Bi-annual Progress Report III ELENA-2012-038 December 15 th 2015 to June 15 th 2016

Table of Contents

1 Work Progress ...... 2 1.1 Work in the Project Department ...... 2 1.1.1 Progress meetings with the ...... 2 1.1.2 Workshops ...... 2 1.1.3 Task Groups ...... 2 1.1.4 Cooperation with the other Danish ELENA projects ...... 3 1.1.5 Secondments ...... 3 1.1.6 Steering Committee ...... 3 1.1.7 Advisory Group ...... 4 1.1.8 Energy Conference – Energiforum 2016 ...... 4 1.1.9 New initiatives ...... 4 1.1.10 Energy exhibition in Bjerringbro ...... 5

2 Current status – implementation of the investment program ...... 6 2.1 Main tasks, according to Annex I of the EIB-contract ...... 7 2.1.1 The leverage factor ...... 7 2.1.2 Additional project achievements ...... 8

3 Identified Problems and Risks for Implementation ...... 9 3.1 Reduced/increased expectations for investments ...... 9 3.2 Documentation of implemented investments ...... 9

4 Contracts for Technical Assistance ...... 10

5 Changes in the Planned Activities ...... 11 5.1 Reduced/increased expectations for investments ...... 11 5.2 Updated table of expected investments for implementation ...... 12

6 Financial Statement ...... 13

ANNEX A: Temporary Secondment Plan, Fall 2016 ANNEX B: Information note to the Steering Committee (in Danish only) ANNEX C: Started/planned investments ANNEX D: Project Activities in the Work Programme ANNEX E: Contracts for Technical Assistance ANNEX F: Financial Statement

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Bi-annual Progress Report, CeDEPI This report has been prepared in accordance with the contract between the European Investment Bank (EIB) and the Central Region (CDR). The purpose is to summarize the six months’ project progress between Dec 15 th 2015 and June 15 th 2016.

1 WORK PROGRESS

1.1 Work in the Project Department

1.1.1 Progress meetings with the municipalities Biannual progress meetings were held in April/May. As the previous meetings 2 partners attended each meeting. The agenda had a primary focus on project progress, expectations for the final year of the investment program and potential risks for implementation of projects. Each partner has provided an assessment of expected investments to be contracted by April/May 2017 (please see section 5). Furthermore secondments and contracts with external consultants were dis- cussed.

Once again the feedback on the meetings were very positive as the meetings give a sense of ownership to project for the partners, as well as enhancing net- working and cooperation between the municipalities.

1.1.2 Workshops The Secretariat has facilitated a workshop regarding professional design of street lighting projects. The workshop was scheduled as a lecture as well as hands-on work in the lighting design software Dialux. The attendance was limited to 20 people and most partners working with street lighting projects attended (including attendance from municipalities outside CeDEPI).

In addition the Project Department and the partnering municipalities have been invited to and attended the following workshops and conferences. Some hosted by the other Danish ELENA projects:

• Workshop – Heat pumps (hosted by EPSD) • Energy Conference – EL-teknik 2016 – new legislation regarding lighting design (public conference) • Workshop – Lighting design (CEICAD) 1.1.3 Task Groups The activities in the Task Groups have been integrated as part of the workshops described in section 1.1.2 and as part of the meetings in the Advisory Group (Section 1.1.7).

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As always the Secretariat is attentive to any requests from the partners for rele- vant topics or challenges for the Task Groups to discuss and work with.

1.1.4 Cooperation with the other Danish ELENA projects In February the Secretariat hosted the biannual meeting with the other Danish ELENA-projects: EPSD, CEICAD and Aa+. The agenda was sharing of knowledge, project progress, successes and risks for implementation. The other ELENA-projects are at the final stages of their investment program and have a lot of experiences to share. The Secretariat regards the meetings as very rewarding for all parties as the challenges and opportunities the projects face are often very similar. The next meeting will be in August and hosted by EPSD.

1.1.5 Secondments has exchanged internal assistance from the Project De- partment to a corresponding amount of funds for external technical assistance. and have taken over this amount of internal technical assistance in exchange of funds for external technical assistance. The Secretariat is very pleased with this outcome as it fulfilled a request from all three municipalities without compromising the objectives of the investment pro- gram.

The new secondment plan is attached as Annex A.

Table 1: Status, secondments

Emil Mortensen Peter Merrild Sørensen Viborg Municipality Jimmie Feldfos Municipality Syddjurs Municipality Hedensted Municipality Uffe Gaardsvig Hedensted Municipality Jens Munch Casper Norddjurs Municipality Navid K.T. Jensen Hedensted Municipality

1.1.6 Steering Committee There have been two scheduled meetings in the Steering Committee, regarding the project progress and the project in general. The first meeting was in February and was completed without any remarks from the Committee.

