UNDP PUBLIC CALL ESCO - ENG - Final

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EU for Green Agenda in Serbia

FIELD: ENERGY EFFICIENCY


PUBLIC CALL

FIELD: ENERGY EFFICIENCY

PUBLIC CALL
Маy 2023

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EU for Green Agenda in Serbia
FIELD: ENERGY EFFICIENCY
PUBLIC CALL

”Accelerating the shift to a circular economy


is essential to achieve the climate goals agreed
by the international community and to help
rebuild the world’s economies stronger,
greener and more sustainable.“
(UNFCCC, 2021)

CONTENTS

PUBLIC CALL FOR SUPPORT IN THE AREA


OF ENERGY EFFICIENCY .......................... 3
UNPD'S CURRENT AND PAST ENERGY
EFFICIENCY WORK ................................... 4
Public Call Time Frame and Kay
Implementation Dates ........................ 6
Application Phase ............................ 6
EVALUATION AND SCORING CRITERIA. .. 7
APPLICATION FORM ................................ 8
ABOUT PROJECT .................................... 13
The Importance of Energy Efficiency
Actions .. Error! Bookmark not defined.
CONTACT DETAILS .. Error! Bookmark not
defined.

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EU for Green Agenda in Serbia
FIELD: ENERGY EFFICIENCY
PUBLIC CALL

PUBLIC CALL FOR SUPPORT TO THE GOVERNMENT OF SERBIA AND AP


VOJVODINA INSTITUTIONS AND LOCAL GOVERNMENT UNITS (LGUs) IN THE AREA
OF ENERGY EFFICIENCY
The United Nations Development Programme (UNDP) invites all institutions under the jurisdiction of the
Government of Serbia, AP Vojvodina, and all local government units (LGUs) to apply for the competition
in accordance with the below criteria and the application form.

The Public Call aims to collect applications from relevant institutions for the selection of those that have
the greatest potential and interest in investing in energy efficiency improvement projects through the
public-private partnership model, i.e., the Energy Service Contract model (ESCO) for the implementation
of energy efficiency improvement actions by public sector stakeholders.

UNDP will prepare the ESCO project documents for at least 5 selected buildings. The ESCO project
documents shall include:

- A detailed energy audit of the building;


- A feasibility study for the ESCO Project, including an analysis of the current situation, a proposal
for energy efficiency actions, a calculation of the capital and operating costs, and a financial
analysis for the project;
- Technical specifications for equipment and works;
- Assessment of the attractiveness of the study, i.e., the ESCO Project;
- The ESCO Project Tender Documents;
- A Draft Energy Performance Contract through the implementation of energy efficiency
improvement actions in public buildings and operating costs savings in those buildings, in
accordance with the Rulebook on Energy Services (Official Gazette of RS, No. 80/2022).
Such initiatives would promote the implementation of the Green Agenda in Serbia, as they would lead to
a reduction in the use of fossil fuels and reduced particle pollution in the air.

What is ESCO Business Model?


ESCO has been recognized in the European Union as a way to mobilize private capital and as an
opportunity to create new green jobs. It is based on the idea that a company initially invests their funds
in the performance of works on buildings and the utility systems to reduce the energy consumption and
energy costs and to achieve a return on investment and profit from the energy and budget savings
achieved over a specified period of time. It is important to note that the public sector does not use their
own resources and does not need to take any loans to invest in the EE actions.

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EU for Green Agenda in Serbia
FIELD: ENERGY EFFICIENCY
PUBLIC CALL

Simply put, in the ESCO model, there are at least two parties: a private company (ESCO company) and a
client (public partner or private company). The client hires ESCO, a company specialized in the integrated
solutions providing energy saving services that significantly reduce the energy consumption. The company
invests their own funds or loan proceeds in solutions that reduce the client’s costs, and the client, as a
result of the savings on the overhead costs (energy consumption and system maintenance), returns the
invested funds and the envisaged service fee to the ESCO company.
It is important to note that the return on the investment itself is achieved through the savings, which
according to analyses can exceed 50%. The repayment is agreed over a specified period of time during
which the ESCO company returns the investment and makes a profit, and after the contract with the ESCO
company expires, the client is left with pure financial savings as a result of the reduced costs and improved
infrastructure (facility, public lighting system).

