Energy renovations in Copenhagen worth millions in cost savings, Government Offices of Sweden
Release Date: 2009-03-18
Copenhagen Properties and Denmark's DONG Energy have entered an agreement where DONG is to carry out energy renovations that will provide energy savings of DKK 12m
Copenhagen Properties, an entity that is part of Copenhagen municipality, and Denmark's DONG Energy, one of Europe's leading energy groups, have entered an agreement where DONG is to carry out energy renovations, which will provide energy savings of DKK 12m over a period of 10 years, writes the Danish Energy Association in its daily newsletter. The savings will be realised in heating, lighting and ventilation in a number of nursing homes in Copenhagen.
The agreement form is an ESCO contract, which is a relatively new concept in Denmark. ESCO is an acronym for Energy Service Companies, and refers to a business model where the work that an energy renovation company carries out is paid for over typically a 5-10 year period from the resulting energy savings. A big advantage of the model, particularly for public sector institutions, is that the building owner does not need to put money up front to finance the renovation work.
Experience from abroad shows that an ESCO agreement typically reduces energy consumption in buildings by up to 40 per cent.
Allan Schefte, market director of DONG Energy says: "In Denmark we do not have much experience with ESCO agreements where binding, guaranteed energy savings are given. It is an interesting agreement form in which we see great future prospects, because it is typically a win-win situation for the authority or company that owns the building, for the company that carries out the energy renovation with guaranteed energy savings, and for the environment which is spared CO2 emissions."
Copenhagen City Council has granted DKK 12m in funding for the project. This investment is financed through the savings achieved. If the energy savings are more than the amount promised, DONG Energy and Copenhagen municipality will share the additional profit.
| Type: | NORMAL |
| Company: | Government Offices of Sweden |
| Country: | Sweden |
| Url: | http://www.denmark.dk/en/servicemenu/news/environment-energy-climate-news/energyrenovationsincopenhagenworthmillionsincostsavings.htm |