Energy Efficiency

Vrbas opens ESCO tender for street lighting

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Published

June 21, 2016

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Published:

June 21, 2016

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Energy service companies, or ESCOs, can apply for a street lighting project as a call for bids filed as 401-1-24/2016 was published by the Municipality of Vrbas in Serbia’s northwest. The move to raise the level of energy efficiency is based on savings in operational costs generated by reduced energy consumption and lower maintenance costs to pay private operators for investments, services and financing.

Mayor Bratislav Kažić and his team have chosen the ESCO concept as it selects best value for money and the selected company takes contractual responsibility for implementation and performance, according to a statement released by Regional Energy Efficiency Programme (REEP) for the Western Balkans. The scheme is funded by the European Commission through the Western Balkans Investment Framework. The European Bank for Reconstruction and Development implements the programme in partnership with the Energy Community Secretariat. Several municipalities in Serbia were assisted in preparing tenders on ESCO energy efficiency investments.

The publication of the tender is an important step for improving energy efficiency in the public sector in Serbia, said Toivo Miller, principal product development manager at the EBRD. The Bank and the European Union are interested to support additional public authorities in preparing energy efficiency projects under Regional Energy Efficiency Programme (REEP), he told Balkan Green Energy News.

A precondition for the application of new components is that the lighting quality is at least maintained, the documentation said. If illuminance level was not satisfactory before, it is expected to be improved. In cases where the illuminance level is very high – even higher than the one defined in the standards – the client and the contractor could agree on a reduction to achieve additional savings. Savings in maintenance costs (CSMGa) are taken from the Bid of the contractor.

The level of maintenance has to include at least the replacement of the non–functioning lamps within the contractual period within the time limit specified. The rate of functioning of lamps has to be at all times equal to or higher than the agreed value. Obligations include reporting and regular inspections or touring to control the functioning of the public lighting system in the Contracted Facility at the frequency agreed and including documenting the tours.
The subject part of the lighting system includes a total of 1,469 luminaires, all but 20 of which are high pressure mercury, in four settlements. The part that has been planned for reconstruction, with 237.38 kW, is powered from 54 substations, where each outlet is installed with one electricity meter. There are 2,287 potential service connection points on concrete, wooden, and metal pylons.

Annual budgetary expenditures of the municipality for the part of the system planned for reconstruction were RSD 7,007,318 or EUR 59,381 in 2014. Current expenditures consist of EUR 47,563 for consumed electricity and EUR 11,819 for maintenance. The preparatory and implementation combined will be up to six months from the date of the conclusion of the contract. The guarantee period shall not exceed 10 years, calculated from the end of implementation until the end of the contractual, while the overall duration is set at a five-year minimum.

The contracting authority will award the contract on the public–private partnership, which is without elements of concession, within 40 days from the opening of bids, scheduled for July 29. The criterion for rating is the economically most favourable bid. Net present value of total costs yields a maximum of 85 weights and guaranteed savings in annual electricity consumption yield a maximum of 15 weights. All disputes fall under the jurisdiction of the competent court in Novi Sad, according to the documentation.

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