1st Thematic Seminar on Sustainable Energy Systems in Municipal Authorities and on Innovative Financing Tools. STEP PROJECT INTERREG IVC. Helsinki

1. Good Practice Summary
Mid West Regional Authority
April 2013, Finland

2. Good Practice Proposal
Innovative Financing and Operation
of Small Scale Biomass Energy
Supply and Energy Efficiency
Upgrades in Public Facilities

3. Potential
• Biomass presents strong potential to significantly reduce the heating
bill for public body facilities as a whole and to bring the heating and
hot water portion of each site’s energy consumption to zero carbon
emissions. To date, financial restrictions on public bodies in the
MWRA has significantly deterred uptake of Renewable Energy
Systems (RES), including Biomass. The innovative financial model
developed by the Tipperary Energy Agency offers public bodies the
opportunity to reduce their annual energy costs along with their
carbon footprint, without the need for significant capital investment.
The benefits of this risk removal model for the authority have been
successfully demonstrated in four case studies within the region to
date (Nenagh Leisure Centre, Thurles Leisure Centre, LIT Tipperary
and Coolbawn Water Treatment Facility).

4. Problems Addressed
• Capital costs of investment
• Project risk factors
• Lack of demonstration of successfully
implemented, alternative financial models
• Lack of market demand for energy service
companies
• Public private partnerships are rare in the
energy supply market

5. Key Aspects
• Energy Services Contract (ESCO)
• Three to five year heat supply, operate and maintain
contract
• Alternative model is where the local authority can sign a
long term (5 to 15yr) energy supply contract
• Risk analysis scenarios
• Energy efficiency measures
• Liability for and maintenance of physical assets
• Liability for the use of backup fuels
• Liability and impact of energy demand change

6. Nenagh & Thurles Leisure Centres Biomass Heat
supply

7. Proven solution
• Nenagh & Thurles Leisure Centres
Thurles
Leisure
Centre
Nenagh
Leisure
Centre
Rate per kWh on heat meter. (€) 0.038 0.039
Capital Cost 146,330 180,147
Annual Load in kWh 1,800,000 840,000
Annual heating cost – Biomass 68,400 3 32,760
Annual Heating Cost Oil/LPG
Equivalent
152,000 79,800
Annual Heat Saving € (%) 83,600
(55%)
47,040
(58%)
Simple Payback (yrs.) 1.75 3.8

8. Coolbawn Water Treatment Plant
-Energy efficiency first
-Air tightness
-Cavity Wall insulation
-Heating time, temperature and zone control

9. -Renewable energy
-Wood Pellet
Coolbawn Water Treatment Plant

10. Project Evaluation
• Coolbawn Water Treatment Plant
Savings over 7 yrs. of ESCO €20,300
Annual Savings after ESCO
ends
€13,700
Capital Investment by NTCC €0
7 year NPV €18,500
10 year NPV €39,900
15 year NPV €93,000

11. Net Impact of Project

12. Savings Prediction for Consumer
• Effect of fuel inflation rates on payback
0
2
4
6
8
10
12
14
Oct-90
Aug-91
Jun-92
Apr-93
Feb-94
Dec-94
Oct-95
Aug-96
Jun-97
Apr-98
Feb-99
Dec-99
Oct-00
Aug-01
Jun-02
Apr-03
Feb-04
Dec-04
Oct-05
Aug-06
Jun-07
Apr-08
Feb-09
Dec-09
Oct-10
Aug-11
Jun-12
Apr-13
Feb-14
Dec-14
Oct-15
Aug-16
Jun-17
Apr-18
Feb-19
Dec-19
UnitPricec/kWh
Year / Month (Source SEAI)
Trend of Energy Price 1990 - 2016
Kerosene
Pellets Bulk
Wood Chip
LPG
Fuel Oil Wood Chip
Per Annum Inflation 10% 4%
Inflation from 2006 to 2013 53% 30%

13. Risk Assessment
-20,000
-
20,000
40,000
60,000
80,000
100,000
120,000
140,000
4% 2% 0% -3%
AccumulatedSavings(€)
Fuel Inflation Rates
5 year Saving
7 year Saving
10 year Saving
15 year Saving
Combined effect of risks
•The cost inflation rate of fuel
reduces below the
conservative 4% value.
•The oil price for 2013 is
reduced by 10c/litre.
•The energy saved by the
ESCO is reduced by 20%.
•The energy consumed in the
Pre-Filtration Building is
increased by 15%

14. Further Savings Analysis
4% 2% 0% -3%
5 year Saving 10,593 8,492 6,447 3,479
7 year Saving 20,318 14,853 9,670 2,396
10 year Saving 54,444 40,958 28,713 12,425
15 year Saving 153,372 113,640 81,006 42,278
-
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
AccumulatedSavings(€)
Fuel Inflation Rates
5 year Saving
7 year Saving
10 year Saving
15 year Saving

15. Contacts
• Tipperary Energy
Agency
• Craft Granary
• Church St
• Cahir
• Co. Tipperary
• Ireland
• Paula Gallagher
• Energy Manager
• T: 052 744 3090
• F: 052 744 3012
• E: info@tea.ie
• W: www.tea.ie

16. Thank you.