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The next meeting in April was not held due to cancellations. An informative note and fact sheet regarding the project progress was forwarded to the Committee. The note is attached (in Danish only) as Annex B. The Steering Committee finds the current project progress satisfactory. The next meeting will be in June 2016.

1.1.7 Advisory Group There have been two scheduled meetings in the Advisory Group. The first meet- ing was hosted by Silkeborg Municipality in January. In addition to project pro- gress, project economy etc., the agenda included:

• A presentation of user involvement in building projects.

• A site visit to a sport arena (regarding energy optimization of artificial lighting).

• A presentation of energy investments in general in Silkeborg Municipali- ty.

The presentations and site visit are part of a "merger" between the Advisory Group meeting and the meetings in the Task Forces. The attendance at the Ad- visory Group meeting are much higher and hence the work in the Task Groups will benefit by merging the meetings. The Secretariat received positive feedback on the meetings and will schedule the future meetings in a similar format.

Accordingly with the meeting in the Steering Committee, the quarterly meeting in the Advisory Group in April was cancelled, also due to lack of attendance. The next meeting will be in late June 2016. They too received the informative note. 1.1.8 Energy Conference – Energiforum 2016 The Project Department repeated the success of last year and participated in the annual Energy Conference Energiforum 2016 , hosted by the Danish energy so- ciety Energiforum Danmark .

As the previous year the conference is a great opportunity to gain new knowledge about energy related problems, and to connect with leading compa- nies regarding energy optimization and renewable energy.

Many of the CeDEPI partnering municipalities were also participating, so net- working was also an important part of the event. The participation of the Project Department was funded by the partnering municipalities.

1.1.9 New initiatives EnergyTrim™ - a Win-Win situation All partners have been informed of a service from the Danish manufacturer of controls and components and power solutions, Danfoss A/S. They have special-

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ists in many areas and over the last five years one such specialist has provided a service registered as Energy Trim™. The service consists of a contracted specialist who then evaluates a building's energy performance. The service can only be contracted if there is a gain in en- ergy performance of a minimum of 15%. If this is not the case, Danfoss will not enter into an agreement. The client must commit to changing all components that Danfoss suggest, as a requirement to improving the energy performance. In an ideal world the municipalities own people would be "the specialist", but often their scope of work is slightly different and also too large to allow them to take time out to make these assessments. In the CeDEPI project the municipality of Hedensted has been granted three projects of this kind, where they enter into "Energy Trim ™" agreements, ap- proved by the Secretariat. The results from the findings and the investments that follow from the professional assessments will be followed closely by the Secre- tariat. If the trails prove successful and good value in terms of energy savings, CO2 reductions and reasonable investments more projects will follow and the investments incurred will be included in the CeDEPI project. Of these projects, any that are carried out in municipalities where there are seconded CeDEPI em- ployees these experts will enter into dialogue with the specialist and thus the project become ELENA approved. For projects in municipalities that do not have a specialist attached, quality control and other assistance will be carried out from the CeDEPI Secretariat. 1.1.10 Energy exhibition in Bjerringbro On June 2 nd and 3 rd the CeDEPI Secretariat took part in an Energy Exhibition, the largest in the Region. It was held in the second largest city in the municipality of Viborg, and the Secretariat had a joint exhibition stand with Viborg Municipality. The focus of the stand was the new street lighting projects under the CeDEPI project, and the CeDEPI project itself. At the Secretariat the exhibition was seen as a good opportunity to tell the public at large about the projects and the benefit to the environment of this. Fliers were handed out along with information surren- dered via a roll up about CeDEPI/ELENA stating aims and benefits.

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2 CURRENT STATUS – IMPLEMENTATION OF THE INVESTMENT PROGRAM Figure 1 lists the current investment status in the CeDEPI project.

EUR 50.000.000 EUR 44.412.405 EUR 45.000.000

EUR 40.000.000

EUR 35.000.000 Milestone 15.06.2016 EUR 30.000.000

EUR 25.000.000

EUR 20.000.000 EUR 14.595.003 EUR 15.000.000 Milestone EUR 10.000.000 15.06.2015 EUR 5.904.087 EUR 5.000.000

EUR 0 Planned investments Contracted investments Contracted and documented investments

Figure 1: Status, implementation of the investment program

A table A.2.2 for all planned/started projects is attached as Annex C. The Annex is divided into three separate tables: planned, started and completed projects.

