purchasing by publicadministrations

3.1.4 Germany

Energy efficiency does not yet seem to play a prominentrole in the activities of central buying agencies inGermany. However, one federal central buying agencyaims to increase energy-efficient purchasing and facilitymanagement.

There are several central purchasing agencies withinthe federal government, of which the largest is the (Gesellschaft für Entwicklung, Beschaffung and Betrieb)–an agency recently founded within the Ministry ofDefence. The task of the is to manage non-mili-tary buildings, estates and product procurements andits main aim is to increase energy efficiency in purchas-ing and facility management.

The Procurement Agency (Beschaffungsamt), covering product areas and product groups, is the secondlargest purchasing agency within the federal govern-ment in Germany. The Federal Police Force representsabout a third of the agency’s purchasing volume andpurchasers as the Ministry of Exterior and other federalministries represent some two third.

Co-operative purchasing is not very common amongGerman municipalities. The interviewed municipali-ties in the German Country study consider themselvesas large enough to manage without co-operative purchasing. However, there are several commercialagencies of public corporate purchasing active on theinternet (e.g. are www.wegweiser.de and www.cosinex.com), whose size of impact is unclear.

3.1.5 Ireland

Central buying agencies in Ireland provide procure-ment services to the public sector, but do not target energy-efficient procurement.

The Irish Government Contracts Committee () as-sists the Department of Finance in formulating overallpolicy on public procurement. It may also, in certaincircumstances, adjudicate on contracts awarded by cen-tral government departments.

The Office of Public Works () provides the gov-ernment and the public sector with services in the areaof property, construction and procurement. Amongother things, it is responsible for the procurement ofsupplies and services for government departments. Ithas also a number of key business units, which operateindividually, e.g. the Government Supply Agency,Property Maintenance Services and the ArchitecturalServices.

3.1.6 Italy

In Italy, central government and central dependentagencies are obliged to purchase through , anon-line procurement agency, though a significant partof other areas of the public sector also use the agency.

In awarding supply contracts for office equipment, is presently applying both the criteria of lowestpurchase price and the economically most advantageousoffer. In the latter case this is for the moment defined

principally in terms of after sales service provision. Atthe moment contracts do not take into considerationproduct energy efficiency or lifetime energy costs(though the procurement legislation permits this).However is showing interest in developing the issue.

’s activities are not limited to standard prod-uct supply. A public tender is presently in the phase ofevaluation for space heating service provision. The totalvalue of the tender is in the region of Million Euro/year, representing roughly % of service requirementsof the public administration.


Central buying agencies in the Netherlands providesupport for both private and public administrations.Examples of services are advice, information and inter-pretation of procurement procedures. Energy efficiencyis not a target for these organisations.

The Netherlands Procurement Centre (NederlandsInkoopcentrum, ) is an independent purchasing ser-vice for both public and private organisations. hasestablished long-term relationships with clients andgives advice on procurement matters. Currently, the or-ganisation deals with the purchasing of appliances formore than million Euro per year.

The European Union Advice Centre (-advisen-centrum) offers information services for new tendersthat may interest bidders from the Official Journal.The centre also provides information, prepare bids andgive advice on the interpretation of procedures and prescriptions.

3.1.8 Sweden

In Sweden central buying agencies with offer adminis-trative services, cost-effective analyses and frameworkagreements. There are special agencies for municipalhousing companies and energy procurement.

The Swedish Agency for Public Procurement (Stats-kontoret) provides support to government authorities.Among other things, it helps to develop Swedish ad-ministrative policy and carries out investigations andcost-effective analyses of state use premises. It is also responsible for the use and general agreements inpublic procurement.

The Legal Financial and Administrative ServiceAgency (Kammarkollegiet) has a co-ordinating function,and develops, follows up and co-ordinates the procure-ment within government authorities. This includes theestablishment and development of a framework pur-chasing system and methods and support for increasedprocurement competences and practice.

Kommentus Energi & Samköp handles co-operativeprocurement of energy and other products and servicesrelated to municipalities. After the deregulation of theSwedish energy market, a great number of municipali-ties and other public administrations have accom-plished co-ordinated energy procurement with the helpof Kommentus.

CO-OPERATIVE PURCHASING BY PUBLIC ADMINISTRATIONS


The is the buying agency for municipalhousing companies in Sweden, providing consultancyservices, procurement treaties and advice. The mem-bers manage a total of apartments and are thusan important client for the suppliers.

3.1.9 United Kingdom

In the , the main central buying agency for procure-ment within government departments has a frameworkfor the integration of sustainable development aspectsinto public procurement, including an advisory bodyfor green procurement.

The Office of Government Commerce () is theprincipal organisation responsible for procurementwithin Government departments. BuyingSolutions is the department of responsible for pur-chase of energy-efficient technologies. The inte-grates sustainable development into procurement issueswithin the framework set out in the /TreasuryNote (see under ..).

In , the merged the procurement servicespreviously provided by the Buying Agenct (), theCentral Computer and Telecommunications Agency(), Property Advisers to the civil estate () andprocurement units from the Treasury to create -buying.solutions.

There are also a number of advisory bodies responsi-ble for counselling the Government green procurementmatters. The Advisory Committee on Consumer Productsand the Environment () advice the Governmenton reducing environmental impact of products and services.

The Procurement Policy and Advice Division ()offers guidance and ensures that policy guidance, pro-cedures and standards are up to date.

3.2 EU Candidate Countries

In Poland and Slovakia, there are no known examplesof co-operative purchasing or central buying agencies.However, some schools use co-operative purchasing tolower the overall cost of purchasing.

Hungary has a central purchasing organisation withsplit responsibilities. It is responsible to the PrimeMinister for common use purchases, and to theMinistry of the Interior for other items. The centralprocurement policy organisation – The PublicProcurement Committee – is supported by a Secretariatand reports directly to the Parliament.

3.3 Non-EU countries

3.3.1 Japan

A green purchasing network in Japan promotes greenpurchasing in the private and public sector. Activitiesinclude seminars, awards and exchange of ideas and

practices for green purchasing. Co-operative purchas-ing is not practised by public administrations but acontact group for government agencies, promotinggreen purchasing, is being discussed.

The Green Purchasing Network () was establishedto promote green purchasing among consumers, com-panies and governmental organisations in Japan. It promotes ideas and practices of green purchasing, anddraws up purchasing guidelines for each type of product.

Since , the Green Purchasing Network publishesdata books on various products, holds seminars andstudy meetings and awards organisations that haveshown a remarkable performance in implementinggreen purchasing. The network provides strong supportfor exchange and experience and enhances the collabo-ration of industry, municipal agencies, the Environ-mental Agency and ’s interested in greenpurchasing.

The Basic Policy on Promoting Green Purchasingforesees a contact group for government agencies forstudies of promotion policies and successful co-ordina-tion of green purchasing. This may be an indication forfuture co-operative purchasing practices.

3.3.2 Switzerland

In Switzerland, co-operative procurement exists at alocal level. A central buying agency for federal procure-ment provides advice, education and recommendations(but not on energy efficiency).

There are some examples of co-operative purchasingof municipalities and cantons, such as the cantonal cen-tral office for printed materials of Zürich, which pro-vides co-operative purchasing of office materials.

The Federal Procurement Commission () is respon-sible for co-ordinating the federal procurement ofproducts and services. It also offers consultancy and education for federal purchasers, provides informationand recommendations, sets standards for contracts.





Table 3.1. Overview of public buying agencies/public procurement organisations

Co-operative purchasing or Level Product Groups Objectives/Services

common buying agencies

Austria Bundesbeschaffungs- Federal Power, natural gas, Optimal purchase conditions,

gesellschaft (BBG) heat energy, tele environmental benefits,

communication stimulation of product innovation

IT services, cleaning

services, car fuels,

and transportation

Finland Trading House Hansel Ltd Buying agency, operator

France UGAP All levels Several catalogues

Co-operative agencies for public

hospitals and secondary schools

Germany Several purchasing agencies Federal Increase economic efficiency

within the federal agencies government

Hungary Central Purchasing Organisation

Ireland The Irish Government Contracts Governmental Policy-making, adjudication etc.

Committee

Office of Public Works All Various services

Italy CONSIP Obligation on All, including

central govern- for example

mentand central heat service

dependent provision

agencies. Widely

used by other

sectors (for example

local government)

Japan The Green Purchasing Network All levels 15 product Promote green purchasing

(GPN) categories

The Nether- The NIC (Netherlands Public and private Give advice on procurement

lands Procurement Centre) administrations

The EG-advisencentrum (European

Union Advice Centre)

Poland No organisations for co-operative

purchasing

Slovakia No organisations for co-operative

purchasing

Sweden Kommentus Municipal Promote cost-efficient and

Kammarkollegiet Governmental objective procurement, provide

general agreements

Statskontoret Governmental Consultancy services,

HBV Municipal housing procurement treaties

companies and advice

Switzerland Federal Procurement Commission Federal

UK Office of Government Commerce Governmental

(OCG)

Various advisory bodies

The discussion on energy management has concen-trated on building systems and envelope. Though goodenergy management is applicable to all energy-consum-ing products and components, considerations on im-proving the efficiency of products, for example officeequipment, are made elsewhere in this report. This isfor two reasons:

• In practice “energy management” schemes wherethey exist generally tend to concentrate on buildingsystems and envelope, though no explicit mandatemay exist in this sense. This is probably because oftwo reasons:

a) with such limited resources dedicated to energyefficiency in the public sector, improvements tobuilding systems provide at the moment the greatestbenefit/cost ratio.

b) usually improvements to building systems can beachieved by dealing with a limited number of rela-tively technically well informed actors, usually the fa-cilities department in the public sector. However,achieving improved product efficiency requiresreaching out to a large number of staff who is un-aware of the technical possibilities.

• Report composition and style: energy management issuch a global term that it could effectively entitle theentire report, including considerations of productmanagement.

4.1 Aims of energy management

Good energy management aims to optimise (in termsof investment vs. running costs) building shell, light-ing, heating, and systems through a process of:

• energy monitoring by building• optimisation of the building operation (e.g., closing

down systems outside times of use)• training and information on energy efficiency for the

public administration staff• building energy audits• identifying saving potentials• actions to improve end-use energy efficiency • reporting on the development of energy consump-

tion and energy efficiency successes• benchmarking of building energy consumption

within/between public administrations• possibly also managing the energy purchases

Below, Germany is highlighted as an example of acountry with successful energy management pro-grammes in public sector buildings. The experiences oncost-effective energy savings achieved have been widelydisseminated, and have created a “critical mass” and ageneral trend to introduction of energy management.However, even Germany is far from having compre-hensive energy management schemes in all public ad-ministrations.

4.1.1 Germany

Germany has a history of successful energy manage-ment programmes in public properties. The voluntaryactivities were originally triggered by the second oilprice crisis of the early ’s. They were then furtherpromoted by the climate protection agenda during the’s, including the success of the Climate Allianceand the recent self-commitment of the federal govern-ment to reduce 2 emissions (cf. Chapter ). The ac-tivities have also been fostered by the InternationalCouncil for Local Environmental Initiatives (),benchmarking activities and a kind of “competition”within the communities of local authorities and thestates, respectively. There are, e.g., regular “grass root”conferences of municipal energy managers.

Most of the states (Bundesland) have building energymonitoring systems in place. One example is NorthRhine-Westphalia, which was successful in reducingspecific heating energy consumption in by ,%compared to , and by ,% compared to ,(the year before the energy monitoring was intro-duced).

Similarly around % of municipalities have energymanagement schemes, with % already implementingspace-heating energy saving actions. Furthermore, %of federal government institutions have identified en-ergy efficiency “managers”; with % of them system-atically implementing energy efficiency measures in and lighting further than what is implicit in nor-mal maintenance. Normal maintenance also leads tosome energy efficiency improvements, since the newsystems and components usually are more energy-efficient than the old systems and components they re-place. However, much higher energy efficiency gainsare possible if, at the moment of maintenance and re-furbishment, the new systems and components are systematically optimised.


4. Energy management in publicadministrations

4.1.2 Other countries

However outside of Germany widespread applicationof good energy management is perhaps performed in aless systematic and comprehensive fashion. More oftenin partner countries energy management equalsimproving utility supply side contracts, possibly involv-ing load shifting, with no or only marginal actions ded-icated to rationalising end use consumption. This alsoin spite of attempts to define energy management insome countries through regulation or legislation.French authorities issued a circular in requiring allministries to appoint a civil servant to be in charge ofenergy efficiency, which however had little practical effect.

In , Italy set out a legal requirement for all publicadministrations consuming more than /yearto identify “Managers for the Conservation andRational Use of Energy” with the responsibility of:

• developing company energy balances with which to • develop actions, interventions and procedures neces-

sary to ensure the promotion of the rational use ofenergy

However, in implementation both the quantity of man-agers employed and the quality of measures undertakenfalls significantly short of the intentions of the legisla-tor.

Even where effective energy management is prac-ticed, activities in most partner countries tend to con-centrate on improving the efficiency of heating systems.As the figures show above, this is the case in Germanyand France, where heating systems improvements ac-count for the greater number of actions by the centralgovernment (one fourth of state buildings).

4.2 Technical focus areas

Activities aimed at improving energy efficiency of heat-ing systems, artificial lighting systems, and buildingshells are all important focus areas, but improvementsin heating system efficiency have perhaps received most ofthe attention. Some of the advantages of this focus area are:

• specific energy consumption (kWh/m2 year), whichis roughly a factor of ten greater than other end uses(for example typically around - kWh/m2 yearcompared to lighting in the region of kWh/m2

year)• significant and relatively easily achievable saving

potentials (for example installation of a single newcondensing boiler as opposed to the substitution ofmultiple light points)

• a single institution generally technically well pre-pared interface in the guise of the facilities depart-ment

• a relatively easy defined service level (°), allowingadministrations to turn to external service providers

Activities aimed at improving energy efficiency of arti-ficial lighting systems or improving building shells are stillgenerally not standard activities in the public sector, though there may be specific programmes andactions. Only in Germany there is evidence of system-atic improvements in lighting systems with % ofMinistries having implemented energy efficiency mea-sures in and lighting. It is however unknown howcomprehensive these measures have been.

Also it is to be highlighted that many actions in im-proving building system energy efficiency are the work ofspecific motivated individuals working beyond theirimmediate remit, often with facilities departments.Though laudable actions, real across-the-board energyefficiency improvements requires structured pro-grammes.

4.3 Barriers for energy management

The failure to implement consistent energy manage-ment even where defined by legislation indicates signif-icant barriers to effective energy management. In short,these are commonly identified as:

• Insufficient priority: Energy efficiency is considered bytop management (and sometimes even the politicallevel) principally as an environmental, not an economic issue. Public administrations have failed to develop clear unequivocal mandates on the issueto direct procurement of energy efficient energy services.

• Insufficient information: Procuring offices need clear,independent information on:- energy efficient solutions and their evaluation- national and international () procurement

legislation.• Insufficient funding for additional energy efficiency

investments or even for normal refurbishment andmaintenance in buildings.

Other problems often identified are:

• split incentives to managers (i.e., responsibilities andbudgets are split between different departments)

• the lack of investment culture• the complexity of public procurement procedures

and rules

The issues are discussed in more detail in the section“Product purchasing, building investments and finan-cial management” (Chapter ).

4.4 Energy management units

Traditionally energy management units, where theyexist, play a consultancy role to energy consuming de-partments and institutions of public administrations.Though they may identify and highlight energy related

ENERGY MANAGEMENT IN PUBLIC ADMINISTRATIONS


cash flows from within the total annual budget and at-tempt to influence these, the ultimate responsibility forsystem investment and energy purchase costs remainswith other departments (for example the facilities andaccounts department).

There are, however, a few recent examples in whichenergy management units have stepped beyond the tra-ditional consultancy role to obtain direct control of en-ergy related costs, whether totally or partially. The Cityof Modena in Italy and the City of Montpellier inFrance are two examples, which have adopted similarprocedures for nominally attributing investment andenergy costs to departments and dependent institutions(e.g. schools). This may increase accountability, but ac-tually assigns control to energy management units. Inthese cases the energy use of the public administrationbecomes the responsibility of a single department,which is directly challenged to reduce energy costs bythe searching for the optimal mix of running and in-vestment costs. In the case of Montpellier (see under..), the energy management unit also writes specifi-cations and oblige for example schools to buy specificglazing when replacing windows. However, top man-agement still needs to assign sufficient priority to theissue in order to define objectives for energy manage-ment units, and ensure that other departments collabo-rate in achieving the energy savings.

At a conceptual level the introduction of these newenergy management units alters somewhat the standardmanagement paradigm for energy. The energy manage-ment units become new actors translating raw energyinto energy services to be supplied to the many depart-ments and institutions.

4.5 Problems and solutions

4.5.1 Lack of resources in small administrations

Problems of split incentives (e.g. different budgets forinvestments and operational costs, or the fact that theowner of the equipment does not pay the costs to oper-ate it) are maybe less evident in smaller administrations.Often investment and running costs are consideredglobally as a single entity by top management. Insmaller administrations this could well be a single indi-vidual, for instance, the mayor of a small town or thedirector of a hospital. These managers are generallyaware of the need to reduce costs, and can implementan investment strategy with relative ease provided asuitable rationale. On the other hand, particularly forhospitals (at least in Germany), there is the barrier ofthe dual funding system. The owner of the hospital isresponsible for investments, while the running costs areincluded in the fees to be paid by the health insurancesystem. However, even if there is an understanding forthe need to develop an investment strategy, smallerbodies lack the resources with which to develop dedi-cated energy management units. Italian legalisation re-

quires only those public administrations consumingmore than TOE/year to appoint “Managers forthe rational use of energy”. This leaves significant por-tions of the public sector lacking the skills with whichto achieve marginal but nevertheless cost effective effi-ciency improvements. For example, even if fully imple-mented, Italian legislation would cover only of themore than town councils (actual implementationis far less).

Smaller bodies also have to manage a wide range ofactivities, where energy is usually not the priority (e.g.hospitals, which manage huge budgets and shouldmake savings, but have difficulties doing so because theweight of these savings is not enough compared to thetotal budget and limited staff ).

France has experience of smaller cities, which collec-tively pay the costs of “energy managers”. However, insmaller administrations it becomes ever more evidentthat good energy management can only be achieved by influencing the standard purchase and operatingpractices.

4.5.2 Renting properties

The fact that much of the space used by public admin-istrations is rented rather than owned properties, repre-sents another important barrier to good energymanagement. Again incentives to ensure the procure-ment of energy-efficient energy services are split be-tween the building owners (responsible for investmentcosts) and building users (who normally pay the build-ing energy costs). Though not yet the most commonpractice, there is a notable trend in the direction of sell-ing or outsourcing publicly owned properties to sepa-rate publicly owned facility managing companies(public companies that own and sublet buildings tovarious public administrations).

Examples of this trend are:

• in Germany, the state of North-Rhine Westphaliafounded a real estate building construction and man-agement company (Bau-und Liegenschaftsbetrieb) to which it transferred ownership of almost allof the state’s buildings in

• in , Finland Senate Properties was entrusted withthe responsibility for managing almost half of theFinnish state’s property assets

On the one hand, these companies are no longer tied tothe restrictions of traditional public budgeting, whichpotentially could make it easier to realise energy effi-ciency measures. However, increasing investment coststo ensure energy-efficient properties (systems and shell)in order to decrease their tenants’ energy costs, does notrepresent a natural business plan, unless there is a kindof “Third-Party Financing” procedure allowing thecompany recovery of the investments from the energycosts saved by the client.



4.5.3 Regulatory schemes

To ensure optimised energy management, a regulatoryscheme is required. In Finland, Senate Properties isobliged to follow the guidelines set down by theMinistry for Trade and Industry (guidelines based onguidelines made by the Ministry of Finance for themanagement of public owned properties). The guide-lines aim to introduce energy efficiency and sustainabil-ity in both new construction and renovation projectsbelonging to their administrative responsibility.

Senate Properties gives target values that have to bemet by the planners. New buildings use about % lessenergy than average in the existing building stock man-aged by Senate Properties. In new construction, theheat demand of public buildings comes down to ap-proximately kWh/m3/year compared to the averageheat demand of kWh/m3/year in existing publicbuilding stock.

Senate Properties has also unique experience withinthe public sector in Europe by introducing lifetimecosts into the building commissioning process. Two recently finished university buildings were partly ten-dered based on life-cycle costs: In addition to generalinvestments years of full operational costs (incl. en-ergy) were included. Senate Properties is also planningto introduce life-cycle tendering to elevators and light-ing systems.



In Member States, national law applies for publicprocurement below the threshold values. For publicprocurement above the threshold values, public procurers have to follow the procurement rules of the European Community and the World TradeOrganisation’s agreement.

Switzerland has recently implemented new procure-ment laws and regulations and the bilateral treaty withthe , which will lead to further changes. The PublicProcurement Act of Estonia, which entered into forcein , is in full compliance with the directives.

A thorough comparison of the national rules govern-ing public procurement goes beyond the scope of the project. Further comparisons require additionaldata and analyses of the legal systems and interpretationof laws. However, the examples in the following sec-tions indicate some variations in the formulation of therecommended procurement criteria related to energyefficiency (although this does not illustrate how theyare actually applied).

5.1 Laws on energy-efficient

procurement and energy management

Although the criterion of the “lowest cost or the mosteconomically advantageous offer” has been incorpo-rated in public procurement regulations of MemberStates, the criterion applied in the evaluation of tendersis generally the first cost. One of the most importantexceptions to this is in the , where the Treasury in itseffort to move procurement towards efficient goods andservices has obliged all government departments topurchase based on the principle “Value for Money” (oreconomically most advantageous).

Most countries in this study have no legal require-ments for energy-efficient public purchasing. One ex-ception is Italy, where Law , , obliges the publicadministrations to implement energy saving solutionswhere they can prove technically and economically fea-sible. In reality, the public administrations in Italy havefailed to implement the requirement. However, it mayturn useful, once the reasons for failed implementationhave been resolved.

Energy-efficient purchasing touches many areas, andis also closely linked to laws regulating budget issuesand other financial concerns, which may be as difficultfor public purchasers to handle as public procurement.

In France, the difficulties lie within the way the bud-get can be used, whereas finding money to fund energy-efficient measures seems to be less problematic. TheLaw on Public Finance was modified in August ,and gives central administrations and local authoritieswider possibilities to distribute their budgets morefreely to their management units. This means that itwill be easier to transform investment expenses into op-erating expenses, and vice versa. Thus, money resultingfrom energy savings can be kept by the managementunits and used as desired.

Another example of financial regulation that affectspublic procurement is the Swedish Local GovernmentAct, which includes a paragraph (section , §) aboutbalanced budgets. It prevents municipalities andcounty councils from having a deficit in their budgetfrom one year to another. This makes it more difficultto invest in energy efficiency measures that may beprofitable in the future.

Below follows highlighted examples of public pro-curement legislation related to energy efficiency fromFrance, Germany, , the Candidate Countries andJapan.

5.1.1 France

French procurement law includes possibilities of envi-ronmental specifications but lack of knowledge ham-pers the implementation.

The new Public Procurement Code of includesthe possibility of social environmental specifications inthe procurement process, though this is still difficult toimplement. A reason for this is lack of knowledge of energy-efficient products or eco-products available onthe market and of the integration of environmentalspecification in the call for tenders.

5.1.2 Germany

German law allows environmental requirements andrequirements of specific production processes in the callof tenders.

In Germany, % of the Federal authorities have in-tegrated environmental criteria into their purchasingaccording to national legislation, which regulates thetender process in product procurement.It goes beyondthe Directives and allows requirements of specificproduction processes in the call for tenders or in theaward criteria. Environmental requirements can be applied if explicitly mentioned in the specification of


5. Laws, regulations and guidelines forenergy efficiency in the public sector

tender or if providing economic advantages. Since thereis no generally acknowledged method of calculating ex-ternal costs in the , it is usually easier to explicitly in-clude environmental requirements in the specificationof tenders.

5.1.3 Italy

Italian law requires public administrations to appointenergy managers, apply energy-efficient solutions andto evaluate energy saving potentials. However, the com-pliance of the requirements is low and energy use is stillincreasing.

End use energy efficiency within public administra-tions in Italy is administered by three legislated require-ments.2) These requirements are born out of the National Energy Plan, which outlined the frameworkin which to develop national energy policy.

More precisely the law requires:

• managers for the Conservation and Rational Use ofEnergy (commonly referred to as Energy Managers)to identify actions, interventions and procedures necessary to ensure the promotion of the rational useof energy

• the public sector to meet its service requirements bythe application of efficient solutions in proprietary orrented properties where these prove technically feasi-ble and economic

• for regional and city authorities (with populationsgreater that ) to evaluate energy saving poten-tials in the wider economy and to formulate objec-tives in order that these may be met. More recentlythe law has attributed to provincial administrations(which lie between the regional and city/town ad-ministrative levels) the voluntary task of developingprogrammes with which to realise the energy savingsin accordance with the regional plans

There are problems specific to application of all threethemes. Common to all is the less than complete com-pliance with the minimum terms of the law. This is atits most pronounced with the nearly absolute nonecompliance of implementing efficient solutions werethese prove technically feasible and economic.

Generally it can be said that the public administra-tion has failed to translate the potential offered by therequirements into measurable energy savings. Electricalenergy consumption in the public sector in Italy is cur-rently growing at around ,% per annum, roughly %above the total national growth rate.

5.1.4 UK

law requires the Value for Money approach, forwhich tools to determine life-cycle costs of purchasesare needed. Guidelines for energy-efficient procure-ment have also been developed.

In the United Kingdom (and Ireland), the Treasury Note “Environmental Issues in Purchasing”states that all purchases are value for money The Valuefor Money approach requires a number of tools in orderto determine life-cycle costs of equipment. GuidanceProcedures have therefore been implemented for de-partments, of which the main guidance is “GreeningGovernment Operations Green Guide for Buyers”. Itincludes an action sheet on energy efficiency includinginformation on energy savings that can be achieved bybuying energy-efficient equipment. The guide also rec-ommends purchasing of eco-labelled products, such asEnergy Star, Nordic Swan and Blue Angel.

The Country study has identified a clear need forguidelines of how environmental and energy efficiencyconsiderations can be applied. Even though there areno legal barriers for energy-efficient procurement, suchaspects are often not a matter of first priority. Publicprocurement rules are usually difficult to interpret andenergy-efficient procurement is often a matter of moti-vation and financial resources.

5.1.5 EU Candidate Countries

environmental policy for Candidate Countriestends to get harmonised with the environmental ob-jectives. The present legal framework is not much dif-ferent either. Nevertheless, certain adjustments arenecessary. Enforcement of the existing environmentallaw is another problem, which needs improvement.Due to financial shortages, the actual state of the envi-ronment does not meet the standards required by re-spective law.

Poland

In Poland, there are no special instructions on environ-mental or energy efficiency aspects in the public pro-curement of products and services available. However,these aspects are included in the requirements of thebuilding and planning law. Still there is a lack of usefulinstruments and tools applying directly to public pro-curement, but as Candidate Countries join the allthe norms and requirements will eventually apply tothem.

With respect to both the labelling Directive and theDirective on energy efficiency standards for householdappliances, Poland has recently implemented regula-tions that bring it close to fulfilling the respective re-quirements. The Polish regulations even impose theobligation to label the consumption of energy and toachieve certain minimum standards of energy efficiencyto a broader set of appliances than required by the Directives. Of course, the labels applied are not yet Labels. Some adaptation of the Polish regulations maythus be required, which is, however, not expected tolead to insurmountable problems.

LAWS, REGULATIONS AND GUIDELINES FOR ENERGY EFFICIENCY IN THE PUBLIC SECTOR


1) Directors for the conservation and rational us of energy ( commonly referred to as Energy Managers): Law 10, 1991, Article 19, Purchase ofEfficient Products and Components: Law 10, 1991, Article 26, comma 7 and Energy Plans: Law 10, 1991, Article 5

Hungary

In Hungary, the law on public procurement passed in requires that, all other aspects being equal, prefer-ence should be given to environmentally friendly prod-ucts. The power of this law is rather limited as it seldomoccurs that all other conditions, apart from environ-mental characteristics of products, to be compared areequal. If any references are made to environmental is-sues at all, the requirement, as a rule, consists in meet-ing existing environmental regulations and not to gobeyond them.

5.1.6 Japan

In Japan, the law requires ministries and governmentalinstitutions to implement green procurement and en-courages purchasing of energy-efficient products.

The Law on Promoting Green Purchasing, whichcame into force in , makes it obligatory for min-istries, agencies and governmental institutions to im-plement green procurement. Similar obligations applyto local authorities. The law required the national gov-ernment to define a Basic Policy on Green Purchasing,which was released in .

Furthermore, the Law concerning rational use of en-ergy encourages purchasing of energy-efficient prod-ucts. The Top Runner Approach standards of energy efficiency were introduced with the amended Law con-cerning rational use of energy and came into force inyear . They set standard levels that meet the high-est level of energy efficiency that can be achievedamong currently commercialised products (see moreabout the Top Runner programme under ..).

Table . illustrates some of the above-mentioned ex-amples of national public procurement regulations andother related rules.

5.2 Building specific regulations

Only Italy has explicit specific regulatory requirementsfor promoting energy efficiency in the construction ofnew public buildings and the refurbishment or the

maintenance of existing buildings in the public sector.In Germany, there is a number of voluntary guidelines,which however are used by many municipalities andstates and sometimes even have been declared manda-tory.

In most countries, there are a number of non-publicsector specific guidelines, which aim to promote energyefficiency in new construction, refurbishment andmaintenance of buildings. These are, however, in partvoluntary applied by segments of the public sector. Theguidelines tend to be directed at ecologically soundconstruction, in which building energy efficiency isonly one issue covered, though there also are energyspecific guidelines.

In Finland and Germany, there are specific publicsector guidelines promoted by state or regional govern-ment administrations.

Where guidelines are not compulsory there is in-creasing, though still far from complete, adhesion bythe public sector. It is difficult to determine the exactextent of application. In Finland the ecologically soundconstruction is increasing in importance. Furthermore,approximately % of all building stock owned by localgovernments and % of all public buildings now par-ticipate in voluntary agreements with the Ministry ofTrade and Industry to ensure energy efficient buildingmaintenance.

In Switzerland, the guidelines are gainingacceptance both by the public and private sectors. Theprivate building sector is developing widespread toolswith which to support . In France, the volun-tary use of the guidelines in the public sector is stillvery limited and in Italy, the application of the legalobligation introduced in for all public propertiesto install “energy efficient solutions” where these proveeconomical, is negligible.

The actual form of the guidelines varies from simpleoverall target values, to more prescriptive solution rec-ommendations. Guidelines may also be termed recom-mendations; a term generally used when promoted bygovernment agencies.

In the following, a short overview is offered of those



Table 5.1. Examples of national laws with reference to energy-efficient public purchasing of products and appliances.

National law for public purchasing Other rules with reference to energy-efficient purchasing

France The Public Procurement Code The Law on Public Financing

Germany The Government Procurement Agreement, German Law of Basic Principles of Public Budgets

The Ordinances on Contract Procedures

(VOL, VOB, VOF)

Japan The Law on Promoting Green Purchasing The Commercial Code,

The Law Concerning Rational Use of Energy

Sweden The Public Procurement Act The Local Government Act

UK HM Treasury Note

guidelines/recommendations existing in the more ac-tive countries. The overview is not meant to be exhaus-tive, but attempts to give some feeling for their generalcontent, and is seen as good examples that could serveas inspiration for others.

5.2.1 Finland

The Ministry of the Environment and the Ministry ofTrade and Industry have jointly established guidelinesfor new construction and renovation complying withenergy-efficient and sustainable development in thepublic sector. A principle aim of the guidelines is forpublic administrations to set a good example for othersectors.

The recommendations that consider the correct in-stallation and correct use of procured machinery andequipment has a major impact on energy efficiency. Anexample of a typical recommendation concerning light-ing reads as follows:

. acquire only office lighting fixtures with fluorescentlamps

. if the lighting quality is not impaired and the solu-tion is macro-economically cost-efficient, replacebulbs of incandescent lamps by screw-based fluores-cent lamps

. choose fluorescent lamps with high lighting intensitythat meet the colour rendering requirements set bythe duties concerned

. prefer long-life lamps with low luminous flux main-tenance factors

The guidelines recommend that energy efficiency beconsidered at every stage of renovation and new con-struction projects. In new public construction projects,a higher energy efficiency level than that required bythe building regulations should be achieved. For reno-vation building projects it is recommended to raise energy efficiency to the level required by the buildingregulations governing new constructions. Furthermore,public construction is encouraged to promote innova-tive building projects in an unprejudiced way. In building design, the increased use of natural light andexploitation of passive solar energy should be consid-ered.

5.2.2 France

The new French building code targets new construc-tions and includes requirements and specifications oflighting and heating systems and insulation.

The building code (thermal regulation fornew buildings) has been operative since . It is pre-sented as one of the means to fulfil the French commit-ments according to the Kyoto Protocol, the buildingsector representing % of the green house gases emis-sions.

The building code targets new constructions in boththe residential and commercial sector. Performancesmay be achieved in three ways:

• have an expert to work on the optimisation of thebuilding

• respect the references given in the regulations forlighting systems, heating systems, etc.

• use the regulation “à la carte”, applying specific tech-nical solutions

The code also indicates a required performance level re-garding insulation, windows, heating and hot watersystems. For the commercial sector, it includes specifiedrequired performances for insulation, lighting systemsand (within two years) cooling systems.

5.2.3 Germany

In Germany, building guidelines for federal institutionsinclude lifetime cost effectiveness a checklist for ecol-ogy and economy and technical appendices on energyand sustainability.

The Leitfaden Nachhaltiges Bauen sustainable build-ing guidelines for Federal Institutions define “sustain-ability” in a way that environment protection and lowcosts for the state are to be balanced.

The -page guideline considers the followingthemes:

• The life-time cost effectiveness of relatively high in-vestment cost-efficient solutions.

• A check list for ecology and economy. Planners arerequired to consider factors in building design whichinfluence energy use: compactness, energy storage inthe building mass, share of rooms without windows,rooms adjacent to noisy street (therefore requiring), length of the hot water grid, low energy stan-dard/ good insulation standard, natural ventilation,passive solar architecture, day lighting, natural heatprotection/avoidance of (which is recommended),integrated energy supply, investment costs, levelledcosts for water, sewage, heating, cooling, electricity,operation and monitoring). The checklist offers nodefaults and requires the planner to refer detailedtechnical appendices.

• Detailed technical appendices on health, comfort,energy and sustainability including a database on thenormal life times of building components.

The guidelines reference offers target value consump-tion levels for building installations (lighting, heating,cooling) based on the Swiss norm /.

Two other German guidelines for energy efficiency inpublic buildings that are mentioned in Table . are thecomprehensive energy efficiency, planning, andoperation guidelines on specific building technologies.They have been developed by a working group ofbuilding or energy managers from all levels of govern-ment (the ), and the guideline (issued bythe German association of civil engineers, ), whichdefines even tougher standards for the electricity andheat consumption of public buildings than theLeitfaden Nachhaltiges Bauen. As the latter, they all arevoluntary.



5.2.4 Switzerland

Switzerland has a quality label for new and refurbishedbuildings for which a wide range of products and ser-vices has been developed.

“” is a quality label for new and refurbishedbuildings, which defines building quality principally interms of building specific energy consumption, e.g. foroffices: kWh electricity per m, kWh space heatper m. It is supported by the Swiss Confederation andthe Ministry of Trade and Industry is gaining wide scale acceptance. The building sector has developed a widerange of products and services to support .

There are many reasons for the widespread interest in. Most important is the fact that the finalbuilding specific energy consumed is the only really im-portant parameter, which allows architects and plan-ners complete freedom both in their design and choiceof materials. (The French building code has a similarapproach, which applies to all buildings).

5.3 Special energy-efficiency guidelines

for public purchasing

Although legal requirements for energy-efficient pur-chasing is missing in most countries, there is a numberof guidelines and tools for environmentally friendlyprocurement, where energy efficiency often is includedin the criteria or recommendations. It is hard to surveythe actual use of the guidelines and the result of theirimplementation.

Findings from the Country studies show that suchinstruments exist in Austria, Finland, France (under de-velopment), Germany, Japan, Netherlands, Sweden,Switzerland, and . Guidelines for green purchas-ing have been developed at both national and local lev-

els and are mainly voluntary. Most of them include en-vironmental specifications for public procurement andsome of them refer to labelling criteria. In the ,guidelines for public purchasing for government de-partments also include requirements for suppliers re-lated to energy consumption.

Below follows a short presentation of these guide-lines, tools and criteria and a short description of their(non) occurrence in the Candidate Countries.

5.3.1 Austria

In Austria, a criteria catalogue has been developed,which includes environmental specifications and rec-ommendations for building planning procedures. Thecatalogue is available for both public and private organ-isations.

The criteria catalogue “Check-it” has been developedin within a Life Project as a tool for green procure-ment in public administrations. The catalogue includesbackground information and recommendations, suchas sheets of environmental specifications for call fortenders. It also contains tools and recommendations forplanning procedures for buildings. Apart from publicadministrations, other organisations and companies,that procure goods to a larger extent can use the cata-logue. It covers seven main areas, namely:

• green procurement (including legal frameworkanalysis)

• paper and office supplies• electrical appliances• interior furnishing• cleaning supplies• structural engineering• technical in-house facilities and water use



mostly single or group offices, normal equipment 15 30 13 27

(<1 PC/desk), daylighting, little air conditioning

mostly group or open plan offices, more equipment 25 50 22 43

(e.g., printers), little daylighting, much air conditioning

same but central electronic data processing 45 90 53 77

facilities in addition

Table 5.2. Examples of energy efficiency requirements according to norms developed by the Swiss Society of Engineers and

Architects (SIA), (from SIA 380/4) used in Germany.

Target valu

es based

on

net

flo

or area [kW

h/(m

2yr)]

Stan

dard

values b

ased o

n

net fl

oo

r area [kWh

/(m2yr)]

Target valu

es based

on

gro

ss

flo

or area[kW

h/(m

2yr)]

Stan

dard

values b

ased o

n

gro

ss flo

or area

[kWh

/(m2yr)]

Office buildings

5.3.2 Finland

In Finland, recommendations for energy efficiencyhave been developed for public procurement of prod-ucts, buildings and services.

The Ministry of Trade in Finland has published rec-ommendations – – on energy efficiency in pub-lic procurement of products, buildings and services.The recommendations are mainly directed to the pub-lic sector but can also be applied to the private sector.According to the recommendations, public administra-tions should set good examples for other sectors, in-cluding the participation in first buyer groups for newenergy-efficient technologies as well as guidelines ofcorrect installation and use of procured machinery andequipment.

The effects of the recommendations, which are alsoimplemented as part of the energy conservation agree-ments in the private and public sector, will be moni-tored by the Ministry of Trade and Industry.

A tool named has also been developedunder the guidance of a consulting company owned bythe Association of Local Authorities. The tool includesan environmental database on a broad range of prod-ucts (see under ..).

5.3.3 Germany

In Germany, the most important handbook for greenprocurement usually refers to the Blue Angel labellingcriteria and to the / label. There are also hand-books for green procurement including energy effi-ciency recommendations in local authorities.

The handbook on environment-friendly procure-ment – Handbuch Umweltfreundliche Beschaffung – isestimated to be the most important source of informa-tion for green and energy-efficient purchasing of prod-ucts in Germany. For products and appliances thehandbook, which is edited by the Umweltbundesamt(Federal Environmental Agency), usually refers to theBlue Angel labelling criteria and for electronic appli-ances also to the / label.

There are also local authorities with their own hand-books for green procurement including recommenda-tions of energy efficiency, where the local authority canprescribe the purchase of alternatives with the lowestenergy consumption. For instance, the City ofWuppertal issued a green handbook in that waseven mandatory to procurers. It requires the criteria ofthe Blue Angel label for computers and other officeequipment. However, due to the decentralisation ofpurchasing within the city, some purchasers are noteven aware of the required specifications.

One example of the practice of environmentally



Table 5.3. Regulations and guidelines influencing energy efficiency in building construction and refurbishment and mainte-

nance in the public sector (other than rstandard building codes).

Regulatory Construction, Refurbishment and Maintenance Guidelines

Requirements

Public Sector Specific General (but used by the public sector)

Austria Vorarlberg, Ökoleitfaden

eco-gudelines

Finland Ministry of Trade and Industry (MTI)

Energy efficient recommendations

Voluntary agreements between MTI

and public building owners

(renewed in 2002)

France HQE (High Environmental Quality) eco-

guidelines

Germany VOL and VOB contain AMEV energy efficiency guidelines: State of Hessen

requirement to include Leitfaden Nachhaltiges Bauen Eco-guidelines

environmental criteria VDI guideline 3807

Italy Article 26, comma 7,

Law 10 (1991)

Switzerland Canton defined eco-guidelines MINERGIE standard

Note: The new EU Directive on energy efficiency in buildings will have an impact in all EU countries. The PROST project makes no at-

tempt at speculating in the ways the new Directive will have an impact in various countries.

friendly purchasing guidelines is the City of Hanover,where a general service instruction requires municipaldepartments to carry out environmental impact assess-ments of procurement, constructions and installation,plans and programmes. The city uses a standardisedaudit scheme, for which the Department of theEnvironment supervises the assessment and the resultsof the impact analyses of the procurement are pub-lished in an internal procurement catalogue. It includesall the products that can be purchased by departmentsand offices of the municipality directly. The catalogueis mandatory for all departments and offices andmainly contains products that are less environmentallydamaging. For example, only refrigerators with energylabel class are listed and for building materials, thereare separate leaflets with information on environmentalimpacts.


In the Netherlands, a web-site provides a toolbox withenvironmental specifications for several products andservices. Environmental criteria are also availablethrough a national eco-labelling scheme.

The Duurzaam Inkopen – the SustainableProcurement Programme (see under ..) – has devel-oped a web-site providing a toolbox with environmen-tal specifications (http://www.inkopers.net). In the year, the programme had developed specifications for product and service categories including catering,paper, office furniture and equipment, street furniture,means of transport and green maintenance.

In , the independent Eco-label Foundation(Stichting Milieukeur) was established by the Ministryof Environment to develop a national eco-labellingscheme. It has developed criteria for several productsand the label can, in most cases, be awarded to produc-ers and manufacturers.

5.3.5 Sweden

In Sweden, an internet guide, including a large numberof specifications, provides environmental criteria forprocurement of goods and services.

The Committee for Ecologically SustainableDevelopment (see under ..) has developed an inter-net guide – the EKU instrument - to help public sectorbodies to integrate environmental concerns into pro-curement of goods, services and contracts. The aim ofthe instrument is to simplify the use of environmentalrequirements (including energy efficiency) in publicprocurement.

The instrument includes proposals of environ-mental requirements that can be applied on differentproduct groups. It now contains specifications for products divided in product groups.

5.3.6 UK

In the , a guide for government departments in-cludes environmental requirements and energy effi-

ciency recommendations. Energy efficiency guidancealso exist at a local level.

The main guidance for energy efficient procurementis the Greening Government Operations Green Guide forBuyers. The Sustainable Development Unit () and aPurchasing Policy and Advice Division () of theDepartment of Energy, Transport and Region ()have issued the guidance in which departmental pur-chasing officers are advised to ensure that environmen-tal requirements are included from the outset in thespecification of contracts. Suppliers are required to pro-vide details of average standby power demands as wellas nameplate ratings to assess energy consumption. The has also issued a self-assessment checklist for sup-pliers and a guide to choosing environmentally prefer-able equipment.

The has also produced two practice guides thatillustrate eco-labels to observe when purchasing energy-efficient equipment and methods of calculating energyperformance.

Another example is Leicester City Council Guide forEnvironment-Friendly Purchasing, which includes energy efficiency aspects. According to the Guide, theCity Council will buy the most energy-efficient appli-ances available and an Energy Team should be con-sulted before any electrical products are purchased.Specifically the council will:

• buy rechargeable or long life batteries with low mercury content

• replace standard light bulbs with energy saving compact fluorescent lamps

• ensure that all new computer equipment incorpo-rates Energy Star features

5.3.7 EU Candidate Countries

In the Candidate Countries, there are no guidelinesfor green or energy efficient procurement, but Hungaryhas begun to develop a database with certified suppli-ers.

Efforts have been made in Hungary to build up thedatabase of products and services provided by compa-nies with certified energy management system ( or ). Institutions planning to introduce en-vironmental management system () are obliged togive preferences to environmentally friendly suppliers.However, is still in a preliminary stage in local gov-ernment. There are hardly any local governments thathave initiated the process on introducing . It is ex-pected that their number will increase with similar in-tensity as in the business sector.

5.3.8 Japan

In Japan, national recommendations set selection crite-ria for energy efficiency and include a variety of prod-uct categories.

The Basic Policy on Green Purchasing, which waslaunched to greening administrative works of nationalgovernment, sets selection criteria including energy ef-



ficiency, which applies to ministries, agencies, courtsand other independent administrative entities. It in-cludes specifications and criteria for broad categories(from computers and passenger cars to building materi-als and services).

The Action Plan for Greening Government Operationswas launched in in order to greening the adminis-trative works of national government. It includes regu-lations for training of officers, a scheme for productdatabases, guidelines and target values for improvementof energy efficiency.

5.3.9 Switzerland

In Switzerland, purchasers at different administrativelevels have developed an instrument for energy efficientprocurement.

The Interest Group for Ecological Purchasing(Interessengemeinschaft Ökologische Beschaffung,) is an ad hoc group for the exchange of informa-tion created by committed officials and purchasersfrom federal, cantonal and municipal administrations.The activities are also supported by the Federalenvironmental authorities (Swiss Agency for theEnvironment, Forests and Landscape, ). Theirhandbook on sustainable public procurement (, www.igoeb.ch) is estimated to be the most im-portant source of information for both green and energy-efficient public procurement in Switzerland.

In /, a competence centre for federal publicprocurement will develop an interactive informationsystem for purchasers. It will be implemented in theform of an on-line handbook with various links. A linkto environmental criteria of different product groupsfollows the idea of the “Check-it” criteria catalogue ofthe Austrian procurement service.

5.3.10 USA

In the , energy efficiency recommendations for fed-eral agencies include energy efficiency criteria, adviceand links to product listings.

The Product Efficiency Recommendations aresummaries that provide the user with energy efficiencycriteria, a cost-effectiveness example, advice and sourcesof information (including links to on-line product list-ings). The efficiency recommendations focus on prod-uct types that meet four key criteria. They should:

• be widely purchased by federal agencies• use a significant amount of energy• offer a range of efficiencies (above the national

mandatory standards)• have a generally accepted method of testing (and

reporting energy performance)

See more about the programme under ...



Table 5.4. Overview of tools and guidelines for energy efficient/environmental procurement

Purchasing Guidelines/Tools Product categories Services/Objectives

Austria Check-it Paper and office supplies, Information and recommendations

electrical appliances, interior on green procurement and

furnishing, cleaning supplies etc. legal framework analysis

Finland HYMONET (internet-based tool

for energy efficient procurement),

JULMA (Internet page on public

procurement)

Germany Handbook on environment- Comprehensive

friendly procurement (Federal

Environmental Agency)

Handbooks for local authorities

Hungary Purchasing Guidelines do not

exist at present. EC guidelines

will be adopted

Japan Basic Policy of Green Purchasing 15 broad categories Promotion of green purchasing

The Nether- Duurzaam Inkopen (Sustainable 15 product and service Development of a toolbox for

lands Procurement Programme) categories including catering, paper, procurement officers including

office furniture and equipment, environmental specifications

street furniture

Stichting Milieukeur Development of a national labelling

scheme

Poland, No guidelines for energy-efficient

Slovakia procurement

Sweden The EKU instrument Specifications for 150 products Internet-based instrument for

(76 product groups) ecologically sustainable procurement

Switzerland Interest group for ecological Handbook on sustainable public

purchasing procurement

UK Greening Government Operations Advice for environmental criteria,

Green Guide for Buyers check-list etc.

USA The FEMP Product Efficiency Provide energy-efficient criteria,

Recommendations cost effectiveness examples etc.



