Innovative Financing and Operation of Small Scale Biomass Energy Supply and Energy Efficiency Upgrades in Public Facilities.
Topic of the practice
Energy efficiency, renewable energy, finance
Good Practice Information
Innovative financing tools for boosting local EE/RES investments (ESCO contracts) were pursued for the following reasons:.
PROBLEM: Addressing challenges in RES implementation: Capital costs of investment; project risk factors; lack of demonstration of successfully implemented, alternative financial models; lack of market demand for energy ser-vice companies; public private partnerships are rare in the energy supply market.
BACKGROUND: The Bio Energy Action Plan for Ireland sets a target of 12% RES share in the heating sector for 2020.
The obejctives and actions were as follows:
OBJECTIVES: 1) The conversion of biomass forestry residues into heat, thus replacing imported fossil fuel energy with locally grown timber. 2) generation of viable demand for RES: regional market formation, from forestry-to-boiler marketplace.
ACTIVITIES: 1)ESCO contract; 2) Installation of a woodchip boiler is required.
Evidence of success
Consisderable energy savings and increase of RES participation in the regional heating energy mix: Annual kWh 1,800,000 & 840,000; Heating costs: Biomass 68,400 3 & 32,760, Oil/LPG Equivalent 152,000 & 79,800; Saving € (%) 83,600 (55%) & 47,040 (58%); Simple Payback (yrs.) 1.75 and 3.8.
Contact details to obtain further information on the practice
Paula Gallagher, +353-872057132
Tipperary Energy Agency
Annex completed on: 12-17-2012