UNPD'S CURRENT AND PAST ENERGY EFFICIENCY WORK

1. The United Nations Development Programme (UNDP), in partnership with the Serbian Ministry of
Mining and Energy (MME) and the Council of Europe Development Bank (CEB), and in direct cooperation
with the Administration for Joint Services of the Republic Bodies (UZZPRO), is implementing a project
envisaged for the preparatory activities (PA) for the implementation of the programme “Energy Efficiency
in Central Government Buildings” (EECGB).
The proposed multi-year programme aims to implement energy efficiency renovation (EER) in the central
government buildings (CGB) in accordance with Article 5 of the Energy Efficiency Directive (2012/27/EU)
(EED). The programme envisages EER in up to 28 central government buildings in Belgrade with a total
area of 208,000 m2, of which 50% would be buildings under protection. The programme should result in
at least 30% reduction in the primary energy consumption, approximately 20% reduction in CO2,
improved working conditions, improved work safety, and approximately 29% operational energy costs
savings. In addition, the programme would contribute to the protection and preservation of cultural
heritage buildings.
The main preparatory activities envisaged under the project include: the provision of technical services,
preparation of energy certificates for the selected buildings for the existing condition (in accordance with
the relevant law), the preparation of detailed energy audits (DEA) for the buildings, the preparation of
feasibility studies (FS) for the selected buildings, and the preparation of project documents of different
levels of complexity, based on the DEA results.

2. In cooperation with the Resources Mobilisation Fund of the Slovak Trust Fund (RMF SVK), UNDP is
implementing the project: Energy Efficiency in Central Government Buildings - Feasibility Study for EE
Renovation in SIV 3 Building. The main activities envisaged under the project include: the preparation of

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EU for Green Agenda in Serbia
FIELD: ENERGY EFFICIENCY
PUBLIC CALL

the EE study for the SIV 3 building, the preparation of a detailed energy audit report for the SIV 3 building,
and the preparation of a feasibility study for the energy efficiency renovation of the SIV 3 building.

3. In the period 2016-2021, UNDP implemented the project „Removing Barriers to Promote and Support
Energy Management Systems in Municipalities throughout Serbia”. The goal of the project was the
introduction and implementation of the Energy Management System in municipalities, in accordance with
the Law on Efficient Use of Energy. In addition, the project promoted investments in energy efficiency in
public buildings and municipal services in Serbia. The value of the project was USD 2.3 million (direct GEF
grant) and USD 0.2 million from UNDP. Some of the key results in this area include:
Energy savings of 1,310 TJ and reduction of CO2 emissions of 123,379 tons during 15 years of the
life cycle. The total investment in energy efficiency in municipal buildings during the project life
cycle amounted to USD 15 million.
32 municipalities and cities have formally adopted and started implementing their EMS and EMIS
by signing a Memorandum of Understanding with UNDP. In addition, 22 municipalities started the
implementation of their EMS and EMIS without signing an MoU with UNDP.
The Energy Charter was signed by 137 out of 173 municipalities, which is almost 80% of all
municipalities in Serbia.
A total of 125 persons underwent energy management training in municipalities during the
project life cycle, of which 113 persons obtained the energy manager license.

4. Project Pipeline
UNDP, in cooperation with the Ministry of Mining and Energy, also submitted a project proposal to the
Green Climate Fund (GCF): “Renovation of public buildings to achieve nearly zero-energy buildings”. The
project will provide additional financing for the so-called "deep" renovation of public buildings, especially
the central government buildings and the Palace of Serbia, in order to achieve zero energy building
standards. The project should be part of the national programme for achieving the zero energy building
standard in accordance with the obligations of the Republic of Serbia arising from the decision of the
Ministerial Council of the Energy Community. The GCF is expected to approve the funds in 2023.

Application Process
All interested institutions/LGUs can apply for this Public Call through the website zelena-
agenda.euzatebe.rs. The applicants must provide detailed information on the current state of energy
efficiency in the building, the type of fuels used for heating in the building, experience in implementing
energy efficiency projects, and other relevant energy efficiency information.

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EU for Green Agenda in Serbia
FIELD: ENERGY EFFICIENCY
PUBLIC CALL

Project Evaluation and Selection


The project team will review all the applications received during the application phase and assess the
completeness of the proposals, and whether the applications are in accordance with the Public Call
objectives and criteria. The evaluation of the submitted applications will be carried out by an independent
evaluation committee, after which the final ranking list of the selected buildings will be published.

