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ENERGY EFFICIENCY THROUGH INNOVATION PROCUREMENT

ISSUE 01 | February 2016

Dear Reader,

We are pleased to send you the first edition of the CEPPI e-newsletter! The CEPPI e-newsletter will be published every six months with updates on project news and other related news.

CEPPI kicked off in April 2015 and we are looking forward to working with you to build a community of people interested in sustainable energy solutions through a pro-innovation procurement approach.

If you would like to receive Issue #2, please subscribe to the newsletter here.

Happy reading,
Your CEPPI team

In this issue


     1. Introducing CEPPI


     2. Project news


     3. Focus on: Valencia


     4. Other news


     5. Upcoming events


 

1. Introducing CEPPI

CEPPI – Coordinated energy-related PPIs actions for cities – aims to build capacity in cities on how to achieve more sustainable energy solutions through a pro-innovation procurement approach. The five cities involved in the project are Birmingham (UK), Budapest (Hungary), Castelló & Valencia (Spain) and Wrocław (Poland). The cities will intervene in scheduled public tenders in order to save at least 33GWh/year.

European Union’s (EU) public spending on purchasing goods, works and services amounts to approximately 14% of the EU’s gross domestic product, this is why public procurement plays a key role in Europe’s economic performance. Public procurement of innovation (PPI) allows public authorities to act as a launch customer for innovative goods that are not yet available on a large-scale commercial basis.

Within the CEPPI project, 80 procurement officers across the five cities will be trained, public tenders with energy efficiency specifications will be launched and suppliers will be invited to engage in dialogue with public authorities to analyse which are the best innovative solutions to be applied.

All the information produced and shared through the CEPPI project pursues to be inspiring for other cities interested in PPI and sustainable public procurement.

CEPPI is an EU-funded three-year project which started in April 2015 and is funded by the European Commission’s Horizon 2020 Programme.

For more information, visit www.ceppi.eu


2. Project news

PPI Gap Analysis uncovers the innovation potential in CEPPI cities

Birmingham, Budapest, Castelló, Valencia and Wrocław have undertaken a Public Procurement of Innovation Gap Analysis to assess their current and potential capacity for PPI. The analysis will help in the delivery of support actions, such as PPI training and guidance on engaging the market, by the CEPPI expert partners – Jera Consulting, Optimat, Steinbeis-Transferzentrum EGS and ICLEI European Secretariat.  

The analysis covered key aspects of PPI good practice and included a PPI skills assessment. It also collected information about the procurement process of the organisations; the environmental, energy and innovation policy framework, sustainable procurement, and the public sector network within the city that could potentially represent a wider market.

The analysis has encouraged CEPPI cities to consider their strengths and weaknesses relating to PPI, as well as set a baseline against which to review progress throughout the project.

The cities are motivated to take part in CEPPI to achieve cost and energy efficiency, to introduce new and innovative solutions, and to use PPI to positively influence the environment and the society.  The cities consider the PPI Gap Analysis to be a starting point for these positive changes.

Energy hotspots highlight opportunities for energy-saving PPI

CEPPI cities have identified energy hotspots – product and service sectors where PPI has significant potential to save energy. To discover these hotspots the cities provided data about their baseline annual energy inputs to the CEPPI expert partners. STZ and Optimat investigated the direct, supply chain and wider energy use –, explored good practices, uncovered procurement opportunities and highlighted quick wins for energy saving. The data was also analysed in relation to the energy policies of the cities.  

Further in-depth assessment looked at specific sectors of energy consumption, such as street lighting, educational buildings, building heating, building lighting, building cooling, waste collection and treatment, maintenance of market places, vehicle use and water purification and supply.

The results showed that the direct energy use is very different for each of the five cities, mainly due to the different mixes in services delivered directly or by suppliers, (Birmingham: 226 GWh/a – Budapest: 4,382 GWh/a – Castellón: 31 GWh/a – Valencia: 5,025 GWh/a – Wrocław: 6,528 GWh/a).

The cities are now using their energy hotspots to make strategic decisions for PPI interventions in planned tender areas.

Image copyright: Progress of lighting with candle, tungsten, fluorescent and LED, by vladimirfloyd / Fotolia

Possible areas of PPI intervention have been identified

During the second partner meeting held in Barcelona, the five CEPPI cities presented to the other Consortium members their possible areas of intervention for their procurement of innovation activities within the project.

