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ENERGY EFFICIENCY THROUGH INNOVATION PROCUREMENT

ISSUE 03 | March 2017

Dear Reader,

We are pleased to send you the third edition of the CEPPI e-newsletter! As you may know, CEPPI kicked off in April 2015 and the cities and partners involved in this project are looking forward to continue working with you to build a community of people interested in sustainable energy solutions through a pro-innovation procurement approach.

The CEPPI e-newsletter will be published every six months with updates on project news and other related news. If you are not subscribed to the newsletter, and would like to receive Issue #4, please subscribe here.

Enjoy your reading,
Your CEPPI team

In this issue


     1. Project news


     2. Focus on: Budapest


     3. Other news


     4. Upcoming events


1. Project news

A fire-station building refurbishment, first Valencia’s CEPPI action

Valencia has started working on its first procurement of innovation intervention: the refurbishment of a fire-station building constructed in the 1970s. InnDEA Valencia detected there was a need to renovate the facilities, as there were many deficiencies in terms of comfort for the firemen and firewomen, and energy efficiency and costs.

The building has a central heating system that does not allow for variable temperatures in different rooms, so it cannot be adjusted for the needs of the individual parts of the building. A similar problem affects the lights of the facility. Other possibilities for innovation and energy saving were identified in the vehicles being used by the fire-brigade. InnDEA Valencia, partner in the project, and the fire station staff have signed a memorandum of understanding to show their commitment to start a PPI intervention for the refurbishment of the building.

The first step to be taken is to carry out an energy audit of the facilities, planned for the upcoming weeks. Afterwards, the CEPPI intervention will start in this highly promising PPI demonstration case.

Image copyright: CEPPI team

New resource for cities looking into public procurement of innovation

The CEPPI Interim Case Study Report, describing the steps taken by the five cities involved to implement public procurement of innovation activities, is already available at the Guidance & Learning section of the website. It gives an overview of the situation of the city, presents the activities planned and the barriers encountered, outlines the key learning so far and describes the future actions.

The report is of special interest to cities planning to start public procurement of innovation (PPI) tenders and seeking to learn from the CEPPI cities’ experience and processes. Birmingham, Budapest, Castelló, Valencia and Wrocław started by identifying potential barriers, as well as energy hot spots and intervention targets. Through the ongoing capacity building programme, cities are being trained on crucial activities for PPI such as engaging stakeholders, creating outcome based specifications and supplier and market dialogue.

The full report can be downloaded here

Image copyright: Pixabay / CC0 Public Domain 



CEPPI: What have we learned so far?

The CEPPI Interim Case Study report provided the CEPPI partners with a chance to take stock and review the activities of the first half of the project. Several observations were made regarding the challenges and successes of CEPPI’s first period and these findings will be explored further and used to guide the planned actions in the final year of the project.

It was found that innovation procurement approaches can prove difficult to implement due to factors such as political changes and time pressures. However, the CEPPI team discovered that “you can always do something” to support innovation in the procurement process. This can include using an outcome based specification, providing ‘direction of travel’ messages to indicate future needs to suppliers, or implementing progressive standards and targets, all of which can encourage innovation.

Introducing new and unfamiliar innovation approaches in procurements of high value and visibility is often perceived as difficult and risky. CEPPI has taken the approach to demonstrate proof of concept in smaller procurements help to build confidence and trust in the PPI process. It was also found that action learning is an effective way to develop an in-depth understanding of innovation procurement in practice. Higher value procurements are planned in the cities in the next 12 months and it is hoped that innovation will be central as PPI becomes more tried and tested. 

Image copyright: Pixabay / CC0 Public domain


2. Focus on: Budapest

Budapest is the capital and the largest city of Hungary. It is the country’s principal political, cultural, commercial, industrial and transportation centre. The city is situated along the Danube, in the heart of the Carpathian basin. Budapest and its agglomeration is the leading economic area within the region with the most expansive R&D and innovation budget.

Budapest does not have any special guidance concerning sustainable and innovation procurement as the currently valid General Rules on Public procurement do not declare compulsory use of green and innovative aspects in public purchasing, but express the need to foster the application of social and environmental criteria. However, climate change generates new challenges at local level and requires new ways of thinking and the city is implementing strategies to improve energy efficiency and reduce CO2 emissions. Budapest is participating in several EU initiatives and networks, for example Climate-KIC, Covenant of Mayors, Compact of Mayors and EUROCITIES

Budapest is also a member of the Global Lead City Network on Sustainable Procurement, a group of 14 cities committed to drive a transition to sustainable consumption and production by implementing sustainable and innovation procurement. All participating cities are acting as ambassadors of sustainable procurement to lead to a resource efficient, low carbon and socially responsible society.

Several public utility companies and cultural institutions are owned by the Municipality of Budapest, including significant energy users such as the public transport and district heating companies. The Budapest Flood and Public Lighting Company also uses a large proportion of Budapest’s energy through street lighting operations. This is an ‘energy hotspot’ that the city is focusing on through the CEPPI project.

