“In the EU, buildings consume 40% of all energy and the potential for savings in buildings is huge. Municipalities, hospitals, schools and contributory organisations that embarked on EPC projects before the energy crisis can now enjoy huge savings. We saved our customers over CZK 300 million last year. Most of the savings projects are in public administration, so this saves money for all citizens of the Czech Republic. However, the savings potential in public buildings is much higher and we estimate it to be up to CZK 20 billion per year,” said Kamil Čermák, CEO of ČEZ ESCO.
The EPC project at Prague Congress Centre (PCC) is generating the highest energy savings ever. It was launched in 2015. Since then, the centre’s management has had guaranteed annual savings of at least CZK 24 million. If it is less, the provider will make up the difference. “Last year was the exact opposite of operations during COVID. At the beginning of the war, hundreds of thousands of refugees from Ukraine were processed in our premises, then came the EU Presidency, when the most important events were held here. The energy consumption was enormous. Even so, we saved a full quarter more than we were guaranteed last year,” said Lenka Žlebková, CEO of Prague Congress Centre. Last year, Prague Congress Centre followed up the EPC project with the construction of the largest photovoltaic power plant in the centre of Prague. It will reduce energy consumption by an additional CZK 5 million per year.
The EPC method has traditionally paid off in hospitals, such as those in Česká Lípa, Jihlava and Karlovy Vary; everywhere they are saving more than they are guaranteed. At the Karlovy Vary Regional Hospital it is 10 percent more. “We are happy we embarked on this project in 2018. In addition to the savings in energy costs, which in last year’s prices approached CZK 13 million, we can offer a more pleasant environment and better quality and healthier food for patients and employees,” said Martin Čvančara, Director of Karlovy Vary Regional Hospital.
Interesting EPC projects are also underway in buildings in 11 cities or municipal districts across the country: Český Těšín, Krnov, Jeseník, Vrchlabí, Kolín, Mnichovo Hradiště, Jablonec nad Nisou, Klatovy, Písek, Prague 3 and a project for Prague City Hall. “Within the framework of the capital city’s climate and energy policy, we see a way of searching for operational savings for individual buildings as absolutely necessary. After the first successful projects in municipal buildings, we plan to extend the EPC model to other municipal energy-intensive properties and facilities, such as other historic buildings, sports venues, and school facilities. This saves the city money, saves energy and reduces the city’s overall emission footprint. At a time of record energy prices and an overall energy crisis, this is definitely the right thing to do,” said Jan Chabr, Chairman of the Energy Committee in the Prague City Assembly.
There is huge potential for savings in industry. One example is the modernisation of lighting at the Military Repair Plants (Vojenské opravárenské závody, VOP). “If we just changed the light bulbs, we’d be hurting ourselves. By using intelligent lighting control in combination with energy management, we can save an additional 20% of electricity,” explained VOP Director Marek Špok. Thanks to the EPC method, they are contractually guaranteed an annual reduction in consumption of at least CZK 8 million compared to the situation before modernisation. If they had not gone ahead with it in 2018, their energy consumption would have been CZK 23 million higher at last year’s prices.
ENESA implemented 5 large new EPC projects worth nearly CZK 1 billion last year. They include projects for Thomayer University Hospital, District Hospital Mladá Boleslav and Na Homolce Hospital. Starting this year, thanks to EPC, savings will also be made at Pankrác Prison and in 17 buildings in the Prague 7 Municipal District.
The market for EPC projects is growing every year, but last year saw a qualitative change. “In previous years, projects were created mainly as a response to subsidies for energy savings. Last year, as a result of the war and rising energy prices, subsidies ceased to be the key driver. Saving energy has started to pay off even without subsidies. However, the state’s contribution organisations still face legislative barriers, which is a pity,” explained Milan Dorko, CEO of ENESA, about possible areas for further development of the EPC method.
ENESA is now transferring its long experience with energy-saving projects to newly-constructed buildings. Last year, ENESA, together with the construction company VCES and Adam Rujbr Architects, prepared and implemented the construction of the Children's Treatment Facility with Speleotherapy in Ostrov u Macochy using the Design & Build method, where the South Moravian Region, as the investor, specified the requirements for capacity, energy consumption, key parameters of use and others. The result is a low-emission building that aims to make a significant contribution to the health of young asthma and allergy sufferers.
In total, ENESA has implemented sixty successful EPC projects in its history, and they have brought customers savings of CZK 2 billion.
Summary of ČEZ ESCO/ENESA 2022 EPC projects:
Guaranteed annual energy cost savings in all EPC projects: CZK 200 million
Achieved annual energy cost savings in reference year prices: CZK 227 million
Achieved annual energy cost savings in last year’s prices: CZK 304 million
Additional saving: CZK 27 million, i.e., 13%
Number of active EPC projects: 32
Equivalent CO2 emissions: 45,400 tonnes
ENESA 2006-2022
Guaranteed energy cost savings to date: CZK 1.8 billion
Real savings on energy costs: CZK 2 billion
Number of buildings where energy costs have been/are being saved through EPC: 449
Equivalent CO2 emissions in all EPC projects to date: 340,000 tonnes
More about EPC
Energy services with a savings guarantee (Energy Performance Contracting, or EPC for short) includes the design of energy saving measures, and the preparation, implementation and, if necessary, arrangement of financing for a project leading to energy savings in buildings. The customer does not need any funds of its own, because the implementation is gradually repaid to the provider from the resulting and contractually guaranteed savings. All project risks are borne by the provider and if savings are not achieved in accordance with the predetermined model, the provider pays the difference. Investments in EPC projects have a payback period of 6 to 10 years. The EPC method has been used in the Czech Republic since 1994. An estimated 275 projects worth CZK 4.7 billion have been implemented, resulting in energy savings worth CZK 5.7 billion.
ENESA:
is an experienced and successful energy construction contractor and a market leader in energy service provision with guaranteed savings. ENESA’s energy saving projects have received a number of awards: Smart City 2021 (Children’s Treatment Facility with Speleotherapy in Ostrov u Macochy), Smart City 2020 (EPC project at Czech Technical University), Czech Energy and Environmental Project 2019 (EPC at Prague Congress Centre), Exceptional EPC Project 2019 (Town of Písek) and Best European Energy Services Project 2014 (EPC at Jihlava Hospital). ENESA is a founding member of the Association of Energy Service Providers, which it also chairs. It has been part of ČEZ ESCO since December 2015. More about ENESA at www.enesa.cz
ČEZ ESCO:
is a leading Czech expert in energy saving solutions, a supplier of emission-free and green electricity through certificates of origin and a partner for Czech industry and public administration on the path to decarbonisation and sustainability. It provides comprehensive solutions for energy needs - from the installation of decentralised environmental-friendly resources including battery storage, through turnkey corporate electromobility to energy saving projects and comprehensive deliveries of technical building security (TBS). It has approximately 2,000 employees. ČEZ ESCO subsidiaries include AirPlus, AZ KLIMA, CAPEXUS, ESCO Distribution Systems, ČEZ Energetické služby, ČEZ ENERGO, ČEZ LDS, Domat Control System, E-Dome, EP Rožnov, ENESA, HORMEN and KART. More at www.cezesco.cz.