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***New case study*** Vantaa, Finland: ESCO procurement for energy renovation of municipal buildings
***New case study*** Vantaa, Finland: ESCO procurement for energy renovation of municipal buildings
1 February 2018 - 11:22

The municipality of Vantaa uses Energy Service Contracting (ESCO) to improve the energy efficiency of 26 of its public buildings, in a way that does not entail any costs for the municipality as the expenses will be covered with the savings produced by the efficiency gains.

Defining the requirements of the ESCO

The city of Vantaa decided to renovate 14 public buildings (schools, swimming halls, libraries, and a day care centre) that were on average 20 years old or renovated more than 10 years ago and were all characterised by high energy costs. The objective was to find innovative and extensive solutions to increase their energy-efficiency and to implement the Energy Efficiency Agreement signed between the Finish Ministry of Employment and Economy and the city of Vantaa. It also aimed to diminish the amount of greenhouse gases in Vantaa and to improve the indoor air quality.

Based on these objectives, the Department of Land Use, Building and Environment of the municipality of Vantaa defined a saving target of 30,000 MWh in heat and electric energy. This target was calculated so that it would make a significant contribution to the climate and energy targets of the municipality, while still being achievable in a reasonable amount of time.

The city required a savings guarantee of 100% in the final call for tender, as a non-negotiable element. This meant that if the savings were not realised, the ESCO-provider would pay the difference to the city. In the case that the energy savings are bigger than stated in the bid, the extra savings are to be divided equally between the city and the provider. [...] Read more.

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