The general trend in the public procurement process isthat financial control and spending decisions are in-creasingly decentralised. On the other hand, buildingmanagement tends to be increasingly centralised and“outsourced” to state-owned building construction andmanagement companies. Within the confines of trans-parency and free competition defined by European di-rectives and national law, public administrations areempowered to autonomously establish purchasing andfinancial management criteria. Following a trend in re-cent years, which aims to increase managerial account-ability, autonomy can reach down to single departmentmanagers.

Considering the mixed trends of decentralisation incombination with outsourcing in all partner countries,it proves impossible to draw a coherent common pic-ture of public procurement and financing practicesacross Europe.

The attribute, which seems generally common to thepurchase of energy-consuming goods in Europe, is thatwith specific and important national exceptions, thegreater part of this type of procurement in the todayis based on lowest product purchase price. The use ofthe criteria “economically most advantageous offer”,which allows procuring officers to award tenders on thebasis of lowest total lifetime costs (including lifetimeenergy costs), still represents only a marginal number ofprocurement activities.

The following comments can only attempt to iden-tify some of the most common characteristics and im-portant issues of financial management and purchasedecisions, which affect the purchase of energy-consum-ing goods in the public sector.

The areas of discussion are considered:

• financial management: funding and budget allocationin public administrations

• purchasing routes: the decision process in purchasingor investments

6.1 Financial management

Two administrative models are discussed in the follow-ing sections:

• The traditional management model• The budgeted model, named after the element of

New public management (see Chapter ) that is mostrelevant for improving energy efficiency

In the traditional management model in public admin-istrations, the allocation of competence and resourcesto fulfil the task of the administration are often sepa-rated from each other. Generally, in the countries ex-amined, departments receive a certain budget, dividedby investments and running costs. They usually haveno incentive to save on their running costs, since as aconsequence their running cost budget would just bereduced in the following years. Neither do they havethe possibility to shift expenses from, e.g., energy, tothe purchase of a more energy-efficient, and somewhatmore expensive equipment, or to special energy effi-ciency measures that have a high initial cost but saveenergy costs later. Nor do in the traditional manage-ment departments see the follow-up costs of invest-ments model since they see no depreciation (or interestand repayment of loans) in their budgets.

However, since the early s, general managementmodels of public administrations have altered.Administrative units are being reorganised and tasks,competencies and resources are re-defined and allo-cated differently. In order to increase economic effi-ciency, new management and controlling instrumentsare being introduced. New models of public adminis-tration aim to increase efficiency of internal administra-tive processes and realise cost saving potentials.Examples of new managerial elements are global bud-geting (decentralised budget responsibility), cost accounting systems and monitoring systems. (The ele-ments of new public management are treated inChapter ).

The Budgeted model is quite common among localauthorities, at least in Germany more than % usesome form of budgeting. The state authorities ratherfocus on cost accounting, maybe since they are splitinto more independent entities (in terms of budgets).

6.2 The “traditional management model”

In the traditional management model, the procure-ment of energy-consuming goods by public adminis-trations is generally split between product orbuilding-related expenses and investments, and energypurchases. Though ultimately the public adminis-trations as a whole has an interest to reduce energy con-sumption (and hence costs), there is no direct financialincentive for each of the two/three department man-agers involved (see next paragraph) to minimise total


6. Product purchasing, buildinginvestments and financial management

costs (investment + running costs) of this kind of pro-curement .

In a common, typical management model, public ad-ministrations make their purchases by splitting budgetsacross generally three independently managed depart-ments in addition to the users: The facilities depart-ment, the accounts department and the procurementdepartment:

. the facilities department or construction and main-tenance department: responsibility for day-to-daymaintenance of all the buildings used (and possiblerented) by the many service groupings (maintenance ofthe artificial lighting systems, heating systems andbuilding envelopes). Depending on the size of the unit,the facilities department may either complete the workin-house, or manage external service companies. In thecase of larger refurbishment projects (or new construc-tion) it is more likely that the facilities department willco-ordinate external companies, including design agen-cies.

. the accounts department is charged with paying allenergy bills, thus heating fuels and electricity costs, in-curred by the different departments as well as the in-vestments in buildings and equipment.

. the procurement department is charged with pur-chasing all energy-consuming products that is not ac-quired by the facilities department (office equipment,white goods, TVs/VCRs etc.). This is increasingly de-centralised: e.g., for or for cars there is often a spe-cialised procurement department, whereas eachdepartment purchases white and brown goods individ-ually.

Finally, the users of appliances, cars and buildings sel-dom or never see the purchase costs or the saved energycosts in their own budgets.

This is not an exhaustive description of the realities.For example, in small public institutions (such as asmall hospital), the accounting department or adminis-tration will typically undertake the procurement. Inlarger public administrations (a city council), the facili-ties department itself may have a dedicated procure-ment department, or there may be two departments:one for new constructions and one for refurbishmentand maintenance.

The disincentive to optimising expenditure overproduct and service lifetimes caused by the division ofinvestment and management budgets is to some de-gree, if not globally, recognised. There are some tenta-tive efforts (France, Germany, Italy and Sweden) toovercome this problem by unifying the expenditure onenergy-consuming goods and energy costs within thepublic administration under a single energy manage-ment unit. These efforts do not always mean that therules are changed. In Montpellier, France, for example,this effort is informal within the limits of the existingrules.

6.3 The “budgeted model”

There is a trend, within the broader trend towards theNew Public Management, for administrations and authorities to manage their resources by making de-partments and institutions semi-autonomous. In thismodel – which we call the budgeted model – the semi-autonomous departments:

• are provided with an annual global income (the ‘bud-get’), which they can keep even if they spend less dueto their own efforts to improve efficiency, but whichthey also must balance in the following years if theyspend more due to own decisions

• provide one or more services • incur costs in delivering the service• cover some of the costs with their income from the

service

The budgeted model provides an incentive for moreenergy-efficient resource management, because of thepossibility to keep most of saved energy costs (typicallyin the range between and %) in the budget of fu-ture years and to shift expenses from running costs toenergy efficiency measures that save running costs.However, it still contains possible areas of conflict, e.g.,it is crucial for the positive incentive to save costs thatall savings due to good management (or a percentage)continue to stay within the budgeted department. Insome cases, as the running costs of the department arereduced (through better energy management), centraladministrations are tempted to reduce the subsequentyearly budget allocations of the department. Thus, in-creases in energy efficiency achieved by departmentsmay provide only temporal financial gains, and the in-centive to work for energy efficiency could be again re-duced in practice.

6.3.1 Incentives and possible disincentives

Any true ‘budgeted’ model will include the energy costsin the budget, even if energy purchases may still bemanaged by a central office. The important thing is thepower of decision for the budgeted departments, andthe possibility to use most of the saved energy costs forother expenses. Direct cover of energy cost thus elimi-nates any potential conflict between the authority anddepartments, improving the signal to departmentalmanagement to reduce energy related costs, which in-creases the chances for energy efficiency improvements.These are easiest achieved through the efficient energymanagement of existing appliances and buildings(“good housekeeping”, e.g. closing windows, turningout the lighting, and turning down the heating inrooms while not in use). This can partly be done by theusers themselves, and partly by an energy managementunit. Budgeting thus increases both the attractivenessof energy management units to user departments andthe need for co-operation between these two.

Which are the incentives and possibilities for invest-ing in more energy-efficient equipment and buildings

PRODUCT PURCHASING, BUILDING INVESTMENTS AND FINANCIAL MANAGEMENT


in order to save energy costs? Three issues have to bedistinguished.

) Decentralised product purchasing. Generally, theglobal income will allow the departments to cover thecost of a limited set of energy-consuming products, forexample office equipment, specialised medical equip-ment. Decentralised product purchasing is an increas-ing trend coupled to the decentralisation of budgets. Itis easy for the budgeted department to shift funds fromenergy costs to the purchase of more energy-efficientappliances and equipment. However, there clearly is anexplicit need for more information to the decentralisedpurchasers on the most economically advantageous andenergy-efficient choices. Otherwise, the budgetedmodel may end in a status of “organised incompe-tence”.

) Centralised product purchasing. Here, the budgeteddepartment still has the power of decision what to buy,but it may be more difficult to convince the centralisedproduct purchasers to buy the energy-efficient solutionfor all departments. Top-level decisions in favour of thisare therefore important.

) Building construction and maintenance. This willcontinue to be the task of a central construction andmaintenance office. It is hardly practical that individualschools, or hospital departments establish independentfacility departments in order to overcome the split in-centive situation. Therefore, the central constructionand maintenance office can offer facilities constructionand maintenance services, taking money from the cen-tral or the user department’s budget to finance the in-vestments. In this way, the user department can save itsbudgeted energy costs. If also building maintenance isincluded into the decentralised budget of the depart-ment, there will be an increased incentive to reduce en-ergy costs by investing in higher energy efficiency fromthe maintenance budget. Still, in any case there mustalso be priority on energy efficiency for the central con-struction and maintenance office from the top level,and a good co-operation between the central construc-tion, maintenance office and the user departments.

6.4 Financing energy efficiency andbalancing budgets

In many cases, the increase in purchase price of an effi-cient over a less efficient solution is marginal.Increasing energy efficiency could be achieved simplyby better utilisation of existing annual allocated invest-ment funds.

However, the concept of investments specifically un-dertaken to increase energy efficiency has probably notuntil now been generally considered. One exception isFrance, where profitable investments in energy effi-ciency specifically can be undertaken (however not sys-tematically), at least in the building field (for exampleretrofitting an old heating system for example).

Would it be possible for a public administration,

having identified a large financial saving potential, toundertake an aggressive investment campaign in energy-efficient solutions? Two courses of actions are:

• financing the investments• writing off the investments

6.4.1 Financing the investments

Public administrations can generally take loans, butthese are often limited in some way. For example totalloans may be limited so that the loan repayments staybelow a fixed percentage of income streams, i.e., it isprobably not possible for the public administrations touse property and other goods as collateral. Energy effi-ciency improvements will increase future liquidity butwill not increase income (in this case there is a need tohave savings recognised as income streams).

If there were possibilities in raising loans directly, theauthority could fund own energy efficiency invest-ments. Otherwise, it could of course bring in suppliersof energy-consuming goods to realise the investments.

6.4.2 Writing off the investments

The other possibly important problem is the need forpublic administrations to balance budgets on an annualbasis. Private companies write off investment costs overa number of years, the writing-off period equatesroughly to the life of the product (though probablyless). Thus, end of year financial balance will be posi-tive, since only a portion of the costs are attributed tothe first year in which the investment is made. In thesubsequent years the financial balance will be positive,since returns on the investment will be greater than thequota of investment costs attributed to each specificyear.

The mechanism of writing off stems from the need tobalance taxes over time (taxes = % profit = incomes in ayear – factors of input accountable to that year).

Public administrations normally do not pay tax so noequivalent mechanism exists. They have the obligationto balance budgets on an annual basis. Thus, invest-ment costs are all normally charged to the year whenthey are effectively undertaken, something that limitsthe size of investments that can be carried out (sincethere is usually a cap on the amount of loans a publicadministration can take). One exception is France,where large investments may be depreciated over threeyears.

There are other limits to how quickly improvementsto building systems and products can be achieved, e.g.limits of managing capacity. It is hardly likely that an entire town council could effect changes in all lightingsystems in all its properties within two years.

The balancing book principle is limiting the amountof money that can be used even for profitable invest-ments. It would therefore increase the attractiveness ofenergy efficiency if the public sector converted to pri-vate sector financial principles, most importantly de-preciation. The reason is that the follow-up costs and



benefits of investments would become more transpar-ent to the users of the buildings and assets. Still, theproblem of capped loans may remain.

6.5 Purchasing channels and informationrequirements

A problem commonly reported as hindering procure-ment of energy-efficient products is the general lack ofrelevant information available to the public sector.

To be useful, any information needs to be well tunedto the audience. Thus, identifying the most commonpurchase channels and those involved in the procure-ment process would be useful in developing such mate-rial. If they generally make small purchases, succinctinformation is required. For large volume purchases, amore detailed analysis can be made.

However, it is felt that there are no standard routes toenergy-efficient service procurement. There is simpletoo large a diversity across organisations to identifystandard procurement channels for different productcategories. For example, in an average larger Finnishmunicipality with about inhabitants, it is esti-mated that up to decision makers may be in-volved in the public procurement process.

This does not mean that it will be impossible to de-velop information tools to improve procurement of energy-efficient products. Rather, it means that it is im-possible to fine tune information tools to specific pro-curement officers and/or on the basis of productcategories. Thus, it is more correct to suppose a fullrange of information tools for all products and compo-nents, both succinct and detailed.

This might be contrary to a priori expectations onthe issue. For example, a single hospital wishing toequip staff rest rooms with refrigerators may purchaseonly a few units directly from a local supplier. (In thiscase, simple instructions to buy Class might be suffi-cient). However, the same hospital might instead pro-cure the units through a central buying agency. Thecentral buying agency is likely to dedicate significanttime to the tender process, have technical ability and beable to effectively use more detailed information on energy performance of cold goods.

The facilities department of a public administrationis usually the preferred channel for procuring buildingcomponents, at least for larger purchases (for exampleinsulation, and glazing). Small maintenance and relatedpurchases (such as light sources), may be acquired bythe accounts or user departments. The facilities depart-ments of the small towns and villages (several thousandin both France and Italy) will vary considerably in theirlevel of technical sophistication from those of large mu-nicipal, provincial and regional administrationsthroughout Europe. This is also true for the volume ofpurchases they make.



7.1 Finland

7.1.1 Extending product life in the City of Pori

Over the last years, the City of Pori has acted as aforerunner in green purchasing issues. The city nowconsiders energy conservation in public procurement;purchase decisions are based on a product’s total lifecycle costs. This is supported by web-based procure-ment instructions and guidelines for purchasing offi-cers, with detailed information on energy savingpotentials of products and building components.

The City of Pori also has succeeded in making alter-natives to new purchases more attractive. Long mainte-nance agreements enable circulation of officeequipment to other public users even after the normallife cycle of the product is over. Thus, instead of buyinga new one, a school could receive a copying machinewith a valid maintenance agreement when the CityOffice has deducted the machine after several years of use.

7.1.2 HYMONET – a web-based decision

support system

The Association of Local Authorities have developed aweb-based decision support system for environmentallyfriendly procurement, including energy efficiency. Thedatabase went on-line in June .

provides a platform for open discussionbetween equipment users, purchasers and suppliers.The programme is updated continuously and providespublic purchasing agents with:

• information on legislation• models for different procurement procedures imple-

menting environmental criteria• general environmental knowledge on the life cycles

of products• specific information on environmental properties of

products and criteria for selection of environmentallypreferable products

At present, the database considers the prod-uct groups:

• electrical devices• building materials• hospital supplies• cleaning agents• food

7.2 France

7.2.1 The City of Montpellier

In the City of Montpellier, the Technical Service imple-ments energy efficiency measures in all buildings andmanages the energy budget of the city. Even if invest-ments and budgets are formally separated and dividedon each building of the city, it is all managed by theEnergy Department, which:

• centralises the annual energy invoices (but informs each facility responsible)

• establishes technical specifications (e.g. lighting, double glazing) for all city buildings

• participates in the selection of architects for newbuilding constructions

• communicates on these activities

The City of Montpellier, which implemented an energy policy in , has now data on each of its facili-ties, which can be analysed over several years. Large savings are made (around Euro per year) by con-trolling energy bills and electricity contracts. Energymanagement is automatic, power switches are carriedout where needed and maintenance specifications areissued. Montpellier has saved . billion Euro thanks tothis energy policy (from to ), electricity ex-penses for municipal buildings being half as high as forcomparable cities.

7.3 Germany

Good examples and success stories are numerous inGermany, particularly at the municipal level. Manymunicipalities have an energy management unit. Figure . just shows some of the successes in reducingthe demand for heating energy.

On average, the benefits of energy management (interms of saved energy costs) outweigh the costs by a fac-tor of three to five. We present the City of Frankfurt/Main as an example.

7.3.1 Energy management in the City of

Frankfurt/Main

Frankfurt/Main has a fully developed energy manage-ment unit. The management unit has five people and islocated in the planning division of the city’s construc-


7. Success stories and good examplesof energy efficiency in the public sector

tion and maintenance office. 2 emissions have beenreduced by % compared to , despite an increasein floor area.

Energy management in Frankfurt/Main has the fol-lowing elements:

Energy monitoring and benchmarking

In roughly buildings covering approximately % ofthe floor area, the consumption is measured automati-cally once a month. In the rest of the buildings it ismeasured manually. The results are used for an internalbenchmarking to detect buildings, in which energy effi-ciency measures have to be carried out.

Optimisation of the building operation

Based on the monitoring, the energy management unitreacts if there are high total and/or specific values of energy consumption, or if demand suddenly rises. Thiscontinuous optimisation brings significant energy savings.

Training and information

Following an initiative promoted by the energy man-agement unit, roughly premises (mostly schools)have denominated “energy watchers” (Energie-beauftragte). These people receive one-day trainingseminars. No direct training is given to the rest of thestaff, except for a brochure. Instead, it is expected thatthe “energy watchers” act as multipliers and, e.g. inschools, create “energy teams”. This is connected to thesystem of “user participation in savings” (see below).

Creation of purchasing or operation guidelines

Energy costs are budgeted and allocated to the differentdepartments and premises in Frankfurt. The councildecided in that of the savings compared to thebaseline years ( to 8), % will go to the users ofthe premise that had achieved the savings.

Furthermore, for all new build and maintenance, theenergy management unit has developed two importantguidelines:

• One technical guideline on energy requirements forthe building shell and the technical equipment,which is mandatory for the architects and planners ofthe construction office. The requirements arethought to be cost-effective; if a planner wishes to deviate, the cost-effectiveness of the alternative has tobe proven.

• The other technical guideline concerns the calcula-tion of the life-cycle costs including energy of abuilding. It is mandatory in Frankfurt/Main that forall investments above Euro (and for smallermeasures if it deviates from the guideline on energyrequirements), alternatives have to be comparedbased on a calculation of the life-cycle costs using an-other spreadsheet developed and used by the energymanagement unit. The benefits include a premiumof Euro per tonne of 2 avoided.

Management of energy efficiency measures &investments

There is a special fund for energy efficiency (ca. mil-lion Euro/year) inside the maintenance budget. Theuse of this fund is subject to consultations between thearchitects and planners of the construction office, theenergy management unit, and the user department. In, together with normal maintenance funds, mil-lion Euro were invested and annual savings of . mil-lion Euro achieved.

7.3.2 Public Internal Contracting (PICO)

Very similar to performance contracting, public inter-nal performance contracting () represents a way toenable energy efficiency investments by a kind of in-house ”third-party” financing or energy performancecontracting scheme. Different from conventional thirdparty financing schemes, the approach does notbuild on the engagement of an external actor such as an. The role of the is taken by a unit of the cus-tomer itself, e.g. the technical department of a munici-pality.

has been applied with success in the cities ofStuttgart, Kiel, Wuppertal, Dresden, the Schwalm-Eder district, the Rheingau-Taunus district, and inFrankfurt/Main.

The unit acts like an , delivers the financialand technical service, and the remuneration takes placethrough cross payments of budgets between the twoseparate organisational units of the same public admin-istration. For example, in Stuttgart, Germany, the city’sdepartment for the environment takes the role of an in-ternal and offers energy services to other units ofthe municipal administration. The internal offers drawthe technical know-how of the building surveyor’s office and supplementary energy audits, and they arebacked with economic cost/benefit calculations by theenvironmental department.

This forms the basis for internal negotiations be-tween the customer department and the environmentaldepartment, acting as an . When an internal en-

SUCCESS STORIES AND GOOD EXAMPLES OF ENERGY-EFFICIENCY IN THE PUBLIC SECTOR


45% within 12 y

38% within 10 y

38% within 16 y

35% within 14 y

31% within 12 y

28% within 10 y

24% within 15 y

20% within 9 y

17% within 6 y

13% within 11 y

11% within 5 y

0% 10% 20% 30% 40% 50% 60% 70%

Beckum

Herten

Gronau

Gütersloh

Gladbeck

Hemer

Esslingen

Kassel

Stuttgart

Neukirchen-Vluyn

Saarbrücken

Figure 7.1. Examples of energy savings obtained in heating systems in some German municipalities.

ergy service agreement has been concluded, the envi-ronmental department undertakes an investment in en-ergy saving measures that are realised by the buildingsurveyor's office.

Within the administration, a new internal revolvingfund for energy efficiency investments has been estab-lished as an intermediate buffer for cash flows. First, itprovides the funds for the investment and afterwards, itis refilled by the cash flow from energy cost savings, i.e.the customer department pays back the investment.

Comparable to other third party financing schemes,the efficiency measures reduce the annual energy bill ofthe customer department, which gives room to pay the fee, e.g. under a shared-savings agreement.

In times of tight public budgets, offers the op-portunity to continuous implementation of energy effi-ciency measures through the temporary provision ofseed money. For example, through a re-organisation ofbudgets, loans etc., during the initialising phase of, it is possible to stimulate a continuous flow of in-vestments so that the resulting payback cash flows inturn provide new funds for follow-up projects.

In Stuttgart, during the last five years, . millionEuro have been invested under the scheme, lead-ing to annual savings of MWh of heating fuels, MWh of electricity, m of water, and tons of 2.

Apart from the basic version of described above,other modes of are possible:

• the profit centre model (responsibility for energy issues is transferred completely to an internal profitcentre with own budgets)

• the “fake privatisation” model (responsibility for energy issues is completely transferred to a newly created energy service enterprise which is owned bythe public administration)

• the hybrid system, which joins and energy per-formance contracting. In this model, is used forsmaller investments that can be handled by the ad-ministration itself and are too small to be profitablefor an external . Bigger, more complex projectsare contracted out to :s for realisation and investment

7.4 Italy

7.4.1 The Energy Manager of Modena

The City of Modena has given their energy managerrecognition and support from the highest managementtier in the authority. The energy manager was electeddirectly by the ruling cabinet, which agreed concur-rently on the first lines of action. The energy managerreports directly to the council Director General, chiefstaff advisor to the City’s Mayor.

The energy manager has been able to establish astrong influential role in the activities of the councilservice groupings, for example by assigning energy coststo individual service groupings, by developing a refur-

bishment plan for energy services, and by formulatingproposals for building improvements for reductions inenergy use.

The energy manager has successfully developed theconsultancy role that the position traditionally holds(with a total of more than important actions com-pleted). However, importantly the energy manager ofModena has stepped beyond consultancy to establishdirect budget control of a number of investment deci-sions. The energy manager now controls budgets for allservice groupings for the maintenance and refurbish-ment of all heating and cooling plant as well as spaceheating energy costs (though costs are still nominallyassigned to individual service groupings).

The investment model implemented by Modenagoes someway to overcoming barriers to optimising investment and energy cost budgets over product andservice lifetimes. The energy manager, together withthe council Director General, is in the process of identi-fying how to develop the role further. The proposal isto achieve responsibility for heating and cooling plantin new structures, lighting in new and existing struc-tures and electricity costs.

The proposal does not for the moment consider howto interact with the facilities department on developingbuilding envelopes, nor does it include investment de-cisions regarding product purchases. However, in re-spect of the latter, the city council is currently in thephase of acquiring the environmental certificate,which the energy manager believes should be a strongtool toward directing product procurement.

7.5 Sweden

7.5.1 Swedish experiences with technology

procurement

Technology procurement may be described as theprocess of satisfying a defined need with the help of anew product by issuing specifications for products thatare not yet commercialised. Efficient solutions andtechnology development used to be regarded as positiveside effects of technology procurement, but are nowseen as the main target. Sweden has a long and exten-sive tradition of technology procurement, ranging froma variety of items (e.g. the rapid train andtelecommunication systems). Examples of successfulresults of technology procurement contests, carried outby the Swedish National Board for Industrial andTechnical Development () and (later) theSwedish Energy Agency are:

• the development of energy-efficient washing ma-chines, where the winner managed to diminish theenergy use per kilo clean laundry to . kWh (the target of the contest was set at , kWh)

• computer screens with an automatic turn-off function, increasing energy (and cost) efficiency andimproving indoor climate (humidity)



• energy-efficient refrigerators and freezers, introduc-ing low consuming products to the market

• well-isolated, energy-efficient windows, saving % more energy than the existing (three glassed)windows

Recent technology procurement incitements, made bythe Swedish Energy Agency and the City of Stockholm,include biogas driven vehicles, streetlights, windowsand environmental technology. Municipal and co-operative housing agencies have played a very impor-tant role in these procurement programmes.

7.5.2 The City of Sundsvall

In -, the northern City of Sundsvall changedvirtually all its street lighting luminaries into more energy-efficient high-pressure sodium equipped lampsthat reduced power consumption roughly by half. The large investment was justified by analysis.Originally, third-party financing was considered, buteventually the city council made a special budget reser-vation to allow for the one-time investment. In oneyear, luminaries were replaced.

7.5.3 The Swedish Integration Board

The Swedish Integration Board (which works to inte-grate immigrants in Sweden) and five other govern-ment authorities within the same district, purchaseapproximately hotel nights a year throughoutSweden. The authorities have developed an agreementwith hotels, which requires the hotels to apply energy-efficient measures, to develop energy-efficiency pro-grammes and to ensure that existing regulations of energy use are observed.

7.6 Switzerland

7.6.1 Reducing federal building space

In the course of the implementation of new publicmanagement, the Swiss Federal Office for Buildingsand Logistic () has started to reduce the office areaneeded by Federal administrations. The target value is aspecific office area of to m per federal employee.In a similar way, the public real estate management bythe city of Zürich aims at reducing the office areaneeded by the municipal administration by per centwithin years. However, there are no estimates knownhow much energy could be saved by these measures.

7.7 UK

7.7.1 Clear objectives in central government

The Prime Minister told the United NationsGeneral Assembly in July :

We must make the process of Government ‘Green’.

Environmental considerations must be integratedinto all our decisions, regardless of the sector. Theymust be at the start, not bolted on later.

The policy is characterised by a strong clear signal togovernment departments to purchase energy-efficientproducts. This has been backed up by guidelines fromthe Treasury to buy goods based on total lifetime costsand not on least purchase cost.

Government departments have had a goal of ongoing % per annum reduction in energy consumption onthe government estate, the target being a total % re-duction between -. By March an im-provement of 8.% in energy consumption had beenachieved against / levels. The Government hasrenewed this target of % reduction in energy con-sumption from /.They must also comply withthe legal target to reduce its greenhouse gas emis-sions to .% below levels by 8- andreach a domestic goal of % reduction in carbon dioxide emissions by .

As part of this rationale, the Treasury and theDepartment Transport and the Regions issued a jointcircular note “Environmental Issues in Purchasing” in. This specifies that government's procurementpolicy is based on Value for Money (), which is de-fined as “the optimum combination of whole lifetimecost and quality to meet the user's requirements”.

All government departments are obliged to apply in public procurement. Departmental accountingofficers are accountable to parliament through thePublic Accounts Committee for the department's deci-sions on purchasing and must prove that has beenachieved.

Amongst the examples of lifetime costs given are:

• direct running costs – resources (including energy)used over the life time of the product or the service

• indirect costs – loading on cooling plant arising frominefficient equipment

7.8 USA

The government has adopted overall goals for savingenergy in federal government buildings facilities and re-ducing associated greenhouse gas emissions. These in-clude specific policies on buying energy-efficientproducts that qualify for the Energy Star-label and (forcategories without an Energy Star-label) products thatare among the % most efficient models on the mar-ket, as determined by the Department of Energy'sFederal Energy Management Program (/). and Energy Star criteria now cover more than categories of energy-using products commonly pur-chased by government agencies.

There are efforts to apply the same efficiency criteriato products and equipment acquired indirectly,through contracts for new building design and con-



struction, major renovations, operation and mainte-nance services, and leased space. While increasing de-centralisation of government purchasing decisionsmakes it difficult to enforce compliance with specificdirectives (including those on buying energy-efficientproducts), the growing use of Internet-based “e-commerce” is also creating new opportunities to disseminate product-specific efficiency informationand policy guidance.

A number of state and local agencies have adopted orare considering similar purchasing policies, with en-couragement from and the EnvironmentalProtection Administration () under the Energy StarPurchasing initiative.

The combined purchasing power of the public sectoris very significant in the , representing about % ofall purchases of energy-using products. The federal government alone, with purchases of energy-usingproducts in excess of $ billion, is the single largestcustomer not only in the nation but in the world for almost any type of product.

A key to buyer-driven market change is the use ofcommon technical criteria for energy-efficient purchas-ing by many large purchasers at all levels of governmentand, ultimately, by leading institutional and corporatepurchasers. By emphasizing Energy Star and cri-teria as a common basis for energy-efficient purchasing,the has already seen some evidence of market re-sponse from manufacturers and suppliers. However,much of this remains anecdotal due to the difficulty ofgathering specific data on government purchases from ahighly decentralised acquisition system.

A projection of several scenarios for energy-efficientpurchasing by federal and non-federal governmentagencies showed energy cost savings of $ billion/yearin the “most likely” case, based on TWh/year plus million of annual fuel savings. Of this total, %of the savings are attributable to state and local pur-chasing.

7.8.1 Policy and programmes on energy

efficiency in public administrations

Beginning with the first oil embargo in the mid-’s,the federal government has enacted legislation and ad-ministrative regulations dealing with energy efficiencyin public facilities and purchasing. The latest elementwas added as recently as summer , in the form ofan updated Executive order to government agencies topurchase devices with low-standby power.

In addition to federal legislation, a series ofPresidential Executive Orders direct federal agencies to undertake specific activities to promote energy effi-ciency in their facilities and operations, including government purchasing.

Federal Programs

At the federal level, Executive Order includes anumber of specific directives to federal agencies to fol-

low, in the process of achieving their overall energy sav-ings goals. The Order assigns a broad co-ordinationand technical assistance role to the Department ofEnergy's Federal Energy Management Program ().

Major elements of the program include:

• facility on-site audits to identify energy- and water-saving measures

• technical support in planning and undertaking energy-savings performance contracts (:s) usingEnergy Service Companies (:s) that have beenpre-approved to simplify federal contracting

• design assistance to help agencies build more energy-efficient and sustainable new (or renovated) facilities

• technical assistance and (limited) financial supportfor renewable energy projects and ”green power” purchasing

• recommendations on purchasing energy-efficientproducts that qualify for the Energy Star label or –for categories not covered by Energy Star – productsin the top th percentile of the market in terms ofenergy efficiency

• staff and contractor training on all the above topics• tracking and reporting of government-wide energy

efficiency and renewable energy activities and accomplishments

promotes energy-efficient purchasing by helpingfederal agencies comply with the energy-efficient pur-chasing requirements of the Energy Policy Act. implements the two Executive Orders by publish-ing written guidance defining efficiency levels at theupper quartile (th percentile) of the market for about product types, including a number of Energy Starlabelled products. has distributed over copies of the loose leaf binder “Buying Energy EfficientProducts” in response to requests from federal buyersand others; the same information is published on-line.

The / Energy Star Purchasing Program en-courages similar policies and practices for energy-efficient purchasing by state and local agencies, withthe help of the utility-sponsored Consortium forEnergy Efficiency.

State and local programmes

State Energy Offices are responsible for planning andimplementing state level energy efficiency programmes,mainly with funding from . In several of thelarger states such as California and New York, theseprogrammes are also supported by state appropriationsand “public benefit” funds collected from utilityratepayers. These state programmes mainly target effi-ciency investments and energy management practicesby consumers and businesses, although several statesalso pursue energy savings in public buildings and gov-ernment purchasing.

States such as Texas, Iowa, and California have fi-nanced energy-saving capital improvements in publicbuildings through state revenue bonds or internal loansfrom revolving funds.



Several states also sponsor their own energy efficiencyresearch and technology deployment programmes, withfunding from state appropriations or utility ratepayers.In some cases (e.g., New York and California) these functions are managed by the State EnergyOffices; other states such as Wisconsin, Florida, NorthCarolina and Iowa, have created separate agencies.In the aggregate, these state-managed research andtechnology-transfer programmes spend about $million/year, mainly aimed at energy efficiency and re-newable energy technologies and practices. This is al-most the same scale as the entire budget forenergy-efficiency research. Several states have formed anon-profit organisation () to co-ordinate theirenergy research planning and implementation.

At the municipal level, ’s support for commu-nity-based programmes is funded mainly under the“Rebuild America” programme. Because of significantrecent growth in spending on school construction andrenovation, has put a special emphasis on energyefficiency in new and existing school buildings. In prioryears, also provided direct funding for energy man-agement programmes by municipal agencies.

Energy labels and standards

Perhaps the best-known voluntary programme in the for promoting energy efficiency is Energy Star. The Environmental Protection Agency ( ) createdEnergy Star in as a joint government/industrymarketing and labelling programme for efficient officeequipment with a low-power “sleep” mode. Since then,the program has expanded, with sponsorship by both and , to include voluntary energy effi-ciency labelling of more than types of energy-efficient products. In , there were over manu-facturing and retailing Energy Star partners, and an estimated million labelled products sold ( ). In addition to product labels, Energy Star nowincludes labelling of energy-efficient homes, as well asperformance benchmarking for several types of com-mercial buildings and selected industrial processes.

Based on a directive in Executive Order , severalfederal agencies have adopted Energy Star criteria as abasis for energy efficiency of new federal construction,both non-residential buildings and military housing.Private industry partners contribute to a national ad-vertising and “brand-awareness” campaign to build onthe current level of consumer recognition of the EnergyStar logo – already about %, according to surveys.

There is a close link between the Energy Star labeland government purchasing: the criteria for energy-efficient purchasing are harmonised withEnergy Star, resulting in both:

• a clear market message (and performance target) formanufacturers and distributors

• an easier path for government buyers to identify effi-cient products by simply looking for the Energy Starlabel and logo

Moreover, all Energy Star-labelled products are also in-cluded in a web-based list, easily accessible to both gov-ernment and institutional purchasers and to individualconsumers.

Finally, as states such as New York, California andMassachusetts begin to target their own purchasing toEnergy Star criteria. This adds to the demand-pull ef-fect of many large buyers, all focused on common crite-ria for energy performance.

In addition to these market-oriented programmes, manages national programmes for mandatory ap-pliance and equipment testing, standards and compari-son-labels. also issues recommended buildingenergy-efficiency standards for new non-residentialbuildings and provides grants, training, and technicalassistance to states and local authorities to adopt theseefficiency provisions into local building codes and en-force compliance. A modified version of the rec-ommended building standards are mandatory for allnew federally owned buildings (including major reno-vations).

As with Energy Star, these national requirements forappliance and equipment rating and labelling providean essential foundation for energy-efficient governmentpurchasing for several reasons. They:

• are based on industry-wide energy test methods • produce appliance labels which help buyers to com-

pare energy performance• create publicly accessible data bases on energy use

and efficiency, which can be used both to establishpurchasing criteria and to help buyers identify prod-ucts that meet or exceed a given performance level.



Part 2

Policies and tools for energy efficiency in the public sector

Common energy efficiency criteria and guidelinesadopted all over the European Union are needed andjustified: The public sector typically represents -%of the whole energy use in the Member States.Public procurement -wide is in excess of billionEuro, or about % of total , and it is growing. Forexample, in the case of personal computers alone, theannual purchasing value of the public sector is billionEuro. We estimate that common public sector energyefficiency features could influence an annual sales vol-ume of - billion Euro of products and serviceswithin the public sector in .

Compared to a “business as usual” scenario, Ourstudy indicates that the public sector in andCandidate Countries could save up to % of its en-ergy use (heat and electricity) and carbon emissions by if giving a stronger emphasis to energy efficiencyaspects in their procurement and energy managementroutines. The energy savings could generate public sav-ings worth up to billion Euro in Europe in yearsand in addition lead to better comfort and productivity.The investments needed are insignificant: in the whole they would be about 8 million Euro/year.

These are impressive numbers in their own right, butif we see the public sector as a lever for transforming thewhole market it gets really interesting. Arguably, themarket volume of the public sector is fragmented. Butif given a common direction guided by clear and com-prehensive policy decisions, the whole public sectorwould gradually embrace more and more of commonenergy efficiency targets and purchase specifications.When suppliers see all public entities all over Europe aspart of one virtual entity that always ask for the mostefficient products, they will adapt to that market. Andto reach economy of scale, it will be profitable to sellthe same efficient products to private entities and con-sumers as well.

How can we get there? Part of the report ac-tually concluded that the public sector gradually islearning to ask for efficient solutions, but that the ef-forts are scattered and seldom co-ordinated. We out-lined a number of barriers to broad-scaleimplementation of energy efficiency in the public sec-tor. Only few, if any, of these barriers are of a truly legalnature: the problems are more related to policy, infor-mation and knowledge, and the resources for thosewho wish to achieve something are limited. This chap-ter – Policies and tools for public sector energy effi-ciency – provides clear proposals on how to overcome

the barriers. It points at strategies that optimise the useof scarce financial and energy resources in the Europeanpublic sector.

Everyone has a responsibility for implementing en-ergy efficiency in the public sector: The EuropeanUnion and its institutions, Member States andCandidate Countries, individual public administra-tions on all levels, and employees working in all theseinstitutions. The role of the institutions deserves tobe highlighted. No other energy and environment pol-icy area offers such an obvious opportunity to provideleadership by example than this one. Any Directive ask-ing Member States to ensure that the public sector be-comes energy efficient, should also spell out mandatoryrequirements and actions for the European Union’sown institutions.

8.1 Summary of policy proposals

A priority task of the study has been to analysethe possibilities for policy to stimulate energy effi-ciency in the public sector throughout the Union. Onesuch instrument could be a framework Directive re-quiring implementing action from the Member Statesand the institutions. Such a Directive has been dis-cussed, e.g., in the European Climate ChangeProgramme. However, the fact that we analyse the pos-sible elements of such a Directive here does not preju-dice the actual proposal of such a Directive by theEuropean Commission. What we are exploring is thefollowing:

• how such a Directive could promote the use of differ-ent policy instruments for energy efficiency in thepublic sector of the Member States and in the institutions

• how the Member States could implement the requirements of the Directive

• how implementation could be fostered by Europeanpilot actions

It should be noted that a number of tools (for examplethe introduction of energy efficiency purchase criteria)are identified under a number of different policy instru-ments. It should also be noted that specific recommen-dations on target levels and methods aresummarised in the chapters covering products andbuildings respectively (Chapters and ).

PROST PART 2 – POLICIES AND TOOLS FOR ENERGY EFFICIENCY IN THE PUBLIC SECTOR 47

8. Policies for an energy intelligentpublic sector

The various policy tools are presented in such a waythat the overall policy targets are described first, thenthe structure needed on European and national level isdiscussed and what the primary responsibility of thisstructure should be. We then continue to discuss struc-tures, policies and tools needed in the individual :s,and the focus on individual :s ends with a discussionon the current reformation of the European public sec-tor, and the bearing it has on energy efficiency. A finalsection deals with the synergies between the policy in-struments and how they overcome the barriers to en-ergy efficiency in the public sector.

8.1.1 Setting policy targets

Concrete policy targets on energy efficiency need to bedefined for the public sector in order to capture the en-ergy savings potential represented by the public pro-curement and public energy management activities.This would also underline the responsibility of the pub-lic sector to act as an example for the whole society andto show how energy efficiency could be implemented inpractice. This kind of exemplary function for the pub-lic sector has already been introduced in the BuildingsDirective.

The relation of energy savings with emission re-ductions and the Kyoto agreement is strong and there-fore the policy targets should also be linked to climatechange mitigation. Considering the problems withlocal and national government’s budgets all over

Europe and the general pressure on public spending,energy efficiency provides a cost-effective and often alsothe most economic solution to meet environmentaland fiscal targets.

It seems difficult to achieve legally binding policy tar-gets for individual Member States. This should be easyfor central government institutions, but can probablyonly be voluntary for the lower levels of state. A mini-mum, however, should be a reporting requirement onthe progress in Member States along a few key indica-tors described by each specific policy target.

8.1.2 Creating a European structure based on

national programmes

A network of co-ordinated national public sector energyefficiency information centresIn order to harmonise work within and betweenMember States and a network of national public sectorenergy efficiency information centres should be created.In effect, these centres would be responsible for the na-tional programmes for public sector energy efficiency.We do not propose to establish new physical institu-tions or legal bodies, but it is important that theMember States ensure that information centres aregiven a clear mission and sufficient resources to assistpublic administrations.

The work of the centres should be co-ordinated by aEuropean Co-ordination Board for Energy Efficiency inthe Public Sector. The proposed European board helps

POLICIES FOR AN ENERGY INTELLIGENT PUBLIC SECTOR

48 PROST PART 2 – POLICIES AND TOOLS FOR ENERGY EFFICIENCY IN THE PUBLIC SECTOR

It is important to note that the individual policy toolsshall be seen as a package, where each tool addresses dif-ferent barriers and hence creates synergy effects with theother tools. An overview of barriers addressed and syn-ergies between policies is provided in Section .. Thepolicies and instruments discussed in this chapter canbe gathered under three broad headings.

Setting policy targets (Section 8.2)

An Directive must define clear policy targets forMember States. These are both quantitative targets foradditional energy savings in each Member State’s publicsector, and the task for the Member States to promotethat all public administrations set up similar targets.

Creating a European structure based on nationalprogrammes (Sections 8.3 – 8.6)

National programmes in each Members State ()should be established and co-ordinated by national public sector energy efficiency information centres(Section .). These centres will most likely be existing structures,who are given a clear mission and sufficient resources tocarry out their work. A European Co-ordination Boardfor Energy Efficiency in the Public Sector shall be estab-lished to co-ordinate the work on a European level, and

the national information centres are the natural contactpoints in each Member State. This European structureshall be responsible for developing and updating effi-ciency criteria and LCC methods for products and buildings(Sections . and .). The national information centres shall also work inclose co-operation with the national buying agencies(Section .).

Structures and actions within publicadministrations (Sections 8.7-8.14)

Within public administrations, the function of energy-efficient procurement information desks must be secured(Section .). In the area of buildings, energy efficiencymanagement units shall be established (Section .). These have a host of policy tools at their disposal:Energy efficiency budgets (Section .), third-party financing and energy performance contracting (Section.), public internal performance contracting, PICO

(Section .), sharing savings (Section .), and the op-portunity to bring energy efficiency to outsourcing(Section .). Each of these instruments for public administrations are discussed under a separate heading.Finally, linking energy efficiency and public administra-tion reform is discussed (Section .).

The PROST policy tools at a glance



Summary of important focus areas of an EU Directive on energy efficiency in the public sector


• that public administrations are relevant and responsible actors in achieving targets for a more sustainableand efficient economy and society

• the importance of structural changes to consider the requests of an integrated product policy• the importance of principles that allow more sustainable consumption patterns while aiming for “Value for

Money”• that energy efficiency in the public sector is a valuable strategy in achieving targets such as the obligations

under the Kyoto Protocol• the need for European policy targets in terms of energy and greenhouse gases in relation to improved public

sector energy efficiency

The Directive should oblige:

• the European Commission to assume responsibility for a European Co-ordination Board for EnergyEfficiency in the Public Sector

• institutions to integrate energy efficiency considerations in their daily expenses and activities• institutions to establish energy-efficient procurement information desks in order to make procurement

information available to all their internal purchasers of appliances and cars• institutions to establish energy efficiency management units and carefully consider all relevant instru-

ments that help make building-related measures as energy efficient as possible• institutions to create one or more and/or / (third-party financing/energy-performance con-

tracting) schemes for improving the energy efficiency of their building stock

The Directive should further call upon Member States to ensure that:

• they set themselves quantitative targets for additional energy savings for their central government institu-tions, and promote the setting of similar targets by the lower levels of state (regional, local governments)

• public administrations in their countries integrate energy efficiency considerations in their daily expenses andactivities

• buying agencies in their countries provide information that helps :s to make informed choices on energyefficient products

• national public sector energy efficiency information centres are established and given sufficient resources toprovide information, and to develop common -wide specifications, methods and procedures for integrat-ing energy efficiency in public procurement and buildings management

• the national public sector energy efficiency information centres co-operate with each other• public administrations establish energy-efficient procurement information desks in order to make procure-

ment information available to all their internal purchasers of appliances and cars• public administrations above a threshold energy consumption (e.g., /year) operate energy effi-

ciency management units (:s), and that smaller administrations get access to similar services• :s are charged with the responsibility to make refurbished and new buildings respect minimum perfor-

mance standards, and document the savings • there are explicit requirements to introduce cost effective measures to improve energy efficiency service con-

tracts (for public administrations that outsource responsibilities)

The Directive should further call upon Member States to promote:

• the creation of energy efficiency budgets in all levels of public administrations in their country. It should atleast recommend central government and the institutions to dedicate part (%) of their normal build-ing/maintenance budget to energy efficiency investments

• the use of third-party financing and energy performance contracting (/) in public administrations inorder to overcome existing barriers to energy efficiency in public buildings

• the use of the public internal contracting () concept in public administrations • shared savings schemes, which give an incentive to individuals, teams or organisational units to implement

energy efficient improvements• that public administrations link the reform of public administration with actions, incentives, and instru-

ments to improve energy efficiency

co-ordinate the work of each national programme andthe work to establish common criteria and practicesacross Europe. It is foreseen that the board has severalad hoc committees responsible for issues such as devel-oping efficiency specifications and methods forproducts and buildings, and to develop common mini-mum performance standards for public buildings.Other responsibilities are method development, stan-dard contracts etc. The European Union must providefunding to assist the co-ordination work, while

Member States must ensure that national informationcentres have enough funding to operate efficiently. Thenational centres will appoint experts for the various adhoc committees.

Energy efficiency specifications and LCC methods for productsEnergy efficiency must be integrated as a standard crite-rion in public procurement routines. Generally, in pro-curement of products, the initial purchase costs are



EU wide co-operation among MS in the European Co-ordination Board• Developing common guidelines, specifications and LCC methods. • Developing common methods and standard practices for procurement and energy

National work• Tailoring the information to the national level • Dissemination on the national level • Education and training for public procurement agents and energy managers• Development of public procurement and energy management tools• Service and assistance to public procurement agents• Organise the dialogue with national representatives and stake holders

European Co-ordination Board for Energy Efficiency in the Public Sector

National public sector energyefficiency information centres

• Procurement agents and information desks• Energy managers

Public administrations


Bying agency



Bying agency




Fig 8.1: Possible co-operation structure between the European Coordination Board for Energy Efficiency in the PublicSector, national public sector energy efficiency information centres and the procurement agents and energy managerswithin the public administrations.

usually the most decisive factor for selecting an appli-ance or a product. But in order to go for the economi-cally most advantageous tender in the long term,operating- and energy-related costs have to be consid-ered indirectly or directly.

Energy efficiency specifications concerning energyconsumption are a very practicable way for choosingproducts. This can be done by restricting the call fortender to those products meeting the specifications,and afterwards selecting the product with the lowestprice among those that meet these specifications andthe other award criteria. Only in case of a big value of atender, this could be modified by making a life-cyclecost assessment when selecting the winner. For a lot ofproducts, existing minimum energy efficiency stan-dards, label schemes, etc., can give an orientation forthe efficiency levels that could be used in public pro-curement.

Energy efficiency specifications and LCC methods for buildingsMaking the building stock in the public sector energyefficient requires providing procuring officers, design-ers and managers with energy efficiency purchase specifications for building components. Specificationsidentify products and solutions, which offer minimumlife-cycle costs based on typical assumptions.Specifications can make use of existing technology-specific energy labels, or otherwise non-classified per-formance characteristics (for example values forglazing). A clear statement by the as to the validityof ex-ante calculations in defining tender require-ments, could be important. Purchase specificationsneed to clearly identify the minimum acceptable per-formance level required of components.

To be effective in both improving the energy effi-ciency of the public sector building stock and leadingthe transformation of the wider market, componentspecifications and ex-ante calculations of design al-ternatives need to be used as widely as possible by thepublic sector across Europe. Member States shouldtherefore explicitly require their own central adminis-trations to follow such specifications and calcula-tions, and promote that other public administrations inthe country do the same.

Helping buying agencies provide energy-efficient productsCentral buying agencies are present in all countriesproviding centralised purchasing for the public sector.The actual use of these buying agencies by single publicauthorities varies from country to country. Today, it isnot clear to what extent buying agencies promote pro-curement of energy-efficient products. Buying agenciesalready exist within the normal procurement legislativeframework. No special legislation is needed to improvetheir function with regard to energy-efficient-procure-ment, but there is a need for clear policy signals to en-sure that buying agencies fulfil their potential to deliverprocurement of energy-efficient products.

