Public Procurement of Innovative Solutions for energy efficiency

Topic description

Specific Challenge:

Considering the large volume of public spending (19% of EU GDP, or roughly EUR 2,200 billion in 2009), the public sector constitute an important driver to stimulate market transformation towards more sustainable energy-related products and services. The Energy Efficiency Directive requires that central governments purchase only products, services and buildings with high energy-efficiency performance. Public Procurement of Innovative solutions (PPI) is not sufficiently developed in the field of energy efficiency although it could support the market up-take of energy efficient goods, buildings or services.

Actions enabling a group of procurers (buyers group) to undertake a PPI procurement for innovative solutions for, products, services buildings (NZEB, renovation) which are not yet available on a large-scale commercial basis, and which have energy performance levels that are better than the best levels available on the market. The innovative solutions procured by all procurers in the buyers group must have the same core functionality and performance characteristics, but may have additional 'local' functionality due to differences in the local context of each individual procurer. Actions should lead to the first application / commercialisation of the innovative solution, in order to assure its market uptake. Functional/performance based specifications should be ambitious but achievable without the procurement of research and development and without distorting competition. Where appropriate, proposals should build upon the outputs of ongoing projects (including the Project Development Assistance projects), networks, guides, tools, and rely on the use of cost – benefit analysis (e.g. using a life- cycle approach). Proposals may use the Procurement of Innovation Platform supported by the European Commission. The procurement of innovation process should be associated with coordination and networking activities that embed the PPI into a wider set of demand side activities, including the removal of marked barriers (e.g. lack of knowledge, practical training, tailored guidelines and legal uncertainties) and awareness and knowledge sharing activities. Other entities (e.g. end-users, certification bodies, private/NGO procurers that provide services of public interest and share the same procurement need) whose participation is well justified may participate in additional activities that clearly add value to the action. Proposals should include a clear action plan to communicate experiences and results towards potential replicators across the EU.

Applicants should refer to the part D and E of the General Annexes to this Work Programme.

The Commission considers that proposals requesting a contribution from the EU of between EUR 1 and 2 million would allow this specific challenge to be addressed appropriately. Nonetheless, this does not preclude submission and selection of proposals requesting other amounts. The funding rate for Public Procurement of Innovative Solutions (PPI) actions is limited to 35% of the total eligible costs (PPI is procurement for the purchase and deployment of innovative solutions) to leverage co-financing from the procurers.

For PPI actions, proposals are expected to demonstrate the impacts listed below (wherever possible, use quantified indicators and targets):

• Prepare and implement the PPI procurement and PPI contracts within the timeframe of the project to ensure the first application / commercialisation of the innovative solutions.
• Energy performance levels of new buildings should be at least 25% better than current regulations or reach NZEB performance levels. For existing buildings, energy savings of at least 60% compared to the existing building should be reached, using innovative solutions. Products and services, should demonstrate at least 25% better performance in terms of energy efficiency than the available performance levels.

Innovation Procurement