Who can apply?


- Institutions of the Government of Serbia, AP Vojvodina, and local government units (LGUs) (city or
municipality)

Note: All buildings for which the Government of Serbia, AP Vojvodina or an LGU intends to submit
applications under this competition must:

be registered in the land registry and owned by them;

be a separate entity, and not a part of another building;

the consumed energy (electrical and thermal) must be paid based on actual consumption.

Otherwise, the application will not be considered.

LGUs can also apply for social housing buildings that are owned by the LGU.

Public Call Implementation Time Frame and Key Dates

APPLICATION AND SELECTION PHASE

24 May 2023 PUBLIC CALL OPENING

TBD Info days


5 July 2023
DEADLINE FOR SUBMITSSION OF APPLICATIONS
15 September 2023
16 October 2023 Evaluation process and results

Application Phase
The deadline for submitting applications is 5 July 2023. In case of insufficient number of high-quality
applications submitted by July 5, i.e., if at least 5 buildings are not selected for the preparation of the ESCO

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EU for Green Agenda in Serbia
FIELD: ENERGY EFFICIENCY
PUBLIC CALL

project documents, applications submitted after 5 July, i.e. no later than by 15 September, will be
considered. Info days will be organized during the Public Call period in several LGUs (cities or
municipalities), and all interested participants will be informed about it in a timely manner.

All applicants are required to fill in the application form through the webpage zelena-agenda.euzatebe.rs
and submit it before the deadline for submission. It is the exclusive responsibility of applicants to provide
accurate information in their applications.
UNDP shall reserve the right to request additional documentation as part of the application process,
depending on the complexity or specific features of the application.

EVALUATION AND SCORING CRITERIA


The selection of buildings will be carried out in two phases:
1. Phase 1 – review of the submitted documentation in accordance with the criteria listed
below:

Criterion Maximum Description


score
Energy 30 The building was registered in the Energy Management
management Information System (EMIS) database in 2020 or earlier
criterion 15 The building was registered in the EMIS database in
2022 or earlier
5 The building was registered in the EMIS database in
2023
0 The building has not been registered in the EMIS
database
Existing 20 The energy efficiency analysis documentation
documentation (elaborate, study, etc.) for the building is available

0 The energy efficiency analysis documentation


(elaborate, study, etc.) for the building is not available

Gross area of the 20 The gross area of the building exceeds 5000 m2
building
15 The gross area of the building exceeds 2000 m2

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EU for Green Agenda in Serbia
FIELD: ENERGY EFFICIENCY
PUBLIC CALL

10 The gross area of the building exceeds 1000 m2

0 The gross area of the building is less than 1000 m2

Type of fuel used 15 Heating is based on the use of fossil fuels


for heating in the
building
0 Heating is not based on the use of fossil fuels

Experience in 15 More than 3 projects implemented in the last 5 years


implementing
energy efficiency
projects 10 More than 2 projects implemented in the last 5 years

5 More than 1 project implemented in the last 5 years

0 No projects implemented in the last 5 years

Total 100

2. Phase 2 – field visits to the buildings that have scored 50 or more points for the application
quality control purposes.

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EU for Green Agenda in Serbia
FIELD: ENERGY EFFICIENCY
PUBLIC CALL

APPLICATION FORM

FIELD: ENERGY EFFICIENCY

APPLICATION FORM
FOR SUPPORT TO THE GOVERNMENT OF SERBIA AND AP VOJVODINA
INSTITUTIONS AND LOCAL GOVERNMENT UNITS (LGUs) IN THE AREA OF
ENERGY EFFICIENCY

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EU for Green Agenda in Serbia
FIELD: ENERGY EFFICIENCY
PUBLIC CALL

The application shall be filled in in Serbian. It is important that you answer all the questions precisely and
clearly. When filling in the application form, take into consideration that the space for answers to some
questions is limited, which is clearly indicated.

The applications shall be submitted through the online portal that is accessible at the following webpage:
zelena-agenda.euzatebe.rs by the 5 July 2023, i.e. by 15 September 2023 the latest, by 5 p.m.