It may be difficult to require central buying agenciesto supply products that are not requested by public ad-ministrations (the final buyer). However, an Directive could require central buying agencies to sup-ply public administrations with -based informationof energy-efficient products, as well as lists of productsbased on purchase specifications. Central buying agen-cies present themselves as ideal candidates to developand maintain energy-efficient procurement guidelinesfor products and building components. They also workclosely with the public administrations, and should beused as (one of several) communication channels be-tween :s and the national energy efficiency informa-tion centres.

8.1.3 Policy recommendations and tools

applicable for individual PAs

Energy-efficient procurement information desks withinpublic administrationsContinued updating and information is needed, as isthe availability of tools, instruments, guidelines andtraining for procurement officers. The procurement in-formation desks would ensure that the information andspecifications developed nationally and -wide is dis-tributed within administrations, and that purchasershave an in-house contact point for their questions. Wedo not envisage the creation of physical desks or offices;this policy tool rather recognises the need for allocatingresponsibilities and giving people or groups withinpublic administrations a clear mission.

This policy recommendation primarily concerns theprocurement of appliances and cars, while all buildings-related energy efficiency issues are subject to the pro-posed energy efficiency management units (below).

The Directive should clearly recognise that publicadministrations are a recognised, relevant and responsi-ble actors in achieving targets for a more sustainableand efficient economy and society. are to ensure that:s are assisted in creating these desks in order to pro-vide updated information to those involved in the pro-curement processes, and it would ideally requireprocurement officers to consider energy-efficient alter-natives, as defined by the national information centres.

Energy efficiency management units (EEMU):s are well placed in the decisional hierarchy withthe power to ensure the adoption of cost-effective energy-efficient solutions in building maintenance, re-furbishment and construction. Experience throughoutEurope shows that good energy management can leadto important improvements of building stock energyefficiency. Overall building stock heating energy sav-ings of % or more have been achieved, similar elec-tricity savings are potentially lying ahead.

The economic savings potential offered by efficiencyimprovements to building envelope and systems inpublic administrations consuming more than /year is typically sufficient to cover the salary costs



of an engineer working as an energy efficiency manager.Public administrations falling below this threshold aregenerally unable to maintain an on their own.They can work together to develop partnership :s,which can be self financed through the energy savingsthey realise in each public administration.

Member States should be required to ensure thatpublic administrations above a threshold energy con-sumption (recommended at . /year) operate:s. Public administrations falling below thethreshold level should have ongoing access to similarenergy efficiency management services.:s should be charged with the responsibility to en-sure that refurbished and new buildings respect mini-mum performance standards. :s should berequired to document achieved energy savings in build-ing stock and improvements to building stock energyefficiency.

Energy efficiency budgetsCreation of energy efficiency budgets () in a publicadministration will enable a stable level and continuousenergy efficiency investments. It could also be appliedby the institutions. A certain percentage of the nor-mal building and maintenance budget is secured for thedetailed energy audits, implementation and monitor-ing of energy efficiency measures in buildings. It pro-vides savings of energy and public money and reducesemission of greenhouse gases.

This instrument can mainly be recommended as avoluntary one, to be introduced by each individualpublic administration. There should, therefore, not beany legal problems if Member States just promote theuse of this instrument. They could, however, self-obligetheir own central government administration to use it.

Should a Member State want to make it mandatoryfor all public administrations, the main aspect of imple-mentation of this instrument would be if the or na-tional legislation can determine for what purposes thelocal authorities and self-governments shall spend theirmoney. The legal feasibility of a mandatory implemen-tation of would then depend on the legislation ofeach Member Sate. This may be seen as too deeply in-terfering with the competences of a particular publicadministration. The Directive should at least recom-mend central government and the institutions todedicate a part (e.g., %) of their normal building/maintenance budget to energy efficiency investments.

Whether voluntary or mandatory, there is a crucialrole for a national campaign and adequate instrumentsto change the perception of local authorities, convincethem of this instrument, and show the significant op-portunities and benefits.

Third-party financing and energy-performance contract-ing (TPF/EPC)The internal energy efficiency budgets described above,where they are possible to create, can improve energyefficiency in day-to-day maintenance or smaller refur-

bishments. Still, they may not be sufficient: often, thereis a delay in public administrations of the scheduled re-furbishment of windows, heating, or ventilation sys-tems due to lack of funds. Sometimes the normalmaintenance budget is too small anyway. In these cases,Third-party financing and energy performance con-tracting (/) (or Public internal performance con-tracting,, see below) provide possibilities to fundadditional energy efficiency projects, particularly majorrefurbishments of buildings and installed systems.

The Directive / required the Member Statesto promote / the public sector, which would alsoimply the removal of any legal barriers. Yet, some of theCountry studies in the project still report legalimpediments for public administrations to use /.On the other hand, the existing procurement regula-tions for awarding and carrying out services of publicadministrations (e.g., the contract procedures for con-struction work and for services in Germany) are not areal barrier.

An Directive on energy efficiency in public ad-ministrations should require the Member States to pro-mote the use of / in public administrations inorder to overcome existing barriers to energy efficiencyin public buildings. In this way, the Directive wouldalso support the further development of a sustainablemarket for energy efficiency services in general. The Directive should furthermore require institutions toanalyse, in which of their buildings the / ap-proach could be implemented.

Public internal performance contracting (PICO)Public internal performance contracting () is en-abling energy efficiency investments by a kind of in-house “third-party” financing or energy savingsperformance contracting scheme. With , the roleof the is assumed by a unit of the public adminis-tration itself, e.g., the technical department of a munic-ipality. This unit acts like an , delivers the financialand technical service, and the remuneration takes placethrough cross-payments of budgets from the customerunits’ saved energy costs to the unit of the samepublic administration.

One overall result of the analyses of the usefulnessand feasibility of the concept in different countriesin the course of the project is that legal impedi-ments seem to play a minor role. The different modesof seem to be possible from central administrationlevel down to municipal administration level in manycountries. will particularly be feasible for largerpublic entities having energy management facilities.However, the formal and legal aspects of , e.g.,with regard to public debt management, budgetarycodes and the acceptance of budgets by the supervisingfinancial authorities, are not always clear. Therefore, inparticular cases, adaptations of rules are required, butare assumed to be feasible.

An Directive on energy efficiency in public ad-ministrations should require the Member States to pro-



mote the use of the concept in public administra-tions in their country. The Directive could indicativelyname possible actions for national implementation. Itshould furthermore require the institutions to createone or more schemes for improving the energy ef-ficiency of their building stock.

Sharing savingsAn important barrier for active implementation energyefficiency is lack of accountability. Specifically, oftenthose groups using energy services are not directly heldresponsible for paying the costs, which this use implies.

Important savings can be triggered through proce-dures, which directly involve the users in economic sav-ings derived from energy savings. A number ofprocedures have been tested in this sense, which rewardindividuals, teams or organisational units with a sharein the energy cost savings they achieve. This providesan incentive to develop energy efficiency improvementproposals, to change energy consumption behaviourand/or to implement measures/procurement decisions,which particularly contribute to saving long-run costs,thereby reducing consumption and emissions.

In general, legal impediments seem to play a minorrole. However, in particular cases, adaptations are re-quired, e.g., with regard to regulations and wage agree-ments, which do not allow personalised bonuses forindividuals or teams in public administrations.Furthermore, an important precondition for the imple-mentation of the shared savings concept is the account-ability of administrative units for the energy costs theycause, and/or decentralised budget responsibility.

An Directive on energy efficiency in public ad-ministrations should require the Member States andthe institutions to promote the shared savings orbonus incentive schemes which give an incentive to in-dividuals, teams or organisational units to develop en-ergy efficient improvement proposals.

Bringing energy efficiency to outsourcingThere is a trend for the public administrations to out-source public services (for example street cleaning orstreet lighting services) and its own service provision(for example office space winter comfort). The inci-dence of energy costs on the total costs of service provi-sion varies significantly from relatively high (forexample in the case of public street lighting) to rela-tively low (for example in the case of canteen provi-sion). Service contracts should balance the manyrequirements of service provision with the necessity toimprove the energy efficiency of the building stock,building systems, and products owned or utilised bythe contracting public administration.

Introducing explicit requirements in tenders and con-tracts that require cost effective measures to improveenergy efficiency to be undertaken can do much toovercome a number of barriers to energy efficiency,which presently characterise these contracts. (Theproblems seem to be practical rather than legal.)

The requirement to introduce energy efficiency im-provements should be applied to all service contracts.Thus a provider, for example, of canteen services maybe required to evaluate the possibilities to use more energy-efficient cookers. Though it is likely that theprovider will have to rely on outside skills to evaluateenergy savings potentials, there really is no logical rea-son to object to the requirement. The provision of stan-dard contractual texts will reduce the possibilities forcontentious disputes between contracting and con-tracted parties.

A possible Directive shall make explicit require-ments to introduce cost effective measures to improveenergy efficiency into service contracts.

8.1.4 A possible European pilot action on

energy efficiency in the public sector

A European pilot action on energy efficiency in thepublic sector should aim to cover both product pur-chasing and building energy management. It is also im-portant that a number of countries are involved, so asto test the importance of national structures, traditionsand legislation, as well as starting to develop the co-op-eration between national programmes.

It is advisable that the central partner in each countryparticipates with an organisation that is likely to be-come the national public sector energy efficiency infor-mation centre. Thus, the structures and experiencesbuilt up during the pilot action would be useful in thefuture, once the Directive has been implemented. Anumber of public administrations in each countryshould also be involved. One may envisage specific pol-icy actions, where certain policy instruments are beingtested (such as the ongoing Light project under the programme). At this stage, it is impossible to spec-ify exactly what the pilot actions shall focus on, sincethis will depend on the needs and competence of thepublic administrations that eventually choose to partic-ipate.

In the areas of product purchasing the following areasshould be explored as a minimum:

• development of common purchase specifications and methods

• a learning-by-doing exercise where procurement officers practice to write call for tenders, and to eval-uate these tenders, based on the purchase specifica-tions. A limited number of products relevant for asmany administrations and countries as possibleshould be selected

• the pilot project would identify current practices andpropose a reform for the energy-efficient pro-cure-ment within institutions

• development of common information material andsimple “how-to” guides based on the experiences ofthe pilot action



In the areas of buildings, the following areas should beexplored as a minimum:

• development of common purchase specifications andminimum performance standards, as well as methods

• a learning-by-doing exercise where building man-agers practice to write call for tenders, and to evaluatethese tenders, based on the purchase specificationsand possibly ex-ante calculations of possible al-ternative designs of building shells or installed sys-tems. A limited number of end uses common for asmany administrations as possible should be selected

• the establishment of (proto-) energy managementunits in administrations who lack these.

• public administrations should investigate at least oneof the investment-related tools described in thischapter.

• development of common information material andsimple “how-to” guides based on the experiences ofthe pilot action

8.2 Policy targets

Concrete policy targets on energy efficiency need to bedefined for the public sector in order to capture the en-ergy savings potential represented by the public pro-curement activities. This would also underline theresponsibility of the public sector to act as an examplefor the whole society and to show how energy efficiencycould be implemented in practice. This kind of exem-plary function for the public sector has already been in-troduced in the draft Building Directive.

The relation of energy savings with emission re-ductions and the Kyoto agreement is strong and there-fore the policy targets should also be linked to climatechange mitigation. Considering the problems withlocal and national government’s budgets all overEurope and the general pressure on public spending,energy efficiency provides a cost-effective and often alsothe most economic solution to meet environmentaland fiscal targets, which is also an important practicallink to policy formulations.

8.2.1 Legal feasibility

It seems difficult to achieve legally binding policy tar-gets for individual Member States. A minimum, how-ever, should be a reporting requirement on the progressin Member States along a few key indicators describedby each policy target.

8.2.2 Effectiveness in overcoming barriers to

energy efficiency

Clear policy targets do not automatically make thepublic sector energy efficient, since they do not specifyhow the policies are implemented or the targets arereached. The answers to these concrete needs are pro-vided for by the other policy tools described in this

chapter. The role of the policy targets is more funda-mental: Concrete policy targets provide justificationand motivation for the other policy tools in order tojudge how much, and at what cost, particular efforts areneeded.

Thus, setting policy targets is the basis for all otherinstruments, which will help in implementing the tar-gets. Setting policy targets for energy efficiency will,however, be easier if public administration reform (seeSection .) is already implemented or is in the courseof implementation. This is because steering the admin-istration by targets is a general feature of administrationreform.

8.2.3 Treatment in a Directive on energy


Basically, the Directive should require that the MemberStates themselves set quantifiable and concrete targetsfor improving energy efficiency and reducing emis-sions in the public sector. The Directive also sets up thelegal framework enabling the public sector to accom-plish these targets. Possible provisions in the Directiveon specific instruments for achieving the targets are dis-cussed under the separate sections covering each instru-ment.

The Directive should define in a general way, howand where the public sector could save energy and inparticular using public procurement as one of the cen-tral instruments to enhance energy efficiency. Existingor planned Community legislation or recommenda-tions on energy efficiency could serve as basis for coreactivities included in the Directive.

When using public procurement as a policy instru-ment for energy efficiency, there is a clear link to publicprocurement legislation and directives in general.Where and when necessary, the Community legislationneed to be modified in such a way that it allows usingenergy efficiency as a criteria for purchasing productsand services. The Directive should give a clear signal onaccepting this.

8.2.4 Actions for national implementation of

the Directive

General frameworkThe national implementation should cover the wholepublic sector, i.e. the national, regional and local levels.For instance, this could be made mandatory for thecentral government institutions, but promoted as a self-obligation for the other levels of government (local, re-gional or in any other way separated from centralgovernment). Recognising that the range of activities inwhich the public administrations could influence theirown energy use may be very broad and vary from coun-try to country, the implementation should focus on en-ergy-efficient purchasing and improvements inbuildings. These are segments in which the whole pub-lic sector in Europe has similar activities (e.g. purchas-ing of office equipment, heating of buildings). The



products and services in which energy efficiency is re-quired can thus be easily identified and they should alsobe categorised, if necessary, as part of the suggestedDirective.

In order to be effective and credible, the implementa-tion should be monitored and tracked. This should bethe responsibility of the national governments. The improvements should be reported annually to theEuropean Commission. The European Commissionshould in turn produce a yearly report on the progressof the recommended Directive on energy efficiency inthe public sector. This report shall be based on the na-tional reports. The Commission should make sugges-tions for improvements and suggest further actionswhenever necessary.

Concrete targets and measuresIn order to have a clear impact, the energy efficiencytargets to be set for the public sector nationally shouldbe at least as challenging as what the Council has previ-ously stated on ’s energy efficiency targets (%/yearenergy efficiency improvement over the natural trend).The scenarios on the energy efficiency potential in thepublic sector for electricity and heat indicate that a -.%/year energy efficiency improvement over thenatural trend could be possible for the public sector toachieve, taken the size of its purchasing power and vol-ume and the potential for energy efficiency in the pub-lic building stock. This necessitates at the same timeclear directives to include energy efficiency in the pub-lic procurement regulation.

The relative efficiency improvements to be set(%/year, or, for example reduce total energy consump-tion by % over years) can be turned into concretevolume targets and outcomes by the following kind ofrequirements, which would be jointly developed by ac-tors from the and Member State level (see Section., “Energy efficiency specifications and life-cycle costsfor buildings”):

• weather and climate corrected specific heat consump-tion in new public buildings should be under x kWh/m2 by and y kWh/m2 by

• weather and climate corrected specific electricity con-sumption in new public buildings should reach alevel of x kWh/m2 by and y kWh/m2 by

• weather and climate corrected specific heat consump-tion of existing public buildings should be under x kWh/m2 by and y kWh/m2 by

• weather and climate corrected specific electricity con-sumption of existing public buildings should reach alevel of x kWh/m2 by and y kWh/m2 by

To achieve the policy targets stated above, a set of ac-tions is needed (described in more detail in the follow-ing sections). Important actions directly linked tosupport the kWh/m2 targets are the following:

• all public buildings larger than m2 should beaudited once in a year to verify their heat and elec-

tricity consumption and the measures taken to im-prove energy efficiency – this is the task of energy efficiency management units that each public admin-istration should have, or have access to

• minimum energy efficiency requirements should beapplied on equipment purchased by the public ad-ministration within years from the acceptance ofthe Directive. These criteria will depend on the na-ture of equipment. Whenever applicable -label classrequirements or better should be followed (separatelist, to be jointly developed by actors from the and Member State level – see Section ., “Energy efficiency specifications and life-cycle costs for products”)

• % of equipment purchased by the public adminis-tration by year and % in year should beat or above the recommended criteria set initially by, and/or the collaboration of buying agenciesand partners, and/or the Directive whenever it isissued

It is also advisable that national policy sets itself a num-ber of targets as to the use of specific instruments forimproving energy efficiency in public procurement andpublic buildings, e.g., the use of energy efficiency crite-ria, life-cycle costs, energy management schemes, etc.

The public administration is requested to integrateenergy efficiency into the public procurement instruc-tions of the administration. This includes also the institutions’ and particularly the EuropeanCommission’s own purchasing. The administration’sexample is considered very important to gain credibilityfor the energy efficiency scheme proposed. The publicadministration also need to allocate or create the neces-sary competencies in the form of resources and staff forthe practical realisation.

The public administrations in the Member States arerequested to put in place the measures required andspecified in this document within years from the ac-ceptance of the suggested Directive on energy efficiencyin the public sector.

8.2.5 Actions and resources needed by each PA

The follow-up of meeting the policy targets is the re-sponsibility of municipalities, municipality consortiaand government agencies. This usually correlates withthe tasks of a green and energy-efficient procurementinformation provision and an energy efficiency man-agement unit (cf Sections . and .) The local author-ities shall annually report on their progress in meetingthe energy efficiency targets to the national authorities,which have been given the task of implementing theenergy-efficient public procurement and building pol-icy and shall in turn make a summary of the nationalprogress in energy efficiency of the public sector. energy agencies should take a strong initiative to sup-port local governments in tracking the energy efficiencyimprovements.



8.2.6 The role of the policy instrument in a

European pilot action

The creation and realisation of energy efficiency targetscould be tested in a pilot action in which, e.g., a groupof municipalities in Europe would be willing to set pol-icy targets for energy savings within their administra-tion, implement concrete actions, monitor impacts andanalyse outcomes.

The study has made the necessary preparationsso that the next step could be an implementation intopractice. has laid out specific policy targets, crite-ria, identified monitoring approaches, etc. to make theconsequences from policy targets balanced between thedifferent regions in and especially considering theCandidate Countries.

It is recommended to prepare a call of tender for thepilot action under an appropriate energy pro-gramme and launch the pilot implementation as soonas possible. A -year project is envisioned with clear tar-get and milestones. The pilot action should present inyear the policy targets and necessary supportive ele-ments, implement these from the second year onwardsand present a mid-term report of experiences at the endof year . A revision, whenever necessary, is made in thebeginning of year and the full testing goes on duringyear . The pilot action will feed its experiences alongthe whole project life into the policy target work on thesuggested Directive.

8.3 A co-ordinated network of national

public sector energy efficiency

information centres

Most common barriers to integrating energy perfor-mance as a criterion for procurement are lack of infor-mation and the fear of being in conflict with publicprocurement rules. These barriers could be overcomeby organising information dissemination at Europeanlevel through the establishment of a network of na-tional public sector energy efficiency information centres,which will provide up-to-date information on energyefficiency in the public sector. Through the informa-tion centres, all public procurement and building con-struction and maintenance officers should find relevantinformation to enable them to make informed deci-sions about energy-efficient products as well as energy-efficient design and refurbishment of buildings. Thisinformation should be presented in an easily accessibleformat tailored to the needs of the public sector, inorder to make it useful even to the smallest of adminis-trations with limited resources for further processing ofthe information. The proposal does not aim at the cre-ation of new structures (most Member States alreadyhave structures dealing with energy efficiency and/orgreen procurement), but at the development of a spe-cific and co-ordinated mission.

The second very important role of the energy effi-

ciency information centres is to act as national re-sources and contact points in the pan-European workto establish common criteria and methodologies and tomonitor the work. The centres shall appoint nationalrepresentatives to European Coordination Board forEnergy Efficiency in the Public Sector.

The information centres should be established ineach Member State. The function should also be en-sured for European Union institutions either throughthe establishment of a dedicated centre, or by appoint-ing national centres to serve that mission. The activitiesof the centres would target products, building compo-nents, building design and refurbishment, and infor-mation on all other instruments proposed in this study.They would:

• disseminate information on energy performance re-quirements for procured products and services, elab-orated collectively at European level (cf. Policysections . and . for products and buildings, and. for outsourcing services; the centres could alsoparticipate or be responsible for the elaboration ofthe requirements).

• disseminate information on guidelines and methods,and provide assisting services for green and energy-efficient procurement and building energy (efficiency) management, elaborated at national or if useful collectively at European level.

• provide for legal advice concerning the possibilitiesto integrate energy efficiency and environment inpublic call for tenders (“info” telephone line, ready-to-use call for tenders, legal advice on the specificwording of call for tenders, etc.).

• be responsible for organising the dissemination ofthis information (on-line advice, paper catalogue,web based information, etc.) in an efficient way.

• gather information on current methods and prac-tices, evaluate these methods, and provide feedbackboth to the European Board for Public Sector EnergyEfficiency, as well as to the national stakeholders.

• serve as the contact point in the European coordina-tion board.

In this way, a coherent message could be sent across theEuropean Union to industrial operators willing to havetheir products comply with homogeneous require-ments and guidelines.


No legal barriers are foreseen for this instrument.


energy efficiency

The proposed information centres will be cost effective,provided the information is of high quality and its dis-semination is well organised (multiplication of struc-tures and documents are avoided if implementedcorrectly). The centres address several barriers to the im-plementation of energy efficiency in the public sector:



• Lack of information: the first aim of the centres is toprovide information about the financial and environ-mental gains, the potential savings and ways toachieve them.

• Complexity of public procurement rules and legal un-certainty: the centres will advise procurement officersand propose “ready to use” tenders in which thewording asking for energy-efficient products wouldhave been checked by lawyers.

• Too much and unclear information: The centres willstreamline information by centralising the firstsource of information, making products’ selectioncriteria more uniform, and facilitate a network.

• Insufficient priority and lack of motivation: The infor-mation disseminated by the centres will highlight theimportance of energy-efficient procurement and po-tential savings, thus possibly influencing the attitudeof procurement officers.

• Lack of investment culture: if at the same time “globalbudgeting” is promoted, any information showingfor example potential savings in Euros, or how to im-plement third party financing operations, will rein-force the investment culture in a givenadministration.

• Lack of personnel resources and time: public adminis-trations dedicate time and resources to procurementanyway. By providing these administrations with freeof charge high quality and pragmatic information,the Desks will allow these administrations to achievepositive results without investing more time or re-sources.

8.3.3 Synergies with other policy tools

The centres will directly and indirectly support most ofthe other policy tools proposed – supporting several ofthem could actually be stated explicitly in their mis-sions, and it could even be the responsibility of the cen-tres to develop some of the other policy instruments.



The following are key messages, which could be in-cluded in a Directive on energy efficiency in public administration:

• Member States are to ensure that public administra-tions integrate energy efficiency in their daily ex-penses and activities.

• Member States are to organise information and feed-back gathering at national level, through nationalpublic sector energy efficiency information centres,but the structure and name are chosen according tothe subsidiarity principle; they might be existing ornewly created structures. For example, the activitiesof the centres can be developed within the body(ies)responsible for public procurement so that legal advice given to procurement agents includes – up-stream – energy efficiency requirements, within pub-

lic buying agencies, within energy or environmentagencies, or at national, regional or local levels.

• The is to provide support to the centres, organisethe co-ordination of their work (common definitionof requirements and guidelines, and their regular up-date) through the proposed European co-ordinationboard so that a consistent message is provided in thevarious Member States to procurement officers andto the industry wishing to develop products and ser-vices complying with these specifications.

• The Directive applies to offices and institutions,which should benefit from the information providedby a dedicated centre (or through national centreswho have been appointed to serve institutions).


the Directive

At National level, the following action seems necessary:

• Member States should designate (or create) one na-tional centre in charge of organising the informationdissemination in their country (see below). The firsttasks will be to participate in the European co-ordi-nation activities and to establish a communicationplan, which will be implemented when the informa-tion content is defined. The centre should ensurethat national representatives participate in the activi-ties co-ordinated by the proposed European Co-ordi-nation Board for Energy Efficiency in the Public Sector,to develop common information that will then be dis-seminated in the Member States.

• The national centres should have sufficient financialmeans and human resources to participate in co-ordi-nated activities at European level and disseminate theresulting information nationwide to as many pro-curement officers, building construction and mainte-nance officers in all public administrations and incentral buying agencies as possible. The necessarymeans and human resources may already exist in na-tional structures in charge of green or energy-efficient public procurement, but may need to be en-hanced to perform the full range of services proposedhere. A minimum staff size is considered - for asmaller Member State and - for a larger coun-try. Resources for dissemination (websites, brochures,workshops, courses etc.) should be in the order ofseveral million Euros per country and year.

• The national centres choose the most efficient way todisseminate the information in their country, choos-ing the best operators to relay the information (re-gional agencies, existing networks, central buyingagencies, environmental directions and energy-efficient procurement information desks and energy(efficiency) management units in large public admin-istrations, etc.). The information support should beweb-based but a paper based support is seen as a nec-essary complement. The information should in mostcases be translated in national languages (either a



translation of the European information, or the es-tablishment of a full national version).

• The national centres also provide tailored informa-tion through an information telephone line and/or adedicated e-mail address. Public administrations mayask questions on a specific problems regarding energyperformance levels or efficient products.

• Furthermore, the national centres promote the cre-ation of structures within :s to ensure that energy-efficient procurement information is provided. Theyshould also promote the creation of energy efficiencymanagement units (:s) in individual public ad-ministrations or groups of smaller public administra-tions.

• The national centres are also in charge of designingand disseminating information on financing instru-ments, such as internal energy efficiency funds, per-formance contracting, and , as well as all otherpolicy instruments proposed in this report – based onexperience gathered at European level.

• The national centres organise the dialogue with na-tional representatives of the industry (informationand consultation activities, programmes to encour-age industry to include energy performances in theirmarketing activities, etc).


Since this policy tool concerns the establishment of astructure to support public administrations, no specificaction and resource would be needed for the individual:s, although support to :s could be channelledthrough the national information centres.

8.3.7 The role of the policy tool in a European

pilot action

) One Pilot project directed at the EU offices: limited toequipment procurement (in order to be pragmatic,building investments would come separately, possiblyin a second phase), the pilot project would identify cur-rent practices and propose a reform for the energy-effi-cient procurement within institutions.

A team of consultants would provide direct advice tothe institutions:

• interviews of procurement agents to assess how pro-curement presently works within the (various :s, Parliament, etc.)

• work with ’s legal advisors to assess where improve-ments can be made

• proposal for improvements regarding the organisa-tion of energy-efficient procurement (not on techni-cal specifications at this stage)

) One pilot project directed at Member States: Somecountries would get together and start implementingboth the co-ordinated definition of requirements (cf.policy instruments on efficiency specifications and for products and buildings) and the dissemination ofinformation (including legal advice). In order to attract

national administration to participate, an “-Club”configuration could be proposed, underlining the pos-sibility to become a national public sector energy effi-ciency information centre when they are set up, or toinfluence the definition of co-ordinated European tech-nical requirements.

8.4 Energy efficiency specifications and

life-cycle cost methods for products

Generally in procurement of products, the initial pur-chase costs are usually the most decisive factor for se-lecting an appliance or a product. But in order to selectthe economically most advantageous tender in thelong-term, operating- and energy-related costs have tobe considered indirectly or directly.

Two principle ways are possible:

• Energy efficiency specifications concerning energyconsumption are a very practical way for choosingproducts. This can be done by restricting the call fortender to those products meeting the specifications,and afterwards selecting the product with the lowestprice among those that meet these specifications andthe other award criteria. Only in case of a big value ofa tender, this should be modified by making a life-cycle cost assessment when selecting the winneramong those products that meet the criteria, but maystill differ considerably in energy efficiency. For a lotof product groups, there exist minimum energy effi-ciency standards, label schemes, etc. which can givean orientation for the efficiency levels that could beused in public procurement.

• Life-cycle costs () calculations is a concept forevaluating all relevant costs over the lifetime of appli-ances. The life-cycle cost concept takes into accountfirst costs (purchase price, installation costs) and fu-ture costs (energy costs, operating costs, maintenancecosts and/or disposal costs) over the life of the prod-uct. Hence, life-cycle costs reflect the total consumerexpenses over the life of an appliance and capture thetrade-off between purchase price and upcoming op-erating expenses.

The analysis in Chapter shows that, for most prod-ucts, energy efficiency specifications in the call for ten-der in combination with low purchase costs of thoseproducts meeting the specifications, can lead to an en-ergy efficient purchase decision. (This is valid in partic-ular for products where the running costs related to theenergy consumption over the life of the product arelower than the initial purchase costs.) In this case, a life-cycle cost approach is not useful. A comprehensive life-cycle cost calculation is applicable, when the runningcosts over the life of a product exceed the initial pur-chase costs significantly.

In particular in the area of appliances and equip-ment, the markets become more and more interna-



tional and homogenous within the Member States.Specific national peculiarities will become increasinglyless relevant in the future. Thus, an -wide approachhas to be aspired in order to implement both ap-proaches (energy efficiency specifications and ) intopublic purchasing routines on a broad basis.

• Energy efficiency must be integrated as a standardcriterion in public procurement routines.

• Energy efficiency specifications will only be useful, ifthe criteria are “market relevant”, which means thatthey indeed classify the most energy-efficient appli-ances. The criteria must therefore be updated regu-larly in order to enable energy-efficient publicprocurement on basis of specifications. The updatehas to be done on the European level and should beco-ordinated with other -policy instruments in thefield of energy-efficient appliances, such as the energylabel.

• For a life-cycle cost approach, it is necessary to de-velop methodologies and tools showing where thisapproach is applicable and how life-cycle costs can becalculated. These tools have to be practical but sim-ple enough to lead to sensible results. One must keepin mind that life-cycle costs are always based on as-sumptions; and the longer the life of an appliance,the more uncertain are the results of the calcula-tion. At the other hand, the fact that a deals withassumptions is no reason not to use them, but an -wide, co-ordinated approach is necessary to gainwidespread acceptance for the assumptions used.


From the legal point of view there should be no prob-lem to consider energy efficiency criteria1 and/or lifecycle costs in public procurement routines in order toreach the economically most advantageous tender. Butin this context it is important to include clearly – al-ready in the call for tender – the relevant specifications,or the information or assumptions for the life-cyclecosts calculation and their importance in evaluating thetenders.

The whole procedure dealing with energy efficiencyspecifications and/or life cycle costs must be transpar-ent and obvious from the very beginning (ex ante). Thisalso covers how tenders are evaluated. In principle, it isnot possible to change the tendering and evaluationprocedure after the tenders have been submitted (ex post).

Nevertheless, a lot of public procurement agents arenot sure how to correctly introduce energy efficiencyrequirements in their purchasing routines. This is seenas one of the most important barriers to energy-effi-cient public procurement.


energy efficiency

In particular in the area of appliances and products thefollowing barriers can be identified:

• energy efficiency has no or low priority. Other itemsand features (technical features, low purchase price)are considered much more relevant than energy efficiency

• energy-efficient appliances are considered to be sig-nificantly more expensive than less energy-efficientones

• appliances and “non-installed” products are not seenas “long term” investments. Public purchasing rou-tines will thus focus on “short term issues”

• it is not realised that energy efficient appliances cansave money in a long-term perspective

• public procurement officers are not sure how to introduce energy efficiency issues in the purchaseroutines technically and legally

• to consider energy efficiency issues in public procure-ment is seen to be complicated and time consuming

In order to overcome at least some of these barriers, energy efficiency must become a relevant subject in theday-to-day public procurement routines. On the onehand this means that suitable information strategies forpublic procurement agents, focusing on the benefits ofenergy-efficient public procurement and developingtools must be provided. On the other hand it is ab-solutely necessary to “embody” the subject of energy efficiency in public procurement at a European level. In this context, an Directive should provide themain framework and backbone.

To summarise: this policy tool addresses the follow-ing barriers: Lack of information, complexity of publicprocurement, and thus indirectly, lack of priority.

8.4.3 Synergies with other EU policy

instruments

Synergies with appliance energy efficiency policiesSeveral policy instruments exist in with the aim totransform the markets to more energy efficient prod-ucts, in particular in the area of appliances. Most ofthese instruments are based on the provision of stan-dardised product information corresponding to energyefficiency, in order to support users/consumers to makea more rational purchase decision ( label scheme forhousehold appliances, car label scheme, etc.).

Moreover there are minimum energy performancestandards for certain appliances, in order to get rid ofthe worst appliances on the markets.

Other policy instruments are based on voluntary approaches (e.g., negotiated agreements for :s and:s, and the “Energy Star” scheme for office equip-



1 It is not possible just to require that an appliance has a voluntary label (e.g. Energy Star) in the call for tender, but it is possible to require appli-ances fulfilling the corresponding criteria.

ment). In this kind of policy instruments, manufactur-ers agree that their appliances, or at least some of theirappliances, fulfil a certain energy efficiency criterion.Negotiated agreements intend to get rid of the “bad”ones; quality disclosure systems/labels intend to pro-mote the most energy-efficient appliances available onthe market.

All policy instruments are market transformationinstruments intending to make the market more energy-efficient. These policies should be used directlyin public procurement procedures. But there is one im-portant problem: The update of the -policy instru-ments is a very time consuming process (e.g. it takessome years to update the label schemes) and for someappliance groups the market development is faster.

Public procurement can go for the top range appli-ances on the market from an energy-efficiency point ofview. This does not mean automatically that these highlevel appliances have to be more expensive than other“normal” products. So the public sector can use this im-portant market position to push the whole market to-wards more energy efficiency and to bring the pricesdown. Energy-efficient public procurement is thus in aposition to influence the -policies towards higherstandards and to accelerate possibly the update proce-dures.

To summarise, existing -policy instruments andenergy-efficient public procurement must fit and worktogether. On the one hand, these instruments have tobe used in the public procurement routines, on theother hand energy-efficient public procurement shouldsupport the existing -policy instrument and deliverinputs to develop them further. In particular, the life-cycle cost issue could be a relevant topic for the future,at least for some appliance groups.

Synergies with public procurement energy efficiency policiesThis instrument will mutually benefit the following ofthe tools proposed in this study:

• policy targets for energy efficiency in public adminis-trations

• national public sector energy efficiency informationcentres

• continuous provision of comprehensive informationand services on energy efficiency to public adminis-trations

• efficiency specifications and for buildings• making buying agencies more energy-efficient• energy management units• bringing energy efficiency to Outsourcing



The market for stand-alone appliances and products ismore or less homogeneous within the MemberStates. Several policy instruments concerning markettransformation exist at the level. Moreover, legisla-

tion concerning public procurement on the levelconstitutes the framework for public purchasing inEurope. For that reason, an -wide co-ordinated ap-proach ( Directive) is appropriate and necessary, inorder to implement the energy efficiency possibilities inpublic procurement procedures.

The following points should be addressed in theDirective:

• creation of a European Board for Public SectorEnergy Efficiency, which coordinates the activities ofthe working group of experts from the national pub-lic sector energy-efficient procurement programmes.

• Member States should be required to use minimumefficiency specifications and/or life-cycle costs intheir own public procurement procedures, and topromote the use of these methods in lower level pub-lic administrations.

• it should be indicated when it is applicable to use ef-ficiency specifications and/ or a life-cycle cost ap-proach.

• Member States should be required to set up a na-tional public sector energy efficiency informationcentres, which act as contact point to dispersed pro-curement agents throughout the country and to theEuropean Board for Public Sector Energy Efficiency.

• moreover, the process and procedure for setting upand updating the efficiency specifications at theEuropean levels should be outlined.

8.4.5 Actions for implementation of a Directive

European levelAt the European level a European Co-ordination Boardfor Energy Efficiency in the Public Sector should becreated (see .), where the European Commission andthe Member States (through the national public sectorenergy efficiency information centres) are represented.

In relation to product purchasing, the Board and theworking group(s) of national experts should be respon-sible for the following tasks:

• co-ordination of the activities concerning energy-efficient public procurement on the European level

• co-ordination with other policy instruments,which are relevant to energy efficient public procure-ment, in order to combine the different policies in anefficient way

• developing guidelines for what kind of products en-ergy efficiency specifications and/or life-cycle costsare applicable

• developing, monitoring and updating the relevantenergy efficiency specifications for different appli-ances; this should be done in close co-operation withthe Member States and in line with the relevant -policy instruments

• setting up the principles for a life-cycle cost approachfor the relevant appliances

• creating public procurement guidelines for the vari-ous appliances. These guidelines should give infor-



mation how energy-efficient public procurement canbe done for appliances/equipment in reality

• preparation of model tenders for energy efficientpublic procurement for the different kind of appli-ances/products. (These could be used by public pro-curement agents directly for their daily work.)

• communication to Member States and public pro-curement agencies (cf. “A co-ordinated network ofnational public sector energy efficiency informationcentres”, Section .)

• dissemination of information, in co-operation withthe national energy-efficient procurement centres

• a web-page in combination with a comprehensivedatabase should be set up, where the relevant infor-mation should be made available to all procurementofficers (preferably through national interfaces). Thedatabase should include the required and recom-mended specifications, the appliances lists which cor-respond to these criteria, guidelines, model tenders,etc.

National level In parallel, the Member States have to set up a“National public sector energy efficiency informationcentre” (see .), which is on the one hand responsiblefor tailoring the activities and information to the national markets and on the other hand a place wherepublic procurement agents can go when they need assistance. The tasks of the national information centreshould be:

• participation in the European Co-ordination Board’sworking groups and contribution to the European-wide activities

• contributing in developing energy efficiency specifi-cations at the European level

• dissemination on the national level (eg. operation ofa national public procurement web page and data-base, etc.) and setting up an communication plan (cf. policy instrument “A co-ordinated network ofnational public sector energy efficiency informationcentres”, Section .)

• education of public procurement agents • development of public procurement tools (life cycle

costs calculators, lists of recommended criteria andappliances that fulfil these criteria, etc.) for the na-tional level

• service and assistance to public procurement agents(again in the information and services programme)

• organise the dialogue with national representatives ofthe industry and relevant national stake holders

8.4.6 The possible role of the policy tool in a


A European pilot action in the appliances area could

contain:

• development of guidelines for energy-efficient publicprocurement of appliances

• testing the guidelines in real public procurement procedures

• developments of model tenders for different appli-ance groups

The pilot action should first of all show that energy-efficient public procurement could be done.Furthermore, it should give inputs for a European action.

8.5 Energy efficiency specifications and

life-cycle cost methods for buildings

Improving the energy efficiency of the building stock inpublic administrations requires that procuring officers,designers and managers are provided with componentpurchase specifications, building performance stan-dards and life-cycle cost calculation methods and tools.These tools are described further in Chapter .

Component purchase specificationsBased on building component energy performance.Specifications provide guidance, based on typical life-cycle cost () calculations2 of products and solutions.Yhey consider either:

• technologically comparable solutions; for example,to define/assist the choice between inefficient and efficient types of light sources, ballasts and boilers

• technologically dissimilar solutions; for example, todefine/assist in the choice between air conditioningunits on one hand and the use of low e-glazing on theother

Building performance standardsBuilding performance standards specify for example,though not necessarily, energy use per useful floor space(kWh/m/year). Performance standards identify theminimum of buildings based on built examples.They thus identify the goal of energy-efficient buildingdesign.

Two levels of building performance standards can bedefined:

• minimum performance – the maximum allowedenergy consumption for public sector new build orrenovated building stock

• target performance – targeting even lower energyconsumption levels, for mainly voluntary adhesion



2 The life-cycle cost (LCC) of a piece equipment/a system, is the sum of the initial purchase cost (of the equipment/system) and the relative life-

time running costs (for example, energy costs, maintenance) incurred in use. Future running costs are discounted to present day values using

suitable discount rates.

Life-cycle cost calculation methods and toolsComponent purchase specifications and building per-formance standards are deemed to lead to cost-effective solutions, based on case studies and calcu-lations considering typical conditions of use (for exam-ple typical working hours, energy costs, productpurchase costs, maintenance costs, product lifetime,etc., across the public sector).

By providing life-cycle cost calculation methods,building designers and management staff are assisted indetermining the preferred choice of solutions based onthe specific economic and operating conditions enjoyedby the single public administration. This allows buildingdesigners and management staff to:

• identify and justify alternative solutions to thoseidentified by approved component specifications(which consider typical public sector economic andworking conditions as explained above) if deemednecessary

• identify the combination of solutions (whether indi-cated by component specifications or otherwise),which lead to minimum for a building; whilemeeting the minimum performance standards


There are two issues to consider:

• the relation of component purchase specifications to procurement law

• the status of component purchase specificationswithin the public sector; strict requirements or sim-ple recommendations

Component purchase specifications are most effica-cious if used in the preparation and definition of a callfor tender. Contracting agents can award contractsbased on the cheapest offer meeting the declared re-quirements.

Specifications are based on ex-ante calculations.By identifying minimum solutions in a simple way,specifications should thus allow contracts to beawarded on the criteria “most economic advantageousoffer”, based on the (ex-ante) quantified reduction inrunning costs.

Only in the case that a tender proposes solutions witha significantly improved efficiency over those reported incomponent specifications, will it prove necessary to un-dertake calculations in the selection phase.

However, specifications can only be developed byconsidering the cost effectiveness for some restricted setof hypothetical conditions of use. Most often condi-

tions of use are determined principally by operatinghours and energy costs, though for some building com-ponents, issues such as geographical location are impor-tant. Though in developing specifications, costeffectiveness may be determined in respect of a number(even large) of operating conditions (considering varia-tions in energy costs, operating hours, climate, etc.), itis obvious that not all situations can be covered. Indeedif purchase specifications are to be useful to purchaseofficers, specifications must attempt to limit articula-tion in order to be easily understood.

Consequently the potential may therefore exist forsuppliers to contend purchase decisions based on speci-fications, by maintaining that the conditions operatedby specific public administrations do not equate withthe general or typical conditions on which the specifica-tions are based.

The public sector may refrain from using componentspecifications given the possibility of contentious dis-putes. A clear statement by the EU as to the validity of ex-ante LCC calculations in defining tender requirements, willbe important in ensuring that specifications are takenup by the public sector.

To be effective in both improving the energy effi-ciency of the public sector building stock and leadingthe transformation of the wider market towards thesupply of energy-efficient products and solutions, com-ponent specifications need to be used as widely as possi-ble by the public sector across Europe.

Within central governments this should be readilyfeasible. For example in , the Treasury placed anobligation on all central government departments andagencies to purchase products based on overall “Valuefor Money” (i.e. on the criteria of “the economicallymost advantageous offer”). Logically it is a small step topass from “economic most advantageous offer” to re-quiring the explicit use of “approved” component spec-ifications (which themselves are based on minimum). It is reasonable to suppose that a similar institu-tional obligation could be introduced by central gov-ernments throughout Europe, without recourse tolegislation, (though the could facilitate the processby inviting national governments to make the step).

Introducing a strict obligation on all public adminis-trations through legislation could well prove problem-atic since it could infringe on the autonomy, whichmany public administrations enjoy. However, nationalgovernments could certainly act as catalysts and invitethe wider public sector to introduce the same obliga-tions.

In a similar fashion, minimum performance stan-dards for refurbished and new buildings can only be efficacious if there is widespread adhesion across thepublic sector. The implementation of a global obliga-tion could possibly be facilitated by introducing publicsector specific minimum performance standards withinthe context of national building codes. The draft Building Directive, “on the energy performance ofbuildings” was due to be introduced by the end of



Purchase Specifications help delineate the process of efficient building design.Performance Standards define the goal of efficientbuilding design.Purchase Specifications and Performance Standardsare complementary tools in a single integral solution.

. This Directive is concurrent with, or itself insti-gating a period of renewal of building codes acrossMember States, to be completed at the latest by .By suitable co-ordination at national level, public sec-tor specific minimum performance standards could bemade integral to national building codes.

The issue of introducing public specific minimumperformance standards is considered in detail inChapter .


energy efficiency

Briefly, the public sector consistently reports lack ofpriority and lack of knowledge of energy-efficient solu-tions and the procurement legislation.

Minimum Performance Standards, provide clearlydefined overall efficiency objectives for designers, archi-tects and managers.

Purchase Specifications provide purchasing officersand technicians with means to:

• clearly and simply identify efficient components• respect procurement legislation when making effi-

cient choices (In part this will depend on the natureof the specifications themselves. For example, if insti-gated as “requirements”, this would suppose implicitcompliance with legislation due to some a priori “val-idation” by the agency charged for their developmentand publication.)

In short, approved performance standards, purchasespecifications and calculation methods and tools,address the lack of information, unclear information,legal uncertainty, and complexity of public procure-ment.

8.5.3 Synergies with other policy tools

The policy tool “A co-ordinated network of nationalpublic sector energy efficiency information centres”(Section .) considers how to ensure access to purchasespecifications and performance standards throughoutthe public sector.

The policy tool “Energy efficiency specifications and methods for products “ (.) looks at the develop-ment of purchase specifications and methods forproducts. Though product and building componentspecifications differ in content, they should be pre-sented within a coherent single information package.

Purchase specifications, building performance stan-dards and calculation methods and tools also:

• assist the work of energy efficiency managementunits

• assist the implementation of /energy performancecontracting, and public internal performance con-tracting ()

• help bring energy efficiency to outsourcing



An Directive should require the Member States :

• To develop a set of energy-efficient purchase specifica-tions for the most common components installed inbuildings. The indicative list of components is devel-oped in Chapter . Specifications should be main-tained and updated in time, considering for examplechanges in energy costs, the diffusion of efficientcomponents on the market and the introduction ofnew technologies.

• To develop and maintain a set of minimum and targetperformance standards for refurbished and new build-ings. Chapter of this report details the recom-mended level at which minimum performancestandards should be set.

• To develop and maintain easy to use LCC calculationmethods and tools.

• To oblige their central government departments andagencies, and to encourage* other national public administrations to introduce similar obligations topurchase building components in line with the specifications.

• To oblige their central government departments andagencies, and to encourage* other national public ad-ministrations to introduce similar obligations to re-spect the minimum performance standards whenconstructing new buildings.

• To oblige their central government departments andagencies, and to encourage* other national public ad-ministrations to introduce similar obligations to re-spect, within the limits of economic feasibility, theminimum performance standards when restructuringexisting buildings. If this cannot be achieved, publicadministrations should be required to document therelative technical and economic impediments.

(Economic feasibility is defined as the recovery duringthe technical lifetime, as defined by common nationalor standards, of the extra cost of efficient solutionswith respect to the standard solution, through the an-nual savings in energy costs. The indicative list of effi-cient solutions is given in Chapter .)

• To oblige their central government departments andagencies, and to encourage* other national public administrations to introduce similar obligations touse LCC calculation methods and tools when plan-ning and selecting offers for larger building works,above a certain threshold value (e.g., Euro).



* It is probably not possible that non central government administrations and institutions are obliged through legislation to respect performancestandards, purchase specifications and complete LCC calculations, see section “Legal feasibility” above. Therefore, the other public administra-tions should at least be enoucraged by the national governments to do so.

The Directive should furthermore require that:

• public buildings built or restructured using struc-tural funds respect target performance standardsand/or are designed using LCC calculation methodsand tools.


the Directive

Development of and access to component specification,performance standards and LCC calculation methods andtools.Building component specifications, though articulatedto conditions of use, should be common acrossMember States. Development of component specifica-tions will benefit if the work of national bodies chargedwith their developing is co-ordinated, rather than al-lowing multiple parallel development by each MemberState.

Member States can develop national-specific mini-mum and target performance standards for public sec-tor stock, and nationally harmonised calculationmethods and tools. However, performance standardsshould lead to comparable climate corrected energyperformance of public sector building stock, whichsupposes a minimum of co-ordination of the nationalbodies involved in development. (Responsibility: na-tional energy experts).