The initial milestone of June 15th 2016 of a contracted investment of EUR 31,771,060 has not been accomplished. The current status is a result of a num- ber of delaying factors:

• Investments in Municipality has not yet completed any contracts for implementation of investments. The municipality is currently in the tendering phase of a contract regarding street lighting with the amount of approx. EUR 4 million. The contract is expected to be completed in the fall of 2016. Furthermore the municipality is expecting to perform tenders for an additional EUR 4 million in street lighting projects in the spring of 2017. The projects being street lighting projects require a minimum of technical assistance, as opposed to the same amount of invest- ment in building projects. Hence the Secretariat is expecting the leverage factor to increase significantly when these investments in street lighting are completed. • Investments in Viborg Municipality Viborg Municipality has been delayed in contracting their street

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lighting project, because of lack of data about the existing instal- lations. This combined with long delivery times for the chosen lighting fixtures mean that the investments from Viborg Munici- pality have been delayed. There is a possibility that this delay will mean that Viborg Municipality will not meet the target invest- ments stated in the contract. The Secretariat will follow this up in the coming months. 2.1 Main tasks, according to Annex I of the EIB-contract

Table 2: Progress regarding the main tasks in the project

Planned Comments

Selection and description of 100 % The Secretariat assesses the progress regarding building projects buildings projects as satisfactory. Projects of a total of EUR 31.15 million have been registered at the Secretariat. Projects of EUR 23.23 million have been planned and investments of EUR 9.00 million have been contracted.

This corresponds to 89.9 % of the total investment in buildings of EUR 34.66 million. Energy audits of street lighting 100 % Street lighting projects of a total of EUR 26.67 million has been registered. Projects of EUR 21.58 million have been planned and investments of EUR 5.09 million have been contracted.

The total planned investments in street lighting were EUR 20.02 million. Analysis of public fleet cars 100 % As stated in the Interim Report, Samsø Municipali- ty has implemented a car sharing concept, based on electrical cars. The total investment is approx. EUR 0.157 million. This is the only registered transportation project. The Secretariat does not expect any other pro- jects within this area.

The status of the activities in the EIB-contract is stated in Annex D. 2.1.1 The leverage factor

Table 3: Summary of eligible expenses and calculation of the leverage factor

1st period – Financial Statement no. 1 EUR 132,616.5

2nd period – Financial Statement no. 2 EUR 287,221.8 3rd period – Financial Statement no. 3 EUR 494,823.3 4th period – Financial Statement no. 4 EUR 359,738.4 Subtotal EUR 1,274,400

Own funding, total EUR 257,184 Total expenses of EIB-funding EUR 1,017,216

Contracted investments EUR 14,595,003

Leverage factor, June 15 th 2016 14 .35

In previous reports the leverage factor has been calculated on expenses included the partners own funding. Hence the leverage factors in the previous reports have been slightly underestimated. The current leverage factor of 14.35 has

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been calculated with respect to the total sum of ELENA eligible cost and the partners own funding subtracted. The Secretariat expects the leverage factor to increase by the end of 2016 espe- cially with the expected large investments in street lighting.

2.1.2 Additional project achievements As mentioned in previous reports government legislation in Denmark has influ- enced the CeDEPI municipal partners, so that planned solar energy projects have not been carried out. Other government legislation has meant that many projects of a different type have been carried out under the ELENA project. These are ventilation/indoor climate projects in classrooms. This is because the government has lengthened the school days for all pupils in schools provided by local council. Days have been lengthened by up to 3 hours pr. day. This has meant an increase in consumption of power and rise in heating costs in local municipalities. To alleviate the negative consequences on the indoor climate of a much higher occupancy rate a great many ventilation plants have been changed in this pro- ject. Old ones have been scraped, others refurbished and new small units have been introduced. This especially in classrooms which require ventilation during occupancy, and all projects reduce ventilation to nearly zero during periods of vacancy. The decentralised units that are used in existing building are very suita- ble, because they require little building work to be fitted in the rooms, as they ventilate only one room. It is a very efficient way of providing ventilation and in many cases the construction and maintenance costs are lower compared to cen- tralized ventilation. The estates office at Silkeborg Municipality carried out an analysis of different ways of solving the ventilation issue in classrooms, and the results from this were shared with all other partners in a meeting/workshop. The projects are a gain in energy efficiency in that the exhaust air is expelled through a heat exchanger. This wastes less energy than ventilation through opening windows.

Improvement of indoor climate is also generated from many other CeDEPI pro- jects. For example lighting systems are upgraded to comply with modern stand- ards. This improves the indoor climate by increased the lighting levels and here- by enhancing the working environment. At the same time energy and CO2- savings are incurred as the new modern installations are much more efficient compared to old installations. In various projects heating systems are renovated with modern heating control systems. Similarly this improves the indoor climate as well as providing energy- and CO2-savings by preventing unnecessary heating and better achieving the desired comfort temperatures.