The Budapest City Directorate Holding – established in 2014 – oversees their individual policies on energy efficiency and CO2-emission reduction. Most of the utility companies already have some sustainable and innovation procurement related successes, for example:

  • A new Central Sewage Farm was established in 2010 and a project called Complex Integrated Sewage Disposal was launched in 2013 in order to reduce the amount and build towards eliminating wastewater discharge into the River Danube. The project ends in 2018.
  • In 2014 a public bicycle-sharing system called BuBi was inaugurated to help reduce the CO2 emissions.
  • The Metropolitan Public Domain Maintenance Company introduced a new kerbside waste collection system, in which households were supplied with the necessary containers to be able to collect the waste selectively.
  • Two new recycling and education centres were built to not only provide places for hazardous garbage disposal, but to establish institutions where children can learn about the importance of sustainability.

Despite these successes, Budapest recognises that there are still many challenges to ensure that sustainable and innovation procurement becomes more common in the city. Taking in part projects, such as CEPPI, provides them with the access to knowledge, tools and political support to help make this happen.

Image copyright: Pixabay / CC0 Public domain


3. Other news

Transport for London wins Procura+ Award for Innovation Procurement of the Year

Transport for London (TfL) was awarded “Innovation procurement of the year” at the 2016 Procura+ Awards in Malmö, Sweden in December. The awards recognise the most outstanding procurement activities carried out in Europe in three categories: sustainability, innovation and procurement process.

TfL, the British capital’s public transport operator, sought to reduce the whole life-cycle cost associated with lighting the expansive London Underground network. With support from the EU funded Procurement of Lighting Innovation and Technology in Europe (PRO-LITE) project, TfL carried out extensive early market engagement with over 80 manufacturers. TfL introduced a procurement approach which calculated external costs as well as unit price, including installation, maintenance, energy use, carbon and cleaning costs. Indicative results suggest a 25 percent saving on whole life-cycle costs, and significant reductions in energy consumption.

The Procura+ Awards are held as part of ICLEI Europe’s Procura+ Network, a movement of public authorities at the forefront of sustainable and innovation procurement in Europe.

Read the full TfL innovation procurement case study here.

Image copyright: ICLEI Europe

 

The Transformative Action Award launched

The first edition of the Transformative Action Award has been launched. Cities, regions and civil society organisations are invited to submit their applications.

The Transformative Action Award rewards ongoing or concluded innovative local and regional initiatives that achieve a socio-cultural, socio-economic and technological transformation of societies by using the pathways identified in the Basque Declaration. Amongst the 15 pathways, there is the use of public procurement as an instrument to accelerate the market introduction of innovative and sustainable technologies so as to ensure that their application is demand driven and to enable decentralised local solutions to the challenges faced by cities and towns.

Applicants should complete and submit their application form by 19 June 2017 through the Transformative Actions form. For further information, visit here.

Image copyright: IHOBE / Gobierno Vasco


SPP Regions project encourages regional networks to join

New and established regional procurement networks looking to gain access to useful resources and networking opportunities are invited to join the EU-funded SPP Regions project. By being part of the project, procurers will be put in touch with other networks from across Europe, allowing them to learn from others’ experience of implementing sustainable and innovative procurement and to share their own.

SPP Regions offers support with developing networks, assistance with sustainable tendering, access to specialist workshops and webinars and mentoring from existing SPP Regions Networks.

For more information, visit www.sppregions.eu. If you are interested in joining SPP Regions as a regional network, contact: info@sppregions.eu

Image copyright: Pixabay / CC0 Public domain

 

Water PiPP releases recommendations for Innovation Oriented Public Procurement

Policy recommendations on expanding Innovation Oriented Public Procurement (IOPP) in the water sector have been compiled by the EU-funded Water PiPP project. The recommendations are targeted at policy-makers at the European level, specifically those involved in the European Innovation Partnership on Water (EIP Water) and other stakeholders interested in water innovation policies.

EIP Water facilitates the development of innovative solutions to address major European and global water challenges. Recommendations include that public organisations increase IOPP expertise, clarify Intellectual Property Rights, and support Pre-Commercial Procurement.

To view the document in English and Italian, visit the project website.


4. Upcoming events

PPI4Waste workshop for innovative procurement in waste management

The workshop aims to discuss the latest PPI tools, present innovative examples related to innovation in public procurement and discuss the new proposed related legal framework. The language will be german.

Date: 29 March 2017
Location: Frankfurt, Germany
Link: PPI4 Waste


Market dialogue and workshop on public procurement of innovative bio-based products

Framed within the InnProBio project, the workshop will present case studies, tools and criteria for the preparation of tenders for the procurement of bio-based products and services. The interactive market dialogue session of the event is intended to identify obstacles in this type of procurement. The language of the event will be German.

Date: 25 April 2017
Location: Bonn, Germany
Link: www.innprobio.eu

Public Procurement Days

This international event brings together the Lear Conference 2017 and the 2nd Global Procurement Conference. The Public Procurement Days aim at providing a stimulating environment for discussing the latest international experiences in these practices by bringing together experts from a wide range of fields.

Date: 3-5 July 2017
Location: Rome, Italy
Link: globalprocurement.org



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.