The many actions that have previously been implemented through the Energy Efficiency Action Plan of the Province of Milan, such as New Building Regulations and Certification, Accreditation System for Building Certifiers, Energy InfoPoints Network, Zero-Rate Bank Loans, etc, prepared the ground for the EIB investment programme.
The EIB funds are used to activate Energy Performance Contracts with a Guarantee of Results in favour of the municipalities through Energy Service Companies (ESCOs). The savings are then used to reimburse the loan, reduce the energy budget, and relaunch SME activities. In the EPC Contractual Framework, the ESCO carries sole liability towards the end users and takes care of all phases:
Thus the ESCO’s risk concerns both the financial investment aspect as well as the failure to reach predetermined energy saving targets. The supply of fuel and electricity is excluded from the Concession.
A participatory approach was used with the involvment of the province of Milan (energy department), the European investment bank and 48 municipalities of the Province.
With a budget of € 2.16M the first tender awarded (Energy Performance Contracts signed in 16 Municipalities regarding 98 buildings); Positive relation between the Province of Milan and its municipalities was created and an attention was brought to Energy Efficiency.
The shared vision among the various actors as well as the funding availability were deemed very important.
Province of Milan – Energy department