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Province of North-Brabant ELENA: Zero Emission Buses in the South of the Netherlands Introduction

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Province of North-Brabant ELENA: Zero Emission Buses in the South of the Netherlands Introduction Province of North-Brabant ELENA: Zero Emission Buses in the South of the Netherlands Introduction 20-20-40 Initiative European Union aims at • Reducing greenhouse gas emissions by at least 20% • Increasing the share of renewables in energy consumption to at least 20% • Improving energy efficiency by at least 20%, all by 2020 Covenant of Mayors Initiative • Initiative launched by the European Commission on 29 January 2008, under which • Signatory cities formally committed themselves to going beyond the objectives of the "20-20-20" Initiative in terms of reducing their C02 emissions through energy demand and renewable energy actions Elena Facility • European Local Energy Assistance Facility, set up by the European Commission and the European Investment Bank (EIB) under the Sustainable Energy Financing Initiative The ELENA Contract Provinces of North-Brabant and Limburg both teamed up with the Foundation ZEB: action plan to introduce Zero Emission Bus Transport within the two regions. This Project ensures that future bus transport concessions are based on the utilisation of zero emission buses. – Signed by EIB and Zero Emission Bus Transport Foundation – Cofinanced by provinces of North-Brabant and Limburg (10%) – Endorsements by the provinces in case of termination of the contract (partial) repayment of the grant is determined by the EIB – Loans by the provinces to overcome liquidity issues at the end of the project due to payment scheme of EIB (last 30% after determination of the final contractual amount) The ELENA Contract Goals/objectives: – Bridge the gap for urgent funding to move from high level plans to actual implementation of the envisaged regional investments within new public transport concessions. – Establish a staffed project office that implements the ELENA Investment program, thus making sure that synergy effects are fully covered. – Accelerate the transition to zero emission bus transport concessions in the southern provinces of The Netherlands. Facts & Figures Technical assistance EIB: € 2,5 million Final investments provinces Invoices pilots € 10,4 million Engagement concessionairs € 150 million Leverage-factor 71,4 #Buses 490 CO2-reduction 58.150 ton (per year) Zero Emission Bus Transport Foundation – Foundation (ZEB), established in July 2011. – Legal entity governed by private law with a public service mission. – Funded for more than 50% by public sources, whose internal procedures and accounts are subject to control by a public authority and for whose liabilities a public authority will accept responsibility in the event that the legal entity ceases its activities. – Non-profit organisation, supported by all relevant stakeholders within the public transport value chain in the Netherlands (manufacturers, Public Transport Authorities (PTA's), Public Transport Operators (PTO's), financial institutions, National Government and knowledge parties). – Act as an independent actor to balance the various interests of all public and private stakeholders in the project – Goal: to facilitate and enable zero emission in regional public bus transport within current public investment budget levels through the introduction of a new business model for bus operations. Major succes 1 The Foundation acted as a trusted party and as ‘go between’ between all stakeholders involved. It did not have any interests, nor with the authorities, nor with any private organization, the Board members did not receive remuneration for their efforts. • EIB acknowledged investments of about € 160 million electric buses and electric charging infrastructure • Pilot buses in ‘s-Hertogenbosch, Eindhoven (hydrogen) and Maastricht • Concessions West & Oost-Brabant (2014) with 2 pilots and option for scale up (TCO-neutral) • Concession Zuidoost-Brabant (2016), start 43 e-buses, 1 pilot fuel cell buses(2), transition towards 100% ZE in 2024 • Concession Limburg (2016), start with 15 e-buses, 1 pilot bus, transition towards 100% ZE in 2026 Major succes 2 • Major break through introduction of energy efficient zero emission buses in public transport • Administrative agreement on the introduction od ZE-buses nation wide • Public transport zero emission in 20130 • New buses are zero emission from 2025 onwards • Buses are charged with regional renawable energy from 2025 onwards • minimal CO2-emission per traveler per kliometer • 535 buses will be zero emission in 2025 (B&L) and probably 2200 nationwide • A committed investment level of € 160 million, representing a leverage factor of 71 • Improving skills and growing knowledge of personnel PTA • Knowledge transfer to public and private stakeholders • Acknowledged web based TCO-application Investments Financial Enginering Pilots: From monthly paying for services to Upfront sibsidie combined with a right of pledge on buses and infrastructure + no financing costs (interest) Concession (procured): Contract based on incentives for a transition to zero emission public transport 60% subsidy (monthly) out of the fund of the province filled by national taxes 40% yields of selling tickets + profit for the PTO - loss for the PTO Impact of the project Yearly effects of 535 electric busses replacing diesel buses in Brabant & Limburg Aspect Absolute reduction Reduction % Energy use 600.000 GJ 72 CO2 emission 63.500 ton 100 Nox emission 33,5 ton 100 PM10 emission 1,9 ton 36* • PM10 emission from the engine is reduced by 100%. PM10 emission from tyres remains, from brakes is reduced as a result of regenerative braking – Reduction of noise levels (minus 20 dB) – Better working conditions staff (driver, maintenance and support) Total Cost of Ownership Suggestions Downside: • EIB in favor of special and innovative initiative, but EIB subsidy rules not suitable: ELENA funds normally available to authorities with a standing organization and own financial means, which the Foundation did not dispose of. Recommendation: • Take the financial limitations of an SPV regarding pre-financing more into account. • Allow costs for communication of lessons learned, other than to the very stakeholders involved in the project, to be eligible costs. • Flexibility regarding changes in the projectplan (innovation) • Consistancy in personnel concerning auditing deliverables troughout the project Lessons learned • Think and act boundary superseding • Demand pull PTA’s effective way to expedite the transition • Think in terms of Total Cost of Ownership • Take procurement step by step • Share knowledge • Make stricter agreements on applying lessons learned during concession preparation • Foundation was a valuable instrument • Allow more flexible project conditions (transition paths) Next steps • Ongoing pilots and monitoring • Introducing more fuel cell buses (Jive2) • Preparing new concessions in Brabant in 2022 en 2024: 100% zero emission • TCO webapplication maintained by CROW, enabling stakeholders (dutch and abroad) to profit from tool developement Thank you for your attention Questions & Discussion.
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