In many municipalities there is a significant potential for increased energy efficiency in public utilities, street lighting and buildings such as schools, hospitals, kindergartens, offices, apartment buildings, etc.

The energy costs constitute a substantial part of the municipal budget. To reduce the energy consumption and costs, and to improve the municipal services, it is necessary to renovate, and implement energy efficiency measures. Reducing the energy consumption will also reduce the emissions to the air from the local and district heating systems.

Often there are several barriers to energy efficiency in municipalities. Examples could be a subsidised energy tariff structure, lack of metering, lack of local capacities and skills on how to identify, develop, finance, implement and monitor energy efficiency projects, lack of mechanisms allowing savings from energy efficiency investments to be used to repay loans, etc. Several barriers are connected to legislation and policy. Experience from a number of cities in several countries has shown that solutions to overcome these barriers are available. One example is establishment of Municipal Revolving Funds. The basic idea of a Revolving Fund is that savings from investments in energy efficiency projects with short payback are repaid to the Revolving Fund and used to finance new projects that will generate more savings and repayments. In this way sustainable process can be initiated, and step by step all municipal facilities can be upgraded.

In addition to overcome the barriers, it is beneficial to develop a long-term strategy with corresponding action plans for energy efficiency in the municipal sector. This overall “Municipal Energy Efficiency Plan” should include all energy consuming sectors owned, operated or subsidised by the municipality (utilities, buildings, street lighting, etc.). To get started in the most efficient way, in large municipalities we have good experience from starting in the building sector. However, the capacity to organise and develop Municipal Energy Efficiency Plans in a structured and efficient way is limited in several municipalities.

Due to this fact, ENSI has developed a capacity building programme on Municipal Energy Efficiency Planning, supporting municipalities in developing a tailored Municipal Energy Efficiency Plan and starting its implementation. Sustainable development is secured by using the interactive “learning by doing” approach as for other ENSI capacity building programmes. 

Municipal Energy Efficiency Programme objectives

• To identify, describe and present solutions for overcoming the main barriers to energy efficiency in municipal facilities in a specific country;
• To develop a Municipal Energy Efficiency Plan for a City, and support the start up of its implementation;
• To develop capacities and skills on Municipal Energy Efficiency Planning within the City Administration and local consultants, specialists, organisations and associations.

Target groups

• Municipal decision makers, managers and specialists;
• Relevant National Societies and Associations for Municipalities;
• Local consultants on energy efficiency and municipal planning.

Programme in three stages

The programme is normally divided into three main stages, as illustrated to the right.

The key activity within the two first stages is a multi-session interactive capacity building programme. During the training sessions, local experts and Municipal representatives will work on concrete projects, tasks and plans for the selected city.

After having the Energy Efficiency Plan approved by the City Authorities, Norwegian consultants will assist and support the start up of the implementation of the Energy Efficiency Plan in the City (stage 3).

To ensure commitment from all Municipal departments and to secure long-term effects, it is recommended to establish a network of involved specialists within the existing Municipal structure. This "Energy Efficiency Team" of 3-5 participants should include an appointed leader reporting directly to the Mayor.

Main programme activities

• Establishment of a municipal Energy Efficiency Team;
• Interactive capacity building programme on Municipal Energy Efficiency Planning for the Energy Efficiency Team, and staff of Association(s) and local consultants;
• Identification, description and presentation of solutions for the main barriers to energy efficiency in municipal facilities;
• Development of a municipal Energy Consumption Database;
• Development of a model Municipal Energy Efficiency Plan for the City;
• Identification of suitable schemes for financing of Municipal Energy Efficiency projects;
• Establish Energy Monitoring for municipal facilities;
• Implementation of demo-project(s);
• Advice, support and monitoring during start-up and implementation of the Plan.

The results can be summarized as follows

• Main barriers for energy efficiency in Municipal buildings identified, described and solutions for overcoming them presented;
• A Municipal Energy Efficiency Plan developed and implementation started in the City;
• Trained local trainers, specialist and key personnel of the City.

By implementing the proposed programme, the City will be able to develop a systematic approach to energy efficiency in their facilities, resulting in a number of projects being developed and implemented.

The long term effects of the programme would be reduced emissions of greenhouse gases, health benefits from reduced use of fossil fuels, improved economy in the municipalities, reduction of energy cost burden on population, demonstration of viability of energy efficiency measures and increased interest in these types of measures.

ENSI Toolbox

In addition to the ENSI Municipal Energy Consumption Database, the ENSI Toolbox provided on “Municipal Energy Efficiency Planning” includes manuals and several templates (Data collection, Concept paper, etc.), examples and exercises.