Buildings

Berlin, Germany

An innovative energy efficiency program that costs building owners zero, drives down C02, and generates immediate savings.

Download Berlin: Energy efficiency program PDF

What is it?

The City of Berlin in partnership with Berlin Energy Agency (BEA) has done pioneer work to develop and apply an excellent model to improve energy efficiency in buildings. The model called “Berlin Energy Saving Partnership” (ESP) offers efficient refurbishment of public and private buildings with the pivotal advantage to release the building owner of any investment costs.

How does it work?

The Berlin Energy Agency organises retrofits for large public and commercial buildings. An accredited Energy Service Company (ESCO) – determined through tendering – finances and implements energy saving investments to achieve pre-defined energy, cost and CO2 emission reductions through Energy Performance Contracting (EPC). The average EPC realises energy cost savings of 26% with payback periods of 8-12 years.

Energy Saving Partnerships are effective because:

• savings are guaranteed by contract,
• energy efficiency investments in large building complexes are encouraged through building pools,
• investment is refinanced through energy savings,
• building owner participate in the saved costs,
• strong legal framework for tenders and local firms supports model implementation.

The success of the Berlin ESP can be attributed to:

• communication and smooth interaction,
• political will,
• financial and political support of the Senate Administration of Berlin,
• transparent procedures,
• enforceable standards and
• independent experts.

Key results

From 1997-2007:

• 1300 buildings have been upgraded
• 64,000 tCO2 per annum have been avoided – an average saving of 27.3% against the baseline scenario
• 26% of baseline energy costs achieved
• €10.5 million of total guaranteed cost savings
• €44.4 million investment from ESCOs
• BEA initiated more than 20 projects around the world through its “International Know-How Transfer” unit

Best practices of buildings and building pools

Case study 1: Germany's largest correctional centre, JVA Tegel and Siemans

This Energy Saving Partnership was the first of its kind between Siemens Building Technologies and a correctional centre. The contract guarantees annual energy savings of more than 600,000 Euro, for 1,700 prisoners. This Energy Saving Partnership between JVA Tegel Prison and Siemens was the first of its kind between Siemens Building Technologies and a correctional centre. The contract guarantees annual energy savings of more than 600,000 for 1 prisoners.

CO2 reductions: 4.68 tons CO2 per year

Financial Savings: €600,000 per year 33% cost reduction per year for investment of $2.5 million

Case study 2: Pool 4 of the Energy Saving Partnerships with Johnson Controls

The Berlin District Pankow (Pool No.4) entered an Energy Saving Partnership with Johnson Controls in 1998 (EU wide tender). The pool consists of 56 real estates within the district and a contract volume of 2,075,000 Euro per year (Baseline) for a Baseline Consumption of 49,513 MW h per year. The contract started in April 1999 and entered the main performance phase with energy savings becoming active in March 2000. The contract will end in 2013 after a duration of 14 years.

CO2 reductions: 2,500 tons

Financial Savings: 24.2% savings, or €502,000, for €1,771,000 investment

Application

Energy Saving Partnerships work because they:

• guarantee savings by contract
• reduce energy consumption in large building complexes or a building pool through investments by the contractor
• refinance the investment through energy savings
• allow the building owner to participate in the saved costs
• recommend that countries implementing the partnerships have a strong legal framework for tenders and that local private firms to carry out work.

The success of the Berlin Energy Saving Partnerships can be attributed to:

• communication and smooth interaction
• political will
• transparent procedures
• enforceable standards
• and independent experts.

These collectively achieve good competition and best results

Berlin's Energy Savings Partnerships are being successfully implemented beyond Berlin. BEA technicians are able to provide technical consulting services around the world. The concept has been effectively transferred to other sectors.

• It has been applied in 15 hospitals throughout Germany
• Know-how transfer to date has helped initiate more than 20 projects in Central, Eastern and Western Europe.
• The program has already transferred well to Bulgaria, Slovenia, Romania and Chile.

Created by: Microsoft, Ascentium, ICLEI and CNT. © 2009 William J. Clinton Foundation. All rights reserved.