# Improving the Efficiency of Energy Consumption in Buildings: Simulation of Alternative EnPC Models
## 3 International Benchmark of Energy Performance Contracting Cases
### Guidonia Montecelio, Italy  
The Municipality of Guidonia Montecelio is located about 29 km from Rome in a northeasterly direction and has a surface area of 79.06 km\({}^{2}\), consisting mostly of flat terrain and a hilly area just above 300 m. In this municipality, the largest energy consumption comes from civil heating and fuel production activities, fuel transport, and electricity use. Between 1990 and 2008, the per capita consumption of an inhabitant of this region for the use of electricity, thermal energy, and transport was 17.57 MWh/year. The average  
\begin{table}
\begin{tabular}{c c c c c} \hline \hline \multicolumn{1}{c}{**Contract Type**} & \multicolumn{1}{c}{**Construction and Financial Risks**} & \multicolumn{1}{c}{**Operational and Energy Performance Risks**} & \multicolumn{1}{c}{**Demand Risk**} & \multicolumn{1}{c}{**On–Off Balance**} \\ \hline \multirow{6}{*}{Guaranteed saving} & The public entity is responsible for & \multirow{2}{*}{Only energy performance risks are transferred} & Not transferred & On balance \\  & the debt transferred & & & \\  & (risk not transferred) & & & \\ \cline{2-5}  & The public entity is responsible for & \multirow{2}{*}{Both energy and operational performance risks are transferred} & Not transferred & On balance \\  & more than 50\% of the debt service & & & & \\ or provides financial collateral & & & & \\ (risk not transferred) & & & & \\ \hline \multirow{6}{*}{Shared Savings} & ESCO is responsible for debt & \multirow{2}{*}{Only energy performance risks are transferred} & Not transferred & On balance \\  & & service (transferred risk) & & Both energy and operational performance risks are transferred & Not transferred & Off balance \\ \hline \multirow{6}{*}{First-Out Contracts} & ESCO is responsible for debt & \multirow{2}{*}{Only energy performance risks are transferred} & Not transferred & On balance \\  & ESCO is responsible for debt & \multirow{2}{*}{Both energy and operational performance risks are transferred} & Not transferred & Off balance \\ \cline{1-1}  & service (transferred risk) & & & \\ \hline \hline \end{tabular}
\end{table}
Table 1: Risks associated with alternative contracting models (adapted from [18]).  
Figure 3: Relations between risks (Adapted from [36]).  
consumption of the same resources by a citizen living in Italy amounts 25.11 MWh/year, and as such, the consumption of an inhabitant of Guidonia Montecelio was lower than the national average [40].  
To improve energy performance and renew the street lighting network, the municipality used public-private partnerships to conduct these interventions. To this end, the Municipal Administration published a public tender in 2008 for the concession of the municipality's public lighting service. This service also included the implementation, management, and maintenance of an IT system to manage the entire network. The total amount to be paid to the concessionaire was estimated by the municipality at EUR 28,454.500 (plus VAT), to be paid over a contractual period of 20 years [41].  
The selected consortium was then responsible for the economic and financial viability of the project, as well as for the planning and execution of the necessary works, operation, and maintenance of the facilities and financial provision. The ESCOs financed the investments from their own resources, recovering the investment through a shared savings contract lasting 20 years, where most of the energy savings were used to repay the investment [17]. With this intervention, it was possible to reduce electricity consumption by 45% and total installed power by 33%, allowing the municipality to achieve savings of 1.5 GWh/year of energy savings 1 [17].  
A shared savings contract was also signed for the complete replacement of all lighting fixtures in the interior spaces of public buildings with more energy-efficient systems. This contract allowed the municipality energy savings of 57% (Table 2), and the reduction of all the electrical energy installed.