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3 IDENTIFIED PROBLEMS AND RISKS FOR IMPLEMENTATION

3.1 Reduced/increased expectations for investments Due to recent political decisions and challenging profitability requirements a number of the partners have had to reduce expectations for investments in the CeDEPI project. Hence investments of a total of approx. EUR 6.09 million have been added to the "open exchange" as an option for other partners wanting to upscale their initial investments. Please see section 5.1 for additional comments.

The hospital in Randers, which is part of the (CDR) is interested in this option by possibly upscaling their planned investments.

3.2 Documentation of implemented investments As stated in the previous reports the documentation of CeDEPI investments have been challenging to most partners. Some partners forward documentation con- tinuously and some group the documentation and forward a number of projects at the same time (e.g. 10 building envelope projects). The process is now pro- gressing more smoothly and the Secretariat finds this satisfactory. The Secretar- iat will continue to remind the partners to forward the documentation, so targets can be met and load of work at the Secretariat be spread out over time.

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4 CONTRACTS FOR TECHNICAL ASSISTANCE Please see Annex E.

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5 CHANGES IN THE PLANNED ACTIVITIES

5.1 Reduced/increased expectations for investments Municipality has reduced their final expectations for investments from EUR 2,171,582 to approx. EUR 1,367,292 (EUR 804,290 in total). The reduction is due to poor profitability in the current proposed projects, as the most of the obvious and profitable investments have already been implemented.

Norddjurs Municipality Norddjurs Municipality has reduced their final expectations for investments from EUR 2,024,128 to approx. EUR 1,353,887 (EUR 670,241 in total). The reduc- tions are due to missing/reduced construction grants. This is a consequence of political decisions.

Favrskov Municipality Favrskov Municipality has reduced their final expectations for investments from EUR 1,608,579 to approx. EUR 1,206,434 (EUR 402,144 in total). This is due to political decisions within the municipality intensifying profitability requirements of investments from a simple payback time of 15 years to a maximum limit of 10 years.

CDR – the regional hospital in Horsens The regional hospital in Horsens is undergoing a huge refurbishment and rebuild. Due to tightening of finances in the CDR, the project has been postponed 2 years, thus the main part of planned investments cannot be contracted in the CeDEPI period. Horsens Hospital reduces their expected investment from EUR 7,028,150 to approx. EUR 2,680,965 (EUR 4,347,185 in total).

Hedensted Municipality Hedensted Municipality is currently challenged with reduced staffing and the office is undergoing organizational changes. Furthermore profitability require- ments within the municipality with simple payback time > 10 years has been chal- lenging. The Secretariat is expecting reduced investments of approx. EUR 1,340,483 – EUR 2,010,724 and will follow this up in the coming months.

CDR – the regional hospital in Randers The regional hospital in Randers is also undergoing a huge rebuilding, and have entered into an ESCO-contract. To get the best possible subprojects within the ESCO project the hospital administration has chosen to enter the CeDEPI project and funds are currently being used to make quality assurance and project sug- gestions for investments reading roughly EUR 1,474,531 million. Randers Hospital is working on identifying more projects that will fall within the CeDEPI/ELENA scope, and expects to find investments for a further EUR 1.34 – 1.61 million.

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5.2 Updated table of expected investments for implementation

Table 4: Expected investments for implementation

Street lighting and Partner Buildings Comments electrical cars Conversions from buildings to elec- trical cars may be initiated. Favrskov Municipality EUR 1,072,386 EUR 134,048 Investments of EUR 402,144 have been trans- ferred to the open exchange. Please see com- Hedensted Municipality EUR 4,985,925 EUR 1,206,434 ments in section 5.1. Investments of EUR 670,241 Herning Municipality EUR 1,501,341 - have been trans- ferred to the open exchange. Horsens Municipality - EUR 4,315,871 - Investments of EUR 670,241 Norddjurs Municipality EUR 1,487,935 EUR 2,024,128 have been trans- ferred to the open exchange. Randers Municipality EUR 2,004,962 EUR 5,502,560 - Ringkøbing-Skjern - EUR 2,010,724 - Municipality Samsø - EUR 428,858 - Silkeborg Municipality EUR 6,434,316 - - Syddjurs Municipality EUR 2,412,869 EUR 1,876,676 - Viborg Municipality - EUR 10,254,692 - Investments of EUR 4,347,185 CDR EUR 2,680,965 - have been trans- ferred to the open exchange Total EUR 24,591,423 EUR 25,743,267 -

The “open ex- - change” EUR 6,089,811

The expected reduction of investments in Hedensted Municipality (as stated in section 5.1) would add an additional EUR 1,340,483 – EUR 2,010,724 to the "open exchange".

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6 FINANCIAL STATEMENT Please see Annex F.

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