BundleUPJoint procurement for energy efficiency in

public buildings and street lighting

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WHO

BundleUp is an Horizon 2020 project with only Portuguese participants

“Development of energy eficiency projectswith bankability requirements”

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GoParity is an online P2P impact investing platform that connects citizens to sustainability projectswith as little as 20€.

CREATINGIMPACTWITH RETURN

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BusinessModel

INVESTORS

NO FEES

PROJECTS

UPFRONT FEE+

ONGOING FEE

LOAN

CAPITAL AND INTEREST

4% TO 6% PER YEAR

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WHERE WE ARE

>2000users

>1M €transactions

16 projectsfunded

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FUNDINGHard to find funding through

traditional means

SCALEMany projects are too small to attract professional investors

BUREAUCRACYRestrictive procedures make the

process costly and time-consuming

WHY

Several projects with great potential for savings and economic viability do not reach the implementation stage

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PROJECTS

Consumption equivalent to 150 GWH/year

M€ OF FUNDING

Average Payback of 5,7 years

CITIES

Which account to more than 20% of portuguese population

56 49 13

STARTING POINT

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• PML 1 – Potential project identified

(building or infrastructure apparently suitable for energy efficiency or RES intervention)

• PML 2 – RES and/or Efficiency potential quantified

(via audit, study or certification)

• PML 3 – Investment estimated and business model chosen

• PML 4 – Technical project developed

• PML 5 – Investment-Ready

(Business case confirmed)

• PML 6 – Investment offer or tendering requirements created

(ready to sign or launch tender)

PROJECT MATURITY LEVEL

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METHODOLOGY

Potential assessment and budget estimation

Business and financing models assessment

Support in obtaining technical and economic-financial proposals

Contracting and funding support

Investment forms• Own Equity/Capitals• Loan• External Investor (off-balance sheet)

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PROMOTERS

Private or Public Organizationswith energy efficiency projects

EXPERTS

Energy efficiency or renewable energy services companies

INVESTORS

Financial institutions, funds, private investors or family offices

One-stop-shop: a place where all stakeholders can make their energy efficiency projects happen

VALUE PROPOSITION

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LOANS

“OFF-BALANCE SHEET”

EXTERNAL INVESTORS

INVESTMENT FROM THE PROMOTER

OWN FUNDS

DEBT

INVESTMENT TYPES/FORMS

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• Installment payment agreements

• “Group of contracting entities”

• Standard contracts for EE in public administraiton (”EcoAP”)

• Aquisition of energy efficiency services/equipment

LEGAL FRAMEWORK

Providing contracting support is a vital part of BundleUp activities, which counts with SRS Layers for thelegal framework definition. At this moment, there are four general solutions identified, even thoughsome projects could have other approaches:

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CURRENT PIPELINE

Funding and Energy| All BundleUp projects identified

PARTNER INVESTMENT Yearly Savings (GWh/year)

Yearly Savings (€/year)

Energy EfficiencyInvestment

Savings GWh(EE+PV)

PV Investment

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WHERE WE ARE

• Beta-version platform

• Legal framework

• Project harmonization (batch 1)

• Investor meetings (15 concluded)

• Tendering templates

FIRST PROJECTS COMING TO LIFE!

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Energy Savings

143,81 GWh/year

= =

3 617 861 trips from Lisbon to

Oporto per year

Equivalent to

planting 3 379 535 trees per year

=

67 590 Ton C02 per year

Convertions rates from DGEG, Pordata and VW Portugal

PROJECT IMPACT

If all BundleUp pipeline projects were successfully implemented

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AdEPorto - Agência de Energia do Porto, a non profit

organization, was founded by the Municipality of Porto in 2007.

Presently it aggregates 9 municipalities of Porto Metropolitan

Area – North of Douro River.

Also holds 21 other associate member institutions, both private

and public, ranging different activities: energy, water, R&D,

professional associations, and academia.

AdEPorto

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POPULATION > 1 MILHÃO (10% PT)TERRITORY > 800 km2 (1% PT)ELECT. USE 2016 = 5.378 GWh (11% PT)

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PORTO MUNICIPALITY

• Population:237 591 hab• Area: 41,42 km2

• Density: 5 736 hab/km2

(PT: 115 hab/km2)

• World Heritage Historic Centre

• Best European Destination:2012, 2014 and 2017

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➢ Covenant of Mayors Signatory:

• First approved Portuguese SEAP (2011);

• 45% CO2 reduction Target (2020);

• Municipal Council decided for joining the

Covenant of Mayors for Climate and Energy;

• Renewed target of 50% CO2 reduction (2030)

and adaptation strategy.

PORTO MUNICIPALITY

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PORTO MUNICIPALITY

➢ (A few) Project Highlights:

• PV Porto (1st Phase): 1MWp decentralized PV

• Public Lighting: Full LED system

• Municipal Fleet:100% EV goal (≈300 vehicles)

• Public transportation: New electric buses until 2020

• Social Housing: Deep renovation + RES

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PV PORTO

• Decentralized System;

• Renewable electricity;

• Available Municipal buildings:

o Schools, services, sports, cultural...

o Different voltage levels (MV and LV)

o Energy use mainly in daytime hours

• EV charging + Storage pilots;

1st Phase target: 1MWp

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PV PORTO – INSTALLATION EXAMPLECENTRAL MAINTENANCE BUILDING

Power to Install 210 kWp

Investment 178 500 €

Annual Income 37 718€

Payback 5,0 years

Generated Energy 308 250 kWh

Grid Injection Approx. 0%

Avoided CO2/year] 111 ton

CAR PARKING BUILDUING

Power to Install 82 kWp

Investment 98 400 €

Annual Income 17 980€

Payback 5,7 years

Generated Energy 106 108 kWh

Grid Injection Approx. 0%

Avoided CO2/year] 38 ton

• 60 EV Chargers• Charge Management Control

• 45 EV Chargers• Charge Management Control

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PV PORTO - 1st PHASEBuildings 34

Power to Install 1 013 kWp

Investment 933 850 €

Annual Maintenance 10 130 €

Annual Income 183 458 €

Payback 5,2 years

Generated Energy 1 476 650 kWh

Grid Injection 16%

Avoided CO2/year 531 ton

• Clean electricity;

• Reducing CO2 emissions;

• Raising awareness;

• Lower energy costs;

• Gamification on Schools;

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PV PORTO – NEXT STEPS

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• On-site validation of power plant installation potential;

• Electrical infrastructure sizing;

• Existing structural elements load bearing characteristics;

• Evaluate EV chargers interconnection;

• Evaluate local storage possibilities;

• Final PV system dimensioning, cost and tenders;

Initial Studies

On-site Evaluation

Final design and

tendering Public Procuremen

tDeployment

Mar/2019 Apr/2019 Aug/2019 Nov/2019

2st Phase target: + 2MWp (2020)

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PV PORTO AND BUNDLE UP (PONTO ENERGIA)

• Support from peers and partners;

• Identifying bundling and market opportunities;

• Identifying potential market players;

• Proposing alternative financing schemes;

• Technical/Legal support;

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THANK YOU

N U N O B J @ G O P A R I T Y . C O M

R U I P I M E N T A @ A D E P O R T O . E U

W W W . P O N T O E N E R G I A . P T / / W W W . B U N D L E U P . E U