ENERGY-SAVING PPP CONTRACTS : PUBLIC LIGHTNING

1. ENERGY-SAVING PPP CONTRACTS: PUBLIC LIGHTNING Boštjan Ferk, Director Institute forPublic-PrivatePartnerships, Slovenia E:bostjan.ferk@pppforum.si, S: www.pppforum.si

2. GREEN PPP PROJECTS • Public lightning • Solar Power Stations • Energy Efficiency in the Building Sector • Cogeneration • …

3. SOURCES OF FINANCE FOR GREEN PROJECTS • Public Procurement (public sources) • Public-Private Partnerships (private sources) • EU Funds • “Self-financing “ • …

4. RENOVATION OF PUBLIC LIGHTNING SYSTEM typical green PPP project suitable for project financing Financing, Planning, Installation (Renovation), Maintenance (private partner) + option to include supply of electricity periodical payments after renovation (public partner)

5. PROJECT FINANCING OF PUBLIC LIGHTNING PROJECT financing the project with FUTURE savings life cycle costs of the project must not exceed future savings

6. PRINCIPLE OF DURATION AND PARTICIPATION MODEL* *Sourse: Guideline for Saving Contracting in Street Lighting, 2006

7. CHALLENGE: HOW TO DEFINE FUTURE SAVINGS • mostly used: comparison of the cost of electricitybefore/after the project - WRONG • it is impossible to exactly predict future savings • future cost of electricity depends on: • price of electricity • number of lights • efficiency of lights technology • active time • failures of lights • ...

8. HOW TO AVOID MISTAKES IN PPP FOR PUBLIC LIGHTNING? involving INDEPENDENT technical expert exact overview of the existing situation involving private partner in all phases of the project contract should include mechanisms to deal with future conflicts

9. WHY PPP FOR GREEN PROJECTS? • tehnically challenging projects • possibility to involve private sector in all phases of the project • potential risk sharing • private financing

10. Thank you for your attention! Boštjan Ferk, Director Institute forPublic-PrivatePartnerships, Slovenia E:bostjan.ferk@pppforum.si, S: www.pppforum.si