Thus, for purchase specifications and minimum per-formance standards, should seek to co-ordinate theactivities of national energy experts, energy and pro-curement agencies already engaged in their definition,or those otherwise interested in working in this area, inorder to develop common requirements across Europe.

The reader is referred to Section . “Energy effi-ciency specifications and methods for products”,which considers in detail the responsibilities and activi-ties of a co-ordinated programme for developing purchase specifications for products. Purchase specifi-cations and minimum performance standards forbuildings could be defined and maintained followingthe same, or by developing a similar process.

Access to the purchase specifications and perfor-mance standards needs to be capillary, reaching allthose involved in the procurement and design process,above all those on whom rests the obligation (whetherinstitutional or legislative) to use the specifications andto achieve minimum performance standards. Thisprocess of dissemination is considered in more detailunder Section ., “A co-ordinated network of nationalpublic sector energy efficiency information centres”.

Elimination of legal barriersIt is necessary to ensure compatibility of componentspecifications with existing regulations. For example:

• specifications identify cost effective solutions basedon a set of general use conditions. Are purchase offi-cers justified in following specifications, or is it neces-

sary to prove that the tender respects the criteria“economically most advantageous offer” based on thespecific conditions operated by the contracting pub-lic administration ?

• clarify the nature of specifications; guidelines or re-quirements?

• under what conditions can requirements be ignored?

Accompanying activities• inform potential users of the specifications and their

obligations, whether legal or institutional• inform suppliers about component specifications. In

order for the public sector to transform the widermarket, suppliers need to be provided with struc-tured information, which provides a clear frameworkin which to develop future (energy-efficient) servicesto offer to the public sector

• provide professionals in the public sector with addi-tional tools (other than component specifications)which identify the routes by which to meet mini-mum and target performance standard levels:

~ comprehensive descriptions of efficient technolo-gies and systems

~ energy-efficient product databases~ calculation methods and tools~ promote the use of simulation software (for

example Energy Plus, or Transys), and develop libraries of base case buildings, which respect the minimum, recommended and target values

Section ., “A co-ordinated network of national publicsector energy efficiency information centres”, considersthese issues in more detail.


Each needs to adopt component specifications,building performance standards and calculationmethods and tools as mandatory for their own plan-ning and purchases in building construction, refurbish-ment and maintenance.

Component specifications should be developed suchthat they provide direct instruction as to the choice ofefficient building component with no or only minimalelaboration by the purchasing officer. Staff shouldtherefore not require specific training in their use.

However, a minimum of explanation of the rationalefor their introduction (namely lower environmentalimpact, lower costs) and the criteria on which specifica-tions are based (average use conditions) should reduceresistance to their introduction and provide for greatersuccess than punitive control.

Achieving minimum and target performance stan-dards will require architects, engineers and staff in-volved in design to refresh concepts, update existing,and possibly learn new skills (for example the use ofbuilding thermodynamic simulation software), requir-ing suitable training and consequential resources.

The new criteria may be seen by some professionals



as restricting creative freedom. Again suitable trainingexplanation rational will assist passage to their intro-duction.



Actions. Introduction of component specifications, build-

ing performance standards and calculation meth-ods and tools as mandatory in planning and purchasingin a number of public administrations cross Europe.This is possibly linked to the creation/expansion of energy efficiency management units (Section .).

. Refurbishment of a selected number of buildingsacross Europe to respect minimum and target perfor-mance standards.

Description of Action 2Restructuring existing buildings to respect the mini-mum and target value performance standards will in-volve important changes in the design culture of thepublic sector, in some areas even radical. Architects, en-gineers and generally personnel involved in the designprocess will need to refresh concepts, update existingand possibly learn new skills (for example the use ofbuilding thermodynamic simulation software).

Thus, in order begin to facilitate the rapid adoptionof performance standards it will be necessary, (if not es-sential), to realise a number of refurbishment projectsin line with the new standards. The pilot projects will:

• provide a database of positive examples to show thefeasibility of the achieving the standards

• start developing the required skills base both withinthe public sector and the amongst private suppliers

Resources and target groupsFunds to cover targeted expert assistance to the publicinstitutions involved in the action, not the cost of pur-chase of building components or systems (efficient so-lutions will be cost effective). The activity is targetedtowards architects, engineers and managers involved inbuilding design.

8.6 Helping buying agencies supply

energy efficient products

Central buying agencies are present in all countries.The actual use of the central buying agencies by singlepublic administrations varies from country to country,and it is not clear to what extent buying agencies supply energy-efficient products. Central buying agencies havea double role - they act as purchasers, but are also sup-pliers in the sense that they provide agreements and(sometimes) supply public administrations with prod-ucts. Their income often comes from a small percent-age of the contract value, and they must adapt to the

preferences of their customers. The definition of the notion “buying agency” varies

among countries and users, and this complicates thepicture. In this study, we have defined the term as fol-lows: An agency that purchases products on the ac-count of another agency (thus supplying the secondagency with products). This covers central buyingagencies with purchasing functions as well as today’stypical central buying agency, which does not purchaseproducts directly for public administrations, but co-or-dinates and supervises public procurement and pro-vides framework agreements. (Framework agreementscan be used by public agencies for ordering productswithout the hassle of initiating a tendering process.)

The decentralisation of public procurement to singlepublic administrations has made it difficult to assess theimportance of buying agencies. It has thus not beenpossible to quantify to which extent public administra-tions apply co-operative procurement locally (for exam-ple co-operation between municipalities) or procurethrough buying agencies.

Furthermore, framework agreements are not applica-ble to all products. For example, in Sweden frameworkagreements cover as little as % of the procured prod-ucts in government authorities, and it is not known towhat extent they apply them. Some examples also indi-cate that there are few possibilities for buying agenciesto influence the agreements to adapt them to more energy-efficient procurement.

However, the example of Statskontoret, the centralbuying agency for -related products in Sweden, showsthat buying agencies may be an important policy makerof energy-efficient procurement. Statskontoret has along tradition of energy-efficient procurement, such asthe formulation of energy-efficient procurement crite-ria and the carrying out of analyses. This indicatesthat there is a case for using central buying agencies toinitiate energy-efficient procurement and a clear needfor directives to generate further initiatives in Europe asa whole.

On one hand, with increasing autonomy of the dif-ferent levels of the public sector, the possibility in-creases to purchase through alternative channels. Onthe other hand, increasing access to the Internet andthe complexity of procurement practices is increasingthe interest of purchasing through central buying agen-cies. Thus, their role seems guaranteed in the futureand they obviously represent an important actor in anyattempt to achieve procurement of energy-efficientproducts and building components.


Buying agencies already exist within the normal pro-curement legislative framework. No special legislationis needed to improve their function with regard to energy-efficient-procurement. However, it may not belegally feasible to require buying agencies to supply energy-efficient products.




energy efficiency

Lack of information: Public administrations see lack ofinformation and the complexity of public procurementprocedures as the main barriers for energy-efficient pro-curement through public buying agencies. Being pro-fessional organisations in public procurement withconsiderable experience and knowledge, central buyingagencies are important tools to overcome these barriers.They may be important actors in simplifying the pro-curement procedures and developing energy efficiencyspecialist competence for public procurement.

Insufficient priority for energy efficiency: Another bar-rier is insufficient priority for energy efficiency, some-thing that applies to both public administrations andcentral buying agencies. A Directive that requires buy-ing agencies to at least provide information on energyefficiency should help to overcome this barrier and ini-tiate the role of buying agencies as leading examples.However, the role of buying agencies as experts ishighly dependent on the success of other policy tools.

Lack of personnel resources and time: The buying agen-cies can offer the right products to procurement officerswho are too stressed to evaluate tenders themselves.

High prices of energy-efficient equipment: Bulk con-tracts can help reduce the prices of the most efficientproducts.

8.6.3 Synergies with other policy instruments

A clear mandate for buying agencies to work for energy-efficient procurement would have mutual bene-fits with the provision of comprehensive informationand services on energy efficiency to public administra-tions. Moreover, buying agencies would benefit, butmay also be important actors in the creation of energyefficiency specifications and methods for products.



The Directive should ask the Member States to en-sure that buying agencies supply energy-efficient goods.Depending on the role of the buying agency, it may notbe legally possible to influence what products they sup-ply. In such cases, buying agencies should be requiredor assisted to supply products and building compo-nents in accordance with the proposed energy-efficientprocurement guidelines. (See elsewhere in this report).

As an alternative to a requirement, or as a comple-ment, buying agencies that fulfil certain minimumstandards should be receive training and a certificatethat shows that they can offer energy-efficient productsand that they have methods for calculating life cyclecosts.

8.6.5 Actions for national implementation of an

EU Directive

Elimination of legal, administrative and financial barriersA clarification that restricting calls for tender to energy-efficient products alone will lead to low life-cycle costs.Since low life-cycle costs are implicit in the specifica-tions, the competition in tenders will ensure best valuefor money in a long-term perspective.

Accompanying measuresCentral buying agencies present themselves as idealcandidates to develop and maintain energy-efficientprocurement guidelines for products and buildingcomponents. They also work closely with the publicadministrations, and should be used as communicationchannels for national public sector energy efficiency in-formation centres.

Accompanying activities could be:

• To develop a tool for purchasing for buying agenciesand their customers where energy-efficient productsare presented. The tool should in an easy way showthe economical and environmental advantages withthe energy-efficient choice. (Such tools have alreadybeen developed by individual agencies)

• Training courses for buying agencies in using the tooland how to present the results for their customers.

• To require from the institutions only to buy rec-ommended products from the buying agencieswhenever they buy from an agency and such prod-ucts are available (but not to restrict eu institutionsonly to buy from buying agencies).

• To collect databases and statistics of available energy-efficient products.

• To award the energy-efficient buying agency of theyear.

• To award a share of the life-cycle cost savings theagency achieves through provision of energy-efficientproducts as an extra bonus to the agency.

8.6.6 The role of the policy tool in a European

pilot action

A pilot action should include:

• a questionnaire among agencies to clarify the mostcommon barriers

• the development of a simple tool for calculating sav-ings (or to adapt existing tools used by other agen-cies)

• training course for a limited number of buying agen-cies

• specific information for the agencies• material for the agencies to use in communication

with their customers



8.7 Energy-efficient procurement

information desks within public

administrations

The aim of the proposed policy tool is to enable pro-curement officers in each public administration to im-plement energy-efficient purchasing without having tofear conflict with public procurement rules, and to en-sure that they receive political backup and commitmentto rely on for their decisions. The procurement infor-mation desks would ensure that the information andspecifications developed nationally and -wide isspread within administrations, and that purchasershave an in-house contact point for questions. We donot envisage the creation of physical desks or offices;this policy tool rather recognises the need for allocatingresponsibilities and giving people or groups withinpublic administrations a clear mission.

The policy recommendation primarily concerns theprocurement of appliances and cars, while the structurefor buildings-related energy efficiency issues within :sis subject to the proposed energy efficiency manage-ment units (Section .). The scope of energy-efficientinformation procurement desks should preferably beco-ordinated with activities of “green” procurement.Although this co-ordination is valid throughout thispolicy proposal, references are made to energy-efficientprocurement alone.


No legal barriers are foreseen for this policy instrument.Member States will probably not be able to require :sto create the procurement information desks, butshould assist in this process.


energy efficiency

This proposed instrument has the potential to helpovercome most of the barriers identified in the study:

• Lack of information: informing procurement officersand others involved in the process of purchasingwithin a about the financial and environmentalstakes, the potential savings and ways to achievethem is the main aim of this policy proposal.

• Complexity of public procurement rules and legal un-certainty: the provision of training on and informa-tion about how energy-efficiency issues can beintegrated in tender specifications and of ready-to-use materials will offer procurement officers easierhandling to ask for energy efficient (and greener)products.

• Too much and unclear information: centralising thefirst source of information, using product selectioncriteria that are more uniform, will “make it clearerand simpler” for decisions to be taken in an environ-mentally friendly way.

• Insufficient priority and lack of motivation: Trainingand information provided plus political backing areessential ingredients for a proper place on the list ofpriorities. When there is also a point of feedback andreporting to target setting bodies as is proposed here,the reward for acting accordingly will likely create amotivation among procurement officers to act energyconsciously.

• Lack of investment culture: if at the same time ”globalbudgeting” is promoted, any information showingfor example potential savings in Euros, or how to im-plement third party financing operations, will rein-force the investment culture in a givenadministration.

• Lack of personnel resources and time: time and re-sources are integral part of a time and personnelbudget. With information and training provided,this time will eventually be used much more effi-ciently since purchases can be made on grounds thatallow a quicker procurement decision. Also, the in-strument implies the assignment of the task of infor-mation and training of the procurement staff to aperson or an info desk. This means dedicating per-sonnel resources and time to this task, and therebyalso alleviating the lack of personnel resources andtime.


Together with other recommendationsm the in-formation on the individual level becomes more efficient in the implementation of energy-efficient pro-curement.

Clear policy targets are seen to be a prerequisite formaking procurement officers implement energy-efficient purchasing a mainstream activity of publicprocurement. National public sector energy efficiencyinformation centres and the creation of a network areinstrumental for the provision of information in eachindividual .

Efficiency specifications are among the prerequisitesfor reliable information and for informed decisionmaking among procurement officers. Informationabout savings achieved will provide an incentive to fur-ther save energy when result and decision are linked.

If central buying agencies become well-informedfrom actions at national level, this will make it easier forthe procurement offices of the individual public admin-istrations using the services of central buying agenciesto ensure energy-efficient choices.

Defined objectives and informed officers will alsohelp bring efficiency to outsourcing since there will be afelt responsibility that will be carried to any contractsfor outsourcing.

Finally, sharing the savings from energy-efficientproduct choices with the procurement officers will in-crease their motivation to go for the energy-efficientchoice.





The instrument is aimed towards individual :s on alllevels. An Directive must set the framework in orderto provide backing for implementation. For :s, en-ergy efficient procurement needs to be institutionalisedand thus become an integral part of the current pro-curement processes. The Directive therefore needs tocall for structural changes that allow energy efficientprocurement to become institutionalised such as ishinted on in the th Action Programme and Paper onIntegrated Product Policy.


• that public administrations are relevant and responsi-ble actors in achieving targets for a more sustain-able and efficient economy and society – therefore,the responsibility of information within :s must beclearly allocated

• Member States are to ensure that individual :s areassisted in setting up the procurement informationdesk function

8.7.5 Possible actions for national

implementation of the Directive

On a Member State level, the implementation of publicsector energy efficiency information centres is describedin Section . (National public sector energy efficiencyinformation centres). The procurement informationdesks must have political support and backing. This isin fact one of the main tasks of the national public sec-tor energy efficiency information centres: to assist indi-vidual :s in the creation or assignment of energy-efficient procurement information desks, and to sup-port them with networking and continuous informa-tion.

On the individual PA level, energy-efficient procure-ment information desks are the multipliers of the infor-mation, guidelines and tools to implement intelligentprocurement that are developed externally. In order toachieve that as many individual :s as possible estab-lish the information desk function, Member Statesshould:

• promote the assignment or creation of energy-efficient procurement information desks within all:s and ensure top-level support for this process

• define the time scale for this process• provide training and technical support to energy

efficient procurement information desks and individual procurement officers

• support to :s. Providing examples of energy-efficient procurement information officers or desksschemes, possibly seed funding for the creation ofdesks

8.7.6 Resources and actions needed on each PA

A strong backing in political commitment is needednot only through the framework set on a andMember State level. Each needs to incorporate thesein their objectives. Therefore the management needsto:

• elaborate the commitment to energy efficient pro-curement

• define the need for reporting on integration and re-sulting environmental benefits from energy-efficientprocurement

• define the need for and (if not already installed) cre-ate the position of a responsible person to be infor-mation and training officer for energy efficientprocurement

The information desk in each would have a clearmandate for:

• awareness raising on energy efficient procurement• provision of information on issues and benefits of

energy-efficient procurement to all level of decisionmakers in their

• training of all procurement officers in their • information about the current policy for energy-

efficient procurement• offering and spreading the tools and guidelines to

implement energy-efficient procurement• monitoring and reporting on success to the target set-

ting body of the authority and to the national infor-mation desks

8.7.7 The possible role of the policy instrument

in European pilot action

Elements for a European pilot action could be the fol-lowing, which would support the recommendation inits need and effectiveness:

• assignment or creation, where not yet existing, of energy efficient procurement information desksschemes in the participating :s

• training of procurement officers in participating :s• training on current energy efficiency policy for pro-

curement • introduction to the use of guidelines, development of

calls for tenders based on Templates developed (suchas are developed in , Energy+, , etc.) anduse in several on all levels

• reporting on results and verification of prost recom-mendations for energy efficient public procurementto the own top-level management and to the centralnational reporting point



8.8 Energy efficiency management units

Energy efficiency management units (:s) work toimprove building energy efficiency within the publicadministration. Typical actions of :s are:

• undertaking energy monitoring and benchmarkingof building energy consumption within/betweenpublic administrations

• audits of buildings to identify saving potentials• ensuring the introduction of cost effective actions to

improve end-use energy efficiency including for example:

~ optimisation of the building operation (e.g. closing down systems outside times of use)

~ assessment and preparation of energy-efficiency investments (which then are usually imple-mented by the construction/facility/technical management offices)

~ providing training and information on energy efficiency for staff

~ reporting on the development of energy con-sumption and on energy efficiency successes

:s work with staff charged with maintaining, re-furbishing and designing buildings, such as the facili-ties department. They are well placed in the decisionalhierarchy with the power to ensure the adoption ofcost-effective energy efficient solutions in buildingmaintenance, refurbishment and construction. Thismay mean for example direct budget responsibility forspecific elements of facility management (for examplelighting and system management) or the role ofconsultant on energy efficiency with the possibility ofruling against inadequate choices made by facilitiesdepartments.

:s may work with procurement officers to im-prove product energy efficiency; there are synergies be-tween the use of efficient products and building energyefficiency. They require skills in the field of thermo-dynamics, mechanical engineering and specificallybuilding physics, but also in electrical engineering andeconomics.

The economic savings potential offered by efficiencyimprovements to building envelope and systems inpublic administrations consuming more than a year, are typically sufficient to cover salary costsof an engineer working as an energy efficiency manager.Public administrations falling below this threshold aretypically unable to autonomously maintain an .They can work together to develop Partnership :s,which can be self financed through the energy savingsthey realise in each public administration.


There is considerable experience of energy manage-ment units across Europe (for example in Italy andGermany), though the function of these may differ

somewhat from the :s described above. Energy managers traditionally play a consultancy role

to energy consuming departments of public adminis-trations. Though they may identify and highlight en-ergy related cash flows from within the total annualbudget of their administration, and attempt to influ-ence these, the ultimate responsibility for system invest-ment and energy purchase costs remains with otherunits (for example the facilities and accounts depart-ment and/or the user departments with decentralisedbudgets).

Instead, :s directly influence the choice ofbuilding systems (for example lighting or sys-tems) or those elements of the building structure whichaffect building energy consumption (for example glaz-ing, thermal insulation). This may mean direct budgetresponsibility for specific elements of facility manage-ment (for example lighting and system management)or the role of consultant with the duty of assessmentand the right of approval to choices made by facilitiesand user departments. A combination of both is alsopossible: the right of approval for all building activities,plus an own energy efficiency budget (cf. Section .)or a fund (cf. Section .) managed by the for energy efficiency investments.

Though more limited in number, there are examplesin which energy managers have stepped beyond the tra-ditional consultancy role to obtain direct control of en-ergy related costs, whether totally or partially. The cityof Modena in Italy, the City of Montpellier in France,and a number of German cities (such as Frankfurt amMain, and Stuttgart) are examples of administrations,which have adopted similar procedures for nominallyattributing investment and energy costs to departmentsand dependent institutions (e.g. schools). This in-creases accountability, whilst actually assigning controlto energy management units.

Thus, past experience would indicate that :s arefeasible, though providing :s with the requiredpower to ensure energy-efficient actions (through directbudget responsibility or power of approval) requires ei-ther support and commitment from top managementto change traditional structures of budget responsibilityin public administrations or legislation.

8.8.2 Effectiveness in overcoming barriers

Increasing energy efficiency of the building stock is acomplex task requiring dedicated skilled staff. :sand Partnership :s effectively address a number ofthe barriers to increased energy efficiency in the publicsector, particularly:

• Lack of information, too much and unclear informa-tion, legal uncertainty: by bundling information forfacility departments and building operators

• Split incentives: by defining technical rules, and by or-ganising energy efficiency investments

• Lack of investment culture: by managing energy efficiency investments



• Complexity of public procurement: by managing energy efficiency investments, or assisting the facili-ties department in managing them

• Lack of personnel resources and time: in their functionas structures with personnel resources and time dedi-cated to energy efficiency management

Experience throughout Europe shows that good energy management can lead to important improve-ments of building stock energy efficiency. Overallbuilding stock heating energy savings of % or morehave been achieved, similar electricity savings are po-tentially lying ahead.

However, energy management is a wide term, oftenembracing activities which may only marginally lead toimproved energy efficiency of the public buildingstock, such as load management or mere energy moni-toring and reporting. Energy management can, and isoften used to identify staff involved in the administra-tive management of utility supply or space heating ser-vice contracts. This is not the kind of energy efficiencymanagement meant here.

Even energy management structures with a clearmandate may suffer from a number of recurrent prob-lems, which impede buildings achieving optimum (oreven sub optimum) energetic efficiency. Principleamongst these are the lack of decisional autonomy/responsibility, lack of funds and lack of information/training.


As already noted, existing energy management struc-tures, which have a clear mandate, suffer from a num-ber of recurrent problems which impede buildingsachieving optimum (or even sub optimum) energy effi-ciency. These problems include lack of information onefficient solutions, lack of decisional autonomy, andlack of funds.

Providing :s with building component purchasespecifications is an important step in addressing thefirst of these problems (see Section ., “Energy effi-ciency specifications and methods for buildings”and Section . “A co-ordinated network of nationalpublic sector energy efficiency information centres”).

Assigning :s the responsibility to ensure that re-furbished and new building stock meet minimum per-formance standards (see section .) will require thatpublic administrations provide :s with the suffi-cient decisional autonomy and resources to meet theirlegal obligation.

Generally, all policy instruments, which seek to fundenergy efficiency investments, are both supporting, andthemselves benefiting from the activities of an (for example energy efficiency budgets, energy perfor-mance contracting, , and shared savings).

An administration reform that introduces decen-tralised budgets for energy and maintenance also facili-tates the activity of :s. With decentralisation andimproved responsibility for total departmental budgets,

managers are generally both more susceptible to theeconomic savings offered by energy efficiency improve-ments, and more flexible in using parts of maintenancebudgets in order that these can be realised.



Member States should be required to ensure that publicadministrations above a threshold energy consumptionlevel (recommended at . /year) operate energy-efficient management units (:s).

The requirement should clearly state the principal ac-tivity of :s, namely: identify actions, interventionsand procedures necessary to improve building stock en-ergy efficiency.

Member State should be required to ensure that pub-lic administrations falling below the threshold annualenergy consumption level should have ongoing accessto energy efficiency management services. Public ad-ministrations should be invited to form Partnership:s.

:s should be charged with the responsibility toensure that refurbished and new buildings respect min-imum performance standards.

:s should be required to document achieved en-ergy savings in building stock and improvements tobuilding stock energetic productivity.

Results from annual reports should be available forpublic scrutiny. Ideally, results should be aggregated bythe national information centres.

8.8.5 Actions and resources for national

implementation of an EU Directive

Creating EEMU:sExisting energy management units must be informedabout their new responsibilities. In Member Stateswith no wide-scale existing energy management in thepublic sector, the requirement to maintain :s willcreate a demand, maybe not easily met, for severalthousand engineers/managers. The position (a rolewith considerable responsibility) will require mid-rangemanagers with a technical background, ideally in thefield of thermodynamics/mechanical engineering, elec-trical engineering or building physics, as well as someknowledge of investment analysis.

Public administrations will have to adjust existing de-cisional hierarchies in order to accommodate :s,and to allow managers to fulfil their legal mandate.This may mean for example providing direct budget re-sponsibility for specific elements of facility manage-ment (for example lighting and systemmanagement) or the role of consultant with the possi-bility of ruling against inadequate choices made byother operating units, (for example the facilities depart-ments).

Adjustment to structures will be facilitated by pro-viding public administrations with schemes of possiblemanagement structures.



Introducing :s and the requirement to meetperformance standards should be defined within thecontext of a realistic time scale, which takes account ofthe time to locate, employ and train staff and modifymanagement structures. Providing for a phased intro-duction of :s rather than supposing “immediate”compliance should help avoid creating nominal but in-active structures.

At national level:• promote the creation of :s at top management

level and amongst policy makers of all :s• define time scale with which to activate :s• provide training and technical support to :s • support to public administrations: Providing exam-

ples of management schemes and seed funding

For each PA: • locate and training new or existing staff• integrate into managerial decision process• provide initial funds to cover initial salary of

(In the medium term the savings achieved by the should cover salary costs, though these mightnot necessarily be explicitly directed into an identifi-able fund.)

Creating Partnership EEMU:sPublic administrations falling below the threshold an-nual energy consumption level should have ongoing ac-cess to energy efficiency management services.Partnership :s, in which single public administra-tions develop a shared service, offer a solution to thisrequirement. Partnership :s should be self-financ-ing through the accumulated savings derived from theactions undertaken.

Starting Partnership :s may lie heavily on the re-sources of smaller public administrations, which needto develop and negotiate partnerships with other (pos-sible many) authorities and institutions. Though part-nership :s should prove cost effective to allparticipating administrations over the medium term,partnership :s will be limited in the actions theycan take in any one year, and thus initial outlays frompublic administrations to cover their share of costs arelikely to be greater than initial realised savings.

Alternatively, the requirement to provide smallerpublic administrations with ongoing access to energyefficiency management services could be met by, for ex-ample, through private energy consultants, :s, ornational energy agencies.

However, experience would demonstrate that thoughthese actors can be successful in achieving specific im-provements, they are unable to guarantee nationalcross-the-board consistent savings. The reasons are:

. Payments to private consultants are in advance of,and not connected, to effective energy savings, repre-senting a problem for smaller administrations.

. The public sector has a history of difficulties ofachieving satisfactory conditions from private sector

service companies providing “qualitative” services suchas heating, lighting and comfort. :s generally seekto maximise returns on investments (“cream skim-ming”) avoiding lower returning but nevertheless costseffective solutions, and are anyway not well placed toundertake long pay-back ( years or more) interven-tions, though these considered over the lifetime of thebuildings can again be extremely cost effective.

. National energy agencies have not the resources toprovide ongoing services to all but a small proportionof the public sector.

Further, none of these agents have the decisional auton-omy with the public authority to ensure that cost-effec-tive energy efficiency improvements are undertaken.

Though on the last point it is worth noting thatcharging larger single public administrations (andspecifically :s) with the requirement to achievequantifiable efficiency improvements, it seems difficultthat the same requirement could be placed onPartnership :s.

It does not seem viable that the state would readilyinfringe on the autonomy of the public administrationsand oblige them to develop partnerships. Partnership:s could only realistically be created through thevoluntary agreement of interested public administra-tion and it would be incoherent to charge voluntarilycreated structures with a legal requirement to achieveefficiency improvements.

For smaller public administrations the present texttherefore proposes charging the state with ensuring ac-cess to effective energy management. It is recognisedthat this is a non-ideal solution; without placing the re-quirements on individual administrations, it is likelythat improvements will be limited. The issue is open todebate.

At national level:Assist the start up of Partnership :s by:

• providing standard agreements with which public ad-ministrations can develop partnerships

• providing funds, or loans to cover the initial periodin which costs outweigh incomes

For each public administration:

• develop Partnership :s with other public admin-istrations

• provide for some integration of the Partnership into the managerial decision process of each partnerso that it may effectively undertake efficiency improvements

• provide initial funds to cover a quota of the initialsalary of

Ongoing support to EEMU:s:s will benefit from procedures created within thepolicy instrument “Energy efficient procurement infor-mation desks within public administrations” (Section.) as well as from association at national and at



European level. National associations would allowmembers to share experience and develop standardtools and processes, for example:

• collect and disseminate national “energy” legislation • develop a database of energy-efficient solutions for

building stock improvement• develop guidelines for achieving minimum and tar-

get performance standards• define common annual reporting schemes for indi-

vidual :s• develop annual reports of country-wide perfor-

mance

A European association would provide for an interfaceof :s, with the co-ordinating body charged withthe definition of building component specificationsand minimum performance standards (see Section .“Energy efficient specifications and methods forbuildings”). However the :s or their associationsshould participate but not be charged with the directresponsibility of developing component purchase speci-fications or performance standards (in effect separatingthe “executive” from the “legislative”).

National and European associations should be re-sponsible for reporting directly to, respectively, the na-tional and European governments on annual buildingstock efficiency improvements.

Associations should be financed through their associ-ated (cost effective) :s with additional support bynational government.

Where Associations of :s do not presently exist,national energy and/or environment agencies could as-sist in their creation.

8.8.6 The possible role of the policy instrument

in a European pilot action

ActionCreation of Partnership :s in partner countries.

DescriptionEnergy management structures are already active in anumber of countries. However, these usually work withlarger public administrations where the savings poten-tial from efficiency improvements to building stock aresufficient to cover salary costs of the structure.However, this leaves a large number of smaller adminis-trations bodies without any structured access to energymanagement services. For example, in Italy, the threshold covers roughly only - of themore than village and town councils. The pilotprojects aim to test the creation of Partnership :sin which small public administrations develop a self financing shared energy efficiency management service.The project will provide a model and valuable experi-ence for wide scale replication.

8.9 Energy efficiency budgets

Creation of energy efficiency budgets () in a publicadministration, will enable a stable level and continu-ous energy efficiency investments in that administra-tion. It could also be applied by the institutions.

A certain percentage of the normal building/mainte-nance budget is secured for the detailed energy audits,implementation and monitoring of energy efficiencymeasures in buildings. It provides savings of energy andpublic means and reduces emission of greenhousegases.

Energy efficiency budgets can thus improve energyefficiency in day-to-day maintenance or smaller refur-bishment. Still, since they are probably a smaller part ofthe maintenance budget ( to %), they may not besufficient for large-scale modernisation or major refur-bishment of buildings and installed systems. For suchbigger projects, the two following instruments of en-ergy performance contracting () and public internalperformance contracting () can provide possibili-ties to fund additional energy efficiency projects(Sections . and .). Therefore, funds can bestbe used for low-cost modernisation measures, such aswindow carpentry and attic insulation, maybe addinginsulation to walls that are refurbished anyway, energy-efficient pump retrofits etc., which can also bring sig-nificant energy savings. All investments financed in thisfashion should incorporate the ( recommended)energy efficiency specifications (cf. Section . on en-ergy efficiency specifications and method for build-ings) as a minimum level of performance for any newequipment installed.


This instrument can mainly be recommended as a vol-untary one, to be introduced by each individual publicadministration. There should, therefore, not be anylegal problems if Member States just promote the use ofthis instrument. They could, however, self-oblige theirown central government administration to use it.

Should a Member State want to make it mandatoryfor all public administrations, the main aspect of imple-mentation of this instrument would be if the or na-tional legislation can determine for what purposes thelocal administrations and self-governments shall spendtheir money. The legal feasibility of a mandatory imple-mentation of would then depend on the legislationof each Member Sate. One of the main problems can beresistance from local administrations. This instrumentcan be seen as too deeply interfering with the compe-tences of a particular public administration and tellinghow to spend its own money from the normal build-ing/maintenance budget.

Whether voluntary or mandatory, there is a crucialrole for a national campaign and adequate instrumentsto change the perception of local authorities, convincethem of this instrument, and show the significant op-portunities and benefits.




energy efficiency

The main barrier addressed by an energy efficiencybudget, , is the lack of funds for energy efficiencyinvestments, which are consequently postponed.Establishment of is one of the most important ac-tions to overcome existing administrative and financialbarriers to energy efficiency in public services. This willalso reduce the barrier of split incentives, since energyefficiency is included in maintenance quasi automati-cally. Assurance of stable and continuous financing forenergy efficiency investments through enables in-corporating energy efficiency in day-to-day mainte-nance of the buildings, introduction of energymonitoring, planning and creation of the rational pol-icy for energy efficiency measures, and improves effec-tiveness of such mechanisms. Money ensured in an for energy efficiency measures will be returned throughsavings in energy bills. Hence, in a long perspective it isa very rational and effective solution.


Funds from should be used in connection withother policy instruments described in this task. It willenable better and effective use of funds and appropriateimplementation of energy efficiency measures.

Very important is the synergy with energy (effi-ciency) management units as the likely executing unitsof .

Policy targets and high-level support are probably aprerequisite for installing , since it means a realloca-tion of existing maintenance budgets.

In the use of funds, the energy efficiency specifi-cations for buildings created, updated, and dissemi-nated by two other policy instruments proposed hereare an important support.

An administration reform that introduces decen-tralised budgets for both energy and maintenance willalso make the creation and use of easier, because itwill be easier for the managers of the to convinceother departments of the benefits in avoided energycosts from using parts of their maintenance budget foradditional energy efficiency measures.

Support from should also aim at:

• Improving availability and quality of energy data inmunicipalities and public administrations. Thesedata shall be used by energy (efficiency) managementunits for calculating energy savings. The other wayround this will lead to improving of effectiveness ofenergy efficiency measures through .

• Improving energy metering/monitoring systems.• Supporting the development and operation of mea-

surement and verification standards and tools.• Introducing and improving accountability of admin-

istrative units for the energy costs they cause.

may be used together with /Energy perfor-mance contracting and public internal performance

contracting (). These instruments are complemen-tary: can be used for day-to-day maintenance, low-cost measures, such as window carpentry, attic andpossibly walls insulation, and /Performancecontracting for larger investments and system improve-ments.



The planned Directive should require the MemberStates to promote the creation of energy efficiency bud-gets in all levels of public administrations in their coun-try. It should at least recommend Member Statescentral government and the institutions to dedicatepart (%) of their normal building/maintenance budgetto energy efficiency investments. Additionally, the re-quirement should clearly state that part of this budgetshould be allocated for executing energy audits ofbuilding stock in order to asses possible energy savingsand propose adequate energy efficiency measures. en-ergy efficiency budgets shall improve energy efficiencyin day-to-day maintenance or smaller refurbishment.

8.9.5 Possible actions for national

implementation of the Directive

The following action should be undertaken to imple-ment in public administration:

Elimination of legal, administrative and financial barriersIn order to implement the possible directive on energyefficiency budgets the following issues should be con-sidered:

• clarification of formal and legal aspects of , e.g.with regard to budget structure and requirements inpublic administrations

• elaboration of supportive codes or guidelines whichpromote

• linking with subsidy schemes targeting munici-pal energy strategies

• support of energy (efficiency) management units asthe executing units of

Information and promotion activities

• generation of target group-specific information ma-terial (regional, local public administrations)

• accompanying and media campaigns, use of inter-net, seminars etc., to convince local authorities thatcreation of is useful and profitable

• introduction of energy efficiency budgets in insti-tutions and federal/central/regional state institutionsin order to create pilot action and to provide a replic-able and economically-viable example of such an instrument.

Accompanying activitiesPolicy support should aim at:

• improving the availability and quality of energy data



in municipalities and public administrations• provision of information on options for energy effi-

ciency measures (basic information about the envi-ronmental impacts of energy production and use, thegreenhouse effect, climate change, introduction torelevant supply-side and demand-side technologies,examples of best practices)


When the legal basis, supportive codes and informationcampaign are set, then following action shall be under-taken by each public administration:

• establishment and operation of energy managementunits or personnel dedicated to , responsible forsupervising and management of

• monitoring of heat and electricity use in publicbuildings is in place

• introduction of measurement and verification stan-dards and tools

• implementation of no-cost or low-cost measures inday-to-day operation of public administrations

• implementation of high cost measures with the sup-port of other instrument, particularly and .The combination of these three instruments can givesatisfactory and significant results in energy savings.

If an energy management unit already exists, the cost ofestablishment of an is insignificant. The creation ofsuch a unit in the first step requires some resources, butthe public administration receives a stable source of financing energy efficiency measures and benefit fromlower energy expenses and lower pollution.

In small public administrations, the operation of requires personnel for supervising and management ofthis instrument. Naturally, qualified personnel with adequate knowledge is needed, but this is the role ofnational information centres to educate personnel andcreate necessary instruments and tools.



Energy efficiency budgets could be tested in aEuropean pilot action to create and disseminate goodpractice on , for example focusing on thermomod-ernisation measures. This would be enabled, i.e.,through pilot projects, brochures, case studies,workshops in European countries. The project shouldinvolve scientific institutes, public administrations andassociations of municipalities willing to introduce .The expected results would be experiences in intro-duction and management, part of building stock retro-fitted, a policy framework for set, and awarenessraised in the involved countries. Experiences are to bedisseminated in other and Candidate Countries.This instrument can be tested complementary with and / performance contracting, with the rolesof each instrument as outlined above.

8.10 Third-party financing and energy

performance contracting

The internal energy efficiency budgets described inSection ., where they are possible to create, can im-prove energy efficiency in day-to-day maintenance orsmaller refurbishments. Still, they may not be suffi-cient: often, there is a delay in public administrations ofthe scheduled refurbishment of windows, heating, orventilations systems due to lack of funds. Sometimesthe normal maintenance budget is too small anyway. Inthese cases, third-party financing/energy performancecontracting or public internal performance contracting(; cf. Section .) provide possibilities to fund ad-ditional energy efficiency projects, particularly majorrefurbishments of buildings and installed systems.

The approach of third-party financing () or energy (savings) performance contracting, abbreviatedas / in the following, builds on the involvementof an external actor such as an energy service company() to enable energy efficiency investments in apublic administration. This does not only include thefinancing of the investments, as the term may sug-gest. It also entails the management of the investmentprocess, and often the operation of facilities for the du-ration of the contract in order to guarantee that the tar-geted energy savings are actually achieved – hence theterm energy (savings) performance contracting.

The / approach is advantageous compared to in cases when new means of financing or the spe-cial know-how of the are needed, the public ad-ministration wishes to transfer risks of performance tothe , own staff shall get access to external knowl-edge and qualification, only limited personnel resourcesare available, or the public administration wants toconcentrate on core activities.

It is sometimes argued that with /, therewould be the danger of cream-skimming, i.e. that the takes large performance contracting projectswhich are very attractive to them, while the less attrac-tive, small and medium-sized tasks remain with thepublic administration. However, since the public ad-ministration can choose the contractor and decide inthe call for tenders on the conditions the contractor hasto fulfil, it is mainly up to the public administrationhow far it will allow cream-skimming. Furthermore,the danger of cream-skimming can be reduced by pool-ing several buildings with different energy saving po-tentials and different specific investment costs togetherin one call for tenders.

There are two general types of /:

• Plant/grid contracting means that the public admin-istration contracts with an , which has the re-sponsibility for design, equipment procurement,financing, installation and/or & of a powerand/or heat/cold generation and/or distributionequipment at the public administrations’ site. Thepublic administration usually pays for the useful en-



ergy carriers delivered (heat, cold, electric power).• Energy savings performance contracting () cov-

ers a broad range of contract types with an ,where the cost of the implementation of energy con-servation measures (investments in energy efficiencyor energy-efficient measures within operation &maintenance) is recovered through the savings cre-ated by the measures.

According to a recent study by Frost & Sullivan, thegeneral market for / in Europe is expected togrow rapidly with a growth rate of %/year, from aturnover of million Euro in to millionEuro in (Handelsblatt ..). Germany willhave the biggest share in this market with .% in. Moreover, some German studies come to theconclusion that there will be a rapid growth of the mar-ket for energy performance contracting (e.g., Technomar ). However, the share of / onenergy efficiency measures on the demand side (energysavings performance contracting) is only between oneand five percent of the total / market, the rest is/ for investments on the energy supply side(plant/grid contracting).

For the public sector in Germany, Öko-Institut andthe Berlin Energy Agency estimated that with the helpof energy savings performance contracting public energy budgets (which are estimated at millionEuro/year) could be cut by to million Euro/year,and between GWh/year (=%) and GWh/year (= %) of energy could be saved, of whichabout to GWh/year would be electricity(Umweltbundesamt ). One result of a recent sur-vey conducted by the Wuppertal Institute was that, de-pending on the specific circumstances and dependingon the contract specifications, between and % en-ergy are saved within an energy savings performancecontracting agreement (Kristof ).


There should be no real legal barrier to use the /approach in public administrations in the , since the“ Directive” / required the Member States topromote / in the public sector, which would alsoimply the removal of any legal barriers. However, someof the country studies in the project still reportlegal impediments for public authorities to use/. On the other hand, the existing procurementregulations for awarding and carrying out services ofpublic authorities (e.g., the contract procedures forconstruction work and for services in Germany) are nota real barrier. However, among many public adminis-trations, there is some uncertainty about how to inter-pret such regulations, particularly when inviting totender for / projects and assessing the energy ef-ficiency measures proposed by the . Furthermore,some other formal and legal aspects are partly hinder-ing the broad implementation. For example, budgetarylaws and the rules and procedures, according to which

government financial authorities control public admin-istrations, are not always clearly enough in favour of/. They should, e.g., clearly state that /for cost-effective energy efficiency investments is not tobe considered an additional debt financing, and hencepossible in addition to a capped maximum debt of apublic administration.


energy efficiency

/ particularly addresses several specific barriersto energy efficiency in the public sector:

• Lack of funds: Against the background of the poor fi-nancial situation of many public administrations andthe investment gaps in public buildings and heatingsystems (which were the result of earlier budgetarypolicy), the involvement of external capital in the financing of energy optimisation is often needed oreven unavoidable to reduce energy consumption andlife cycle costs.

• Lack of personnel resources and time: Increasing inter-nal energy efficiency does not belong to the core ac-tivities of public administrations. The priorities andfinancial means of public administrations often leadto a lack of personnel resources and time for energy efficiency measures. / provides thechance to implement energy efficiency potentialswith only little personnel resources and time.Furthermore, additional know-how is sometimesneeded for the development of measures and theirimplementation. The contractor can provide thisknow-how, the own personnel can learn from it.

• Furthermore, TPF/EPC contributes to creating an invest-ment culture, and to overcoming the barrier of split in-centives/budgets: it provides refinancing forinvestments from saved energy costs, which is tradi-tionally not easy in public administrations, since in-vestments have to be financed from the investmentbudget, while the energy costs are part of the runningcost budget.


It is necessary to overcome further barriers and to in-crease incentives to implement / activities inpublic administrations. Policy support should aim atthe following actions that also support the creation of/ schemes:

• setting targets for energy efficiency in public admin-istrations

• improving the availability and quality of energy andemissions data in municipalities and public institu-tions

• providing information on options for energy effi-ciency measures (national programmes for informa-tion dissemination)

• establishing funds to finance detailed energy audits inpublic administrations, which can be a basis for de-



veloping invitations to tender for / projects• supporting energy management in public adminis-

trations as the units initiating / activities, andsometimes managing them on the side of the publicadministration as the customer

• ensuring the use of minimum efficiency specifica-tions and/or life-cycle costs in public building man-agement procedures and in invitations to tender for/ projects

• supporting the development and operation of mea-surement and verification standards and tools, whichhelp to reduce transaction costs of /

• supporting public internal performance contracting() as the complement to the realisation of energyefficiency potentials by a third party

• using administration reforms to bringing togethertasks, competences and responsibilities with respectto energy efficient building management in such away that the implementation of energy-efficiencymeasures by own personnel or with the help of thirdparties is eased

• using administration reforms to installing systemsand procedures (cost accounting systems, budgetingrules, performance data, performance targets, partici-pation schemes/rewards), which make it possible andgive incentives to implement energy efficiency mea-sures by own personnel or with the help of third parties



A possible Directive on energy efficiency in publicadministrations should require the Member States topromote the use of / in public administrationsin order to overcome existing barriers to energy effi-ciency in public buildings. Such a Directive may alsoindicatively name some of the actions for national im-plementation as listed below. In this way, the Directivewould also support the further development of a sus-tainable market for energy efficiency services in general.The Directive should furthermore require the institutions to analyse in which of their buildings the/ approach could be implemented.


the Directive

Concerted communication, motivation and networkingactionAs an overarching initiative, a concerted action“/” in parallel to a similar action “”, couldprovide the platform for promoting the approach. The following actions are proposed:

• generation of target-group-specific information material

• launching new and using existing national andEuropean networks for the exchange of experiencesand the dissemination of best practice

• identifying and engaging high level promoters of/ activities in the campaigns on the differentpublic administration levels

• accompanying and media campaigns, and use ofinternet, user groups, etc.

Elimination of legal, administrative and financial barriersIt is necessary to improve the compatibility of /with existing regulations in public administrations:

• by clarification of formal and legal aspects of/, e.g. with regard to public control authoritiesand budgetary laws

• important actions to overcome existing administra-tive and financial barriers are the following

• (further) standardisation of public call for tenders, as-sessment schemes to evaluate the measures proposed,contract types and measurement and verificationprocedures and tools to reduce transaction costs

• development of funding or guarantee concepts tomitigate risks of insolvency of :s

• establishment of arbitration boards to clear problemsbetween :s and users

• establishment of a programme providing coaching topublic administrations that wish to use /:coaching in the call for tenders, the assessment of energy efficiency measures proposed by the , thecontract, the monitoring, etc.

Accompanying activitiesAs a social innovation, / has to diffuse into thevarious social and institutional structures before be-coming a relevant option. Policy support should aim atthe integration of / into the energy related cur-ricula of institutions for professional training in publicadministrations.

8.10.6 Actions and resources needed by

each public administrations

The principal steps needed in a public administrationto implement energy efficiency measures with the helpof a third party (here: ) are shown in Figure .Three phases can be distinguished:

• Project preparation/determination of details for the ten-ders: After having decided in principal to implementenergy efficiency measures with the help of a thirdparty, a task force should be installed, in which everyunit of the public administration relevant for theproject should be represented. The buildings have tobe selected in which energy efficiency measures areconsidered to be implemented. Building data has tobe collected, a baseline determined and minimumsavings targets to be formulated.

• Carrying out the tendering procedure: After this prepa-ration, the call for tenders can be developed. First,there should be an announcement in the OfficialJournal to receive letters of interest. Then invitationsto tenders have to be sent out. The interested bidders



will get the possibility to visit the buildings, verify theenergy consumption data and analyse the energy(cost) savings potentials in order to be able to developand present their proposals. A few bidders will bechosen for negotiations of a contract. If a detailedanalysis is required before starting with the imple-mentation, a pre-contract will be concluded, other-wise a contract on the implementation of energyefficiency measures. The measures have to specifiedin the contract in detail including the determinationof the measurement and verification procedures.

• Implementation of measures: After the contracts havebeen concluded, the implementation phase starts.The measures have to be prepared and implemented.Operation and maintenance of the installed systemsmay be part of the contract. The energy consump-tion has to be measured and compared with the baseline (verification of savings).

The resources needed for the preparation of the project,for the incorporation of all relevant actors within thepublic administration into the project from its begin-ning, for the call for proposals, for the assessment ofproposals and for negotiating with the possible contrac-tors should not be underestimated. However, poolingof several buildings and using existing standardisedprocedures and contracts can significantly reduce trans-action costs. Furthermore, even some part of this workcould be outsourced to a third party; e.g., the BerlinEnergy Agency manages the preparation and imple-mentation of / on the customer side for pools ofpublic buildings on behalf of the State of Berlin and itsmunicipalities as well as of other public administra-tions.

8.10.7 The possible role of the policy

instrument in a European pilot action

The following European-wide actions are recom-mended:

• launching new and using existing European net-works for the exchange of experiences and the dis-semination of best practice in /

• (further) standardisation of public calls for tenders,assessment schemes to evaluate the measures pro-posed, contract types and measurement and verifica-tion procedures and tools to reduce transaction costs

• co-ordinated establishment of a programme provid-ing coaching to public administrations that want touse /: coaching in the call for tenders, the as-sessment of energy efficiency measures proposed bythe , the contract, the monitoring, etc.

