Energy renovation of buildings
On 6 April 2017, The City of Ljubljana and the consortium of companies Petrol and GGE signed the contact on energy renovation of public buildings under the ownership of the City of Ljubljana. It is the biggest public-private partnership project in Slovenia in the area of energy contracting in Slovenian municipalities.
The project is prepared and is going to be carried out in accordance with the provisions of the Operational Programme for the Implementation of the European Cohesion Policy in the Period 2014-2020 of the Ministry of Infrastructure and includes cohesion funds in the financial perspective 2014-2020. The energy contracting covers the comprehensive or partial renovation of 49 buildings. The total investment into the renovation of these buildings is worth 14.9 million euro without VAT.
The contract was signed by the Mayor Zoran Janković and the Chairman of the Board of Petrol Tomaž Berločnik
In the area of efficient energy use the City of Ljubljana is implementing the project of energy renovation of municipal buildings which is mainly carried out using the public-private partnership model. The private partner invests into the energy renovation of the building and generates savings while providing the same or higher degree of comfort in the building, and the public partner pays him off with these savings in the contract period. During the 15-year concession the private partner is also responsible for the management and maintenance of the newly installed, that is, renovated energy equipment and systems.
In cooperation with the consortium of companies Petrol and GGE, the City of Ljubljana is going to improve energy efficiency in 49 public buildings. Comprehensive energy renovation is foreseen in 26 building, and in other 23 buildings partial energy renovation with the implementation of individual measures for more efficient use of energy is envisaged.
At the signing of the contract the Mayor of the City of Ljubljana Zoran Janković thanked the project participants. »The negotiations were not easy but it is important that the set goals have been achieved. I thank the company Petrol which during a period of good business performance decided to invest in areas and activities for the protection of our planet, and is taking part in the project in consortium with the company GGE. Namely, sustainable development based on the principles of the European Green Capital is the only path towards people- and nature-friendly future, and I am glad Petrol is already aware of this. In the area of sustainable development Ljubljana serves as role model for numerous cities in the world and I am proud that from now on we can also share good practices in the area of efficient energy use.« He added that the City of Ljubljana is going to transfer savings, to which it is contractually entitled, to the users of the renovated buildings. »This will additionally motivate the leaders in our kindergartens, schools, health care centres and sports facilities to educate their colleagues, and especially the young on the significance of smart and efficient energy use,« the Mayor added.
Tomaž Berločnik, Chairman of the Board of Petrol underscored: »We are proud the City of Ljubljana decided to make a new big step in the direction of a green and smart city and that it recognised the company Petrol as an suitable and reliable partner in this demanding area. With this project Petrol is evolving into an important and recognisable player in the country in the field of smart technologies and smart infrastructure in cities as well as a partner in energy efficient management of cities and urbanized settlements. For Petrol the project in Ljubljana represents a complex process of green digital transformation of the city infrastructure and serves as great reference for new business opportunities of this type in the wider region.«
Luka Komazec, Chief Executive Officer of the company GGE, underlined: »Considering that this is the biggest energy contracting project in Slovenian municipalities to date, we are very proud to be part of it. The project which, in addition to improving energy efficiency and generating savings, has a positive impact on the lives of citizens will certainly strongly support Ljubljana’s efforts to advance as a green capital. Ultimately, it will have an important effect on the local economy, as well, because approximately 100 contractors are going to be involved in the implementation of the project. And at the conclusion it will also serve as an important reference which will open up new related opportunities even wider in the region.«
The comprehensive renovation includes thermal insulation of the façades, replacement of builders’ joinery, ceiling insulation of unheated attics, installation of thermostatic valves, installation or renovation of efficient ventilation systems, renovation of boiler rooms and heating stations, installation of heat pumps, renovation of interior lighting, etc., while partial renovations encompass above all the heating systems and the interior lightning.
To cover the investment the private entity is providing minimally 51% of the assets, up to 32% of assets come from cohesion funds, and the City of Ljubljana provides 17 %. In buildings marked for comprehensive renovation 40% of assets are foreseen from the cohesion funds. Total guaranteed annual heat and electrical energy savings are 8,245,534 kWh, that is, slightly above one million euro (excluding VAT) annually, which also means a reduction of green house gas emissions (equivalent to CO2) of 2,956 tons annually.
The Energy Solutions Director at Petrol Jože Torkar added, that the CO2 reduction in the project at the annual level will equal the amount absorbed by 150,000 average trees or 340 ha of forest annually.
The Energy Manager of the City of Ljubljana Alenka Loose underscored that the City of Ljubljana has already defined efficient energy use in its Local Energy Concept which is very ambitious and will significantly contribute to the implementation in the field of energy efficiency and introducing renewable energy sources.
The investment into the renovation totals at 14.94 million euro, out of which the consortium of companies Petrol and GGE is investing 7.62 million euro, the amount of 4.80 million euro is foreseen from the European cohesion funds and the share of the City of Ljubljana is 2.52 million euro. All amounts do not include VAT as the VAT for the whole investment is covered by the consortium of companies Petrol and GGE.
The time schedule foresees that after the approval of the project documentation and introduction into the works the private partner is going to start with the implementation of the investments as soon as in June 2017. The conclusion of works is planned within 6 to 12 months. After the successful handover the private partner is going to guarantee savings until the expiry of the contract period, that is, until 2032.