Along with the application please attach the following documents:

• Partnership Agreement/Letter of Intentions with the investor(s) regarding the investment in the
building energy renovation in accordance with the ESCO model (if applicable);

Important:
• Kindly keep in mind that the final and complete version of the application must be
submitted before the expiration of the above stated deadline.
• When filling in the application form, kindly take into consideration the relevant
evaluation criteria!

1. Institutions of the Government of Serbia, AP Vojvodina, and local government units (LGUs)
(city or municipality), i.e. the Applicant
1.1. General Information about the Applicant

1.1.1. Name

1.1.2. Place

1.1.3. Postal code

1.1.4. Street and number

1.1.5. District

1.1.6. Telephone

1.1.7. Registration number

1.1.8. Tax Identification Number (PIB)

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EU for Green Agenda in Serbia
FIELD: ENERGY EFFICIENCY
PUBLIC CALL

1.2. Information about the Authorised Representative (Contact Person)

1.2.1. First and last name

1.2.2. Position

1.2.3. Contact telephone

1.2.4. Email address

2. Brief Description of the Applicant’s activities in the Field of Energy Efficiency and information
about the building, subject of this application.
Energy Management
System The applicants are required to specify the date of registration of the
(Limited to maximum 100 building in the Energy Management Information System (EMIS) database.
words).

The applicants are required to specify the Gross Area of the building.

Building Gross Area

(Limited to maximum 100


words)

The applicants are required to provide information about the heating


Building Heating System system and method.
(Limited to maximum 100 Does the building have its own/independent heating system?
words)

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EU for Green Agenda in Serbia
FIELD: ENERGY EFFICIENCY
PUBLIC CALL

Type of fuel used for Specify all fuels used for heating in the building.
heating in the building

Applicant’s Experience in
Specify all implemented projects in the field of energy efficiency in the last
implementing energy
5 years.
efficiency projects

Address and Cadastre plot The applicants are required to provide information about the Address and
no. of the subject building Cadastre plot no. of the building, subject of this Application.

Please attach the following documents to the application:

• Draft Partnership Agreement/Letter of Intentions with the private sector (if applicable);

4. Application Documentation
Note: Please mark X for the attached documentation

Documentation to be submitted

4.1. Application form (Annex 1)

4.2. Draft Partnership Agreement/Letter of Intentions (Annex 2).

Note: For Annex 2, the Аpplicant shall specify the form of the document.

Authorized representative submitting the Application:

First and last name

Position

Signature

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EU for Green Agenda in Serbia
FIELD: ENERGY EFFICIENCY
PUBLIC CALL

ABOUT THE PROJECT


This Public Call is published under the project “EU for Green Agenda in Serbia: Get Started, Take Action,
Scale Up”. The project is financed from the EU funds.

The main goal of the project is to contribute to the efficient, inclusive and sustainable implementation of
the Green Agenda in Serbia by improving the policy and the basic conditions for a more effective
implementation of the Green Agenda in Serbia, supporting pilot projects within the five Green Agenda in
Serbia priority areas, and promoting opportunities for future financing of continued growth.

The European Green Deal and the Green Agenda for the Western Balkans provide a blueprint for a joint
action to achieve the green transition challenges. A broad societal participation is necessary to initiate the
transformative changes. In line with this ambition, this project is designed to build a broad engagement
and participation in the Green Agenda. The end users are the citizens of Serbia, but also in the region and
the rest of Europe, through creating better conditions for life within planetary boundaries.

The Importance of Energy Efficiency Actions

An economy based on the circular economy principles contributes to reducing the negative impacts of
production and consumption that accelerate global warming and increase the greenhouse effect.
Although some estimates indicate that 55% of the climate change impacts could be reduced through the
use of renewable energy sources and increased efficiency in the energy systems, the remaining 45% of
the impacts can be reduced through changing the way we treat resources in our daily lives. (EMF, 2020).

The energy efficiency actions improve the country’s energy security, increase the competitiveness of the
economy, and promote regional development. At the same time, the negative impacts on the
environment are reduced, the energy budget savings achieved, and the citizens’ standard of living is
improved. The Energy Sector Development Strategy of the Republic of Serbia for the Period up to 2025
with Projections up to 2030 promotes energy efficiency as a new energy source.

CONTACT INFORMATION

For more information visit:


zelena-agenda.euzatebe.rs
If you have additional questions, please contact us using the following e-address:
[email protected]
or by calling the following number: +381638627288

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