8.11 Public internal performance

contracting (PICO)

Public internal performance contracting () is en-abling energy efficiency investments by a kind of in-house “third-party” financing or energy savings per-formance contracting scheme. With , the role ofthe is assumed by a unit of the public administra-tion itself, e.g., the technical department of a munici-pality. This unit acts like an , delivers the financialand technical service, and the remuneration takes placethrough cross-payments of budgets from the customerunits’ saved energy costs to the unit of the samepublic administration.



Development of the tenders (including, e.g., visits to the buildings)Presentations of the tenders

Negotiations

Type of measure?

TPF contract

Operation and maintenance

Measurement, Verification and Billing

End of TPF contract

Detailed analysisrequired

Can be implementeddirectly

no TPF

Preparation and implementation of measures

Pre-contract

Detailed analysis

Negotiations no TPF

TPFconsidered

Public notice in the EU Official JournalLetters of interest

Call for tenders

Initiating a task force for the control of the project(s)Selection of public buildings

Evaluation of buildings dataSetting an energy cost baseline and targets (minimum savings)

Figure 8.2 Flow scheme of energy savings performancecontracting in public buildings

The concept was first used in Germany (cf. Chapter , Part , and the German Country reportin the separate Annex volume). It can be illus-trated by the example of the “Stuttgart Modell”, whichwas one of the first successful initiatives of this kind inGermany (Figure .; cf., e.g., Kienzlen , LHStuttgart , Görres/Kienzlen ).

In the City of Stuttgart, the City’s department for theenvironment, which is also responsible for energy man-agement, takes the role of an internal and offersenergy services to other units of the municipal adminis-tration. The initial momentum came from a generalevaluation of energy consumption that triggered asearch for energy saving potentials in all kinds of publicbuildings.

The internal offers draw on the technical know-howof the building surveyor’s office and supplementary en-ergy audits, and they are backed by economic cost/ben-efit calculations of the environmental department. Thisis the foundation of internal negotiations between thecustomer department and the environmental depart-ment, acting as an . When an internal energy ser-vice agreement has been concluded, the environmentaldepartment undertakes an investment into energy sav-

ing measures that are realized by the building surveyor’soffice.

Within the administration, a new internal revolvingfund for energy efficiency investments has been estab-lished as an intermediate buffer for cash flows. First, itprovides the funds for the investment, and afterwards itis refilled by the cash flow from energy cost savings, i.e.the customer department pays back the investment.Comparable to other third party financing schemes, theefficiency measures reduce the annual energy bill of thecustomer department, which gives room to pay the fee, e.g. under a shared-savings agreement.Obviously, if participation of the customer departmentin the cost savings from the very beginning is desired,this will have to be compensated by longer pay-backtimes and contractual obligations compared to the casewhere the investor, i.e. the environmental department,uses all cost savings for re-financing the investment.

In times of tight public budgets, offers the op-portunity to ensure continued energy efficiency actionsthrough the temporary provision of seed money. Forexample, through a re-organisation of budgets, loans,etc., during the initialising phase of , it is possibleto stimulate a continuous flow of investments so that



financingreduction of energy costs

PICO agreement

economic assessmentimplementation plan

planning,projecting of costs

order forrealisation

payback throughenergy cost savings

realisationbuilding surveyor´soffice

revolving funds annual budget forrunning costs

"customer"department

environmentaldepartment

1

2

3

4

5

6

7

8

Figure 8.3: The Stuttgart Model of PICO within a public administration

Source: Kristof et al. 1998, based on Kiedaisch 1995

the resulting pay-back cash-flows in turn provide newfunds for follow-up projects.

The German country report includes a detailed de-scription of the concept and the different modes that can be found in Germany. Furthermore,Annex summarises an analysis of the usefulness andfeasibility of in different countries.


One overall result of the analyses of the usefulness andfeasibility of the concept in different countries inthe course of the project, is that legal impedi-ments seem to play a minor role (cf. Appendix .) Thedifferent modes of seem to be possible from cen-tral administration level down to municipal adminis-tration level in many countries3. will particularlybe feasible for larger public administrations having energy management facilities. However, the formal andlegal aspects of , e.g., with regard to public deptmanagement, budgetary codes and the acceptance ofbudgets by the supervising financial authorities, are notalways clear. Therefore, in particular cases, adaptationsof rules are required, but are assumed to be feasible.


energy efficiency

Due to focus on internal procedures, can help toovercome existing barriers to energy efficiency in publicinstitutions:

• Lack of funds because of separated budgets: Among thebarriers to energy efficiency in public administra-tions, typical characteristics of public investment fi-nancing play a prominent role. Very often the fundsfor paying the variable costs, such as the annual en-ergy bill, are strictly separated from the budget for in-vestments. A typical lock-in situation of publicadministrations is the result: On one hand, adminis-trations have to pay enormous energy bills due to thebad conditions of public buildings, on the otherhand, the departments are not able to re-finance theurgently needed saving measures by paying back thesaved energy costs to the investment budget. External(/) and internal () energy services providea solution to this situation. Several German munici-palities have already been using the instrument toimplement energy saving measures, which helps toreduce the energy cost burden of tight public bud-gets.

• Lack of personnel resources and time: Increasing inter-nal energy efficiency does not belong to the core ac-tivities of most of the units in public administrations.The priorities and financial means of the differentunits in public administrations often lead to a lack ofpersonnel resources and time for energy efficiencymeasures. However, in most public administrations,

there is at least one unit with knowledge on improve-ments in energy efficiency. activates andstrengthens these personnel capacities of the publicadministration by setting a framework to handle en-ergy efficiency measures internally.

• thus also contributes to the aim of creating aninvestment culture, and alleviates the barrier of splitincentives.

For example, in the City of Stuttgart, more than projects have been implemented between and, which have already saved in total kWhand kW of district heating, kWh, kW of natural gas, kWh and kW ofelectricity until the year (LH Stuttgart ).With total investments of . million Euro, cumu-lated cost savings of . million Euro have already beenachieved until the year , while annual cost savingsin the year summed up to . million Euro(Figure .). On average, the payback time of the pro-jects implemented is less than five years.


It is necessary to overcome further barriers and to in-crease incentives to implement activities in publicadministrations. Policy support should aim at imple-menting the following policy instruments, which alsosupport the introduction of :

• setting targets for energy efficiency in public admin-istrations

• improving the availability and quality of energy andemissions data in municipalities and public institu-tions

• providing information on options for energy effi-ciency measures (national programmes for informa-tion dissemination)

• establishing programmes to finance detailed energyaudits in public administrations, which can be a basisfor development of -projects

• supporting energy management in public adminis-trations as the initiating and managing units of activities

• ensuring the use of minimum efficiency specifica-tions and/or life-cycle cost assessments in publicbuilding management procedures

• supporting the development and operation of mea-surement and verification standards and tools, whichhelp to reduce transaction costs of demonstrating theresults of projects

• supporting third-party financing/energy perfor-mance contracting (/) as the complement tothe realisation of energy efficiency potentials withown personnel and funding, depending on the spe-cific circumstances and the detailed description of in Annex indicates possibilities to benefit fromfruitful synergies between and /



3 In the Netherlands, there is a widespread opinion, that at least on the regional level PICO is legally not feasible.

• using administration reforms for bringing togethertasks, competences and responsibilities with respectto energy-efficient building management, in such away that the implementation of energy efficiencymeasures by own personnel or with the help of thirdparties is eased

• using administration reforms for installing systemsand procedures (cost accounting systems, budgetingrules, performance data, performance targets, partici-pation schemes/rewards), which make it possible andgive incentives to implement energy efficiency mea-sures by own personnel or with the help of third par-ties



A possible Directive on energy efficiency in publicadministrations should require the Member States topromote the use of the concept in public adminis-trations in their country. The Directive could indica-tively name some of the possible actions for nationalimplementation listed below. It should furthermore re-quire the institutions to create one or more schemes for improving the energy efficiency of theirbuilding stock.


the Directive

Concerted communication action PICO

As an overarching initiative, a concerted action could provide the platform for refining, developing andmarketing the approach.

The following actions are proposed:

• generation of target-group-specific information material

• launching a initiative (kick-off meeting)• accompanying and media campaigns, and use of

internet, user groups, etc.• elaboration of a seminar, which can be dissemi-

nated by (regional) energy agencies• introduction of in federal/central state institu-

tions in order to create pilot projects with high appeal

Elimination of legal, administrative and financial barriersIt is necessary to improve :s compatibility with ex-isting regulations. Examples are:

• clarification of formal and legal aspects of , e.g.with regard to public debt management

• elaboration of supportive codes or guidelines whichfoster decisions in favour of

• generation of a common understanding of among municipalities and supervising authorities,i.e., increasing the likelihood for a formal acceptanceof projects

• use of (existing) policy programmes to ensure the initial funding of schemes, and linking with subsidy schemes targeting municipal energystrategies

• support of energy management units as the nucleusof activities

Accompanying activitiesFinally, as a social innovation, has to diffuse into



Figure 8.4: Annual cost savings in the city of Stuttgart due to PICO projects.

Source: LH Stuttgart 2001

Heat Water Electricity

Ann

ual c

ost s

avin

gs (E

uro)

the various social and institutional structures before be-coming a relevant option. Policy support should aim at

• establishing as a field of action of existing lobbygroups and associations of municipalities

• integration of into the energy related curriculaof institutions for professional training

• making a topic for (regional and ) energyagencies

• improving the availability and quality of energy datain municipalities and public administrations

• provision of information on options for energy efficiency measures

8.11.6 Actions and resources needed by

each public administration

Compared to traditional routines of facility manage-ment and energy conservation investments, repre-sents a remarkable shift of paradigms to publicadministrations. Accordingly, new institutionalarrangements of the administration have to be settledand appropriate procedures need to be established (cf. Fig. ., showing how it is organised in Stuttgart). Itis evident that this cannot be achieved at one stroke butdemands a stepwise approach. The more detailed de-scription of in Annex shows how could beintroduced into a public administration, from the firstinitiative over the choice of the model to the finalimplementation and evaluation.

Considering the information, communication andknowledge resources needed for the introduction of theinstrument into a public administration, and con-sidering the administrative changes related to the im-plementation of a project, it is quite obvious thatthe benefit of activities increases over time when severalprojects are consequently realised. Due to learning ef-fects and shared transaction costs, a stepwise renovationof facilities offers interesting opportunities to optimisethe approach.



could be tested in a European pilot action to bothcreate and disseminate good practice on . A con-crete proposal for such a pilot action could be as fol-lows:

ObjectivesThe main objective of this pilot project would be totransfer, promote, test and disseminate the concept,first used in Germany, in other European countries, todevelop it further and adapt it where necessary. TheEuropean pilot action could aim at establishing schemes in several public administrations. Thetechnical focus in field-testing could be, for example, energy-efficient lighting.

Description of the workAchievement of the project’s objectives would be en-

abled, i.e., through pilot projects on energy-efficient lighting, brochures, case studies, websites,guidebook chapters, and workshops in severalEuropean countries. The consortium should includeenergy agencies, scientific institutes, public administra-tions willing to test , and an agent experienced indissemination, e.g., international ecological associationof municipalities. The general project structure mayconsist of an overall project co-ordination, a scientificand a dissemination co-ordination, and national teams.The national teams should consist of one public ad-ministration and one scientific expert. Representativesof the target groups and key actors would thus alreadybe involved in the project group, but would be furtherinvolved in the dissemination activities. The success ofthe pilot projects, the analysis of public procurement oflighting systems, and the success of the disseminationwould be documented in reports available to the public.

Expected resultsThe expected results could be several buildings retrofit-ted, adapted schemes developed and imple-mented, a policy framework for set,recommendations for improving the public procure-ment of lighting and other building technologies devel-oped, and awareness for (and energy-efficientlighting) in public buildings raised in the participatingEuropean countries. This would be expected to pavethe way for widespread uptake of and energy effi-ciency by public administrations in these and possiblyother and Candidate Countries. If, as a long-termresult of such a pilot action, were broadly imple-mented by public administrations and institutionsthroughout the , it can be estimated that over years, savings of up to TWh/year of electricity andfuels could be reached. This would not only be in light-ing, but also in heating, hot water, circulation pumps,fans, air conditioning, etc.

8.12 Sharing savings

An important barrier for active implementation energyefficiency, is lack of accountability. Specifically, oftenthose groups (administrative entities or people) usingenergy services are not directly held responsible for pay-ing the costs, which this use implies.

Important savings can be triggered through proce-dures, which directly involve the users in economic sav-ings derived from energy savings. A number ofprocedures have been tested in this sense, which rewardindividuals, teams or organisational units with a sharein the energy cost savings they achieve. This providesan incentive to develop energy efficiency improvementproposals, to change energy consumption behaviourand/or to implement measures/procurement decisions,which particularly contribute to saving long-run costs,thereby reducing consumption and emissions (life cycle



perspective, no short-sighted cost savings). This instru-ment can be further distinguished between:

• personal participation - individuals receive a reward(personal benefits like pecuniary advantages/bonuses,higher status, appreciation)

• community or team participation - the communityor working team receives part of the saved energycosts, e.g., % (as in the well-known “fifty-fifty”projects in schools, rewarding the school communityfor energy and cost savings from switching of heatand lights when not in use, and more economic useof water). The community or team is given freedomto use the reward, e.g., for purchasing common “nonessential” goods/services, for example to cover thecosts of employees’ social activities (e.g., contributionto sports clubs, organise office party, employees trip),for the purchase of non standard equipment to im-prove the members working conditions (e.g., im-proved chairs), or for covering further investments toincrease future energy cost savings and also the com-munity’s/team’s participation in them

• unit participation – the respective organisational unitreceives part of the energy costs saved, e.g., % asnon-personal benefits, to help cover the general ad-ministration costs of running the unit, or for furtherenergy efficiency investments

Combinations are also possible. In “fifty-fifty” projects,in which other individuals, teams or units within thepublic administration contribute to a more efficient useof energy (e.g., responsible purchasing and/or buildingsofficers or teams, energy management units, or caretak-ers of public buildings), it could be considered to re-ward these individuals, teams or units as well. Theycould, for example, receive bonuses depending on over-all energy efficiency targets reached (e.g., if the fulfil-ment of these targets is part of a scorecard system withindividual or team rewards).


In general, legal impediments seem to play a minorrole. However, in particular cases, adaptations are re-quired, e.g., with regard to regulations and wage agree-ments, which do not allow personalised bonuses forindividuals or teams in public administrations.Furthermore, an important precondition for the imple-mentation of the shared savings concept is the account-ability of administrative units for the energy costs theycause, which has not been introduced in every publicadministration yet.


energy efficiency

Sharing savings arrangements address several specificbarriers to energy efficiency in the public sector:

• Split incentives: Those groups in a public administra-tion using energy services, are often not directly heldresponsible for paying the costs for this use.

Furthermore, they often do not receive incentives toinfluence these costs. The shared savings approachgives economic incentives to the users of a buildingor facility to contribute to a more efficient use of en-ergy by changing consumer behaviour and by devel-oping ideas for further energy conservation measures.The heads of building or product user departmentssee their budgets increase. Furthermore, shared sav-ings approach could reward procurement officers toreduce the life-cycle costs for the procured products,e.g., by giving them a share in the net cost savingsthey achieve through energy-efficient procurement.The same is possible for energy managers reducingthe total energy costs of buildings through their actions.

• Lack of motivation: The extrinsic and/or intrinsic in-centives of a shared saving scheme motivate the usersto think about ways how to improve energy effi-ciency in their public administration.

• Lack of investment culture: The shared savings ap-proach contributes to the creation of an investmentculture by spreading economic thinking.Furthermore, teams or units participating in energycost savings receive extra money, which can be in-vested, e.g., in further energy efficiency improve-ments.

• Lack of funds: The heads of building or product userdepartments see their free available budgets increasethrough shared savings approaches. They will thus bemore apted to using funds for energy efficiency mea-sures.


For the implementation of shared savings schemes, it isnecessary to monitor energy consumption in everypublic administration unit and to verify energy savings.Furthermore, information and knowledge on energysavings potentials and possible measures have to beavailable. Therefore the following activities which es-tablish, improve or support energy efficiency manage-ment in public administrations are helpful:

• setting up targets for energy efficiency and rules formonitoring their fulfilment in public administrations

• continuously providing comprehensive informationand services on energy efficiency to public adminis-trations

• establishing a unit in every public administration,which is responsible for metering/energy monitoring/collecting energy consumption data and for calcu-lating energy savings (“energy watchers”, energy effi-ciency management units)

• improving the availability and quality of energy datain municipalities and public institutions

• improving energy metering/monitoring systems;• supporting the development and operation of mea-

surement and verification standards and tools• introducing the accountability of administrative

units for the energy costs they cause





A possible Directive on energy efficiency in publicadministrations should require the Member States andthe institutions to promote the shared savings or in-dividual bonus incentive schemes, which give an incen-tive to individuals, teams or organisational units todevelop energy-efficient improvement proposals, tochange energy consumption behaviour and/or to im-plement energy conservation measures/energy-efficientprocurement decisions within the public sector.


the Directive

Communication, motivation, networkingThe following actions are proposed: dissemination ofbest practice incentive schemes/bonus schemes bygroup-specific information material, use of internet,use of existing networks.

8.12.6 Elimination of legal, administrative and

organisational barriers

It is necessary to improve the compatibility of theshared savings concept with existing regulations andadministrative structures by:

• introducing or improving the accountability of ad-ministrative units for the energy costs they cause

• removing or changing laws, regulations and wageagreements which do not allow (and introducing reg-ulations which do allow) bonuses for individuals orteams in public administrations

8.12.7 Accompanying activities

Finally, the awareness for energy matters has to bestrengthened and ideas how to save energy/energy costshave to diffuse into the various social and institutionalstructures before becoming relevant options. Policy support should aim at:

• training procurement officers/”energy watchers” (bysupporting “Train the trainer” seminars, etc.)

• provision of information on least-cost procurementoptions/options for energy efficiency measures

• establishing programmes, which give support to on-site “energy savings weeks” with energy experts (e.g.,from energy agencies) as starting events to imple-ment energy savings measures and shared savingschemes in public administrations

8.12.8 Actions and resources needed by each

public administration

Shared saving schemes are very popular and effective inproviding incentives to users of a building or facility tochange their energy consumption behaviour. However,the transaction costs, i.e. the resources needed for intro-ducing and running such a scheme, should not be un-derestimated:

• the scheme has to be developed, i.e. adapted to thespecific circumstances, introduced into the publicadministration and continuously controlled and ad-vertised

• participants have to be found and ‘contracts’ with theparticipating users have to be concluded, which in-clude agreements on the energy consumption base-line, the measurement and verification proceduresand the calculation of the rewards, i.e. the part of theenergy cost savings which remains with the users

• annual metering and billing are needed• the users need information on energy efficiency po-

tentials and possible measures. For some measures,technical assistance is needed (e.g., special meteringdevices). Furthermore, it is useful to provide trainingto key persons of the participating user groups.

• finally, the users spend time on learning about thescheme and possible measures, and for planning andimplementing measures in the building or facilitythey use

To illustrate this, in the City of Hamburg, a board ofseven people is controlling the local “fifty-fifty”-projectin schools. The “fifty-fifty”-project group responsiblefor the operation of the project consists of ten persons.Six people in this project group inform the more than local schools about energy and water efficiency po-tentials and possible measures (one gives advice onwaste management). The total annual working time ofthese seven advisers is . years.

Similar effort may be needed for other shared-savingsapproaches, e.g., targeting procurement officers of energy managers. Synergies are therefore possible, if en-ergy monitoring, information dissemination, and otherpolicy instruments proposed here are already in place.



“Fifty-fifty”-projects in schools have already been quitecommon, so another pilot action does not seem appro-priate. For the extension of such schemes to the usercommunities of all public buildings within an adminis-tration, a European pilot action may be useful in orderto disseminate the idea. First experiences exist, e.g., inFrankfurt am Main and Munich. Bonuses for purchas-ing and/or building officers should, maybe, first betested in individual administrations, before a Europeanpilot project is started.

8.13 Bringing energy efficiency to

outsourcing

There is a trend for public administrations to outsourcepublic services (for example street cleaning) and its ownservice provision (for example office space winter com-fort).

The incidence of energy costs on the total costs ofservice provision varies significantly from relatively



high (for example in the case of public street lighting)to relatively low (for example in the case of canteen pro-vision).

Service contracts require effort to develop, requiringparties to define, amongst other things, service provi-sion, service measurement, responsibility for energycosts and responsibility for investment in infrastruc-ture.

Service contracts should balance the many require-ments of service provision with the necessity to im-prove the energy efficiency of the building stock,building systems (for example and lighting), andproducts owned or utilised by the contracting publicadministration.

Introducing energy-efficiency into tenders and con-tracts to require cost effective measures to improve energy efficiency can do much to overcome a numberof barriers to energy efficiency which presently charac-terise these contracts.


Problems in application should be practical rather thanlegal, for example in relation to the means to financethe efficiency improvements or the lack of skillsamongst some service providers to evaluate the require-ments.

It is important to underline that the requirement tointroduce energy efficiency improvements should beapplied to all service contracts. Thus, a providermay berequired to evaluate the possibilities to use more en-ergy-efficient cookers. Though it is likely that theprovider will have to rely on outside skills to evaluateenergy savings potentials, there really is no logical rea-son to object to the requirement.

The provision of standard contractual texts will re-duce the possibilities for contentious disputes betweencontracting and contracted parties.


energy efficiency

Generally, service contracts do not explicitly call uponservice providers to improve the energy efficiency ofpublic sector infrastructure (building stock, buildingsystems and products) falling under the management ofservice providers.

Where investment and energy costs fall under thesingle responsibility of the service provider, the belief isthat the provider will introduce all cost-effective mea-sures to improve energy efficiency considering that witha fixed income, the provider will attempt to maximiseprofit margins by reducing costs through the optimalchoice of investment and running costs. However, thereare a number of reasons why providers do not under-take all cost-effective measures :

The pay back time of many cost effective measuresmay be longer than, or close to the length, or the con-tract, but short compared to the useful lifetime of themeasure.

Providers will attempt to maximise profits consider-ing their entire client base. Managerial time and re-sources spent by managers seeking marginal, butnevertheless profitable energy improvements, in onepublic administration may offer higher profit marginsif spent, with another client.

Service providers tend to introduce technologies withwhich they have matured experience and for whichthey have readily available spare parts in stock and established contacts with suppliers, even though thesetechnologies may not be the most efficient.

There is inadequate knowledge of efficient solutionsamongst providers.

In other contracts, the responsibility for covering energy and investment costs may be divided betweenthe contracting (the public administration) and thecontracted parties (service provider). This mostly re-sults in “split incentives” to improve energy efficiency,where the party charged with investing in improved in-frastructure obtains no direct financial rewards (due toenergy and hence economic savings) from its actions.There are generally “split incentives” to improve energyefficiency between the owners and the renters of officespace, where the owner has little interest to introduceimprovements which provide energy savings to therenter. Contracts should therefore aim to overcomesuch split incentives through well-defined actions andresponsibilities.

Requiring service contracts to explicitly recall the re-quirement to implement cost effective energy efficiencyimprovements, can do much to redress these problems.


The present requirement in part depends upon, and inpart completes the requirements set out in the policyinstruments for energy efficiency specifications and for products and buildings (see Section . and .):

• calling upon service providers to respect the thereproposed Purchase Specifications and minimum per-formance standards

• ensuring that the public administration does not ab-dicate its responsibilities to improving energetic pro-ductivity by outsourcing services

Other policy instruments that bring energy efficiencyto outsourcing are:

• policy targets for energy efficiency in public adminis-trations, which give priority to this action

• continuous provision of comprehensive informationand services on energy efficiency to public adminis-trations, which can, e.g., provide standard contractprovisions for bringing energy efficiency to outsourc-ing, along with the energy efficiency specifications

• energy (efficiency) management units, because theycan take care of bringing energy efficiency to out-sourcing in the buildings sector

• energy efficient procurement information desks (see



Section .), who can take care of bringing energy efficiency to outsourcing in the procurement sector

• sharing savings, with the contractors• linking energy efficiency and public administration

reform, because it increases the benefits of buildingusers from energy cost savings in optimised servicecontracts



The planned Directive should require MemberStates to place obligations on public administrations tomake explicit requirements to introduce cost-effectivemeasures to improve energy efficiency into service con-tracts.

Cost-effectiveness should be defined considering theextra cost of the efficient measure, with respect to thealternative standard solution, and the consequential an-nual savings in energy costs. Cost-effectiveness shouldonly consider the extra cost of the measure and theprice of energy paid by the party responsible for deliver-ing the service. Cost-effectiveness should not be influ-enced by the division of responsibilities between thecontracting and contracted agent for covering the dif-ferent service costs (investment and energy) or thelength of the contract.

In the case of building stock and systems and publiclighting, cost effectiveness should be defined as all thoseactions in which the extra cost of the efficient solution,with respect to the standard solution is repaid from eco-nomic savings during its technical lifetime, as definedby common national or standards.

A Directive should cover the following items:

• List, in the call for tenders, the energy consuming el-ements of the infrastructure (building componentsand products), which the service provider will becalled upon to manage, and identify the possiblemeasures to improve energy efficiency. The callshould also identify other elements of infrastructure,which, though not directly consuming energy, influ-ence the quantity of energy required to deliver theservice, and again identify those measures whichcould lead to improved energy efficiency. (See note below)

• Award contracts, all other things equal, to those bidsthat define an intervention programme, which iden-tifies the largest cost effective energy savings. (See note and note , below)

• Ensure that service providers define an interventionprogramme based on an updated analysis of cost ef-fective efficiency improvements, at least every fiveyears.

• Ensure that all building components and productspurchased by the service provider for use by the pub-lic administration respect the component and prod-uct purchase specifications (see Policy instrument“Energy efficiency specifications and methods

for buildings”, Section .) applicable to purchasesdirectly undertaken by the public administration.

• New contracts for renting existing office space mustensure that the buildings respect the minimum per-formance standards for refurbished buildings whichapply to public sector owned property.

• New contracts for renting new office space must en-sure that the buildings respect the minimum perfor-mance standards for new buildings which apply topublic sector owned office property.

• Renewed contracts for office space must ensure thatall future maintenance is carried out in line with thepurchase specifications for building components applicable to purchases undertaken directly by thepublic administration, and that building refurbish-ment meets the respective minimum performancestandards.

Additional notes. Winter space comfort service provision should

consider both improvements to the heating system andimprovements to building shell insulation.

. Service providers should provide an appraisal ofthe cost-effectiveness of each potential action identifiedin the bid and define a realistic programme, by whichthese cost-effective measures could be introducedwithin the time scale of the contract, considering, forexample, the resources of the provider and its potentialto finance the actions.

. Punitive financial clauses should guard against ser-vice providers not realising the actions in accordancewith the proposed plan.


the Directive

The proposed requirement obliges a tendering publicadministration to face a number investment costs, thatit otherwise could potentially avoid by maintaining in-house service provision.

For example, following the proposed requirement, aprovider, bidding for a five year heating service contract(with coverage of energy and investment costs), will beobliged to consider improvements to systems andbuilding structures (for example improved insulation)over ten years. Unless there are considerable economicgains to be made in the initial contractual period,which the provider can use to cover the required tenyear payback measures (which for the provider are lossmaking), these latter investment costs will be passedonto the public administration in the provider bid.

The consequence of this maybe that outsourcingcould increase short term costs of providing a service,compared to the (present) in-house alternative, thoughover the long term, total costs will be reduced. Theremay be political or financial pressure to chose againstlarge energy saving (high investment) bids. The follow-ing should help guard this:



Definition of standard procedures Member States should:

. Identify the energy efficiency measures contractorsshould evaluate in the bidding process.

. Define the terms of cost effectiveness for each mea-sure (i.e. the minimum payback period, the requiredInternal Rate of Return, or Net Present Value).

. Define standard procedures for determining costeffectiveness, including for example tabulated efficien-cies of equipment, standards operating hours andmaintenance costs. This makes the evaluation processtransparent.

. Define standard contract texts

Points , and are essential to ensuring compliancewith the requirement. Considerable experience (for ex-ample from Italy), shows that placing the legal require-ment on public administrations to introduce efficiencymeasures, but not providing the tools by which con-tracting and contracted agents can identify and evaluatewhat these are, does not lead to any tangible improve-ment in public sector energetic productivity.



Bringing energy efficiency to outsourcing contracts willneed some resources in facilities departments, energy(efficiency) management units and procurement offices. On the other hand, outsourcing saves resourcesthat would otherwise have been necessary for imple-menting the energy efficiency actions by the public ad-ministration itself. A net economic benefit from theenergy cost savings can therefore be expected.



The field of outsourcing is so wide and dispersed thatincluding it as a specific point into a European pilot ac-tion is not deemed appropriate.

8.14 Linking energy efficiency and public

administration reform

In the common traditional management model in pub-lic administrations, tasks and (the allocation of ) com-petences/resources to fulfil the task and responsibilities,are often separated from each other. Therefore, admin-istrative processes are often not very transparent, effi-cient and effective. Although there is the principle ofeconomic behaviour and of cost-effectiveness, and al-though the administration as a whole has an incentiveto save energy costs, there is no real economic incentive

for the different actors in the traditional managementmodel – e.g., the user department, the purchasing orconstruction offices, the financial authorities who haveto free the money for investments (Note: the manage-ment models are described in more detail in Chapter and in the German Country study, provided in a sepa-rate Appendix volume).

However, since the early ’s, general managementmodels of public administrations have been changing.In the course of these restructuring efforts, there are ef-forts to reduce bureaucracies, administrative entities arebeing re-organised and tasks, competences and re-sources re-defined and allocated differently. New man-agement and controlling instruments are beingintroduced to reform public administrations towardsincreased (economic) efficiency, thereby changing ad-ministrative culture and activities. Two perspectives ofthe reform processes have to be distinguished:

• Increasing (internal) efficiency: Increasing the effi-ciency of the internal administrative processes, i.e.,acquiring resources more economically and usingthose resources more efficiently (input-output). Thisperspective concentrates on realising cost saving po-tentials, while the outcomes, i.e. the effects on societyof goods and services provided for the citizens, arenot put into question.

• Increasing (external) effectiveness: Increasing the effec-tiveness of achieving the outcomes demanded by thepublic (output-outcome). This perspective looksmore on the strategic orientation, the strategic andoperational targets, the outputs, i.e., the goods andservices which government entities provide for theircitizens, and the effects these outputs have on envi-ronment and society.

Both perspectives are needed to improve the perfor-mance of a public administration, e.g., with the help ofperformance management systems4. However, the in-ternal efficiency perspective appears to dominate incurrent reform processes.

By being aware of the need to improve the manage-ment of energy efficiency, the general changes intro-duced by new public management can be used as avehicle for that. Table . gives an overview of the possi-ble links between energy efficiency and typical elementsof new public management.

In many administrations precisely defined “products”have already been implemented, i.e. identified outputs(goods and services) produced by the different adminis-trative units, as well as agreements on (operational) tar-gets (e.g., between the management and the unitheads), budgeting, cost accounting and controlling sys-tems have already been implemented.

With the introduction of the “global budgeting”, the



4 A system, integrated with corporate management, of performance information, evaluation, performance monitoring, assessment and perfor-mance reporting (OECD Working Definitions 2002, www.oecd.org). Such a performance management system was introduced, for example, inthe Danish central government in 1992 (Thorn/Lyndrup 2002). Three fourths of all OECD countries routinely include performance data intheir budget information. However, only in some countries this includes performance targets (e.g., in Canada, the UK and the US), and only inCanada, the performance data is audited (OECD 2002).

economic incentive for individual departments to saveenergy (costs) is increasing. Improving energy efficiencycan become highly attractive for the departments by in-troducing unrestricted transferability of funds withinbudgeting periods, and unrestricted transferability offunds saved through good management across budget-ing periods.

Cost accounting systems5, which are implemented onthe overall administration level, as well as on the unitlevel, can lead to increased efficiency (cost effectiveness,energy efficiency), by allowing a detailed monitoring ofcosts and cost-effectiveness of products, processes, lia-bilities (e.g., pension reserves) and short and long lifeassets.

Measurement-based management and controlling in-struments like the “balanced scorecard”6 are generallyintroduced to measure and manage performance moreeffectively. They also help to clarify the strategy and tar-gets of the administration and to translate them intoaction via defining tangible objectives and measureswithin a broad communication and learning process. Ina similar manner, sustainability controlling and man-agement instruments like the sustainability balancedscorecard systems can be developed, which define,among others, environmental indicators and targets forenergy efficiency improvements or emissions targets,and give incentives to reach the targets.


In principle, linking energy efficiency with the differentelements of public administration reform is legally fea-sible. However, the formal and legal aspects of theselinks are not always clear, e.g., if there are conflictingaims to be considered. These rather stem from the legalframework, such as general procurement legislation,than from the public administration reform itself.Therefore, in particular cases, adaptations and clarifica-tions of the elements of public administration reformare required, but are assumed to be feasible.


energy efficiency

As it has been explained before, public administrationreform can be used as a vehicle to improve the manage-ment of energy efficiency. In this way, it can increasethe chances to overcome barriers to energy efficiency inthe public sector:

• Insufficient priority: If energy efficiency is considered

and linked to the elements of public administrationreform, energy efficiency gets a higher priority, e.g.,when energy efficiency targets are included into thegeneral target system of the administration.

• Split incentives: Public administration reform in-creases accountability, clarifies responsibilities andprovides economic incentives to reduce (energy)costs to all units. However, a precondition for usingthese advantages for increasing energy efficiency is tohave not only the responsibilities and incentives, butalso the competences and resources to implement en-ergy efficiency instruments and measures.

• Lack of motivation: On one hand, linking energy effi-ciency to public administration reform can providenew intrinsic and extrinsic motivation to increaseeconomic efficiency and energy efficiency. On theother hand, there is the danger that the personnel isovercharged with these changes, which may reducemotivation. Therefore, information, communicationand qualification measures should not be neglected.

• Lack of investment culture: With public administra-tion reform, economic aspects of administrativeprocesses are increasingly considered. Modifying theframework, the structures and processes to increaseeconomic efficiency, involves a change in culture andactivities, which makes it easier to invest into cost-ef-ficient energy efficiency measures.


Global budgeting, cost accounting and sustainabilitycontrolling/management instruments can help to sup-port the introduction of other (economic) instruments(as proposed elsewhere in this document), such asshared savings schemes, , energy management.Global budgeting and cost accounting are sometimeseven necessary preconditions for the implementation ofthese instruments. Global budgeting and cost account-ing are, however, usually not sufficient for improvingenergy efficiency without the specific information,management, and financing facilities (such as internalenergy efficiency funds, performance contracting, and) that the specific energy efficiency instrumentsproposed by the study provide.

The following other policy instruments can help toimprove the link between energy efficiency and publicadministration reform:

• If energy management units and procurement infor-mation desks exist or are created, their staff will have



5 Cost accounting is a tool that provides information to decision-makers in assessing public administrations operating performance from a finan-cial perspective. Cost accounting helps achieve the following objectives: 1. Determine the costs of specific services, programmes, and activities. 2. Understand the composition of these costs and what the cost drivers are. 3. Determine the efforts and accomplishments associated with pro-grammes and delivery of services and their changes over time in relation to costs. 4. Measure the efficiency and effectiveness of the organisation’smanagement of services, programmes, and assets.

6 The balanced scorecard is a management system (not only a measurement system) that enables organisations to clarify their vision and strategyand translate them into action. It provides feedback around both the internal business processes and external outcomes in order to continuouslyimprove strategic performance and results. When fully deployed, the balanced scorecard transforms strategic planning from an academic exer-cise into the nerve centre of an enterprise. A good explanation ("What is the Balanced Scorecard?") can be found at the website www.balanced-scorecard.org/basics/bsc1.html.



Table 8.1 Possible links between energy efficiency and elements of new public management

Element of new public management Link to energy efficiency

Vision and mission, strategy, targets Including energy efficiency targets in vision and mission, strategy,

and indicators target systems and performance management systems (perfor-

mance indicators, etc.).

Review of tasks, definition of requirements Considering energy efficiency aspects in procurement, production

and distribution of goods and services.

Outputs/Products (goods and services) Including energy efficiency criteria into the process of developing

goods and services and into the description (definition) of goods

and services produced.

Agreements on (operational) targets Including, where appropriate, energy efficiency targets within the

general agreements with (heads of) units on (operational) targets

to achieve.

New organisation structure Considering possibilities for energy efficiency measures in the

different administrative units. If necessary, creating new organisa-

tional units and responsibilities with respect to energy efficiency.

Optimising administrative processes Considering energy efficiency criteria in the administrative

(business re-engineering) processes.

Global budgeting Setting the framework, within which profitable energy efficiency

(decentralised budget responsibility) measures that reduce life cycle costs can be realised .

Cost accounting Implementing rules for monitoring and allocating saved (variable)

energy costs, and thus for balancing these cost savings with the

costs of investments in energy efficiency improvements.

Monitoring Evaluating in how far energy efficiency criteria are being considered,

and energy efficiency targets are being met. Including into the

reports (reporting system) in how far energy efficiency targets

have been reached.

Personnel Management Taking responsibility for energy efficiency aspects by the manage-

ment. Increasing the energy efficiency knowledge of the personnel

(qualification).

Performance incentives Providing incentives to fulfil energy efficiency criteria: a system of

bonuses and maluses within the resource allocation system.

Competition, benchmarking Comparing different organisational units or different administrations

with respect to achieving improvements in energy efficiency.

Contests, rewards.

Source: Wuppertal Institute/ifv 2002



the task, the responsibility and the (sometimes lim-ited) resources to identify possible instruments andmeasures to improve energy efficiency. In this way,these units can look for chances to link energy effi-ciency with the elements of public administration reform.

• If energy efficiency targets are set, they will have to beconsidered, for example, in the strategies and targetsystems, in the agreement on targets and in the con-trolling systems developed in the context of publicadministration reform, and thus contribute to im-proving the link between energy efficiency and pub-lic administration reforms.



A possible Directive should require the MemberStates and the institutions to promote the link be-tween energy efficiency and these and other instru-ments of administration reform, more specifically: theprinciple, that every unit in a public administrationshould be accountable for the energy consumption/costs it causes, and that public administrations set clearand measurable energy (cost) savings and emissions tar-gets (cf. the analysis on policy targets).

On a more general sustainability level, another Directive that requires the Member States to align theirpolicies much more according to sustainability targetsand to promote the introduction of sustainability tar-gets in performance management schemes of public ad-ministrations is desirable . In this context, the MemberStates could be required to promote the introduction ofsustainability management and controlling systems inthe context of administration reforms.


the Directive

This is largely beyond the scope of our analysis, since itconcerns the general reform of the public administra-tions throughout the . However, the national policyin the Member States should promote the link betweenpublic administration reform and energy efficiency, anddisseminate information and good practice through thenational information centres and the procurementdesks within each public administration (cf. Section .and .).



Formal and legal aspects are not the main barrier tolinking energy efficiency to public administration re-forms. The problem is, that often the persons and unitswithin a public administration supporting and intro-ducing elements of public administration reforms, arenot the same as the persons and units supporting andintroducing instruments and measures improving en-ergy efficiency. The persons and units implementingpublic administration reforms often purely concentrate

on economic aspects of these reforms in the short-run.In many cases, they do not have the knowledge, themotivation and the incentive to link the reform withenergy efficiency.

Therefore, intensive information and communica-tion with the decision makers within the public admin-istration responsible for the reform elements is needed,and should not be neglected. To address these decisionmakers successfully, support by key persons in politicsand management (e.g., by the mayor) is helpful andoften needed.

An effective link of public administration reform notonly with energy efficiency but with sustainability ingeneral requires (cf. a):

• a common understanding of the sustainability con-cept and its benefits, and of the sustainability targetsintroduced within the public administration

• clear commitment and leadership of the decision-makers in the administration and of key persons inpolitics, and communication of this commitment

• specific institutional mechanisms and specific designof the elements of the reform process to steer integration

• effective stakeholder involvement• efficient knowledge management



Such general administration reform, or even specific ac-tions to link it to energy efficiency, is probably beyonda European pilot action targeting energy efficiency. Themain reason for that is in our view that the situation re-garding the status of the reform is too diverse betweenpublic administrations.

8.15 Barriers addressed and synergies

8.15.1 From barriers to tools

Table . summarises how the various policy tools canhelp to overcome the barriers that have been identifiedin the report.

8.25.2 Synergies between policy instruments

Figure . (p. ) provides a simply overview of syner-gies between the various policy instruments.



Table 8.2

Barrier Goal Instrument*

Insufficient priority Setting EE on the agenda; clear, specific

policies and concrete guidelines at all levels 8.2, 8.3, (8.4), (8.5), 8.6, 8.13, 8.14

Lack of information Easy access to sufficient relevant information 8.3, 8.4, 8.5, 8.6, 8.7, 8.8**

Too much and unclear information

Legal uncertainty

Split incentives Increased economic incentives; increased 8.7, 8.8, 8.9, 8.12, 8.14

autonomy of the different levels of the public sector;

defining accountabilities/responsibilities

Lack of motivation

Creating an investment culture 8.2, (8.3), (8.4), (8.5), 8.7, 8.8, 8.14

Lack of investment culture

Complexity of public procurement Easing procurement procedures; creating energy 8.3, 8.4, 8.5, 8.6, 8.7***

efficiency specialist units (i.e., energy management

units and EE procurement information desks)

Lack of funds (Setting priorities and/or) finding other ways (8.2), 8.9, 8.10, 8.11, (8.13)

to finance investments

Lack of personnel resources and time Setting priorities, dedicating special resources and/or (8.2), 8.3, 8.6, 8.7, 8.8, 8.10, 8.11, 8.13

using staff resources and time more effectively

to realise EE potentials

** The PROST report mentions simple examples of available tender documents; tools and data on the product level at issue.

*** The PROST report furthermore mentions E-commerce.

* Policy tools and the sections where they are found

8.2 Policy targets

8.3 A co-ordinated network of national public sector energy efficiency information centres

8.4 Energy efficiency specifications and life-cycle cost methods for products

8.5 Energy efficiency specifications and life-cycle cost methods for buildings

8.6 Helping buying agencies supply energy efficient products

8.7 Energy efficient procurement information desks within public administrations



8.10 Third-party financing and energy performance contracting

8.11 Public internal performance contracting (PICO)


8.13 Bringing energy efficiency to outsourcing

8.14 Linking energy efficiency and public administration reform


Synergies between PROST policy tools

8.2 Policy targets for energy efficiency in public administrations

8.3 A netwrok of national public sector energy efficiency info centers

8.4 Efficiency specifications and LCC for products

8.5 Efficiency specifications and LCC for buildings

8.6 Making buying agencies more energy-efficient

8.7 Energy efficient procurement information desks within PAs



8.10 TPF / Energy performance contracting



8.13 Bringing energy efficiency to outsourcing


8.2 Policy targets for energy efficiency in public administrations

X8.3 A netwrok of national public sector energy efficiency info centers

XX

XX

XX

8.4 Efficiency specifications and LCC for products

XX

XX

8.5 Efficiency specifications and LCC for buildings

XX

X8.6 Making buying agencies more energy-efficient

XX

XX

8.7 Energy efficient procurement information desks within PAs

XX

XX

XX

XX

XX


XX

XX

XX

X8.9 Energy efficiency budgets

XX

XX

X8.10 TPF / Energy performance contracting

XX

XX

XX


XX

XX

XX


XX

XX

X8.13 Bringing energy efficiency to outsourcing

XX

XX

XX

XX


XX

X

Fig

ure

8.5

Earlier in this report it was demonstrated by manygood examples that energy efficiency in public purchas-ing and buildings is usually cost-effective. This is to beunderstood in the sense that the energy-efficient solu-tion has lower life-cycle costs than an inefficient solu-tion or the current state of a building, and hence is theeconomically most advantageous solution. But how canthis economically most advantageous solution be deter-mined in the day-to-day public procurement andbuilding management? Particularly, can it be achievedin an easier way than calculating the life-cycle costs ofall alternatives each time a choice is made? What we arelooking for are therefore tools that help to overcomethe many barriers for energy-efficient procurement andbuilding management.

For agencies seeking to implement energy-efficientpurchasing, a primary barrier is the lack of data andtechnical specifications on energy-efficient products.Other obstacles include the lack of time to research en-ergy performance and concern about the cost of high-efficiency products. Vendors are often the primarysource of product information, despite strong prefer-ences for independent sources of information.

9.1 The three main technical tools to

improve energy efficiency

Improving the energy efficiency of public administra-tions requires providing the right amount on informa-tion to the right people at the time needed. Three toolscan offer an important contribution in this sense.

. life-cycle calculation methods. product and building component purchase specifica-

tions. building performance standards

9.1.1 Life-cycle costs

Life-cycle costs () considers all relevant costs overthe lifetime of appliances, building components and so-lutions. takes into account first costs (purchaseprice, installation costs) and future costs (energy costs,operating costs, maintenance costs and/or disposalcosts) over the lifetime of appliances, components andsolutions. costs reflect the total consumer expensesover the life of an appliance and capture the trade offbetween purchase price and upcoming operating ex-

penses. allows the economic advantages of efficientsolutions to be compared objectively with inefficient alternatives.

Life-cycle costs are defined by the following equa-tion:

where:Co = purchase price (Euro), including installation costs S = sum over the lifetime of the appliance, from year

to year n, where n is lifetime of the appliance (years)

Ct = annual operating and running expenses (Euro), which include costs for maintenance, costs for energy, costs for other resources (e.g. water) and disposal costs

r = Discount rate

In theory, this formula should not be used in caseswhere two or more building components or systemswith different life-expectancies are compared with eachother. However, most efficient components/solutionslast at least as long, but generally longer, than ineffi-cient alternatives. That is, efficient solutions whichoffer the least costs, also generally offer equal orbetter service levels (longer lifetime) than inefficient al-ternatives and should therefore be chosen. However, incases where the lifetime of the efficient component/so-lution is less than that of the inefficient solution, thecomparison should be made based on annuities insteadof net present values. The following formula should beused:

annuity = * r / [1-(1+r)-n].

methods provide standard evaluation procedures of for purchase decision makers. methods offerstandard transparent appraisal procedures which can beused by all those involved in appliance and “building”procurement to identify and evaluate efficient appli-ances, building components and integrated buildingsolutions.

One relevant factor influencing decisions based on is risk and uncertainty. Thus, for comparing differ-ent purchase options, the degree of risk and uncertaintyare important factors. The sources of risk/uncertaintyare diverse:


9. Life-cycle costs, performancestandards or purchase specifications?

LCC CC

rot

tt

n

= ++=

Â ( )11

• risk of new or innovative technologies• future changes in market prices• the integration of new technologies

Therefore, energy-efficient solutions are a kind of in-surance particularly against future price increases,which are very likely to appear in the next decades inEurope, when overcapacities have been melted downand capacity shortages will become obvious. This in-surance benefit could be deducted from by choos-ing a negative discount rate in the above formula. Formost of the appliances the only “risk” (if any) thatneeds to be taken into consideration consists in fluctua-tions in the price for electricity. Energy-efficient appli-ances thus have a strategic advantage, because theseproducts are often characterised by a higher share of investment costs relative to total costs. This means that energy-efficient solutions are more independent to future price fluctuations and changing market conditions.

9.1.2 Product and building component

purchase specifications

Product and building component purchase specifica-tions provide guidance to the purchase decision maker,based on typical life-cycle cost calculations of productsand solutions. Purchase specifications make the effi-cient product – not the one with the lowest first cost –the simplest and most acceptable choice to buy. Suchpurchase specifications should already in the call fortenders restrict the choice to energy-efficient productsand solutions, because the typical life-cycle cost calcula-tions have proven that the restricted choice will be cost-effective.

Specifications can explain the physics or mechanicsof technologies. However, specifications do not abro-gate to the user the final choice between efficient andinefficient solution; Purchase specifications clearlyidentify the minimum acceptable performance level re-quired of products and components. Only in the caseof a very big value of a tender, the effort would be justi-fied to perform a life-cycle cost assessment when select-ing the winner among those products that meet thecriteria, but may still differ considerably in energy effi-ciency.

9.1.3 Building performance standards

Building performance standards identify the goal of ef-ficient building design for commissioners and designersof buildings, in terms of for example the energy use peruseful floor space (kWh/m2/year). Energy PerformanceStandards offer a significant advantage compared toother methods which aim to improve building energyefficiency. For:

Building owners and users:Performance Standards provide a clear measure ofbuilding energy performance which can usually bereadily translated into running costs.

