The final consultancy workshop of the South African component of the V-NAMA project was hosted by ICLEI Member eThekwini Municipality. The workshop aimed to share the results of a pilot run in eThekwini and Graaff Reinet to test a municipal procurement strategy that would allow municipalities to enter into shared savings contracts with private energy companies.
The EPC model involves a company costing and installing energy efficiency measures into a client’s building, with cost savings subsequently accruing to both the client and the company in a “shared savings” approach. However, the financial and procurement processes of South African local government can make such an innovative solution difficult to achieve – and this is what the workshop sought to discuss, by focusing in on energy efficiency in public buildings.
The Energy Performance Contracting Barometer sought participants current levels of understanding on key topics to be discussed during the workshop.
During the two days, ICLEI Africa facilitated the inputs of expert speakers from local ESCO’s, Provincial and national government, and an energy consultant from Austria. Wide ranging discussions were held from the challenges and processes of conducting energy baselines in buildings – a vital starting point for determining future potential savings from energy efficiency measures – to issues of adequate data coverage, to clarifications on the legislation that governs municipal procurement and contracting. Inspiring examples from Provincial and national government were shared.
The workshop certainly helped ensure that all participants became newly qualified “experts” in Energy Performance Contracting and Energy Service Company’s. The procurement strategy for local governments can now be refined and proposed as a model for all municipalities across the country. The goal is that many can procure local companies in shared savings contracts while sticking to the requirements of the municipal finance and procurement acts.
We look forward to seeing the continued increase of energy efficiency measures being installed in government-owned infrastructure, and a new burgeoning market in ESCO’s into the future.
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