Birmingham City Council explained they had taken a step-by-step approach and reviewed upcoming tenders to identify those with the right mix of PPI and energy reduction potential. The city announced two likely procurement interventions: one related to their waste strategy and another for refrigeration units for markets. The Municipality of Budapest shared their idea of implementing PPI practices in their tenders to retrofit the City Hall. InnDEA Valencia introduced the opportunities they had been discussing with the City Council, such as city lighting, the fountain systems and sports centres. The importance of involving three different parties – the innovation department, the procurement department, and the specific department of the action – was emphasised. Valencia City Council also views public lighting and its harbour area refurbishment as projects with potential within CEPPI. EIT+ presented its interest in focusing on the street lighting modernisation in Wroclaw. The City of Castelló is currently working on the identification of its opportunities.

Partners also discussed the idea of introducing innovative financing mechanisms for their actions. In the coming months, they will announce what their final projects will be.

Image copyright: ICLEI European Secretariat

CEPPI partners attend the Procura+ Seminar in Barcelona

Amongst 90 participants from over 25 cities and regions, CEPPI partners explored "the challenges ahead - designing procurement for a low-carbon future" in the Procura+ Seminar that took place in Barcelona. The programme for the Seminar was designed with a particular focus on learning through application and building relationships among public procurers.

Image copyright: ICLEI European Secretariat, by Alejandro García


3. Focus on: Valencia

Valencia City Council, through InnDEA Valencia, joined the CEPPI project with the aim of promoting energy efficiency through the implementation of innovative public procurement policies.

Valencia is committed to Public Procurement of Innovation as a key tool to improve urban services, to face the city’s major challenges and to reduce energy consumption. “The project is offering us the possibility to receive advice for the first action Valencia is implementing under the umbrella of Public Procurement of Innovation in the energy field, in order to carry it out successfully,” said Jordi Peris, Councillor for Innovation and Knowledge Management and Vice-President of InnDEA Valencia.

After launching its first successful case, Valencia City Council wants to replicate the procedure for other tender and thus serve as an example to other municipalities that are thinking about introducing PPI practices.

In December, CEPPI expert partners visited Valencia to hold a training session on PPI. Officers from four different departments attended the capacity building workshop and assessed the opportunities PPI offers to Valencia.

Valencia is approaching the innovative process from different spheres, so as to ensure citizens are beneficiaries of the social and environmental impacts. In this respect, the Council is also taking part in the European network Climate KIC project, Public Procurement of Innovation in Action' (PPIA), which aims to promote public procurement strategies to boost innovative solutions that reduce the effects of climate change.

At the country level, Valencia belongs to the Innpulso network leading, alongside with Móstoles City Council and the Ministry of Economy and Competitiveness, group #1 named “New financing models”. Its objective is to identify and promote new financing mechanisms to foster innovative projects.


4. Other news

Innovation market call

The 8th European Conference on Sustainable Cities & Towns call for contributions is open – until 28 February 2016 – for the Innovation Market section of the programme. The call is open to local, national and regional governments; non-governmental organisations; scientific and research organisations, and other stakeholders.

The Innovation market will see various formats, which applicants can choose from: speed presentation, round table dialogue, and poster presentation.

For more details and to submit your proposal download the Call for Contributions and send the completed form to innovation.market@iclei.org by 28 February 2016.

Austrian wastewater recycling system wins prize for most innovative procurement in Europe

The procurement of a machine that vaporises waste-water to remove waste particles saw the Federal Procurement Agency of Austria awarded the Public Procurement of Innovation Award. The Federal Procurement Agency received a trophy for innovation procurement excellence, together with the title “European innovation procurement of the year”.

Four other finalists from across Europe were also in competition for the award. “The quality of each of the finalists meant that choosing the overall winner was very difficult. It was an exceptionally close competition,” said Mark Hidson, Deputy Regional Director at ICLEI Europe and jury member. “We felt that the procurement of the vaporising system best showcased the impressive work being carried out, as well as the type of solution that public procurement of innovation can achieve. The procurement brought together the institutional knowledge of public procurers with the ingenuity of the private sector.”

The innovative solution is used by the Austrian mint to clean water contaminated during the production of coins and notes. Vaporisation of the waste-water takes place in a vacuum, allowing for fresh water and waste particles to be separated. Once the filtering process is complete, 97 percent of the water can be reused.

Image copyright: ICLEI European Secretariat


5. Upcoming events

eWorld Procurement & Supply

eWorld Procurement & Supply is the UK’s most comprehensive forum for new innovations and technology applications within the procurement and supply chain function.

Date: 2nd March 2016
Location: London, UK
Link: www.eworld-procurement.com/programme/




This project has received funding from the European Union's Horizon 2020 research and innovation programme] under grant agreement No 649720.
The sole responsibility for any error or omissions lies with the editor. The content does not necessarily reflect the opinion of the European Commission. The European Commission is also not responsible for any use that may be made of the information contained herein.