Architects and designersPerformance standards provide creative freedom ofchoice in finding the optimal mix of:

• active technologies: for example artificial lighting systems

• passive solutions: for example spectrally selectiveglazing and window shading to provide summercooling

9.1.4 The interaction between the tools

The three tools are complementary:Ultimately the public administration should procure

appliances and building components which offer mini-mum life-cycle costs. However, taking into account thecurrent situation in public administrations, life-cyclecosts analysis is mostly cost effective only for large pur-chases (for relatively large purchases buyers might beexpected to spend the extra time to gather data on energy efficiency and purchase prices of alternativeproducts). Nevertheless, it should be a general aim tolowering the threshold for using in the public ad-ministrations. Some suggestions of how this can bedone are given in Chapter . Purchase specificationsprovide a simplified procedure of determining forthe majority of small or medium sized purchases.Though useful for appliances, purchase specificationsare not able to capture completely the large saving po-tential offered by improving buildings. Building per-formance standards provide an effective means ofaddressing the complex issue of developing efficientbuilding systems, from the optimised combination ofsingle component purchases.

The remaining chapters of this part (Chapters and) discuss the above themes in more detail. Specifically:

• purchase specifications for products• purchase specifications components and minimum

performance standards in buildings

The essential characteristics of buildings componentand appliances purchase specifications are the same, i.e.simple recommendations to direct the choice of a pur-chase, derived from an ex-ante analysis of the costsof alternative energy efficient and energy inefficient so-lutions.

However on a number of issues, the task of definingpurchase specifications for building components differsfrom appliances. Specifications for building compo-nents must generally consider:

• the absence of a component-specific energy label • that energy use is determined by the system and not

the single component• that energy use is also affected by geographical loca-

tion and the climatic conditions connected to it• that a “passive” solution, i.e., a solution able to fulfil

the function without the component in question,may represent the most effective choice

Thus purchase specifications for building components

LIFE-CYCLE COSTS, PERFORMANCE STANDARDS OR PURCHASE SPECIFICATIONS?




Figure 9.1. Example of how to integrate the information reportedin the Prost PurchaseSpecifications for ballasts (PPS2)with an effective communicationpackage for the public administration.(For a full version of these informa-tion sheets, see Appendix 2.)

Figure 9.2. Example of how to integrate the information reported in the ProstPurchase Specifications for glazing(PPS5) with an effective communicationpackage for the public administration. (For a full version of these informationsheets, see Appendix 2.)

are considered separately from appliance purchase spec-ifications, but together with building performancestandards. As such, Chapter offers a single packagefor improving building energy efficiency.

Chapters and detail the process by developingspecific purchase specifications, which;

i) are based on a objective analysis of life-cycle costsii) should coherently be updated in time in a

transparent process

Indeed the purchase specifications defined in Chapters and have a temporal validity. Purchase specifica-tions need to be updated periodically in response tochanging energy prices, product costs and technologi-cal advances. The issue of developing a process bywhich to provide ongoing maintenance of purchasespecifications, performance standards, and tools, is considered under policy instruments.

9.2 Communication packages

Chapters and define a set of purchase specifica-tions for appliance and product categories and building component and systems categories. The pro-posed specifications can be used by purchaser officers,for example in calls for tenders.

However though the specifications could be deliveredto procurement officers in their present form it wouldbe more reasonable and effective to suppose that speci-fications were delivered as part of a structured commu-nication package.

Figures . and . provide an example of how thePurchase specifications for ballasts for linear fluorescenttubes and window glazing (developed in Chapter )maylook if integrated into a future communicationpackage for the public administration.

The hypothetical Public Energy EfficiencyProgramme () presents each individual purchasespecification (in this case for window glazing and bal-lasts) on a two page information sheet. Each informa-tion sheet:

• highlights the advantages of using efficient productsand components in general

• details any regulations requiring purchasing officersto procure efficient products, (the example considersan obligation to purchase energy-efficient productsunder an hypothetical European Directive)

• details the Component Purchase Specification as defined in Chapter of this report

• provides a photograph of the technology which underlines the concrete nature of the proposed solu-tions, i.e. products marketed today

• provides an example of typical economic savings derived by following the specifications

• provides a short description of how the technologyworks (which reduces barriers to use by improvingunderstanding)

• provides links to other sources of information, whichoffer more detailed explanations to those interestedto understand deeper the technology

The complete (hypothetical) guideline packagethus consists of information sheets relative to the entirerange of products and building components defined inChapters and .

Obviously the guidelines in Figures . and .merely serve as a visual aid to imagining how thePurchase Specifications defined in Chapaters and could be developed into an effective tool for distribu-tion within the Public Administration. (The prototype shown in Figures . and . are provided in fullformat as Appendix .)

The definition of the exact form of such a guidelinepackage is beyond the scope of this project.

For some products, could be completed by acalculator on a web-site, calculating of specificappliances according to the needs of the users, whichcan be specified online. For example, at http://www.spargeraete.de/ in Germany, the total running costs areshown by default when you type in what kind of appli-ance you are looking for and how often you will use it.This calculator could be expanded to an calculator.By adding the purchase price (e.g., by allowing tochoose between the price recommended by manufac-turers and a price inserted freely) and some assump-tions for the disposal and maintenance cost, one getsthe at a discount rate of %. One could even add alittle game to create a value for the risk aversity of theuser and thus a positive discount rate. It could also pro-vide the option to select a discount rate preferred by the user.



10.1 Introduction

Chapter of the report discussed general consid-erations when choosing between efficiency specifica-tions and methods. This chapter deals with specificmethods for products and appliances.

In particular the following questions are analysed: When are specific energy efficiency criteria suitable

(based on the existing policies with regard to energyefficiency), in order to make an appropriate purchasingdecision on products?

When is it necessary and justified to use a life-cyclecost approach, in order to reach an optimal purchasingdecision for energy-efficient equipment in procure-ment?

10.2 Specific energy efficiency criteria for

appliances and products

Section . discusses specific energy efficiency criteriafor some groups of and products: domestic appliancesand consumer electronics. These two groups of appli-ances are further discussed under section . (Lists ofappliances and products – versus specifications).

10.2.1 Specific energy efficiency criteria for

white goods/domestic appliances

The Directive // of September onthe indication by labelling and standard product infor-mation of the consumption of energy and other re-sources by household appliances sets the framework forall kind of labelling activities within the . The frame-work directive sets out the way this information shouldbe presented to the consumer in a general way while thespecific implementing directives set out the required in-formation for each group of appliances covered by thescheme in more detail.

Up to now implementing directives have come intoforce for the following appliances:

• electric refrigerators, freezers and their combinations • household washing machines • electric tumble dryers• combined washer-dryers• dishwashers• household lamps• room air conditioners• ovens

The European labelling scheme is a mandatory schemeand assigns appliances to energy classes from to .The - scale ranks from the “best” () to the “worst”(). Generally speaking, -rated appliances representthe high energy-efficiency products available on themarket, and life-cycle cost analysis is the backbone ofthe scheme. Thus, in case of household appliances, -classification of an appliance is an indispensable crite-rion for an energy-efficient purchase decision. Studiesshow that the European labelling scheme is very suc-cessful and has a significant impact – since the intro-duction of the scheme, the European market has clearlyshifted towards more energy-efficient appliances. Butthis shift of the market also makes it necessary to up-date the energy-efficiency indices from time to time.This is the reason why the + and ++ classifications arebeing introduced in early .

Similar to the European labelling scheme for house-hold appliances, a label scheme for new passenger carshas been introduced. (Directive // of December relating to the availability of consumerinformation on fuel economy and 2 emissions in re-spect of the marketing of new passenger cars.) The pur-pose of this Directive is to enable consumers to makean informed choice relating to the fuel economy and2 emissions when purchasing a new passenger car.

10.2.2 Specific energy efficiency criteria for

office equipment and consumer electronics

The market for office equipment, in particular for per-sonal computers and peripherals, is a world-wide(global) market dominated by multinational compa-nies. Harmonisation of energy-efficiency requirementsand standards is very important not only for public ad-ministrations; manufacturers and consumers will alsobenefit. In the discussion of possible actions to improvethe efficiency of office equipment, it was decided to ex-tend the “Energy Star” fromm the EnvironmentalProtection Agency () labelling programme toEurope. Thus, an Agreement (Council Decision of May , .. . of ..) was signed inDecember between the and the EuropeanCommunity. The agreement intends to co-ordinate energy-efficient labelling programmes for office equip-ment based on the -Energy Star programme overthe next five years. Based on this agreement, the passed a regulation (Regulation () of the EuropeanParliament and of the Council of November ./, .. . of ..) to introduce the


10. Specific energy efficiency criteriaand life-cycle costs for products

Energy Star scheme in the Community.The Energy Star scheme is a voluntary programme.

Originally, the Energy Star specifications were met byabout % of the most energy-efficient equipmentavailable on the market. But as the market for officeequipment is characterized by very short product cy-cles, this is no longer true since a larger share of theproducts meets the specification. In most Europeanmarkets the Energy Star specifications represent a kindof minimum standard, which is fulfilled by most officeequipment available. This fact shows on one hand thatthe Energy Star approach is working and influencingthe development of the products and, on the otherhand, that the criteria have to be updated on a shortterm basis in order to keep pace with the market devel-opment.

Beside the Energy Star activities, the “Group forEnergy-Efficient Appliances” (), a loose co-opera-tion of representatives from European national energyagencies and government departments is working withmanufactures on voluntary information activities in thefield of energy-efficient home electronics, office equip-ment and -equipment.

In general, the -label criteria are stricter than theEnergy-Star criteria and can be seen as “forerunners”that lead towards future Energy Star requirements.Moreover, the -label scheme is not limited to officeequipment, but includes consumer electronics as TVs,VCRs, DVDs, -equipment, etc. and other devicessuch as wall packs and battery chargers. The -labelscheme is dynamically updated, which means that thecriteria are revised regularly in close co-operation withmanufacturers and industry involved. Hence, the -label schemes indicate that the appliance fulfilling theserequirements have a high energy-efficiency profile.

10.3 Life-cycle costs for appliances and

products

Generally in procurement, the initial purchase costs areusually the most decisive factor for selecting an appli-ance or a product. Operating costs and in particular energy costs are hardly considered in the procurementprocess. However, the running costs become more rele-vant, particularly for appliances with many annualhours of operation combined with long product life,such as lighting systems or cold appliances.

If a different procurement methodology would bechosen, a more profitable purchase decision with regardto costs and environment could be done (if rules for anoverall assessment of appliances in order to considerlife-cycle costs are applied).

The life-cycle cost of the appliance contains the pur-chase price as well as running costs. Design changes in

favour of efficiency may increase the purchase price butat the same time provide so large savings in runningcost of the life of the appliance, that the total life-cyclecost becomes lower. The minimum life-cycle cost is alsoknown as the economic and technical energy savingspotential level in most European studies. Often, thislife-cycle cost is quite similar over a broad range of en-ergy efficiencies and there is also room for interpreta-tion that allows the assumption of the highest energyefficiency improvement possible. Furthermore, thislife-cycle cost is often only slightly lower that that ofthe average model on the market (the reference model).(Note: principles are discussed more in detail inChapter .)

The following sections discuss life-cycle cost princi-ples vs. energy efficiency specifications in more detail.When discussing cost-effective products, we mean thatthe extra purchase cost is recouped by the lower run-ning costs to the consumer. By feasible technology wemean that the product represents proven technology,either on the market or very close to being on the mar-ket.

Other assumptions are average usage patterns, currentprices for electricity, water and equipment and an appro-priate discount rate.

The choice, level and the combination of these fac-tors are subject to discussion. Therefore it will be neces-sary to develop public procurement tools to helpprocurement agents find the minimum life-cycle costsin a simple way.

The section below provides information about ourrecommended quantities and assumptions used to cal-culate life-cycle cost for appliances.

• Purchase expense: The purchase expense includes theretail price1. For more complex appliances, the instal-lation costs are a relevant cost factor, too. For most ofthe appliances, energy efficiency and price are notnecessarily related; price is often more a function offeatures and brand name.

• Lifetime (or product life): The lifetime is the time acertain appliance is in operation. This can varystrongly between different types of appliances. Forhousehold appliances, lifetimes range usually from to years, while for office equipment to yearsis a reasonable assumption.

• Usage pattern: To calculate the life-cycle costs, an “average usage pattern” for all different appliancesmust be defined, so that the consumption of re-sources such as energy and water can be estimated.The usage pattern is often estimated as operatinghours per year and should reflect the actual usage ofthe appliances as far as possible. But it must be keptin mind that the average usage pattern can only be anapproximation to reality.

• Energy consumption: In accordance with standardised

SPECIFIC ENERGY-EFFICIENCY CRITERIA AND LIFE-CYCLE COSTS FOR PRODUCTS


1 In general the retail price before taxes (e.g. excluding VAT) is used for the life cycle calculations. This should be done in order to reflect theprices directly related to a certain appliance.

test procedures, the energy consumption for a spe-cific mode or definite cycle is determined. For mostappliances, the energy consumption (including costsfor power) is the most relevant factor in order to cal-culate the life-cycle costs.

• Electricity prices: The electricity price (EuroCent/kWh) used in the life-cycle calculation should in-clude future trends.

• Discount rates: Future operating expenses are dis-counted to the time of purchase, and summed overthe life of the appliance. In order to assess all costsspent over the product life, adjustments must bemade to place all values on a comparable basis.However, the question of the appropriate discountrate for an investment is complex and continues to bea subject of controversy among economists. With re-gard to the level of analysis and the nature and theobjectives of the evaluating organisation, there aremicro-economic and macro-economic ways of deter-mining the discount rate (cf. Oelert/Auer/Pertz ).From a pure business economics point of view, thediscount rate should reflect capital costs and alterna-tive investment opportunities (i.e., money has realearning potential over time). Furthermore, the dis-count rate could take into account specific risks asthey have been specified in Chapter .. (risk pre-mium). From a societal point of view, there is a moralproblem with positive real discount rates: The ulti-mate consequence is that we give the current genera-tion more rights and possibilities than futuregenerations, because we value current assets higherthan future ones. Therefore, in many public projectsa real discount rate of % or % is chosen (cf.Oelert/Auer/Pertz ). However, since the ’s aremore and more behaving like “normal” businesscompanies while working for public welfare, it is rec-ommended to use a slightly higher real discount rateas a compromise, e.g., %. The nominal discountrate of %, used for the calculations presented in thischapter, is based on a -year government bond yield.The European -year government bond is publishedby European Central Bank regularly. In it was,% and in it was ,%.

10.4 Life-cycle costs versus

specifications for each product

10.4.1 White goods and domestic appliances

Cold appliances

Definition

Cold appliances are one of the most electricity consum-ing appliances in the area of white goods. Cold appli-ances are used for storing food and beverages at a

certain temperature level. Thus, they are classified incategories (-), based on temperature levels and typeof construction.

. Refrigerator without low-temperature compart-ment

. Refrigerator/chillers with compartment at ° and or °

. Refrigerator with -star low-temperature compart-ment

. Refrigerator with -star frozen food compartment. Refrigerator with -star frozen food compartment. Refrigerator with -star frozen food compartment. Refrigerator/freezer with -star frozen food com-

partment. Upright freezer. Chest freezer

. Refrigerator/freezer with more than two doors or other appliances not covered above

Household cold appliances are covered by the labelscheme.

Life-cycle costs versus specifications

The analysis of appliance data (see Fig. .) show thatthere is no significant correlation between and en-ergy efficiency. The main reason for that are the rela-tively low share of operating costs over the lifetime of aappliance compared to the initial purchase price (in av-erage the operating costs over the life time is about %of the initial purchase costs).

Moreover, a high energy-efficiency level has no directinfluence to the purchase price of appliances (see Fig. .). This indicates that other features aremore relevant “price pushing” factors, e.g. brand name,specific features, design issues, market strategy of com-panies, etc.

Nevertheless, the analysis show that there are appli-ances on the market, which are characterised by an highenergy efficiency and low life-cycle costs. These kind ofappliances are the most interesting for procurementand in particular for public procurement. In order tochoose these kind of appliances, it is not effective to usea life-cycle calculation because it does not lead necessar-ily to an energy-efficient procurement solution2) .

In order to achieve an energy-efficient decision inpublic procurement, a combination of the most deci-sive factors (energy efficiency and purchase price) canbe recommended:

• Go for a low energy efficiency index: In particular forcold appliances the energy-efficiency index, which is used for classifying appliances into the energy-efficiency classes ( to ), is a perfect indicator toidentify the energy efficient ones. Therefore, as aminimum level, an energy-efficiency index of lowerthan , should be chosen. This corresponds to the



2) There are also appliances on the market, which are characterised by low life-cycle costs and low energy efficiency. These appliances show

extremely low purchase prices.



0,00

500,00

1000,00

1500,00

2000,00

2500,00

3000,00

3500,00

0,20 0,25 0,30 0,35 0,40 0,45 0,50 0,55 0,60 0,65 0,70 0,75 0,80 0,85 0,90 0,95

Energy Efficiency Index

Total Life Cycle Costs [Euro]

minimum level:Energy Efficiency Class A (EEI<0,55)

recommended level:energy+ criteria (EEI<=0,42)

Fig. 10.1: Life-cycle costs versus energy-efficiency index of fridge-freezers (background data: appliances available on theAustrian market, lifetime: 12 years, discount rate: 5%, electricity price: 0,14 Euro/kWh).

0,00

200,00

400,00

600,00

800,00

1000,00

1200,00

1400,00

1600,00

1800,00

0,20 0,25 0,30 0,35 0,40 0,45 0,50 0,55 0,60 0,65 0,70 0,75 0,80 0,85 0,90 0,95

Energy Efficiency Index

Purchase Price [Euro]

minimum level:Energy Efficiency Class A (EEI<0,55)

recommended level:energy+ criteria (EEI<=0,42)

Fig. 10.2: Purchase price versus energy-efficiency index of fridge-freezers (background data: appliances available on theAustrian market, lifetime: 12 years, discount rate: 5%, electricity price: 0,14 Euro/kWh).

threshold for -rated appliances within the -labelling scheme. As a lot of appliances already fulfilthis criteria, a stricter level ( <= ,) is recom-mended to be used in public procurement. This isthe level for energy+ appliances.

• Go for a low purchase price among those appliancesfulfilling the energy efficiency requirements.

If both factors are combined in public purchasing anenergy-efficient solution for an optimal price can befound.

Basic requirements

Minimum requirements: energy efficiency class ( < ,)Recommended requirements: energy+ criteria ( <= ,)

Washing machines

Definition

Electrical powered household washing machines(clothes washers) are covered by the label scheme,while commercial appliances are not. The labelscheme gives information on energy efficiency, washingand drying performance.

As hot water within the washing cycle is usuallyheated by electricity, it should be considered if hotwater could be taken from other sources (solar, gas,etc.).


The analysis of data concerning washing machines (seeFig. .) leads to a similar results as for the cold appliances:• There is no significant correlation between life-cycle

costs and energy efficiency.• The initial purchase price is dominating the life-cycle

costs (in average the operating costs over the life timeis about % of the initial purchase costs).

• A high energy-efficiency level has no direct influenceon the purchase price of appliances (see Fig. .).

• Life-cycle calculation it is not effective, because itdoes not lead necessarily to an energy-efficient pro-curement solution.

• A combination of the most decisive factors (high energy efficiency and low purchase price) can be rec-ommended, in order to achieve an energy-efficientdecision in public procurement:• Go for a low energy-efficiency index: For washing ma-chines, the specific electricity consumption is usedfor classifying appliances according to the energy-efficiency classes ( to ). It is a suitable indicator toidentify the energy-efficient appliances. Therefore, arecommended specific electricity consumption lowerthan <=, kWh/kg can be recommended. This cor-responds to the threshold for -rated applianceswithin the -labelling scheme. Moreover, indicatorsdescribing the washing performance and drying rat-ing have been introduced by the -label scheme. Forboth indicators an -rating can be recommended.Also the possibility for a warm water inlet could betaken into account.



Fig. 10.3: Life-cycle costs versus specific electricity consumption of washing machines (background data: appliancesavailable on the Austrian market, washing cycles: 220 per anno, lifetime: 12 years, discount rate: 5%, electricity price:0,14 Euro/kWh, water price 2,2 Euro/m3).

0,00

500,00

1000,00

1500,00

2000,00

2500,00

0,000 0,050 0,100 0,150 0,200 0,250 0,300 0,350

Specific Electrcity Consumption [kWh/kg]

Total Life Cycle Costs [Euro]

recommended level:Energy Efficiency Class A (SPEC<=0,19 kWh/kg)

• Go for a low purchase price among those appliancesfulfilling the energy efficiency requirements

Combined both factors, an energy-efficient purchasedecision for an optimal price can be achieved.

Basic requirements

Recommended requirements: energy efficiency class ,washing performance , drying rating , possibility forwarm water inlet

Dishwashers

Definition

For electric household dish washers an label schemeexists, focusing on energy efficiency and on cleaning ordrying performance.

As hot water within the washing cycle is usuallyheated by electricity, it should be considered if hotwater could be taken from other sources (solar, gas,etc).


The basics resulting from the analysis of the cold appli-ances and washing machines can be applied to this appliance group.

Requirements

Recommended requirements: energy efficiency class ,cleaning performance , drying performance , (possibility for warm water inlet)

Clothes dryers and tumble dryers

Definition

Tumble dryers are generally powered by electric energy.There also exist gas heated tumble dryers on the mar-ket, which have environmental advantages (but they arevery rare on the market).

Electric household tumble dryers are covered by the label scheme, focusing on energy efficiency (So faronly tumble dryers with an integrated heat pump are -rated). Air vented tumble dryers generally need lessenergy than the condensing one.


The basics resulting from the analysis of the cold appli-ances and washing machines can be applied to this ap-pliance group.

Requirements

Minimum requirements: energy efficiency class Recommended requirements: energy efficiency class

Ovens

Definition

Ovens, in particular electric ovens, are a relevant energyconsumer. This was the reason why the alsolaunched a label scheme for these appliances focusingon energy efficiency. The corresponding Directive waspublished in May . In the scope of the scheme areelectric operated household ovens including ovens thatare part of larger appliances. Not covered are ovens fu-

SPECIFIC ENERGY-EFFICIENCY CRITERIA AND LIFE-CYCLE COSTS FOR APPLIANCES/ PRODUCTS


Fig. 10.4.: Purchase price versus specific electricity consumption of washing machines (background data: appliancesavailable on the Austrian market, washing cycles: 220 per anno, lifetime: 12 years, discount rate: 5%, electricity price:0,14 Euro/kWh, water price 2,2 euro/m3).

0,00

200,00

400,00

600,00

800,00

1000,00

1200,00

1400,00

1600,00

0,100 0,150 0,200 0,250 0,300 0,350

Specific Electrcity Consumption (kWh/kg)


recommended level:Energy Efficiency Class A (SPEC<=0,19 kWh/kg)

elled by other sources, portable ovens, non-fixed appli-ances with a mass of less than kg, provided they arenot designed for built-in installations. Beside electricovens, it is necessary to consider gas-fired ovens, whichhave environmental advantages.Life-cycle costs versus specifications

The basics resulting from the analysis of the cold appli-ances and washing machines can be applied to this appliance group.

Requirements

label scheme is going to be implemented; recom-mended requirements: energy efficiency class .

In addition, it should be considered if gas-fired ovensare feasible.

Room air-conditioners

Definition

Room air-conditioners become more and more relevantwithin Europe. In order to improve the energy effi-ciency of the appliances, the has (April )launched a label scheme for electric room air condition-ers with a cooling capacity less than k.


The basics resulting from the analysis of the cold appli-ances and washing machines can be applied to this ap-pliance group.

Requirements

label scheme is going to be implemented; recom-mended requirements: energy efficiency class .

Information tools for white goods and domesticappliances

In order to make energy-efficient public purchasingpossible, a procurement guide/toolkit could be devel-oped focusing on energy-efficient household appli-ances. This guide should help and support publicprocurement agents to consider energy efficiency crite-ria in their procurement procedures:

This guide/toolkit should contain:

• general information on energy efficiency: energy efficiency indicators and criteria, existing labelschemes and databases

• methodologies and recommendations to identify energy-efficient appliances

• model tender and evaluation• best practice examples concerning energy-efficient

public procurement

10.4.2 Office equipment

Monitors

Definition

A cathode-ray tube (), flat panel display (e.g. a liq-uid crystal display) or other display device and its asso-ciated electronics. A monitor may be sold separately or

integrated into the computer chassis. This definition isintended primarily to cover standard monitors de-signed for use with computers. The following may alsobe considered a monitor: mainframe terminals andphysically separate display units.


Fig. . shows similar results as for white goods. Formonitors, there is no significant correlation betweenlife-cycle costs and the energy-efficiency specifications,which is reflected by the so called deep sleep mode. Thelow share of running costs over the lifetime of a moni-tor compared to the initial purchase price is seen asthemain reason for that fact. The running costs over thelife time amount to up to % of the initial purchasecosts.

The deep sleep mode is a key specification for quali-fying for the Energy Star and Energy label scheme. Alow level of the deep sleep mode has no influence to thepurchase price of appliances (see Fig. .). This indi-cates that other features are much more price relevantthan the deep sleep mode.

However, there are monitors on the market, whichare characterised by an high energy efficiency and lowlife-cycle costs, which are most interesting for publicprocurement. Also in this case, it is not effective to use alife-cycle calculation because it does not lead necessarilyto an energy-efficient procurement solution. Hence, aquite similar approach (reach a high energy-efficiencylevel and a low purchase price) is necessary to obtain anenergy-efficient purchase decision.

• Go for highly energy-efficient products: In the area ofoffice equipment, the has introduced the “EnergyStar” scheme form the Environmental ProtectionAgency () labelling programme to Europe. In Fig. . and Fig. . the Energy Star threshold isgiven and it can be seen that almost all monitorsqualify for it. Hence, the Energy Star criterion, as it isnow, cannot be used for energy-efficient purchasing.It can be seen as an absolute minimum standard.This fact was already mentioned by and .Accordingly, it is planned to update the Energy Starcriteria according to the actual market situation inthe near future (for monitors in beginning ).When this is done, the Energy Star scheme will be-come a useful guideline for public procurementagain. A stricter threshold concerning deep sleepmode is used within the Energy label scheme, whichis updated regularly. The Energy label level can berecommended to be used in public procurement inorder to address the most energy-efficient products.

• Go for a low purchase price among those products ful-filling the energy efficiency criteria.

If both items are combined in public purchasing an energy-efficient solution for an optimal price can befound.





0,00

500,00

1 000,00

1 500,00

2 000,00

2 500,00

3 000,00

3 500,00

4 000,00

4 500,00

0 2 4 6 8 10 12 14

Deep Sleep Mode [W]

Total Life Cycel Costs [Euro]

minimum level:Energy Star requirement: Deep Sleep Mode <= 8 W

minimum level:Energy Label requirement for 2002: Deep Sleep Mode <= 2 W

Fig. 10.5: Life-cycle costs versus deep sleep mode of monitors (background data: appliances available on the Austrianmarket, lifetime: 5 years, discount rate: 5%, electricity price: 0,14 Euro/kWh).

Fig. 10.6: Purchase price versus deep sleep mode of monitors (background data: appliances available on the Austrianmarket, lifetime: 5 years, discount rate: 5%, electricity price: 0,14 Euro/kWh).

0

500

1000

1500

2000

2500

3000

3500

4000

4500

0 2 4 6 8 10 12 14

Deep Sleep Mode [W]


minimum level:Energy Star requirement: Deep Sleep Mode <= 8 W

minimum level:Energy Label requirement for 2002: Deep Sleep Mode <= 2 W

Energy-efficiency requirements

Minimum requirements: Energy Star (http://europa.eu.int/comm/energy/en/ener-star-prog.html)Recommended requirements: Energy Label (www.effi-cient-appliances.org)

Personal computers

Definition

A computer includes desktop, tower or mini-tower, orportable units, including high-end desktop computers,personal computers, workstations, network computerdesktops, terminal controllers, and computer-basedpoint-of-sale retail terminals. The unit must be capableof being powered from a wall outlet, but this does notpreclude units that are capable of being powered from awall outlet as well as from a battery. This definition isprimarily intended to cover computers sold for use inbusinesses or homes; it does not include computers soldor otherwise marketed as “File Server” or “Server”.


The basics resulting from the analysis of the monitorscan be applied to this appliance group.

Requirements

Minimum requirements: Energy Star (http://europa.eu.int/comm/energy/en/ener-star-prog.html)Recommended requirements: Energy Label(http://www.efficient-appliances.org)

Printers

Definition

Imaging equipment manufactured as a standard modelthat serves as a hard-copy output device and is capableof receiving information from single-user or networkedcomputers. In addition, the unit must be capable ofbeing powered from a wall outlet. This definition is in-tended to cover products that are advertised and sold asprinters including printers that could be upgraded to amultifunction device.



Requirements


Copiers

Definition

A commercial reprographic imaging unit whose solefunction is the production of duplicates from a graphichard copy original. A copier must include an imagingsystem and a paper handling module. All black and

white plain paper copier technologies are covered,though the intent is to focus on widely-used standardcopier equipment such as light lens copiers. Standard-sized copiers designed to handle or ," x " paperand large format copiers designed to handle or " x " paper or larger, are covered by this definition.Coping speed is seen as an important purchase criteria,which is directly linked to the energy consumption.



Requirements


Fax machines

Definition

Imaging equipment, manufactured as a standardmodel, which serves as a hard-copy output devicewhose primary function is sending and receiving infor-mation. Plain paper fax machines are also coveredunder this definition (e.g. ink jet/bubble jet, laser/,and thermal transfer). The unit must be capable ofbeing powered from a wall outlet. This definition is in-tended to cover products that are advertised and sold asfax machines.



Requirements

minimum requirements: Energy Star (http://europa.eu.int/comm/energy/en/ener-star-prog.html)recommended requirements: Energy Label (www.effi-cient-appliances.org)

Scanners

Definition

A scanner is defined as an electro-optical device forconverting colour or black-and-white information intoelectronic images that can be stored, edited, convertedor transmitted primarily in a personal computing envi-ronment. Scanners defined as such are typically usedfor digitising hard-copy images. The definition intentsto focus on widely-used desktop scanners (e.g. flatbed,sheet-fed and film scanners) and is directed to stand-alone scanners. It does not cover multifunctional prod-ucts with scanning capabilities, network scanners (i.e.scanners that connect exclusively to a network and arecapable of managing the scanned information for trans-missions to multiple locations on the network) or scan-ners that are not powered directly by the buildingpower supply.



SPECIFIC ENERGY-EFFICIENCY CRITERIA AND LIFE-CYCLE COSTS FOR APPLIANCES/ PRODUCTS




Requirements


Multifunctional devices

Definition and service requirement

A multifunctional device is a physically integrated de-vice or a combination of functionally integrated com-ponents that produces hard copy duplicates fromgraphical hard copy originals as well as performing oneor both of the following core functions: printing ofdocuments (from digital information received from di-rect connect computers, networked computers, fileservers and fax transmissions) or faxing (send and re-ceive). A multifunctional device may also include scan-ning to computer file or any other capabilities. Thedevice may be connected to a network and may outputblack and white, gray scale, or colour images. It is antic-ipated that a separate definition may ultimately be re-quired to cover colour devices, because of likelytechnological developments related to color imaging,but for now these devices are included in this specifica-tion.



Requirements


Information tools for office equipment

In order to make energy-efficient public purchasingpossible, a procurement guide/toolkit could be devel-oped focusing on office equipment. This guide shouldhelp and support public procurement agents to con-sider energy efficiency criteria in their procurementprocedures:


• general information on energy efficiency: energy effi-ciency indicators and criteria, existing label schemesand product databases


• model tender and evaluation• best practice examples concerning energy efficient

public procurement

10.4.3 Consumer electronics

TV-sets

Definition

Television receivers (TVs) for reception of analoguebroadcasting as well as TVs for reception of digitalbroadcasting are covered.



Requirements

Minimum requirements: A voluntary agreement withindustry () states that from January , allTVs and VCRs they market will have a standby poweruse less than or equal to W. Moreover, the averagestandby power consumption of all the units sold by agiven manufacturer will not exceed W. Hence, W forstandby should be an absolute minimum requirement. Recommended requirements: Energy Label

VCRs and DVDs

Definition

Non-portable videorecording equipment for householduse includes the following types of appliances:

• appliances with only playback function: e.g. VideoCassette Player or DVD-player

• appliances with playback and recording functions:e.g. a Video Cassette Recorder (VCR) or a DVD-recorder

• combinations of Television Receivers and VideoCassette Recorders (TV/VCR combi): a TV and aVCR integrated in the same casing



Requirements

Minimum requirements: A voluntary agreement withindustry () states that from January allTVs and VCRs they market will have a standby poweruse less than or equal to W. And the average standbypower consumption of all the units sold by a givenmanufacturer will not exceed W. So W for standbyshould be an absolute minimum requirement. Recommended requirements: Energy Label

Audio sets and audio components

Definition

Non-portable audio equipment includes the followingtype of appliances:

• Audio sets (e.g. midi, mini, micro sets): equipmentconsisting of an amplifier and various (but at leasttwo) functional components (tuner, cd-player,

cassette-player, etc.) integrated in one casing, and (atleast) two loudspeakers.

• Audio components: stand-alone equipment for oneaudio function (amplifier may be integrated). Hence,a portable radio (tuner, amplifier and loudspeaker in-tegrated in one case) can be considered as an audiocomponent.



Requirements

Recommended requirements: Energy Label

Information tools for consumer electronics

In order to make energy-efficient public purchasingpossible, a procurement guide/toolkit could be devel-oped focusing on consumer electronics. This guideshould help and support public procurement agents toconsider energy efficiency criteria in their procurementprocedures:


• general information on energy efficiency: energy efficiency indicators and criteria, existing labelschemes and product databases


• model tender and evaluation• best practice examples concerning energy efficient

public procurement

10.4.4 Lighting

Outdoor and street lighting

Definition and Status quo

Outdoor lighting is a very relevant cost factor for publicadministrations. This is in particular true for big mu-nicipalities, where about % to % of the energycosts are spent for outdoor lighting. Street lightinggives orientation to drivers and therefore helps to pre-vent accidents. Lighting in outdoor areas such as civic,commercial and industrial centres, parks, pedestrianareas is necessary for orientation and for safety reasons.

Sometimes there are problems with the implementa-tion of new lighting technologies: it is often not possi-ble to switch light sources immediately (new fixturesare necessary) and the installation of new control sys-tems is for technical reasons not always possible.


For street lighting in general, the costs related to the en-ergy consumption are much higher than the purchasecosts. Therefore a life-cycle cost calculation is usefuland recommended. Usually high-pressure sodiumlighting systems with electronic ballasts are cost-effec-tive compared to mercury vapour lighting systems andshould thus be preferred. Even the exchange of existing

mercury vapour lighting systems to high-pressuresodium lighting systems with electronic ballasts is costeffective in most cases.

Requirements

• only energy-efficient lamp technologies whereverpossible, such as metal halide, high-pressure sodiumand compact fluorescent sources should be used.(Fluorescent sources that are not suited for low tem-perature operation in cold climate zones should notbe used for outdoor lighting purposes.) Mercuryvapour lighting systems and incandescent lightingsources should be avoided

• use life-cycle cost calculation• well advanced control systems as daylight, time con-

trolled or voltage reduction systems in low traffic pe-riods must be foreseen

Traffic signals

Definition and status quo

For traffic safety, traffic lights must fulfil a lot of opticaland technical requirements. Traffic lights must be seenby road users under all weather conditions and must berobust and reliable in technology. As traffic lights have a“legislative role”, it is very important that road userscan trust in the systems controlling traffic lights.


In general, the same reflections on street lighting arealso valid for traffic signals. The costs related to the en-ergy consumption are higher than the purchase costs.Therefore, a life-cycle cost calculation is useful and rec-ommended.

Still, tungsten halogen lamps are very common intraffic signals, but traffic lights with light-emittingdiodes (:s) as light source have become more andmore popular over the last years. Sometimes there areproblems by implementing the new technologies: gen-erally it is not possible to switch light sources immedi-ately (new fixtures are necessary).

Traffic signals based on technology use signifi-cantly less energy use ( - %) and have longer life(up to years) compared to less than two years forconventional traffic signal lamps.

Requirements

• use -based technology (however, the optical effi-ciency in a signal application of the is higherthan that of incandescent, which means that muchfewer watts are needed to produce the same signal effect)

• use life-cycle cost calculation

Information tools for lighting

A procurement guide/toolkit could be developed focus-ing on outdoor lighting and traffic signals. This guideshould support public procurement agents to considerenergy efficiency aspects in their procurement routines:




• general information energy-efficient lighting tech-nologies (high-pressure sodium and compact fluo-rescent light sources, advanced control systems, LEDbased technology for traffic signals, etc.) and corre-sponding product databases

• methodologies to identify the energy-efficient tech-nologies (life-cycle cost calculator for outdoor light-ing and traffic signals)


public procurement in the area of lighting

10.4.5 Transport equipment

Passenger cars

Status quo

The European Parliament passed a directive on car la-belling, designed to achieve significant fuel savings and,as a result, reductions in 2-emissions by providing fu-ture buyers with information on passenger car con-sumption. The Directive lays down minimuminformation requisites, but it is up to the MemberStates to establish the margin of action beyond thoseminimums. Information on fuel consumption andcosts has a proven effect on energy savings and 2-emissions reduction. Since there is a general trendthroughout Europe to buy larger cars with increasinglyhigh fuel consumption, information is even more nec-essary than ever.

The implementation of the Label Directive is differ-ent from one Member State to another, so it is quitecomplicated to compare cars directly on the label infor-mation in all Europe.


Naturally passenger cars, which have a low purchaseprice (small cars) use less low fuel than expensive cars,because they have less weight and lower powered en-gines. This indicates that low initial purchase costs arerelated to life-cycle costs and low fuel consumption.Thus, a combination between minimum requirementsfor 2-emissions and low initial purchase cost couldbe recommended for public procurement routines.

Current fuel consumption related specification ofcars, which are available on the market, vary within abroad range. The corresponding limits for the specific2-emissions and specific fuel consumption is given inthe table below.

Requirements

Recommended requirements:

• g/km 2-emission (the members of theEuropean Automobile Manufacturers Association() committed in a voluntary agreement toachieve a 2-emission target of g/km 2 for theaverage of their new cars sold in the by )

• diesel cars should have a particulate filters

• measures should be taken into account to avoid “overmotorization” of cars

• beside “normal oil fuelled” cars a option for hybrid,electric and/or fuel cell vehicles should be taken intoaccount

Trucks and goods vehicles for public purposes

Status quo

In particular in the public sector, a lot of trucks areused, which are usually fuelled by diesel. As a first op-tion, energy-efficient diesel trucks in combination witha particulate filter should be considered by public pro-curement, and as a second option bio-diesel fuelledcould be taken into consideration. (It takes time tobuild an infrastructure for bio-diesel problems with im-plementation: bio-diesel-infrastructure is missing.)


The average diesel consumption for trucks vary fromabout l/km to about l/ km in Europe. Thisvalue is an average, because a standardised measure-ment cycle for the fuel consumption under standard-ised conditions (freight and velocity) is missing.

Moreover, as the costs related to the fuel consump-tion are significant compared to the purchase costs (inthe same order of magnitude), a life-cycle cost calcula-tion approach is useful and could be recommended.But it must be checked that the information in tendersgiven by manufacturers concerning fuel consumptionreflect the actual fuel consumption.

Requirements


• use life-cycle cost calculation• diesel trucks should have particle filters• consider bio-diesel fuelled trucks

Buses

Definition and service requirement

Buses play an important role in public procurement (inparticular for bigger municipalities) and they aremostly fuelled by diesel. A first option is to go for energy-efficient diesel buses with a particle filters, a sec-ond option for bio-diesel fuelled buses (it takes time tobuild an infrastructure for bio-diesel problems with im-plementation: bio-diesel-infrastructure is missing).


The average diesel consumption for buses vary fromabout l/km to about l/ km in Europe. Theconsiderations on trucks can be applied to buses.

Requirements


• use life-cycle cost calculation• diesel trucks should have particle filters• consider bio-diesel fuelled trucks



Information tools for transport equipment

A procurement guide/toolkit could be developed focus-ing on transport equipment. This guide should supportpublic procurement agents to consider energy effi-ciency aspects in their procurement routines:


• general information energy-efficient transport equip-ment and product databases

• guide and education scheme for energy-efficient dri-ving (eco driving)

• methodologies to identify the energy-efficient vehi-cles (life-cycle cost calculator for trucks and buses)

• identification and development of representative energy efficiency specifications in particular fortrucks (e.g. litre/ ton km) and busses (e.g. litre/seatkm or litre/person km)


public procurement for transport equipment

10.5 Summary and conclusions

According to pure economic theory, a life-cycle costcalculation is always preferred. However, the problemsfor decision makers in public administrations are thetransaction costs. Gathering sufficient information toset reasonable assumptions for the different variables inthis calculation (lifetime, discount rate, expected devel-opments of energy costs, etc.) requires a lot of work.Therefore, and this is shown in the indicative analysis,for most of the appliances it is not useful to use life-cycle cost calculation to reach an energy-efficient and acost effective purchase decision in public procurement.

Furthermore, life-cycle costs in general are often notcorrelated to a high energy efficiency level (though it ispossible to identify appliances which are energy-effi-cient and which provide close to minimum life-cyclecosts). In fact there are appliances on the market, whichare characterised by a low energy efficiency level andlow life-cycle costs, by high energy-efficiency and highlife-cycle costs, by low energy efficiency and high life-cycle costs and by high energy efficiency and low life-cycle costs. The last mentioned combination is ofcourse the most interesting one for public procure-ment.

The same is valid for energy-efficiency level versusinitial purchase price. In general, a high energy-effi-

ciency level has no direct influence on the purchaseprice of appliances. This indicates that other featuresare more “price relevant” than energy efficiency. It it ispossible to find very energy-efficient appliances costingthe same or less as energy-efficient ones.

Most of the appliances are characterised by relativelyhigh initial purchase prices compared to relatively lowrunning costs over the lifetime. This is valid for most ofthe appliances groups.

• For the product groups like cold appliances, personalcomputers, monitors, etc., the almost only influenc-ing factor of the running costs is the electricity con-sumption times electricity price over the product life.In general, the costs for electricity over the productlife are low compared to the purchase costs.

• For the product groups washing machines, dishwash-ers, copiers and printers, the costs for electricity overthe product life are low compared to the purchasecosts and to other kind of running costs (costs forwater consumption, costs for detergents, etc.).

In particular in these cases, it is not effective to use alife-cycle calculation because it does not necessarily leadto an energy-efficient procurement solution. There areappliances on the market which are characterised bylow life-cycle costs and low energy efficiency level.These appliances show extremely low purchase pricesand low energy efficiency level.

However, a combination of energy efficiency andpurchase price is a possibility in order to achieve an en-ergy-efficient purchase decision. The energy-efficiencyrequirements should have a link to policy instrumentsdeveloped in Europe and their levels should roughly bebased on the best % available products. If the energyefficiency requirements are too “soft”, an energy-efficient purchase decision is not possible by this proce-dure and energy-efficient public purchasing has nomarket relevance. On the other hand, if the energy-efficiency requirements are too strict, no products willbe offered below the tenders.

If both factors (high energy efficiency and low pur-chase costs) are combined in public purchasing, an energy efficient solution on an economical optimalbasis can be found.

• For some product groups, the running costs relatedto energy consumption over the lifetime are signifi-cantly higher (e.g. outdoor lighting, traffic signals) orare in the same order of magnitude (buses andtrucks) than the initial purchase costs.



CO2-emission [gram/km]

Gasoline min: 118 g/km (MCC Smart) max: (without sport cars): 398 g/km (Range Rover)

Diesel min: 86 g/km (Audi A2) max: 304 g /km (Range Rover)

Fuel consumption [liter /100km]

Gasoline min: 4,9 l/100km (MCC Smart) max: (without sport cars): 16,4 l/100km (Range Rover)

Diesel min: 3,2 l/100 km (Audi A2) max: 11,4 l/100 km (Range Rover)



In this case, a life-cycle cost calculation is useful inorder to reach an energy-efficient purchase decision. Inthis context an -wide and common methodology tocalculate the life-cycle costs has to be developed, whichis accurate enough to lead to optimal results and whichis easy and practicable to use in public procurementroutines.

Nevertheless, energy-efficient appliances have a

strategic advantage because these products are charac-terised by a relatively higher share of investment costscompared to total life-cycle costs (investment costs plusrunning costs over the life time). This means energy ef-ficient appliances are more independent to future pricefluctuations and changing market conditions. A life-cycle costs approach can be used to make it transparent.

Energy Efficient Public Procurement

Appliances/Products low purchase price among those appliances life-cycle cost calculation

fulfilling the energy efficiency requirements

Cold appliances minimum requirements: energy efficiency class A (EEI < 0,55)

recommended requirements: energy+ criteria (EEI <= 0,42) –

Washing machines recommended requirements: energy efficiency class A,

washing performance A, drying rating A,

possibility for warm water inlet –

Dishwashers recommended requirements: energy efficiency class A,

cleaning performance A, drying performance A,

possibility for warm water inlet –

Clothes Dryers/Tumble Dryers minimum requirements: energy efficiency class C

recommended requirements: energy efficiency class A –

Ovens recommended requirements: energy efficiency class A,

gas-fired ovens are feasible –

Room air conditioners recommended requirements: energy efficiency class A –

Monitors minimum requirements: Energy Star

recommended requirements: Energy Label –

Personal computers minimum requirements: Energy Star


Printers minimum requirements: Energy Star


Copiers minimum requirements: Energy Star


Fax machines minimum requirements: Energy Star


Scanners minimum requirements: Energy Star


Multifunctional devices minimum requirements: Energy Star


TV-sets minimum requirements: 6W for standby


Table 10.1. Summary of the public procurement recommendations, which enable an energy-efficient purchase decision



VCRs and DVDs minimum requirements: 6W for standby


Audio-sets and Audio recommended requirements: Energy Label

components –

Outdoor and street lighting – use energy-efficient lamp tech-

nologies: metal halide, high-

pressure sodium, and compact

fluorescent sources

use life-cycle cost calculation

use advanced control systems

(daylight, time controlled or volt-

age reduction)

Traffic signals – use LED-based technology

use life-cycle cost calculation

Passenger cars recommended requirements: 140 g/km CO2-Emission

diesel cars should have a particulate filters

avoid “over motorization” of cars

option for hybrid, electric and/or fuel cell vehicles should

be taken into account –

Trucks and goods vehicles – use life-cycle cost calculation

diesel trucks should have particle

filters

Buses – use life cycle cost calculation

diesel buses should have particle

filters

Energy-efficient public procurement

This chapter considers in detail the instruments for in-creasing energy efficiency in the public sector buildingstock through purchase specifications and MinimumPerformance Standards (). It furthermore brieflyconsiders the use of best practice guidelines, minimumrequirements for passive cooling and life-cycle cost() methods.

Purchase specifications provide guidance in the choiceof technologically comparable solutions mainly forbuilding components and units of installed equipment;for example, to define/assist the choice between ineffi-cient and efficient versions of light sources, ballasts orboilers. Purchase specifications are based on ex-ante de-

fined typical life-cycle cost () calculations of prod-ucts and solutions considering typical usage patterns.

The report provides summary specifications for ninecomponent ranges, and defines detailed specificationsfor a further six. The detailed specifications provide acomprehensive purchase specification, articulated forexample on hours of use of the component or geo-graphical location of the building and importantly detail the evaluation method, which provides for trans-parency, and allows for replication and maintenance ofthe specifications in time.

Minimum building performance standards identifythe ultimate goal of efficient building design for thosein charge of commissioning and designing buildings.Performance standards offer a significant advantagecompared to other methods which aim to improvebuilding energy efficiency.

Building owners and users:For this group minimum performance standards pro-vide a clear measure of building energy performance,which can usually be readily translated into runningcosts.

