In 2006, an energy-savings pool for the financing of loans for energy-saving measures in the municipality's own buildings was established in the City of Aalborg.
Project description
Loans from the pool can only be used for energy-savings. Maintenance and replacement should be financed in a different way. The repayment period is currently 8 years including interest corresponding to a simple repayment period of approx. 6.5 years. However, it is possible to get dispensation and obtain a longer repayment period in case of special projects. The loan is repaid in instalments corresponding to the estimated savings for the specific project. In this way, the budget for the construction will not be affected during the repayment period, but when the energy-savings loan has been repaid, the operating budget will reap the benefit.
Process
Loan applications for the energy-savings pool will be prepared by the energy coordinator of the municipality of Aalborg. Applications are prepared on the basis of e.g. an energy label or a cost/benefit analysis. The applications should be submitted to Energicenter Aalborg (the energy advisor of the municipality of Aalborg's public utility companies) who checks that the project complies with the loan terms and that the savings have been calculated correctly.
Approved projects will subsequently be initiated by the energy coordinator of the municipality.
The energy-savings pool is self-supplying as the instalments go back into the pool meaning that, in principle, it could go on forever.
Financing
The energy-savings pool currently holds DKK 26 million and the funds are placed in AKE Forsyning A/S (the public electricity utility company in Aalborg). The funds in the pool originate from the municipality's sale of shares in ELSAM and the loans are made on commercial terms for energy-saving measures in buildings of the municipality of Aalborg. The rate of interest is currently approx. 4%.
Status and result
The project was initiated in 2006, and at the end of 2007 energy savings-projects corresponding to a reduction of 211 tons of CO2/per year had been completed. The loan amounted to DKK 4 million and the annual financial saving was DKK 0.6 million. Due to the construction freeze imposed by the Government, projects valued at DKK 1.6 million were implemented in 2008 resulting in annual savings of DKK 0.3 million corresponding to 119 tons of CO2.
In 2009 projects at a value of approx. DKK 2 million have been initiated, and projects estimated at DKK 5-8 million are expected to be implemented by the end of the year.
In June 2009, an Energy Manager will be appointed whose primary responsibility will be to obtain energy-savings among the employees and the users of the buildings in the municipality. This activity is expected to lead to energy-savings in the public buildings of between 5% and 20% of the total energy consumption corresponding to overall savings of DKK 3.75-15 million.
Demonstration
Upon request, the contact person can arrange demonstrations of specific energy-saving measures within heating, ventilation, lighting etc. at schools, institutions and sports facilities of the municipality.
Contact
Aalborg Municipality
Mr. Kurt Krogh Christensen
Tel. +45 99 31 19 24
E-mail Kkc-sbu@aalborg.dk