Architects and designers:For architects and designers, minimum performancestandards provide creative freedom of choice in findingthe optimal mix of:

• active technologies: for example artificial lighting systems

• passive solutions: for example spectrally selective glaz-ing and window shading to provide summer cooling

Minimum performance standards are proposed for newand refurbished building stock in the public sectoracross Europe. The level of the standard is determinedby considering international experience in the develop-ment of low energy buildings. An important considera-tion in the respective section of this chapter is theprocess, by which minimum performance standardscould be effectively introduced into the public sector,in light of, and in synergy with the forthcoming Directive on the energy performance on buildings.

Though recognising purchase specifications andminimum performance standards to be effective tools,other methods can be applied: Best practice guidelines define selected pathways to


11. Measures and tools for improvingthe energy efficiency of buildings

Purchase specifications vs. performance standards

Ultimately, public administrations (PAs) should pro-cure appliances and building components whichoffer minimum life-cycle costs. However, the applica-tion of a life-cycle cost analysis is generally only cost-effective for large purchase volumes (only for rela-tively large purchases may buyers be expected tospend the extra time to gather data on energy effi-ciency and purchase prices of alternative products).

Purchase specifications therefore provide a simpli-fied procedure of determining for the majority ofsmall or medium sized purchases. Though useful forappliances, purchase specifications are not able tocapture completely the large saving potential offeredby improving buildings.

Building performance standards provide an effec-tive means of addressing the complex issue of devel-oping efficient building systems, through theoptimised combination of single component/unitpurchases towards optimised systems at minimum, based on previous design experiences. An im-portant tool in this respect is the method of inte-grated building design, i.e., simultaneouslyoptimising the design of building shell, heating, ven-tilation, air conditioning, lighting, and appliances inorder to minimise energy demand. However, at totalinvestment volumes for a new build or refurbishmentproject above a certain threshold, a life-cycle costanalysis should be carried out already during the de-sign phase. This threshold could be Euros, asstated for example in the internal guidelines of theCity of Frankfurt am Main.

improved energy efficiency by defining an optimisedcombination (in terms of investment/running costs) ofequipment choice, system design, maintenance and op-erational schedules. Guidelines, which respect nationalbuilding regulations provide voluntary but concretepathways to improved energy efficiency for system de-signers.

As an example for such guidelines, a translation ofthe guidelines provided by the Deutscher Städtetag,Arbeitskreis Energieeinsparung (the German associationof medium and big cities, working group energy con-servation) is included as Appendix . These guidelinesalso contain a number of purchase specifications andminimum performance standards.

Best practice guidelines are likewise useful for pro-moting the adoption of passive solutions for providingsummer space comfort, however:

Minimum requirements for implementing passivecooling strategies as a prerequisite to installing activeair conditioning systems are merited, given that the in-creasing diffusion of active air conditioning systems is apriority issue to address for the . Moreover, failing toavoid the initial installation of active air conditioningsystems represents a lost opportunity for achieving en-ergy savings difficult to recover in the medium term.

A recommendation to require the implementation ofpassive cooling strategies as a prerequisite to the intro-duction of active air conditioning systems is made.(Nevertheless, the report also defines a purchase specifi-cation for active air conditioning units).

Life-cycle cost () methods provide standard evalua-tion procedures of determining for purchase deci-sion makers for larger investment volumes, or in anycase when purchase specifications prove inadequate todescribe the specific conditions operated by a publicadministration. methods offer standard transparentappraisal procedures, which can be used by all those in-volved in appliance and “building” procurement toidentify and evaluate efficient building components,system designs, and alternative passive solutions.

Purchase specifications and minimum performancestandards both aim to reduce and minimise life-cyclecosts for operating building stock. The general con-cepts of determining life-cycle costs are considered inChapter . This chapter considers the issues pertinentto developing standard methods specific to build-ing components and systems.

11.1 Purchase specifications

Purchase specifications define minimum requirementsto apply when purchasing components and systems forinstallation in buildings used by the public sector inMember States. Six detailed and nine summary specifi-cations have been developed.

Specifications can be used in any purchase made by

the public sector, irrespective of the size (volume orvalue) of the purchase.

Specifications are based on ex-ante calculations.By identifying minimum solutions, specificationsallow contracts to be awarded on the criteria ”most eco-nomically advantageous offer”, based on the (ex-ante)quantified reduction in running costs (energy andmaintenance).

The specifications define which components and sys-tems to purchase. Generally, no attempt is made topackage the specifications in a format adaptable to spe-cific applications, for example by integrating specifica-tions into standard texts which could be used withoutmodification in tender documents.

However, Figures and in Chapter provide an ex-ample of how the purchase specifications defined in thisreport could be integrated into an effective communi-cation package for the public administration. The fig-ures show four pages from a hypothetical Public SectorEnergy Efficiency Programme () catalogue of pur-chase recommendations/requirements (the full sizepages are given in Appendix ). Two purchase recom-mendations/requirements are defined for ballasts andglazing based on the information (specification andeconomic analysis) reported in the respective purchase specifications, and .

The issue of how to effectively communicate the pur-chase specifications to the public sector is considered inmore detail in Chapter .

Table . offers an overview of the range of solutionsavailable for improving the energy efficiency of build-ing stock, and the type of purchase specification whichcan direct the public sector to improved energy effi-ciency.

The table also serves to define the terms “buildingcomponents” and “building systems” as used in this report.

The purchase specification explicitly recalled in Table. are based directly on purchase specifications actu-ally operated by institutions in the public sector inEurope and elsewhere (for example the Frankfurt Cityguidelines in Germany and the PurchaseGuidelines in the ), with only a minimum elabora-tion by the presenting working group. The explicitspecifications reported in Table . are termed LikelySpecifications and are recommended in lieu of a moredetailed targeted analysis as conducted for the compo-nents listed in Table .. (The building policy tool inChapter considers the process by which the purchasespecifications defined in the present work might becompleted and updated in time at European levelthrough a co-ordination of national working groups.)

However, though the likely specifications are notfounded on a detailed analysis within the presentstudy, it is the opinion of the working group that thespecifications do lead to minimum . This is bothfrom analogy with those components for which the de-tailed analysis conducted in the present study pro-vided specifications which generally varied only slightly

MEASURES AND TOOLS FOR IMPROVING THE ENERGY EFFICIENCY OF BUILDINGS


from existing public sector specifications (for examplethe guidelines in the ), and more generallybased on the expert opinion of the working group.

11.1.1 Overview of purchase specifications

In Table . (overleaf ) energy-efficient solutions are or-dered on the basis of building service requirement:

• indoor lighting• indoor winter space comfort• indoor summer space comfort• sanitary hot water provision• building services (miscellaneous)

In many cases, improvements to the energy efficiencyof active systems might represent the only feasible solu-tion to reducing energy use in buildings. However, byarticulating information, even in relation to active sys-tems on the basis of service provision, we begin to openhorizons and stimulate thought on how to integratepassive solutions into buildings. Though seeminglytrivial, the change of emphasis from active systems toservice requirements represents an important culturalchange in building design and maintenance, andshould be underlined on all occasions.

For each active or passive building component, apurchase specification is identified.

In the case of active components and systems thepurchase specification refers to the solution to be im-proved. For example:

• for incandescent lamps, a Likely PurchaseSpecification to “Purchase a ” is made

• for heat generators a Likely Purchase Specification to“Purchase condensing gas boilers is made”

• and for condensing gas boilers a set of minimum effi-ciency requirements are specified

For passive solutions the general specification “alwaysconsider when refurbishing” is made.

Comments are given in brackets.





Ind

oo

r lig

hti

ng

Lam

ps (l

ight

sou

rces

)T1

270

lm/W

PP

S1

T8 1

8W e

lect

rom

agne

tic b

alla

st52

-75

lm/W

T8 3

6W e

lect

rom

agne

tic b

alla

st65

-93

lm/W

T8 3

6W e

lect

roni

c ba

llast

73-1

05 lm

/W

T5 3

5W e

lect

roni

c ba

llast

97-1

04 lm

/W

inca

ndes

cent

11-1

9 lm

/WP

urch

ase

CFL

halo

gen

11-2

3 lm

/W

CFL

(int

egra

l)30

-65

lm/W

CFL

(pin

)45

-87

lm/W

indu

ctio

n (s

elf b

alla

sted

48 lm

/W

indu

ctio

n (p

in b

ased

71 lm

/W

Bal

last

sco

nven

tiona

l ele

ctro

mag

netic

91

W (f

or 2

*36

W T

8 Tu

be L

umin

aire

)P

PS

2

low

loss

ele

ctro

mag

netic

86 W

(for

2*3

6 W

T8

Tube

Lum

inai

re)

elec

tron

ic71

W (f

or 2

*36

W T

8 Tu

be L

umin

aire

)

Lum

inar

ies

(con

side

ring

dow

nwar

d ef

ficie

ncy

only

)*

diff

user

/pris

mat

ic f

or T

842

-62%

PP

S3

whi

te p

aint

ed re

flect

ors

for T

855

-68%

alum

iniu

m re

flect

ors

T857

-73%

alum

iniu

m re

flect

ors

T566

-76%

alum

iniu

m re

flect

ors

CFL

55W

G11

63-9

0%

indu

stria

l 58

-84%

Ligh

t sou

rce/

T8/e

lect

rom

agne

tic/p

rism

atic

40 lm

/WP

PS

4

Bal

last

/T8

/ele

ctro

nic/

spec

ular

60 lm

/W

Lum

inai

reT5

/ele

ctro

nic/

spec

ular

61 lm

/W

Lig

ht c

on

tro

l/m

anua

l(P

roba

bly

best

tack

led

thro

ugh

Ligh

t sou

rce/

best

pra

ctic

e gu

ides

)

Bal

last

/tim

ers

ener

gy s

avin

gs o

f 10-

35%

repo

rted

Lum

inai

re

Ser

vice

S

yste

mC

om

po

nen

tsTe

chn

olo

gy

Ran

ge

of e

ffici

ency

PR

OS

T P

urc

has

e P

urc

has

e sp

ecifi

cati

on

/

req

uir

emen

t re

qu

irem

ent (

com

men

ts)

or

effi

cien

cy g

ain

sS

pec

ifica

tio

ns

effi

cien

cy

Tab

le 1

1.1



occu

panc

y se

nsor

com

mon

ene

rgy

savi

ngs:

offi

cers

1-2

pers

ons

25-3

0%, o

ffice

s op

en s

pace

20 -2

5%, r

est r

oom

s 30

-75%

,

corr

idor

s 30

-40%

, sto

rage

are

as 4

5-65

%,

mee

ting

room

s 45

-65%

, war

ehou

ses

50-7

5%

dayl

ight

sen

sor

impr

oved

zon

ing/

impr

oved

acc

essi

bilit

y

inte

grat

ed a

utom

atic

con

trol

sys

tem

s

PAS

SIV

EA

lway

s co

nsid

er p

assi

ve s

olut

ions

whe

n re

furb

ishi

ng

pris

mat

ic g

lazi

ng(P

roba

bly

best

tack

led

thro

ugh

best

prac

tice

guid

es)

light

she

lves

day

light

ing

com

mon

ly p

rovi

des

ener

gy s

avin

gs o

f 30-

70%

light

wel

l/lig

ht d

uct

Win

ter s

pace

H

eat g

ener

ator

stan

dard

fuel

oil

(sin

gle

or tw

o91

% a

t 30%

of n

omin

al lo

adP

urch

ase

cond

ensi

ng g

as b

oile

r or i

f

com

fort

stag

e bu

rner

)no

gas

con

nect

ion,

con

dens

ing

fuel

oil

gas

stan

dard

(sin

gle

stag

e93

% a

t 30%

of n

omin

al lo

adP

urch

ase

cond

ensi

ng g

as b

oile

r

/tw

o st

age

burn

er)

cond

ensi

ng g

as

108%

at 3

0% o

f nom

inal

load

Min

imum

effi

cien

cy re

quire

men

ts

from

10

kW a

70

kW

at 7

5°/6

0°C

100%

at 4

0°/3

0°C

103%

grea

ter t

han

70 k

W

at 7

5°/6

0°C

101%

at 4

0°/3

0°C

104%

Con

trol

+ E

mitt

ers

outd

oor t

herm

osta

t(P

roba

bly

best

tack

led

thro

ugh

best

+D

istr

ibut

ion

prac

tice

guid

es)

+H

eat g

ener

ator

Ser

vice

S

yste

mC

om

po

nen

tsTe

chn

olo

gy

Ran

ge

of e

ffici

ency

PR

OS

T P

urc

has

e P

urc

has

e sp

ecifi

cati

on

/

req

uir

emen

t re

qu

irem

ent (

com

men

ts)

or

effi

cien

cy g

ain

sS

pec

ifica

tio

ns

effi

cien

cy



indo

or th

erm

osta

t

ther

mos

tatic

val

ves

Dis

trib

utio

nhy

dron

ic +

radi

ator

s+st

anda

rd g

as b

oile

rIn

stal

l rad

iant

pan

els+

cond

ensi

ng g

as

+H

eat e

mitt

ers

hydr

onic

+ra

dian

t pan

els+

cond

ensi

ngfr

om 1

0 to

35%

in o

ffice

s, >

50%

in la

rge

(The

se s

yste

ms

offe

r pa

rtic

ular

ly h

igh

+H

eat g

ener

ator

gas

boile

rsp

aces

with

hig

h ce

iling

s, e

.g. s

port

s ha

lls,

savi

ngs

in la

rge

spac

es s

uch

as s

port

s

expo

sitio

n sp

aces

hall,

con

fere

nce

room

s an

d ch

urch

es)

gas

radi

ant p

anel

s

PAS

SIV

EA

lway

s co

nsid

er P

assi

ve S

olut

ions

whe

n re

furb

ishi

ng

low

E g

lazi

ngad

vanc

ed g

lazi

ng o

ften

pro

vide

s sa

ving

s P

PS

5

of 2

0% in

hea

ting

and

cool

ing

impr

oved

wal

l and

roof

insu

latio

nm

axim

um h

eatin

g de

man

d of

35

kW/m

2 /ye

ar

(Wou

ld b

e po

ssib

le to

dev

elop

a p

ur-

com

pare

d to

> 1

00 k

Wh/

m2 /

year

typi

cal i

n E

Uha

se re

com

men

datio

n to

iden

tify

insu

latio

n m

ater

ials

with

hig

hest

U v

alue

s, a

nd id

entif

y th

e th

ickn

ess

offe

ring

the

min

imum

life

cyc

le c

ost)

heat

exc

hang

ers

(Pro

babl

y be

st ta

ckle

d th

roug

h be

st

prac

tice

guid

es)

larg

e gl

azed

sur

face

s

Sum

mer

spa

ce

Alw

ays

cons

ider

pas

sive

sol

utio

ns b

e-

com

fort

fore

intr

oduc

ing

air-

cond

ition

ing

units

.

This

idea

lly s

houl

d be

mad

e a

requ

ire-

men

t as

in th

e ca

se o

f Sw

itzer

land

.

Air

cond

ition

ing

units

air c

oole

d <

12

kW

Pur

chas

e w

ater

coo

led

mod

els

if

(roo

m a

ir co

nditi

oner

s)w

ater

tech

nica

lly p

ossi

ble

split

1.54

< E

ER

< 3

.56

Pur

chas

e E

U C

lass

A la

belle

d

mod

els

(EE

R >

3.2

)

mul

ti sp

lit1.

91 <

EE

R <

3.7

4P

urch

ase

EU

Cla

ss A

labe

lled

mod

els

(EE

R >

3.2

)

Ser

vice

S

yste

mC

om

po

nen

tsTe

chn

olo

gy

Ran

ge

of e

ffici

ency

PR

OS

T P

urc

has

e P

urc

has

e sp

ecifi

cati

on

/

req

uir

emen

t re

qu

irem

ent (

com

men

ts)

or

effi

cien

cy g

ain

sS

pec

ifica

tio

ns

effi

cien

cy



pack

aged

dou

ble

duct

1.88

< E

ER

< 2

.97

Pur

chas

e sp

lit s

yste

m

pack

aged

sin

gle

duct

1.35

< E

ER

< 3

.09

wat

er c

oole

d <

12

kW

(roo

m a

ir co

nditi

oner

s)

split

2.7

< E

ER

< 3

.6P

urch

ased

pac

kage

d w

ater

coo

led

pack

aged

2.

26 <

EE

R <

5.4

2E

U C

lass

A la

belle

d m

odel

s (E

ER

> 4

.4)

air s

ourc

ed <

19

kW, t

hree

pha

se

split

or s

ingl

e pa

ckag

e E

nerg

y S

tar,

i.e. E

ER

> 3

.81

air s

ourc

ed fr

om 1

9 kW

to 4

0 kW

split

or s

ingl

e pa

ckag

e E

nerg

y S

tar,

that

is E

ER

> 3

.22

air s

ourc

ed fr

om 4

0 kW

to 7

3 kW

split

or s

ingl

e pa

ckag

e E

nerg

y S

tar,

that

is E

ER

> 3

.17

Cei

ling

fans

ceili

ng fa

nsE

nerg

y S

tar l

abel

led

ceili

ng fa

ns m

ove

at

Pur

chas

e E

nerg

y S

tar P

rodu

cts,

leas

t 20%

mor

e ai

r tha

n a

typi

cal c

eilin

g fa

n su

mm

arily

Low

Spe

ed, 4

.39

m3 /

min

. W,

per w

att o

f pow

er c

onsu

med

.M

ediu

m S

peed

, 3.1

1 m

3 /m

in./W

,

Hig

h S

peed

, 2.1

2 m

3 /m

in.W

.*

PAS

SIV

EA

lway

s co

nsid

er P

assi

ve S

olut

ions

be-

ore

intr

oduc

ing

air-

cond

ition

ing

units

.

This

idea

lly s

houl

d be

mad

e a

requ

ire-

men

t as

in th

e ca

se o

f Sw

itzer

land

.

sele

ctiv

e gl

azin

g ad

vanc

ed g

lazi

ng o

ften

pro

vide

s P

PS

5

savi

ngs

of 2

0% in

hea

ting

and

cool

ing

win

dow

sha

ding

(Pro

babl

y be

st ta

ckle

d th

roug

h be

st

prac

tice

guid

es)

incr

ease

d th

erm

al m

ass

natu

ral n

ight

ven

tilat

ion

incr

ease

roof

alb

edo

can

redu

ce p

eak

cool

ing

dem

and

by 1

0-15

%

Ser

vice

S

yste

mC

om

po

nen

tsTe

chn

olo

gy

Ran

ge

of e

ffici

ency

PR

OS

T P

urc

has

e P

urc

has

e sp

ecifi

cati

on

/

req

uir

emen

t re

qu

irem

ent (

com

men

ts)

or

effi

cien

cy g

ain

sS

pec

ifica

tio

ns

effi

cien

cy



San

itar

y h

ot

wat

erPA

SS

IVE

low

flow

taps

redu

ce h

ot w

ater

requ

irem

ents

by

Pur

chas

e lo

w-fl

ow a

erat

ors

:

50-7

0% o

n th

e si

ngle

tap.

•<

3 l/m

in fo

r was

h ba

sins

•<

7 l/m

in fo

r sho

wer

s

Pur

chas

e st

anda

rd ta

ps w

hen

tap

used

pred

omin

antly

to fi

ll re

cipi

ents

(for

exa

mpl

e bu

cket

s or

bat

h) .

Pur

chas

e va

riabl

e lo

w-a

erat

ors,

3-8

l/min

for m

ixed

use

d ta

ps.

sola

r pan

els

(Pur

chas

e sp

ecifi

catio

ns c

ould

be

deve

lope

d in

dica

ting

min

imum

pla

te

effic

ienc

y et

c. H

owev

er, p

roce

dura

l

guid

es/r

equi

rem

ents

wou

ld a

lso

be u

sefu

l)

Bu

ildin

g s

ervi

cepu

mps

cent

rifug

al w

ith th

ree

spee

d flo

w

Pur

chas

e va

riabl

e sp

eed

cont

rolle

d

(mis

cella

neo

us)

regu

latio

n or

val

ve c

ontr

olpu

mps

or e

lect

roni

cally

com

mut

ated

varia

ble

spee

d pu

mps

.

cent

rifug

al, n

orm

al A

/C m

otor

fr

om 3

0% -

50%

sav

ings

ove

r sta

ndar

d P

urch

ase

elec

tron

ical

ly c

omm

utat

ed

with

var

iabl

e sp

eed

cont

rol

thre

e sp

eed

pum

psva

riabl

e sp

eed

pum

ps. (

Ele

ctro

nica

lly

com

mut

ated

and

per

man

ent m

agne

t

mot

ors

varia

ble

spee

d m

otor

s ha

ve

rece

ntly

bee

n in

trod

uced

ont

o th

e

mar

ket b

y a

num

ber o

f man

ufac

ture

rs.

The

mar

gina

l cos

t with

resp

ect t

o

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11.1.2 Detailed PROST Purchase Specifications

Table . lists the components and systems for whichdetailed purchase specifications have been developedwithin the present project. As already seen these are alsoindicated in the overview Table ., with the acronyms.

The detailed Purchase Specifications are re-ported below. Each detailed specifications isbased on a detailed related analysis collated in the ap-pendices.

For each building component/building system, theanalysis is articulated on the following sections:

• specification• example of savings and costs• considerations on specified efficiency levels• existing national purchase specifications• further study

Developing the specifications and determining subse-quent typical savings which result from their applica-tions requires defining typical system types, operatingand economic conditions as commonly installed/enjoyed by the public sector in Europe.

Table . details the general considerations adheredto in the choice of values to assign to the principle vari-ables affecting the evaluation. Generally the attempt ismade to choose conservative values. However manyvariables (for example operating hours) are specific to atechnology and otherwise each analysis makes a num-ber of exceptions to the general considerations to reflectthe idiosyncrasies of the technologies or the data available.



Table 11.2.

Detailed PROST Purchase Specification Building component /system Comment

PPS 1 Fluorescent tube lamps For linear fluorescent tubes

PPS 2 Ballasts For linear fluorescent tubes

PPS 3 Luminaires Standard work place, Special work place and Industrial

for T8 linear fluorescent tubes

PPS 4 T5 luminaire systems Considers when to switch from T8 luminaire, tube and

ballast combinations to T5 alternatives.

PPS 5 Glazing

Table 11.3. General consideration on values applied to variables in the component and system LCC analysis.

Typical value considered Considerations guiding the choice of typical value

System power Expert opinion based combined with technology reviews

System usage 3 600 hours/year Considering 16 hours per 220 days. Even though the main staff working

shifts maybe less, components are generally (for example lighting,

heating system circulation pumps) switched on for longer periods.

Component lifetime Generally conservative estimate compared to the full technical lifetime.

The estimate considers that organisational changes are not uncommon

and often lead to changes to infrastructure with components and sys-

tems being replaced before their natural technical lifetime.

Discount rate 8% The public sector has a wider societal objective than achieving direct

economic gain and a lower rate of 5% might be considered a more rea-

sonable requirement. However, here we apply a more conservative

8% to be on the safe side with the economic result.

Energy price 0.1 Euro/kWh Typical price for public sector from cross country surveys

Component purchase price Applying common discounts to manufacturer list prices. For each

technology prices where taken from the most important manufactures

in Italy.

Additional recommendations

The recommendations do not apply to fluorescentlamps with a colour rendering index () greater than. Use fluorescent lamp with a greater than only where explicitly required by building codes orother ergonomic guidelines, since these lamps areroughly % less efficient than other recommended

triphosphor tubes.The Directive // was introduced in July

, and required cross country compliance byJanuary . In the case that products are not cate-gorised according to the Directive //, pur-chase officers should refer to Table . and Table ..



Table 11.4. Purchase recommendations for linear T5, T8 and T12 fluorescent tube lamps.

Tube nominal power Recommended efficiency

(According to EU Directive 98/11/EC defining Energy Label for household lamps)

T5 14W Class A

35W Class A

T8 18W Class A

36W Class A

58W Class A

T12 Replace where possible with T8

Table 11.5. Minimum efficiency requirements for T8 fluorescent tubes powered by standard electromagnetic ballasts, as

usually reported in product catalogues.

Tube nominal power Colour rendering index Range of efficiency Recommended efficiency

(CRI) (lumen/watt) (lumen/watt)

T8 18W < 90 52-75 75

> 90 55-58 55

36W < 90 65-93 93

> 90 64-65 64

Table 11.6. Minimum efficiency requirements for T5 fluorescent tubes powered by electronic ballasts. The table reports the

nominal luminous efficiency of T5 tubes operating at 35°C.

Tube nominal power Colour rendering index Range of efficiency Recommended efficiency

(CRI) (lumen/watt) (lumen/watt)

T5 14W 80 < CRI < 90 89-96 96

35W 80 < CRI < 90 97-104 104

PROST Purchase Specification for fluorescent tube lamps (PPS 1)

58 W lamps are common in some countries. Future guidelines may have to be amended to incorporate these lamps.



Table 11.7. Annual lamp usage at which CELMA Class B2 low loss and Class A2 electronic ballasts should be purchased for use

with T8 fluorescent lamps.

System type Number of ballasts Low loss Electronic

(CELMA Class B2) (CELMA Class A2)

(W) Standard/Low loss Electronic from (hours/year) to (hours/year) above (hours/year)

2 x 18W 1 1

4 x 18W 2 2 600 1 500

1 x 36 W 1 1 1 500

2 x 36 W 2 1 - - 700

1 x 58 W 1 1 - - 700

2 x 58W 2 1 - - 700

PROST Purchase Specification for ballasts (PPS 2)

PROST Purchase Specification for luminaires (PPS 3)

Table 11.8. PROST minimum “downward” efficiency recommendations for luminaires.

Luminaire Type Luminaire Downward Efficiency

IP Average Best Recommended

(%) (%) (%)

Standard workplace/office,

Louvered for VDT < 54 62 73 67

Special workplace

(e.g. laboratories, kitchens) 54 < IP < 65 49 60 56

Industrial > 65 69 85 73

Note

IP = International Protection (as defined by IEC)

IP 20: Protected against penetration of solid parts with a diameter greater than 12 mm and not protected against liquids

IP 40: Protected against penetration of solid parts with a diameter greater than 1 mm and not protected against liquids

IP 54: Protected against dust and splashes of water

IP 65: Protected and against dust and jets of water

Luminaire efficiency and indirect lighting

Ratio of light output from luminaire (in lumens) and total light output from the light source (in lumens) which it holds.

The recommendation is based only on downward (direct) luminaire efficiency. Higher efficiencies (up to 90 % or above) can be achieved

by combined downward and upward (direct and indirect) luminaries. However, this requires maintaining light ceilings and walls. For cau-

tion, we have therefore not included direct/indirect lighting efficiencies in our recommendations, but recommend to assess if further sav-

ings are realistic with direct/indirect lighting depending on the circumstances. Solutions with 100% indirect lighting and localized task

lighting may yield very high system efficiency, but is beyond the scope of these purchase specifications.

To be applied to all purchases.

Replacing a single luminaire with a more efficient model has the following advantages.

• It increases the possibility of using a limited number of lamps in a multiple lamp luminaire

• It increases the level lumination and thus decreases the probability that users will introduce additional portable light sources

(for example desk lamps)

When refurbishing or replacing many luminaries, using more efficient luminaries allows the total installed power to be reduced.

Table ., Table ., Table . and Table . indi-cate under which annual use conditions alternativelighting system prove economic.

Additional recommendations

fluorescent tubes are not available with a colour ren-dering indexing of or above. They can not be usedtherefore in certain specialist applications; for examplein hospital operating theatres, dental studios and clothretailers.

Comments

The recommendation compares the economics of systems compared to systems with electronic bal-lasts. The economics of using systems with elec-tronic ballasts rather than systems with standardballasts is considered in another recommenda-tion.

Considering total lifetime costs, systems with elec-tronic ballasts represent the most economic solutionunder almost all conditions.

x systems can prove cost-effective comparedto x systems, if it proves possible to reduce thenumber of the former installed luminaires with respectto the latter. Though Table . indicates this to be afactor of space surface area, this is slight simplificationand generally savings can be achieved only by ensuringa correct design of the plant.

luminaires provide an economic alternative to x systems (with electronic ballasts) if the condi-tions in Table . and Table . are met.

The choice of x systems rather than x systems will depend on non economic consid-erations (space ergonomics, aesthetics, etc.).



Table 11.9. Overall choice of system

System type When alternative system is economic

T8 4x18W T5 2x35W T5 4x14W

T8 2x36W (34W) Never If correctly designed Never

See Table 10

T8 4x18W (16W) - Most likely See Table 12

See Table 11

T5 4x14W See Table 12 Always -

Table 11.10. The maximum marginal purchase price at which T5 2x35 W luminaires prove economic compared to T8 2x36W lu-

minaires with electronic ballasts. That is, T5 2x35 W luminaires should be chosen over T8 2x36 W models if the purchase price

of the T5 compared to the T8 luminaire is less or equal to the figure reported in the last row of the table.

For spaces above 80m2

Annual use (hours) 2 000 3 000 4 000 8 000

Acceptable extra cost for T5 Luminaire + Tubes (Euro) 16 17 18 21

Likely additional lamp cost per T5 tubes (Euro) 5.3 5.3 5.3 5.3

Acceptable extra cost for T5 Luminaire (Euro) 11 12 12 15

Table 11.11. The maximum marginal purchase price at which T5 2x35 W luminaires prove economic compared to T8 4x18W lu-

minaires with electronic ballasts. That is, T5 4x14 W luminaires should be chosen over T8 4x18 W models if the purchase price

of the T5 compared to the T8 luminaire is less or equal to the figure reported in the last row of the table.

Annual use (hours) 2 000 3 000 4 000 8 000


Likely additional lamp cost per T5 tubes (Euro) -1.5 -1.5 -1.5 -1.5

Acceptable extra cost for T5 luminaire (Euro) 73 89 104 167

PROST Purchase Specification for T5 luminaire systems (PPS 4)



Table 11.12. The maximum marginal purchase price at which systems composed of T5 4x14 W luminaires prove economic com-

pared to T8 4x18W luminaires with electronic ballasts. That is, T5 4x14 W luminaires should be chosen over T8 4x18 W models

if the purchase price of the T5 compared to the T8 luminaire is less or equal to the figure reported in the last row of the table.

Annual use (hours) 2 000 3 000 4 000 8 000


Likely additional lamp cost per T5 tubes (Euro) 7.6 7.6 7.6 7.6

Acceptable extra cost for T5 luminaire (Euro) 5 12 18 44



Table 11.13. Minimum acceptable performance characteristics of windows (Insulating Frame and Glazing Units)

Climate zone Cooling requirement U Value (W/m2 K) SHGC Tv/Best available*

Heating no concern ≤1.3 ≥0.5 0.6

of concern ≤0.4 0.5

Heating and cooling limited concern ≤1.6 ≤0.5 0.6

some concern ≤0.4 0.5

Cooling real concern - ≤0.3 0.4

SHGC = Solar Heat Gain Coefficient; Tv = visible transmittance

* The column provides information only, it is not part of the requirement.

PROST Purchase Specification for glazing (PPS 5)

Figure 11.1: European climate zones. Source world climate.com from British Fenestration Rating Council web-site.

Northern = Mostly heating

Central = Heating and cooling

Southern = Mostly cooling

Comments

• The map is very indicative. Only in truly Mediterranean climates should windows be chosen on the basis of SHGC alone.

• In some hot climates where winters are mild it might seem reasonable to select a single-glazed window with a low Solar Heat Gain

Coefficient rather than a more typical double glazed unit. However, single glazings have a more limited range of solar heat gain

control so a double glazed unit will usually be the overall best solution.

11.2 Minimum performance standards

11.2.1 Heating and ventilation

Table . identifies the recommended maximum levelof delivered thermal energy consumption to provide:

• hot water • space heating

and delivered electrical energy for

• space ventilation

in public sector office space in all Member States.The limits consider that delivered electrical energy ismultiplied by ..

Significant experience shows that the limits (the min-imum performance standards) reported in Table canbe achieved cost-effectively whilst maintaining highlevels of space comfort in buildings (cf. Appendix ). Inmany Member States the limits represent an notableimprovement, (up to %), on those limits derivedfrom existing building codes. In a few cases the limit ac-tually equates closely with those currently imposed byexisting Member States building codes. Where existinglimits are already restrictive (compared to the average condition), the Member States should neverthelessaim to introduce tighter requirements for public sectorbuilding stock (say a % improvement).

However though the above limits are cost-effective, anumber of issues need to be addressed before any oblig-ation could be placed on the public sector in this sense.

The analysis conducted (Appendix ) considers theissues at stake, including restrictions, opportunities,and synergies presented by the forthcoming Directive “on the energy performance of buildings”(the Buildings Directive). The text explains thechoice of limits and the importance of the recommen-dations/actions listed above.

11.2.2 Indoor lighting

Requirements on indoor lighting levels, as well as de-sign regulations, appear to differ across the . The energy consumption furthermore strongly depends onthe required lighting levels and the annual hours of useof a lighting system. The latter are in turn dependingon the type of control (manual, timer, occupancy, day-light, or combinations).

It has therefore not been possible to develop a generalrecommendation for a minimum performance stan-dard for indoor lighting. However, the recommenda-tions on maximum energy consumption level toachieve given in the guidelines of the DeutscherStädtetag (cf. Appendix ) provide a benchmark ofwhat is economically feasible in the with currentlighting technology and careful design of lighting sys-tems and controls:

“At an illumination level of lux, an installedpower of W/m must not be exceeded, the targetvalue is . W/m. At an illumination level of lux,the maximum value is W/m, the target value is W/m. These levels can be achieved, if lamps with alighting efficiency of at least lm/W and luminaireswith a lighting efficiency of at least % are used.Generally, electronic ballasts must be used.”

11.2.3 Circulation pumping

Among the purchase specifications, we also recom-mend the use of speed-controlled pumps. However, thepump itself is only one part of a water circulation sys-tem. The system itself, with all the pipes and valves andsecondary circuits in a complex public building, oftenpresents higher opportunities for reducing energy de-mand. Hydraulic equilibration between the differentrooms/heating panels is an important tool to reduce toa minimum the pump power required to get everyroom warm.

It has not been possible to develop minimum perfor-mance standards in the current project due to lack oftime. However, optimising pumping systems canachieve energy consumption values below the thresh-olds given in the following table, which are taken froma guideline published by the state of Hessen(Germany).

11.2.4 Integrated building design

Integrated building design is a method for achievingthe minimum performance standards with no or lim-ited extra costs compared to national building codes orseparate good design practices.



Table 11.14: Recommended Minimum performance standards (maxi-

mum delivered energy)for space heating, hot water and space venti-

lation in new and restructured office space

MJ/(m2/year) kWh/(m2/year)

Existing buildings 250 70

New buildings 145 40

Table 11.15: Recommendations for the maximum auxiliary electricity

demand of central heating systems

Framework Maximum value for the annual

auxiliary electricity demand of

central heating systems

New build and refurbishment 0.8 kWh/(m2*a)

with thermal insulation

Refurbishment without thermal 1% of the annual useful energy

insulation and special types of use demand for space and water

heating

Source: HMUEJFG 2000

In the design of new complex buildings as well as inthe refurbishment of old lighting and systems,very much can be gained by an integrated design ap-proach, in which the different engineers and plannersco-operate from the beginning, instead of each workingseparately as in the traditional planning. For instance,the building envelope with its orientation and insula-tion determines the need for heating, lighting, andcooling; the installed power of electronic office equip-ment and of lighting determines the need for coolingand ventilation, etc.

In a recent example, such an integrated design ap-plied to the new police headquarters in Frankfurt/Mainwas able to reduce the planned electricity consumptionby . million kWh/year (%), and the planned peakload by kW (%) compared to a first, traditionalbuilding design. The reduced electricity consumptionand peak load will save Euro/year in electricitycosts. Furthermore, the lower need for equipment inventilation, air conditioning, and water heating re-duced the investment costs by ca. . million Euro.

In some countries, like the Netherlands (in theEnergieprestatienorm for service buildings),Switzerland (in the / and / building guide-lines on heating energy and electricity), and on theLänder level in Germany (in two guidelines by the gov-ernment of Hesse), guidelines for integrated buildingdesign have been developed and used in practice. Theyusually include “good practice” benchmarking values(equivalent to the minimum performance standardsproposed here) and “best practice” target values for thespecific consumption (in kWh/m2/a), e. g., for lightingand (both heat and electricity), that can beachieved by integrated building design.

Such benchmarking values are partly country-specific; but what can and should be harmonised at theEuropean level is the existence of such integrated build-ing design guidelines and benchmarks, as well as theprofessional training and building purchaser motiva-tion programmes that are necessary as a complement tothe design guidelines.

11.2.5 Recommendations and actions

Member States should:

Introduce a recommendation (for local and regional pub-lic administrations, if a requirement is legally not feasi-ble) or requirement (at least for central governmentagencies) for minimum performance standards specificto the public sector, as set out in Table ., plus addi-tional requirements for indoor lighting and circulationpumping.

Ensure that present and future national energy perfor-mance standard methodologies cover sufficient technologies(both depth of analysis and range of solutions) to allowany minimum performance standards specific to thepublic sector defined in Table . to be met.

Implement the requirements in line with the deadline for

national implementation of the Buildings Directive(most likely by January ).

Prepare for the effective application of the minimum per-formance standards, for example by:

• ensuring the limits can be met within the terms of national Energy Performance Standard methodologies

• communicating in advance the requirements to thepublic sector

• promoting integrated building design (for exampletraining designers in the use of integrated modellingsoftware, and providing the necessary weather filesfor different climatic zones of Member States)

Seek synergy between the processes of introducing nationaland public specific minimum performance standards(for example in the development of communicationprogrammes).

Define public sector specific minimum performance stan-dards at a level which ensures the greatest long termeconomic savings for the public sector.

Periodically review and update performance standards,at least in line with frequency set out in the Buildings Directive (i.e. at least every five years).

11.3 Best practice guidelines

Best practice guidelines describe selected pathways toimproved energy efficiency by defining an optimisedcombination (in terms of investment/running costs) ofequipment choice, system design, maintenance and op-erational schedules. Guidelines provide voluntary butconcrete pathways to improved energy efficiency forsystem designers, which respect national buildingcodes. Best practice guidelines are an important tool forimproving the energy efficiency of building service pro-vision; for example indoor lighting, and winter spacecomfort.

Guidelines though following common themes needto be articulated on a country by county basis, in con-sideration of the national building codes.


Define best practice guidelines for the design and man-agement of passive solutions and active building systems.

11.3.2 Further considerations

Best practice guidelines and purchase specifications arecomplementary tools addressing different barriers toachieving improved energy efficiency of public sectorbuilding stock.

• Best practice guidelines describe selected pathways toimproved energy efficiency by defining an optimisedcombination of equipment, design practices, mainte-nance and operational schedules



• Purchase specifications work mainly to ensure that anexisting decision to purchase a component or system,results in the acquisition of the most energy-efficientsolution possible. Though purchase specificationsmay also inspire purchasing officers to make nonprogrammed changes to equipment, and replace in-stalled standard components with more efficientcost-effective solutions.

In reality, there is overlap of the themes covered by eachtool, specifically best practice guidelines often definethe requirements of new equipment, though the em-phasis, and means of presentation remains clearly dis-tinct between the two.

Detailed purchase specifications currently representthe more innovative solution, and hence the emphasisgiven within this report. However, a structured pro-gramme to improve energy efficiency in the public sec-tor requires definition of and access to both type oftools (purchase specifications and best practice guide-lines).

The Deutscher Städtetag, Arbeitskreis Energie-einsparung (the German association of medium and bigcities, working group energy conservation) has pre-pared energy guidelines for municipal administrations.The guidelines bundle the basic principles for design,operation, and energy management in one central regu-lation. The energy guidelines do not provide generalprinciples for dealing with energy issues, but rather asummary of concrete instructions for design and opera-tion, as well as regulations of responsibilities for achiev-ing improved energy efficiency in building stock. TheDeutscher Städtetag guidelines cover:

• architecture• constructive heat protection• heating systems• ventilation and air conditioning• sanitary systems• lighting and other electrical systems• monitoring and control systems

The guidelines are collated as Appendix to the report and provide just one example of the type ofguidelines it would be possible to develop, though theexact procedures to apply in each Member State wouldrequire a country by country analysis. Also we under-line the fact that only the text of the Deutscher Städtetag,Arbeitskreis Energieeinsparung guidelines is annexed tothe report. To be effective, the guideline content wouldneed to be integrated into a suitable user friendly com-munication package, in the same way that the Purchase Specifications should be integrated into a type communication package (see Chapter andAppendix ).

The energy efficiency of all building services (indoorlighting, winter space comfort), would benefit from thedefinition, and diffusion of well structured and clearbest practice procedures, throughout the public sector.However the best practice guidelines become a particu-larly valuable tool when aiming to promote the adop-

tion of passive solutions. Indeed seldom, if ever is itpossible, to propose a passive alternative to an activetechnology through a standard purchase specification.

For example, a purchase specification which in-formed purchase officers to always replace luminar-ies with light shelves, light wells or larger glazing areaswould be unrealistic. Though light wells, light shelvesand increased glazing offer the potential for significantenergy savings their use is feasible only under certainconditions, which require a building-specific analysis.

11.4 Requirements for passive cooling

Best practice guidelines are useful for promoting theadoption of passive solutions for providing summerspace comfort. However, contrasting the currently in-creasing diffusion of active air conditioning systems, isa priority issue for the and a more stringent policyby the public sector for limiting the uptake of activesystems and ensuring the application of passive alterna-tive is merited.


• define minimum requirements of building structure,composition and layout (for example thermal inertia,use of window shading) for improving indoor sum-mer comfort without the use of active air condition-ing systems

• ensure that minimum requirements are met beforethe introduction of any active air conditioning system

• allow the introduction of active air conditioning sys-tems only if subsequent to the implementation of theminimum requirements, indoor comfort standardsare still unsatisfactory

11.4.2 Further considerations

Best practice guidelines represent an effective means toaccessing the saving potential offered by implementingpassive techniques for achieving summer space com-fort, and their use should be promoted. For examplethe Deutscher Städtetag, Arbeitskreis Energieeinsparungenergy guidelines define procedures for introducing ex-ternal sun shades, improving air tightness, avoidingthermal bridges and use of night cooling to improve in-door summer comfort levels.

However, providing low energy summer space comfort is in many respects a rather unique problem compared to improving the energy efficiency of otherbuilding services (for example lighting, space heating).As the Buildings Directive recalls (premise ):

Recent years have seen a rise in the number of air-conditioning systems in southern European coun-tries. This creates considerable problems at peak loadtimes, increasing the cost of electricity and disruptingthe energy balance in those countries. Priority shouldbe given to strategies which enhance the thermal per-



formance of buildings during the summer period. Tothis end, there should be further development of pas-sive cooling techniques, primarily those that improveindoor climatic conditions and the micro climatearound buildings.

Though there is considerable growth in the use of ac-tive air conditioning systems which has created prob-lems of peak load in recent years, most office buildingsin the public sector in Europe currently still have no ac-tive air conditioning systems. Though guidelines canbe developed which address the transition from activeto passive solutions, clearly the emphasis should be toavoid the initial installation of active air conditioning.The installation of an active air conditioning system,where none actual exists in the immediate term, leadsto an increase in energy consumption, however in themedium term represents a considerable lost opportu-nity since:

• users will generally only consider replacing the airconditioning system after the initial investment hasbeen “repaid” through service provision over time

• it provides expectations of indoor space temperaturelevels, which can be more difficult to meet throughpassive solutions and hence hinders the future pas-sage to passive systems. (Though passive solutionsmay not deliver the same constant temperature levels,they can deliver acceptable service levels in terms ofair flow, noise, and daily variation in temperature andmoisture, and overall comfort)

Given the importance in general of adopting passive solutions for achieving indoor summer comfort, as re-called by the (draft) Buildings Directive, and giventhat there are considerable lost opportunities in failingto avoid the installation of active systems in the firstplace, the most efficacious method to ensure uptake ofpassive solutions by the public sector would be to de-fine minimum requirements for the application of pas-sive solutions to achieve indoor space summer comfort.

The Swiss building regulations achieve just this. Theuse of air conditioning is severely restricted: obtaining apermit to install air conditioning requires that designersshow that it is really unavoidable and that there are noother low-energy-consuming alternatives that will pro-duce comfortable ambient conditions inside the build-ing. The engaged engineering office has to submit aproof of cooling demand at the local building controlauthority. Requirements for the proof of demand arelisted in the standard /. The space or buildingshave to fulfil criteria in relation to:

• envelope insulation and air tightness• thermal inertia • solar gains• internal gains• comfort levels (maximum temperature level)

A more detailed description of the Swiss requirementsare given in Appendix .

Though an efficacious solution, it is not possible toapply the Swiss regulations unaltered across MemberStates since:

• the complexity of building thermal performancemake requirements highly location specific

• standards of thermal summer comfort differ betweencountries; requirements providing acceptable indoorstandards in Switzerland might prove unacceptableelsewhere

However, such technical problems can be overcomegiven the political will to implement such a stringentpolicy.

The adoption of public sector minimum perfor-mance standards, as proposed elsewhere in this report,would also be a stimulus for the implementation of pas-sive solutions for achieving summer space comfort.Minimum performance standards focus on the overallenergy consumption of the building. This integratedperformance approach stimulates the design of goodbuilding, and related systems.

However, the introduction of minimum perfor-mance standards specific to the public sector cannot berealistically expected before (see the detailed dis-cussion on in the Appendices). Moreover, evensupposing that public sector minimum performancestandards are introduced, it would be advantageousanyway to implement minimum requirements on passive cooling along the lines of the Swiss building regulations, in order to effectively facilitate the imple-mentation of passive cooling strategies.

11.5 Life-cycle cost methods for

buildings

methods and tools make analysis easy, suchthat it does not complicate the standard procurementprocess

• provide transparent procedures which allow tobe undertaken within the context of tender processes

There is no standard acceptable form for Methods.Generally there are two categories of solution to con-sider:

• active solutions • passive solutions

Provided with the present report is as an example of anelectronic spreadsheet useful for determining the ofelectromagnetic and electronic ballasts and determin-ing the comparative lifetime savings. The spreadsheet isprovided in proprietary Microsoft Excel and OpenSource, Star Office versions. A print out of the sheet, isprovided as Appendix .

The spreadsheet provides only an indication of thegeneral type of tool it is possible to develop for activecomponents. Though completely functional, it is limited



both in consideration of the technologies (only ballastsfor W systems) covered and in its ease of use. Withfurther development a more flexible tool could be pro-duced allowing to be determined for electromag-netic, low loss and electronic ballasts (includingdimmable) for different types of of system; for example W, W, W. Users could define the systemtype, operating conditions and economic variablesthrough dynamic linked lists.

Determining for passive solutions is more com-plex. To determine the costs and benefits of using pas-sive solutions (for example selective glazing) in aspecific building general requires developing a thermo-dynamic model of the building in a suitable softwareenvironment (for example , Energy Plus,). Developing software libraries of representa-tive national building stock from which designers couldquickly introduce and evaluate the proposed passive so-lutions could be a useful tool in this sense.

Both issues are considered in further detail below.

11.5.1 The need for LCC methods and tools

The first section of this chapter considers the general is-sues of determining for products, building compo-nents and systems, from which we have:

where:Co = purchase price (Euro), including installation costs Â = sum over the lifetime of the appliance, from year

to year n, where n is lifetime of the appliance (years)

Ct = annual operating and running expenses (Euro), which include costs for maintenance, costs for energy, costs for other resources (e.g. water) and disposal costs

r = Discount rate

In theory, this formula should not be used in caseswhere two or more building components or systemswith different life-expectancies are compared with eachother. However, most efficient components/solutionslast at least as long, but generally longer, than ineffi-cient alternatives. That is, efficient solutions whichoffer the least costs, also generally offer equal orbetter service levels (longer lifetime) than inefficient al-ternatives and should therefore be chosen. However, incases where the lifetime of the efficient component/so-lution is less than that of the inefficient solution, thecomparison should be made based on annuities insteadof net present values. The following formula should beused:

annuity = * r / [1-(1+r)-n].

Purchase specifications provide a simplified procedureof determining for the majority of small or

medium sized purchases. Purchase specifications iden-tify building components which provide minimum considering typical system types, operating and eco-nomic conditions installed/enjoyed by the public sectorin the Member States.

In a number of situations the general purchase speci-fications may prove inadequate:

• when the operating and economic conditions en-joyed by a specific public institution differ notablyfrom the typical conditions on which the purchasespecification is based (for example different energyprices, discount rates, hours of use)

• when the public authority is undertaken a large pur-chase and needs a more accurate estimation of costsand savings

• when there is a need to evaluate components or solu-tions not covered by the purchase specifications

This need may manifest itself within the context of atender process.

• If the tender is to be awarded on the criteria “eco-nomically most advantageous offer”, considering life-time energy and maintenance costs, biddingsuppliers will be required to provide an analysis of of proposed solutions.

Though in appearance the equation above is relativelysimple, undertaken an calculation can be non triv-ial; it requires for example collecting and correlating anotable amount of information from different sources(suppliers, administrative officers, facilities depart-ments).

Further, any need to determine must contendwith the limited resources of public authorities; both inrelation to the technical preparation of the staff chargedwith undertaking the analysis and the time available tocollect the necessary information (for example compo-nent costs and energy prices) and perform the calcula-tion.

Generally there are two categories of solutions toconsider:

• active solutions• passive solutions

Of the two, determining for active systems gener-ally proves the easiest. There is a direct, explicit linearrelationship between the component power or effi-ciency and annual energy costs. The formula to deter-mine annual running costs can be readily implementedfor example in an electronic spreadsheet, as in the pro-totype tool provided with this report.

However, there can also be none linear effects on an-nual running costs when installing energy- efficient ac-tive components. Lowering the installed power ofcomponents (for example lighting systems) can reducecooling loads on air conditioning systems in the sum-mer and increase the need for heating in the winter,with consequential impacts on running costs. The issueof dealing with such non linear secondary effects is de-



LCC CC

rot

tt

n

= ++=

Â ( )11

batable. In the context of providing tools, it wouldreasonable to ignore them.

Ideally, spreadsheet tools would be developed forfamilies of components; for example heat generators,pumps, luminaires, fluorescent lamps. Tools providinga general analysis can be useful for evaluating nonestandard products. However, generality tends to placemore onus in the definition phase which increases com-plexity of use.

Spreadsheet tools are effective in view of the wide-spread knowledge and use of spreadsheet environ-ments.

Determining for passive solutions is more com-plex. The effect for example of selective glazing, im-proved wall and roof insulation, ground heatexchangers, modified roof albedo, and window shadingon building heating and cooling system loads are highlynon linear. Annual running costs can only be deter-mined for specific conditions by developing a thermo-dynamic model of a building (new or refurbished).Readily available, and in part free, software greatly as-sist this task (for example , Energy Plus, )for technicians, though these are complex software en-vironments and technicians require suitable training.However, the task of developing a model is time con-suming, even for experts. It is therefore a task for policyto develop models. The use of these models is not onlya task for public building departments themselves, butshould also be made a condition for engineers whencommissioning the design of buildings.

A possible solution to assist this operation would beto develop base case standard models representative ofnational building stock in a suitable software environ-ment. More precisely the library would provide a col-lection of models articulated for example on:

• age of construction (construction materials)• type of construction (for example school, office,

town hall)• style of construction (for example standard, glass

facade)• form of construction (for example long horizontal,

high rise)

And for each building type define:

• standard installed systems (lighting, heating andcooling)

• schedules (presence of people, heating, cooling andlighting system operating hours)

The library would provide the technicians with an advanced starting point from which to evaluate theproposed passive and standard solutions. Though de-veloping such a library would be resource intensive itwould:

• in the short term assist the uptake of modelling soft-ware by designers charged by the public administra-tion; a necessary first step if the design of low energyintensive, high quality buildings is to become com-mon place

• in the long term avoid duplication of work by thedifferent architects and designers charged with im-plementing passive solutions in buildings

Overall, it is the task of an and national programmefor energy efficiency in public buildings to developeasy-to-use models. A starting point can be existing models, such as the spreadsheet used by the City ofFrankfurt am Main (available for download at:www.stadt-frankfurt.de/energiemanagement), or ongo-ing processes, such as the effort of the EuropeanCommission ( Enterprise, Competitiveness of theConstruction Industry Action Plan, Sustainability TaskGroup ) to create a method for the assessment ofWhole life costs in construction. In that effort, it is theobjective to create a method, whose results of leastwhole life costs (equivalent to ) can be interpretedas fulfilling the economically most advantageous tender.



Part 3

Scenarios and potentials

12.1 Objectives and scope

The main objective of this task has been to outline anumber of policy scenarios for the public sector in the to demonstrate how their purchasing practices couldinfluence the energy efficiency.

We have quantified country by country the savingspotential in annual energy, greenhouse gas emissions,and costs from activities in the public sector purchasing.

The modeling associated with the scenarios is basedon a simple spreadsheet-based tool and on available sta-tistics or best-estimates of energy use and purchasingpractices by the European public sector.

We have included both the - and CandidateCountries in the analysis to give a) national estimates of savings potential but also b) aggregated estimate of im-pacts on a European level. This has necessitated datacollection from countries and modifying the tool according to what data has been readily available. Itshould be noted that the study makes no attempt at es-timating the positive energy and 2 effects that couldbe reached through a wider market transformation be-yond the public sector, although these effects may besignificant.

The scenarios demonstrate in aggregated form the in-fluence of different policy options and possible use of

• “top-down” national policies on energy-efficient pur-chasing

• models for “bottom-up” programs developed initiallyat the local grassroots level

• opportunities for co-operation among governmentagencies

• more direct collaboration through aggregated pur-chasing programmes, complementary efforts such asenergy rating/labeling or subsidies for efficient prod-ucts, partnerships with manufacturers and sellers ofefficient products

• proposed indirect incentives to government agenciesto incorporate energy-efficient purchasing

from Finland has developed the methodologyand model and prepared the scenarios. fromPoland has been partly responsible for data collection.

12.2 Modeling approach and structure

In order to estimate the impacts of different strategieson the energy use and energy efficiency in the public

sector, a calculation tool was designed. The idea herewas to keep the tool as simple as possible and to rely oneasily available input data that could be found from thecountry studies summarized in Part and from generalsources.

The flow chart of the methodology is illustrated inFigure .. Table . shows a list of the input data usedin the model. The numeric input data used in the cal-culations are shown in Table ..

The first () or global level comprises calculation ofthe energy use of the public sector based on its share ofthe total national energy use. The energy use is splitinto heat and electricity demand. In addition, the emis-sions and monetary value of the energy use of the pub-lic sector is estimated. The level () is estimated for all- and selected Candidate Countries.

The second level () model investigates the publicsector energy use in more detail. Three segmentsnamely buildings, non-buildings and office equipmentare considered and the energy efficiency opportunitieswithin these. The additional data needed for level () isshown in Table . is bold.

The third level () comprises the calculations of thedifferent scenarios and impacts of policy options forpublic procurement of energy-efficient technologiesand services. We evaluate three cases as follows:

(a) The baseline case is defined here as the naturaltrend in energy use and energy efficiency improve-ments. The final electricity consumption in commer-cial and public services (tertiary sector) in showed anannual change of +.% from to late ’s (thisfigure is the net increase of electricity including boththe increase in activity levels and energy efficiency im-provements). In case of final heat consumption the cor-responding change is +.% but it has declined duringthe last years.

We assume that the activity level of the public sectorwill remain almost constant or increase slightly in thecoming years due to the general trend of public savingsand outsourcing. The public sector is likely to growmuch less than the remaining society and private sector.We assume that the public sector (incl. public buildingstock) grows annually by +% during -. If theenergy efficiency level remains constant, then the pub-lic sector's energy growth would be the same +%/yr.However, we assume in addition a natural trend of -.%/yr in energy use due to energy efficiency frombetter equipment and necessary house renovations. Thenet increase in energy of the public sector would thus

PROST PART 3 – SCENARIOS AND POTENTIALS 137

12. The energy, CO2 and fiscal potentialof a European PROST programme

be +.%/yr. The present policy outlines in (such asthe public directive) are adequate to realize this.

In addition, we will also present a case with +%/yrenergy increase as a pure extrapolation from history tofuture for comparison (denoted as a*). This can also beconsidered as the worst case of energy use in the publicsector.

(b) The first policy scenario is based on the Councildecision and recommendations to improve the en-ergy efficiency by %/yr over the natural trend. This

would mean an annual change of -.% in the energyuse of the public sector.

(c) The second policy scenario assumes stronger ef-forts through public procurement of energy efficiencytechnologies and services. This improves energy effi-ciency by .%/yr over the baseline case, or an annualchange of -% in the energy use of the public sector.

The baseline scenario (a) is assumed to be realized byitself through present policy measures. The energyefficiency scenarios (b) and (c), however, require

THE ENERGY, CO2 AND FISCAL POTENTIAL OF A EUROPEAN PROST PROGRAMME

138 PROST PART 3 – SCENARIOS AND POTENTIALS

1st level input data: general model

• National energy use (electricity & heat)

• Public sector % of national energy use

• Emissions (t CO2/kwh)

• Cost of electricity & heat (Euro/kwh)

2nd level input data: specific model

• Number of employees in public sector

• Buildings’ area (m2) of the public sector

• Specific building energy use (kwh/m2/yr)

3rd level: scenarios

• Baseline: Natural trends in energy efficiency and public

sector’s growth

• EU recommendations: energy efficiency improved 1%/yr

over the baseline

• Strong efforts: public procurement of energy efficiency

technologies and services improving energy

efficiency by 1.5%/yr over the baseline

1st output: overall public energy use

• Heat and electricity use of public use

• CO2 emissions from the public sector

• Value of energy in the public sector

2nd output: possibilities for EE

• Identifying the opportunity value of EE

• EE in different segments of public sector

3rd output: Scenarios for EE

• Energy and CO2 savings over time

• Cash-flow savings over time

Figure 12.1: Calculation model used in the scenarios.

Table 12.1: Input data

Total electricity use (TWh/yr)

Total heat demand (TWh/yr)

Total population (millions)

Cost of electricity (Euro/MWh)

Cost of heat (Euro/MWh)

Average CO2 emissions from electricity production (tons CO2 /MWh)

Average CO2 emissions from heat production (tons CO2 /MWh)

Public sector’s share of total national electricity use (%)

Public sector’s share of total national heat use (%)

Number of employees in public sector (millions)

Buildings’ area of the public sector (million m2)

Specific electricity use in public buildings (kWh/m2,yr)

Specific heat use in public buildings (kWh/m2,yr)

Increase/decrease of public building stock (%/yr)

Increase/decrease of ITC equipment in the public sector (%/yr)

Natural energy efficiency improvement of public sector (%/yr)

General data (1st level input)

Public sector data (2nd level input)

Trend data (3rd level input)

stronger policies in the public sector. There exist avariety of policy options ranging from regulatory mea-sures such as minimum standards, codes or norms tomore market driven actions such as incentives or pro-curement activities. We will analyze the scenarios fromthe public procurement point of view and evaluatewhat these would mean for public procurement of energy efficient services and technologies. Our under-standing is that scenarios (b) and (c) could be fulfilledthrough a strong public procurement based policy options following the policy recommendations pre-sented in Chapter of .

12.3 Energy use in the public sector

12.3.1 Situation in 2001

The total use of heat and electricity in the - regionas calculated in this study was TWh in . Thepublic sector's share of this was slightly under %, or TWh/y. The value of the heat and electricity usedby the public sector was about billion euro. Thus,the public sector could represent a major possibility forsavings both in terms of energy (and 2) and money.

The weight of the public sector varies somewhatfrom country to country. Based on the country studiesdone previously in , the public sector (national,regional and local) in most Member States correspondsto about % of the total national energy use. In somecountries, notably in Germany and Ireland it’s clearlyless, or closer to %. In Austria, the share is % of elec-tricity and % of heat, respectively. In Sweden, thepublic sector stands for % of the total heat use due tolarge public housing companies. In the CandidateCountries studied (Slovakia, Estonia, Poland, andHungary), the estimate for the public sector's share isaround %, or twice that of -. Hence, energy effi-ciency strategies for the public sector in the mayhave larger impacts than in present countries.

12.3.2 EU-15 energy use in public sector 2001-

2020 in the different scenarios

The starting point in year for the total energy use(heat and electricity) in the public sector of - is TWh . The electricity use was TWh. The shareof heat is in average - times larger than electricity in the Member States. The scenarios (a-baseline), (a*-worst), (b-) and (c- of ) are shown in Figure from up to .

The reference case (a) predicts an % increase in energy use by year , or TWh more than in. The electricity use has increased in this case by TWh. The energy efficiency scenario (b) and (c) in-dicate -% and -% changes to the level, respec-tively. In terms of energy, this means and TWhenergy savings, respectively. Realizing for example thescenario (c) would mean avoiding constructing electricgeneration capacity of TWh or - large power

plants in . In , the difference in energy use be-tween the unlikely worst case (a*) and most energy effi-cient policy (c) would be TWh, or % of the year level.

What type of measures could fulfill the amount ofenergy savings reported here? In case of heat, most ofthe demand comes from buildings in which -%energy savings are easily achieved through very cost-effective measures (payback time less than - years)and have been verified e.g. by extensive Finnish audit-ing activities of public buildings. The life-span ofbuildings is long but different renovation measures intowhich energy efficiency measures could be integrated aswell fall probably within the years time horizon usedin the scenarios. In new buildings, stricter minimumstandards or requirements on specific heat demand areeasy to incorporate. Better thermal insulation, more ef-ficient windows, heat recovery, and better control areexamples of approaches to improve the thermal build-ing efficiency. Technically speaking, the heat demandcould be dropped even more than required here, or by-% from average heat demand values of today.This has been demonstrated for example in HelsinkiEkoviikki, where the Helsinki Housing Office has builtecological buildings for social housing purposesdemonstrating % lower heat demand than in newbuildings in Helsinki in average.

The electricity demand in the public sector is com-posed of building related electricity use (e.g. ventila-tion, cooling, air-conditioning, and lighting), occupantor employee related use (office equipment, appliances)and other public services (e.g. street and traffic lighting,pumps). The share of each category of electricity usemay vary very much from municipality to municipalitynot to speak about the differences between countries.However, in each of these categories, considerable elec-tricity savings could be achieved through more energyefficient technologies. For example, more efficient



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100= 628 TWh

(a) baseline

(a*) worst case

(b) EU

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Figure 12.2: The total heat and electricity use of thepublic sector of EU-15 in the different scenarios. Atstarting point in 2001, energy use is denoted 100 andcorresponds to 628 TWh.

lighting and better lighting design during building ren-ovation or in new buildings may drop the total buildingelectricity consumption by -%. Office equipmentwith Energy Star labels, -labeled appliances and en-ergy efficient pumps could typically save -% in theelectricity bill compared to ordinary products. The ro-tation time of products described above varies from to years which falls within the time horizon of the sce-narios. The payback time of the more efficient productsis typically - years but in addition other benefits suchas increased productivity or improved comfort could beachieved as well.

The Swedish Country study shows that the annual opportunities for electricity savings are GWh if procuring the most energy efficient avail-

able technologies. This corresponds to % of the publicsector’s electricity use in Sweden. The same kind of sav-ings could be achieved throughout the Europe.

Thus we may conclude that both electricity and heatsavings of around % in years represented by thehighest energy efficiency case (c) can be firmly justifiedand achieved even in large public building stocks or inpublic practices. It would, however, necessitate clear en-ergy policy measures, for example instructions on howenergy efficiency features should be incorporated intocall of tenders and public procurement procedures.

The energy use of the public sector in the MemberStates of the is shown in Figure . for the baselineand energy efficiency case. Germany, France, andItaly represent almost / of the whole public energy



Figure 12.3: The energy use of the public sector by Member State of the EU. Above is the baseline scenario (a) and belowis the strong energy efficiency scenario (c). Summarizing the outcomes of the scenarios, the energy use of the public sec-tor in 2020 shows a +10%...-20% change compared to 2001 (excl. the worst case scenario). Related to the total nationalheat and electricity uses in the Member States, this means in practice a +1.5... -2% change from the reference level 2001.

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use in Europe. Smaller Member States such as Austria,Belgium, or Finland would each represent a few percentof the total. Germany alone comprises almost a quarterof the total. If creating common European policyguidelines for energy efficiency in the public sector,achieving true impacts may require more considerationof the characteristics of the larger public sectors inEurope, or, alternatively finding country independentor commonly accepted and used policies. European leg-islation and directives on competition already requirethe public sector to procure openly services and prod-ucts over a certain threshold. Thus, authorities on alllevels have experience and are used to procurement.Therefore we perceive here public procurement of energy efficiency as a good approach for a commonEuropean policy option on energy efficiency in thepublic sector.

12.3.3 Savings and investments by 2020

The price of energy varies between the Member Statesquite much. The retail price of electricity is between (Greece, Finland) and Euro/MWh (Denmark), theaverage being around Euro/MWh. For heat, theprice range is between (Belgium) and (Denmark,Italy) Euro/MWh, the average price of heat is about Euro/MWh. Taken the ratio of heat and electricityin the total energy use, the above pricing scheme meansthat their value for the public sector is about equal.

The total annual spending of the public sector in - on heat and electricity is estimated at . billionEuro in . Assuming negligible price changes, theimpacts of the different scenarios on the energy costsare of the same magnitude as in energy use. The im-pacts of the scenarios on the energy bill of the publicsector are illustrated in Figure ..

The scenarios (b) and (c) would mean in an-nual savings of and billion Euro respectively com-pared to the baseline trend (a). The savings comparedto the level, would be and billion Euro fromthe two scenarios, respectively. These figures do not ac-count for the investments needed, but using a conserv-ative payback time of years, would result in netsavings that are at least % of the estimates above.

The effects of the scenario case (c) on eachMember State are shown in Figure .. The largest sin-gle savings are gained in Italy and Germany followed byFrance and . In small Member States, the energy billof the public sector in would be around billionEuro.

The differences in the energy prices in the meanthat the countries with highest energy prices wouldgain more through the savings than those with low energy prices. In Figure . we have illustrated the re-lation between economic and energy gains through energy efficient public policies (case c).

The economic gains in relation to the energy effi-ciency gains are the largest in Denmark and Italy.Portugal, the Netherlands and Spain are over the

average and hence from an strictly economic point ofview the motivation for energy efficiency in the publicsector should also be largest in these countries. The dif-ference between the minimum and maximum found inFigure . is about factor .

The additional investments on better featuresneeded to reach the largest improvements repre-sented by case (c) is estimated to be . billion Euro, or million Euro if spread evenly over years. For asmall Member State this would mean .-. millionEuros per year. Adding the investments to the annualenergy bill would mean a .% increase in average, butif accounting at the same time for the savings from energy efficiency services and products, an annual netdecrease of .% in the energy bill could be achieved.

What would million Euro per year on energy effi-ciency features mean in the total product sales volume,i.e. how much product sales could energy efficiencytrig? As an example of the business potential repre-



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Figure 12.4: The value of the total heat and electricityuse of the public sector of EU-15 in the different scenarios.

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Figure 12.5: Annual energy bill (heat and electricity) of the public sector by Member State in the energy efficiency scenario case (c).

sented by the energy efficiency features, we will con-sider the office equipment. The country studiesindicate around % of the electricity savings in thepublic sector could come from purchase of more energyefficient :s and screens alone. This would mean apublic purchase of more than million :s over years, or on an annual basis. Valuing a for, Euro each, the total value would be billion europer year.

Thus, if the public sector would go for purchasingproducts and services with more energy efficient fea-tures, their purchasing power would be considerableand would for sure create interest among suppliers tosatisfy this demand.

Summarizing, the public sector in Europe could saveannually something in between and billion Eurosin through easy realizable energy efficiency.Through its purchasing power the public sector couldattract adequately interest on energy efficiency amongsuppliers of products and services.

12.3.4 CO2 emissions

The total 2 emissions caused by the public sector’sheat and electricity use were million tons 2 in. Scenario (b) and (c) represent and million t 2 savings in compared to the level, respectively. Compared to the baseline (a) scenario thesavings are and million t 2, respectively. Figure . summaries the results.

Figure . illustrates the 2 emissions by MemberState. Germany, , Italy and Spain represent % ofthe public sector's emissions from heat and electricityin the . The Netherlands represents around %. Theremaining Member States are responsible for %of the emissions.

Finally, we compare the 2 savings against the energy savings in Figure .. The largest 2 savingsthrough energy efficiency are in Greece, followed byPortugal, Germany and . Spain, the Netherlands andItaly are also clearly above the average. In France andSweden, the 2 savings through energy efficiency arethe smallest in the . There is a factor of betweenGreece and France, i.e. saving a kh of energy inGreece yields ten times more savings in carbon dioxideemissions than in France. Therefore, in countries likeGreece and also those clearly above the average,using 2 savings as an argument for energy efficiencyin the public sector may be highly motivated. However,for a common European policy formulation of inthe public sector, the above observation may mean that2 quota based or 2 savings driven policy ap-proaches would not yield very effective outcomesthrough Europe. The variance in the cost to energy sav-ings ratio was much smaller, or compared to for2, which means that energy efficiency policies linkedto fiscal or economic factors such as energy taxation orpublic procurement may gain much broader impact inEurope.



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Figure 12.6: Relation of economic to energy gains incase (c) scenario in Member States.

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ion

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Figure 12.7: The CO2 emissions from the different scenarios.

12.4 Energy use in the public sector inselected Candidate Countries

In the project, four Candidate Countries to theEuropean Union were included namely Estonia,Hungary, Poland and Slovakia. The public sector'sshare of the total energy use in these countries is aboutdouble as high than in the , or % of the nationalheat and electricity use. The energy price is about / ofthe level and the specific 2 emissions are -%higher than in .

The four scenarios presented for the countriesmay not all be that relevant for the countries.Firstly, the public sector in the :s are relatively largeand being part of the it could be expected that thesize of the public sector will decreased during the pe-riod up to year . Secondly, as the specific energyconsumption is higher than in the , the opportuni-ties for energy efficiency are larger in general in :s.Thirdly, the infrastructures within the public sector andsociety need still considerable investments to raise theservice level closer to that of , for example the elec-tricity consumption per capita in the :s is -%lower than in the . Fourthly, the fiscal situation of thepublic sector is poor which may not enable large capitalinvestments.

Summarizing, we have factors that favor both an increase and a decrease in the energy use of the publicsector of the countries. With the data and infor-mation available in the project, it has been diffi-cult to quantify the net effects of these influencingfactors. Our best estimate is that the countriesshould come closer to scenario (c) and we use this as thebasis for our calculations here.

In , the four selected countries show TWh energy use in the public sector.

Figure . shows the outcome of scenario (c) whichdemonstrates a TWh decrease in the energy use orclose to a % decrease. This corresponds to .% re-duction in the national energy uses. The energy bill in would be million Euro lower than in .Accounting for the investments for energy efficiencywould reduce the savings by - % as the potential forlow cost in these countries is high. The 2 savingsin scenario (c) are million t 2.

In Figure . the relative importance of emission re-ductions and economic gains obtained through energyefficiency. We observe that the 2 emission reductionsare clearly higher per unit of saved energy in the :sthan in , or about double, but the economic savingsare clearly lower, or less than half. Energy efficiencypolicies driven by 2 emission reductions wouldyield larger gains in the :s than in -.



Figure 12.8: The CO2 emissions for each Member Statein scenario (c).

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Figure 12.9: Relation of CO2 to energy gains in case (c) scenario in Member States.

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2001: TWh 2010: TWh 2020: TWh

TWh

SlovakiaPolandHungaryEstonia

Figure 12.10: Estimated energy use by the public sectorof 4 candidate countries (scenario c)

12.5 An example of disaggregated energy use

The level of available data from the studies didnot make it possible to undertake detailed analysis ofthe influence of different products or service on thepublic sector’s energy use. However, for a few countriessuch as Austria we had more data so that some kind ofdisaggregation was possible. In the next, we show theoutcomes from a more detailed analysis on the heat andelectricity use of the public sector in Austria.

The Austrian public sector’s total electricity use is

around TWh and heat us is TWh per year, respec-tively. We decompose the electricity use here into thefollowing categories:

(i) Building related electricity use (ii) Office equipment related electricity use(iii) Other electricity use (e.g. street lights,

pumps, equipment)

In our model, category (i) corresponds to %, (ii) to% and (iii) to %. We take as the natural annual volume increase of category (i) +.%, (ii) +% and (iii) +.%, respectively.



CEEC_ratio

0,00

0,01

0,02

0,03

0,04

0,05

0,06

0,07

0,08

0,09

Estonia

Hungary

Poland

Slovakia

CEEC

EU-15

euro/kwh

0,00

0,10

0,20

0,30

0,40

0,50

0,60

0,70

t CO2/MWh

2020:euro/kWh

2020: tCo2/MWh

Figure 12.11: Relation of CO2 and economic gains to energy savings in scenario (c) in CEECs.

Figure 12.12: Change in heat use (above) and heat bill in the Austrian public sector in the scenarios.

-140

-120

-100

-80

-60

-40

-20

0

2000

2004

2008

2012

2016

2020

change, million Euro (starting point=0)

baseline (EE: -0.5%/yr)

EU (EE: -1.5%/yr)

STRONG (EE: -2.0%/yr)

-4.5

-4.0

-3.5

-3.0

-2.5

-2.0

-1.5

-1.0

-0.5

0.0

2000

2004

2008

2012

2016

2020

change, TWh (starting point=100)

For the heat use, we assume that % is buildingheating related and % other use (e.g. hot water,process heat). The annual volume increase of heat is +.%.

Three scenarios for annual energy efficiency im-provements (energy intensity) are assumed namely -.% (baseline, natural trend), -.% and -.%, re-spectively.

Figure . summarizes the results from the scenar-ios on the heat use. By , annual energy savingsranging from . to TWh with savings value of 8and million Euro (incl. investments) could be ex-pected from the stronger energy efficiency measures.

Looking now on the electricity side in Figure .,we observe a basic growing trend of electricity usemainly due to increased demand of electricity requiringequipment and products. This trend is counterbal-anced in the two efficiency scenarios so that by ,net annual electricity savings of . and twh could beachieved. The corresponding net economic gain wouldbe almost and million Euro.

Comparing the heat and electricity scenarios, onemay find a few interesting aspects. First, we foresee aquite neutral basic trend in heat use in the futurewhereas for electricity the baseline scenario is an in-creasing trend. Secondly, even though the savings fromthe electricity are just a quarter of the heat, the eco-nomic value is close to equal. This may be a point toelaborate more as quite often the energy efficiency mea-sures concentrate on the thermal energy use in build-ings (e.g. through building codes) whereas theelectricity side has received less attention. The electric-ity side may be interesting for public procurement activities as these are by nature quite often products,equipment or even services in contrary to thermal mea-sures which are mainly building envelope based im-provements.

12.6 Summary

The scenarios presented in this chapter indicate a -% energy savings potential in the energy use (heatand electricity) of the public sector in the by which could be realized through public procurementactivities. This corresponds to a few percent of the na-tional energy uses but closer to % in the Candidate Countries due to the public sector’s highershare of the whole energy use.

The public sector in could save a total of to billion Euro in through the energy efficiency sce-narios presented here. The total annual investmentneeded is only million Euro over the next years.The energy bill of the public sector could thus annuallydrop by up to .% if going for stronger energy effi-ciency criteria in purchasing practices.

The largest economic gains in relation to the energyefficiency gains are found in Denmark and Italy – theNetherlands Portugal, Spain are also over the aver-age. On the other hand, the largest 2 savings throughenergy efficiency are found in Greece, followed byPortugal, Germany and and the Netherlands. Spainand Italy are also above the average. These findingsmay stress using both economic and environmental re-lated criteria in further policy developments for thepublic sector.



-1,2

-1,0

-0,8

-0,6

-0,4

-0,2

0,0

0,2

0,4

0,6

2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020

change, TWh (starting point=0)

baselineEUSTRONG

-80

-60

-40

-20

0

20

40

2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020

change, million Euro (starting point=0)

Figure 12.13: Change in electricity use and electricity bill in the Austrian public sector in the scenarios.

Tab

le 1

2.2

: In

pu

t d

ata

used

in

th

e s

cen

ari

o c

alc

ula

tio

ns



Co

un

try

AU

SB

EL

DE

NFI

NFR

AG

ER

GR

EIR

EIT

ALU

XN

ET

PO

RS

PAS

WE

UK

ES

TH

UN

PO

LS

LO

gen

eral

dat

a (1

st le

vel i

np

ut)

tota

l ele

ctric

ity u

se (T

Wh/

yr)

4381

3570

389

498

3720

267

110

838

190

117

334

633

7728

tota

l hea

t dem

and

(TW

h/yr

)94

160

7010

060

513

2260

101

505

132

830

300

112

600

975

361

71

cost

of e

lect

ricity

(eur

o/M

Wh)

100

118

105

100

5911

263

9512

060

180

115

8873

118

5710

010

068

cost

of h

eat (

euro

/MW

h)36

3540

3575

3530

5047

5070

4040

5450

2515

338

CO

2 fr

om e

lect

ricity

pro

duct

ion

(ton

s C

O2/

MW

h)0.

150.

100.

630.

250.

080.

631.

110.

770.

490.

100.

570.

500.

500.

150.

500.

600.

661.

020.

70

CO

2 fr

om h

eat p

rodu

ctio

n (t

ons

CO

2/M

Wh)

0.18

0.20

0.13

0.15

0.10

0.35

0.60

0.22

0.26

0.20

0.30

0.30

0.30

0.09

0.35

0.40

0.40

0.52

0.40

pu

blic

sec

tor

dat

a(2

nd

leve

l in

pu

t)

publ

ic s

ecto

r’s s

hare

of t

otal

ele

ctric

ity u

se (%

)11

1010

1010

510

510

1010

1010

810

2020

2016

publ

ic s

ecto

r’s s

hare

of t

otal

hea

t use

(%)

1410

1010

108

105

1010

1010

1030

1020

2020

16

Part of the report is a synthesis based on the findings of the individual Country Studies, which arefound in a separate volume. All sources and references for each country study is given in the specificreports, and we have made no attempt at gathering these references here. Only if motivated, we havegiven separate references in this section. In other parts of the study, the references used are givenbelow with the following exceptions: Where a references is made in the text to specific countries and noother reference is given, the individual country studies are used as the reference. This is also true forChapter , however, additional personal communication has been given from the country teams directlyto the authors of Chapter . Such personal communication is not found in this reference list.

13.1 References

A brief comparison of the budgeting systems in the G countries, (). A report by the PublicManagement Services, The Budget and Management Division, Paris, www.oecd.org

Adnot, Jérôme; Orphelin, Matthieu: Technical and economical potential to improve the energy perfor-mance of appliances: A survey of recent studies. Ecole des Mines de Paris, Paper presented at the Conference in Graz - Nov

Bertoldi, Paolo; Kemna, René: Energy efficient equipment within SAVE: Activities, strategies success, andbarriers. Paper presented at the Conference in Graz - Nov

Energiebericht – Fortschreibung für das Jahr , LH Stuttgart [Landeshauptstadt Stuttgart, Amt fürUmweltschutz](ed.)(), Stuttgart

Energiebericht – Fortschreibung für die Jahre /, LH Stuttgart [Landeshauptstadt Stuttgart, Amt fürUmweltschutz](ed.)(), Stuttgart

Görres, J; Kienzlen, V. (): Stadtinternes Contracting in Stuttgart, Wärmetechnik, , ‒

: Hessisches Ministerium für Umwelt, Energie und Bundesangelegenheiten: LeitfadenElektrische Energie im Hochbau, Entwurf der Endversion, Wiesbaden.

Improving policy coherence and integration for sustainable development, (a). Paris, www.oecd.org

Jahrbuch Energie-Contracting , E&M [Energie&Management Verlagsgesellschaft mbH]; Technomar[Technomar GmbH Gesellschaft für Investitionsgütermarktforschung und Unternehmensberatung](). Herrsching, München

Kiedaisch, U. (): Abbildung zur Struktur des Stuttgarter Modells, persönliche Mitteilung

Kienzlen, V. (): Stadtinterne Finanzierung energiesparender Maßnahmen: Das Stuttgarter Modell,Wärmetechnik, , ‒

Kristof, K.; et al. (): Handlungsoptionen des Landes Nordrhein-Westfalen zur Verbreitung undUmsetzung des Intractingmodells auf kommunaler und Landesebene, Projektteil B der Studie“Pilotprojekte Einspar-Contracting und Intracting in NRW”, Gutachten des Wuppertal Instituts im Auftragdes Ministeriums für Bauen und Wohnen des Landes Nordrhein-Westfalen, Wuppertal, Downloadunter www.wupperinst.org/energie/intracting.

Kristof, K. (): Aktueller Stand des Contracting in Deutschland, Beitrag zur -Konferenz“Energie-Contracting” am ./. Juni in Köln, Wuppertal

147

13. References and Internet resources

Lane, Kevin: Beyond least life cycle cost (). Environmental Change Institute, Oxford

LCC-based Guidelines on Procurement of Energy Intensive Equpement in Industries, Association of SwedishEngineering Industries et alt., Final Report for the Project /./-. Stockholm

Oelert, G.; Auer, F.; Pertz, K.: Economic Issues of Renewable Energy Systems, A Guide to Project Planning,(), Sonderpublikation der , . , nd corrected edition, Eschborn

Thorn, K.; Lyndrup, M. (): The quality of public expenditure – challenges and solutions in resultsfocussed management in the public sector, www.oecd.org

Umweltbundesamt (ed.)(): Energiespar-Contracting als Beitrag zu Klimaschutz und Kostensenkung,Ratgeber für Energiespar-Contracting in öffentlichen Liegenschaften, bearbeitet von A.-Cl. Agricola(Berliner Energieagentur GmbH), D. Seifried (Öko-Institut e.V.) et al., Berlin

Umweltschutz lohnt sich für öffentliche Verwaltungen – Strategien und Beispiele für wirtschaftliche Anreize,Brochure, commissioned and edited by the Umweltbundesamt, unpublished draft, Wuppertal andGelsenkirchen. Wuppertal Institute [Wuppertal Institute for Climate, Environment, Energy]/ifv[Institut für Verwaltungswissenschaften]()

Waide, Paul: Monitoring of energy efficiency trends of European domestic refrigeration appliances, Consulting for ,

Winward, John; Schiellerup, Pernille; Boardman, Brenda: Cool Labels – The first three years of theEuropean Energy Label, University of Oxford,

Work Plan for “Energy Star – Energy Efficiency Labelling Programme for Office Equipment”, Draft July, Brussels

13.2 Internet resources and references

GENERAL LINKS

http://www.blauer-engel.deThe Blue Angel Ecolabel

www.energystar.govEnergy Star from the US Environmental Protection Agency

http://searchwin2000.techtarget.com/sDefinition/0,,sid1_gci213657,00.htmlACPI (Advanced Configuration and Power Interface), an industry specification for the efficient handling of power consumption in desktop and mobile computers

http://europa.eu.int/ecolabelEuropean Ecolabel

http://www.energy-plus.orgEnergy-plus SAVE Program for super-efficient refrigerators

http://www.eceee.org/library_linkssee page with procurement information

AUSTRIA

http://www.municipia.at/fallstudien/f0000124.htmlThe environmental Program Graz “Oekostadt 2000” developed from 1990 to 1993, equivalent to alocal Agenda 21.

http://www.eva.wsr.ac.at/projekte/uni.htmProject “Energy Efficient Universities”

148

http://www.nachhaltigwirtschaften.at/publikationen/index.htmlProject “Energy Efficient Universities”

http://www.Energieinstitut.at/Energy Institute Vorarlberg . “e5-Landesprogrammem” (Program of the province) for energy-consciousmunicipalities, a best practice competition for municipalities comparable to the Swiss label “energy city”

http://www.eva.wsr.ac.at/(de)/projekte/tpf-rat.htmEnergy Performance Contracting for Small and Medium-Sized Municipalities: Guidelines for Success

www.oekoeinkauf.atGreen Purchasing Criteria

FINLAND

http://www.hymonet.comHymonet

FRANCE

http://www.ecocampus.net/Ecocampus

http://www.finances.gouv.fr/Ministry of Finance, Economy and Industry

GERMANY

www.wegweiser.de

www.cosinex.com

www.beschaffen.de/clearingcenter/home/home.php

http://www.difu.de/stadtoekologie/praxis/Database with best practise examples

www.destatis.de/zeitreihStatistics

www.indikatoren-nrw.deThe project "Indicators North Rhine-Westphalia" by the Ministry of Construction and Housing,Culture and Sports for North Rhine-Westphalia

www.communal-labels.orgThe "Action Program 2000plus" by the Ministry of Economics and Small Businesses, Technology andTransport for North Rhine-Westphalia will be implemented by the energy agency of North Rhine-Westphalia, too. One part of the Program is the project "Communal Labels"

http://www.myshk.com/ikz-praxiswww.stadtentwicklung.berlin.de/umwelt/klimaschutz/berlin_spart_energie/www.nds-energie-agentur.de/main/m_kem.htm

IRELAND

http://www.go-source.comAll Ireland Directory of Public Sector Procurement

149

http://www.odci.gov/cia/publications/factbook/geos/ei.htmlCIA, The world factbook – Ireland

www.environ.ieComhar – The National Sustainable Development Partnership, Work Program 1999-2002,http://erg.ucd.ie/Energy Research Group at University College, Dublin

http://www.irlgov.ie/Ireland – Information on the Irish State

www.irish-energy.ieSustainable Energy Ireland

http://www.environ.ie/localindex.htmlLocal Government in Ireland

ITALY

www.istat.itIstituto Nazionale di Statistica (National Statistic Office)

www.acquisti.tesoro.itPublic Administration central purchasing (CONSIP Spa)

http://www.n2d.it/isb/La scuola intelligente (Energy Efficiency in Schools) Provincia di Milano

http://www.grtn.it/Gestore della Rete di Trasmissione Nazionale (National Greed Manager)

http://www.provincia.torino.it/ambiente/energia/strategi.htmProvincia di Torino – Piano Energetico Provinciale (Energy Plan)

http://www.catpress.com/agenergia/Agenzia per l’Energia Città di Torino (Energy Agency of the City of Torino)

http://www.esternet.com/documento_sez4_1.htmISNOVA (Istituto per la Promozione dell’Innovazione Tecnologica) (1999) “Gestione dell’Energia nel Settore della Sanità nella Regione Lazio”(Health sector management in Regione Lazio)

JAPAN

http://unfccc.int/sessions/workshop/010810/papers.htmlUnited Nations Framework Convention on Climate ChangeWorkshop on “good practices” in policy and measures among parties included in annex I of the convention

www.gpn.jpGreenProcurement in Japan in: The World Buys Green, ICLEI 2001 Green Purchasing Network

www.stat.go.jpJapan Statistical Yearbook

http://www.unescap.org/enrd/energy/finance/part3_sato.htmlPromotion of Energy Efficiency Investments in Japan

150

http://www.env.go.jp/en/pol/g2o/index.htmlAction Plan for Greening Government Operations

THE NETHERLANDS

http://www2.minvrom.nlThe Netherlands Ministry of Housing, Spatial Planning and the Environment

http://www.inkopers.netProgram Sustainable ProcurementWebsite providing a toolbox with environmental specifications

www.novem.nl/epnComputing Program ‘EP Variants for Commercial and Industrial buildings’ to check the compliance ofbuildings with EPC (Energy Performance Coefficient) requirements

http://www.milieukeur.nl

http://www.rijksgebouwendienst.nl

http://nic-plaza.nl

http://www.egadvies.nl

http://www.dubo-centrum.nl/

PORTUGAL

http://www.akf.dk/eng/udland1.htmAKF Institute for Local Government Studies – Denmark Report about Portugal

http://www.dge.ptMinistry of Economy General Directorate for Energy

http://www.ine.pt/index_eng.htmInstituto Nacional de Estatistica (National Statistic Office)

http://www.spes.pt/Sociedade Portuguesa de Energia Solar (Portoguese Agency for Solar Energy)

SWEDEN

http://www.eku.nu/Guideline for Ecologically Sustainable Procurement

http://www.sou.gov.se/eku/The Committee for Ecologically Sustainable Procurement “Proposal for an ecologically sustainablepublic procurement policy”

http://www.avropa.nu/index.htmCo-ordination of government procurement

http://www.boverket.se/The National Board of Housing, Building and Planning (Boverket): Figures and facts about Sweden

http://www.kommentus.se/Kommentus Energi&Samköp works for objective co-operative procurement of energy and other prod-ucts and services related to municipalities.

151

http://www.offentlig.kommers.se/eng/index3.aspNational Board of Trade (Kommerskollegium): Public Procurement in Sweden

http://www.nou.se/NOU (the National Board for Public Procurement)

http://www.statskontoret.se/english/index.htmThe Swedish Agency for Public Management (Statskontoret)

http://www.sverigedirekt.gov.seSverigeDirekt (SwedenDirect): The official internet portal for information about Sweden’s public sector.

http://www.ieh.se/Swedish Institute for Ecological Sustainability (Statens institut för ekologisk hållbarhet)

http://www.stem.seSwedish Energy Agency

http://www.scb.se/Swedish Statistics (Statistiska Centralbyrån):Swedish Statistics Network

http://www.tco.se/datamil/datami_ut.htmTCO label of the Swedish Confederation of professional Employees

www.industrilitteratur.seInformation on LCC

http://www.klokainvesteringar.nu/Lists of recommended energy-efficient products (City of Stockholm)

SWITZERLAND

http://www.admin.ch/ch/e/schweiz/ political.htmlThe Federal Authorities of the Swiss Confederation

www.admin.ch/beschaffungTypes of goods purchased by the Federal government

http://cities21.com/egpis/egpc-156.html Saving money and resources with ecological office materials Integration of environmental criteria in municipal procurement

www.klimabuendnis.orgAlliance of the European Cities with the Peoples of the Rainforest for Protection of the Global Climate

www.statistik.admin.chStatistik Schweiz

www.minergie.chQuality label for new and refurbished buildings

www.kbob.admin.chKBOB Co-ordination of the federal services concerning building organisations, construction and property services

www.eco-bau.chSeveral surveyor’s offices which are members of the KÖB are offering handbooks, recommendationsand instruction leaflets to the private sector and/or to public administrations. On this site there is a listof documents available

152

www.igoeb.chThe Interest group for ecological purchasing (Interessengemeinschaft Ökologische Beschaffung, IGÖB)

www.buwal.chAnalysis of financial and budgetary questions in connection with life-cycle approaches

www.energiestadt.chLabel “Energy Town”

www.kdmz.zh.chBaudirektion Kanton Zürich 2001, Hofer 1999

www.umweltschutz.zh.chBaudirektion Kanton Zürich (2001): Umwelt-Geschäftsbericht 2000 – Umweltmanagement –Stoffkreisläufe, Ökologische Beschaffung, Zürcher Umweltpraxis

www.bbl.admin.ch

www.energie.ch

www.energie-schweiz.ch

UK

http://www.sustainable-development.gov.uk/sdig/index.htmSustainable development in Government

www.hm-treasury.gov.ukHM-Treasury

http://www.defra.gov.uk/environment/consumerprod/accpe/report01/06.htmChoosing green – towards more sustainable goods and services. The first report of the AdvisoryCommittee on Consumer Products and the Environment. October 2000.

http://www.parliament.the-stationery-office.co.uk/pa/cm199900/cmselect/cmenvaud/341/34106.htm#a19 House of Commons. March 2000. The Environmental Audit Committee’s fifth report:

http://www.parliament.the-stationery-office.co.uk/pa/cm199900/cmselect/cmenvaud/404/40405.htm#a9 House of Commons. July 2000.The Environmental Audit Committee’s sixth report

http://www.dwp.gov.uk/publications/2001/pubs/sd_report/sus_pol5.htm#topThe Department of Work and Pensions. October 2001. Sustainable Development, Energy andEnvironment First Annual Report 2001.

http://www.local-regions.dtlr.gov.uk/laprocure/08.htmDepartment for Transport Local Government and Regions. June 2001. Local Authority ProcurementResearch Report.

http://www.lmu.ac.uk/fin/envmnt/op/purch/Leeds Metropolitan University Green Purchasing Guide

www.ogcbuyingsolutions.gov.ukOGC (Office of Government Commerce) buying solutions

153

US

www.epa.govUS Environmental Protection Agency

http://thomas.loc.gov/Summary of current legislative proposals

http://www.eren.doe.gov/femp/resources/epacintro.htmlFederal Policy Act 1992

http://www.eren.doe.gov/femp/resources/exec13123.htmlOffice of the President, 1999. “Greening the Government Through Efficient Energy Management.”Executive Order 13123. Washington, DC. June 3.

http://www.access.gpo.gov/nara/cfr/waisidx_00/10cfr436_00.htmlFederal regulations affecting federal agency operations and energy efficiency in general

http://www.arnet.gov/far/Specific regulations on government purchasing (Federal Acquisition Regulations, FAR)

http://www.cee1.org/gov/purch/purch-main.php3Consortium for Energy Efficiency

http://www.energy.state.or.us/res/tax/taxcdt.htmOregon Tax Business Program

http://www.naseo.org/links/states.htmLinks to State Energy Offices

http://www.eren.doe.gov/buildings/state_energy/map.htmlDescription of state programs undertaken jointly with US DOE

http://www.energy.wsu.edu/cfdocs/asertti/default.cfmASERTTI Association of State Energy Research and Technology Transfer Institutions

http://www.eren.doe.gov/buildings/rebuild/DOE “Rebuild America” program

http://www.eren.doe.gov/energysmartschools/DOE for energy efficiency in school buildings

http://www.energystar.gov/products/Energystar website

http://www.eren.doe.gov/buildings/codes_standards/index.htmUS DOE codes and standards programs for buildings

http://www.clasponline.org/standard-label/programs/country1.php3Overview of appliance labeling and standards in the US, compared with those in other countries

http://btscoredatabook.eren.doe.gov/BTS (Office of Building Technologies and Community Programs) 2001 core databook

http://www.eia.doe.gov/emeu/recs/Energy Information Administration – Residential Energy Consumption Survey

http://www.dc.lbl.gov/~harris/GovernmentPurchasing.pdfAn LBNL study developed a simple model of purchasing volume for selected energy-using products,

154

based on equipment stocks (derived from floorspace and estimated equipment intensities) combinedwith average equipment replacement rates.

http://www.cee1.org/gov/sear/sear-main.php3CEE (Consortium for Energy Efficiency) Government Programs

http://www.dc.lbl.gov/~harris/GovernmentPurchasing.pdfPotential Energy, Cost, and CO 2 Savings from Energy-Efficient Government Purchasing 1Jeffrey Harris, Lawrence Berkeley National LaboratoryFrancis Johnson, Stockholm EnvironmentInstitute2

http://www.ase.org/profess/femp/Alliance to Save Energy (ASE). 1998. “Leading By Example: Improving Energy Productivity in FederalGovernment Facilities.“ Washington, DC. November.

http://www.eren.doe.gov/femp/resources/exec13221.htmlOffice of the President. 2001. “Energy-Efficient Standby Power Devices.“ Executive Order 13221.Washington, DC. July31.

http://www.gorr.state.ny.us/gorr/EO111_fulltext.htmPataki, George. 2001. “Green and Clean State Buildings and Vehicles.“ Executive Order 111. Albany,NY. June 10.

http://www.eia.doe.gov/emeu/recs/tables/housing_units_households.htmlUS Department of Energy, Energy Information Administration (DOE/EIA). 2000. “A Look atResidential Energy Consumption in 1997.”

http://www.eren.doe.gov/femp/aboutfemp/ann99_report.htmlUS Department of Energy, Federal Energy Management Program (DOE/FEMP). 2001. “AnnualReport to Congress on Federal Government Energy Management and Conservation Programs, FiscalYear 1999.“ Washington, DC. May 10. DOE/EE-0252.

http://www.whitehouse.gov/energy/White House. 2001. “Reliable, Affordable, and Environmentally Sound Energy for America’s Future.”Report of the National Energy Policy Development Group. Washington, DC. May 17.

http://www.eere.energy.gov/femp/procurement/Federal Energy Management Program (FEMP) of the US Department of Energy (DOE) – Product efficiency recommendations for many energy-consuming products

155

Documents

Harnessing the Power of the Public Purse · 2014. 6. 25. · of the public purse”. By doing so, it emphasises that energy efﬁciency in the public sector goes far beyond energy