infinitesolutions: financing energy transition in cities

Udine, Italy

It has been a long successful story: from the Municipal Environmental Management (first EMAS registration and ISO 14001 certification in 2008) through the Municipal Energy Action Plan and the signature of the Covenant of Mayors (2009) to the adhesion to the new Covenant of Mayors, embracing the new challenge of the adaptation to climate change (2015). Last year, Udine set up a revolving fund – The Climate Fund - to finance energy efficiency actions on public buildings and equipment.

By the City Council Decision 289/2015 Udine political representatives agreed to encompass a new revolving fund in the architecture of the City General Budget. The initial fund size is EUR 32,000.

Its technical management is assigned to the Municipal Agency for Environmental Policies that plays the role of an Energy Service Company (ESCO). Other municipal units & departments are invited to propose energy efficiency measures to be financed. The proposals are evaluated subject to a cost-benefit analysis, mandatory criteria and the Fund availability. The Agency implements the measures and calculates the achieved financial savings which are redirected back to the Fund.

Three sources aim to recapitalize the Fund:

  • financial savings resulting from lower energy bills and maintenance costs;
  • incomes from the Energy Efficiency Credits placement on the energy market;
  • additional money from the SEAP investments yearly foreseen within the City General Budget.

The City Administration decided to start the Fund with energy savings generated by four pilot actions implemented in 2015. Energy saving incomes from these measures are to feed the Fund even if they were not financed through the Fund itself.

SiteMeasureInvestment costs (EUR)Year of completion
Public green area “Parco della Rimembranza” Complete renewal of street lighting 23,350 2015
“Viale Palmanova” overpass Lighting equipment -substitution with new LED bulbs 1,008 2015
“Forte” nursery school placement of new window frames 60,500 2005
Fruch” primary school gym roofing insulation 21,100 ongoing

In 2015, three new interventions were evaluated and financed through the Fund. They will be completed in 2016:

SiteMeasureInvestment costs (EUR)
“Palazzo D’Aronco” (Udine City Hall) Lighting equipment -substitution with new LED bulbs 1,620
“Fruch” primary school Lighting equipment complete renewal 25,510
“Vascello” parking site Lighting equipment -substitution with new LED bulbs 2,423

Financing retrofit actions through the Fund is not the only result of the City Council Decision. Last but not least, there are to be highlighted new know-how, expertise and skills developed both by Udine’s municipal staff and other Italian local authorities the Agency is cooperating with. Moreover, a set of new data and information on energy consumption of the municipal buildings, equipment and facilities allows for better use of public buildings and facilities.

Coming back to the house of sustainability concept, Udine’s Administration is aware that there will always be new bricks to add, but up till now the Climate Fund has offered an outstanding chance to review the municipal decision processes and implementation procedures that improved the way energy investments are planned, designed and carried out.

Useful materials

Udine at a glance The municipality of Udine (Italy), 100,514 inhabitants, is very sensitive to environmental matters and sustainable development and is active in promoting energy savings actions and the use of renewables. It has undertaken initiatives to reduce CO2 emissions and limit energy consumption, paying particular attention to local planning and management. It has introduced incentives to encourage energy savings and the use of renewable energies in the Building Code.
Some of the most important activities carried out recently are:

  • Local Energy Balance 2010” to measure the city’s energy consumption and identify measures to cut the use of traditional energy sources and promote renewable ones;
  • Adhesion to the Covenant of Mayors initiative in 2009;
  • Elaboration of the Sustainable Energy Action Plan to reduce CO2 emissions by 21% by 2020.
    The city has ambitious goals in the public sector – in particular municipal buildings:
  • Enhancing energy management by regular and in-depth analysis of energy consumption;
  • Reducing the energy consumption;
  • Raising awareness of benefits of energy savings in buildings among city workers and citizens, through appropriate communication campaigns.

The municipality cooperates with its public utility company AMGA “Azienda Multiservizi Spa“, responsible for water management, gas supply and public lighting. On the occasion of the renewal of a public heating contract, AMGA and the municipality signed an EPC-like contract which guarantees energy savings in 9 public buildings. The up-front investment is secured by AMGA, with full internalisation of the profits, for a total of more than €1 million, savings of 1234 Mwh/year and 339,208 kg of CO2 emissions avoided.

Who is implementing the intracting financing scheme in Udine? Core team
How is the financing scheme implemented? Local Study & Action Plan
Business Model
Who backs the scheme at the political level? City Council Decision on the establishment of the financing scheme
Training materials (in Italian) Presentation on Udine’s Fund
Infinite Solutions Leaflet in Italian Infinite Solutions Leaflet in Italian

Città e regioni: Accelerare la transizione energetica grazie a strumenti di finanziamento innovativi!

Download: PDF - 4.8 Mb

Financing Energy Transition in Cities

Intelligent Energy Europe
Co-funded by the Intelligent Energy Europe
Programme of the European Union

With the support of ADEME

Caisse des Dépôts
With the support of Caisse des Dépôts

You are here: Energy Cities, Local authorities in energy transition. > infinitesolutions > CITIES’ RESULTS

About Infinite Solutions
Innovative financing schemes
European funds and programmes
Internal Contracting
Soft loans
Third-party investment
Águeda, Portugal
Almada, Portugal
Bordeaux Metropole, France
Brussels-Capital Region, Belgium
Frederikshavn, Denmark
Koprivnica, Croatia
Parma, Italy
Riga, Latvia
Stuttgart, Germany
Udine, Italy

Addresses Energy Cities - Besançon Energy Cities - Bruxelles
Udine, Italy Parma, Italy Bordeaux (CUB), France Brussels-Capital Region, Belgium Almeda, Portugal Águeda, Portugal Stuttgart, Germany Koprivnica, Croatia Delft, The Netherlands Frederikshavn, Denmark Riga, Latvia Águeda, Portugal Almeda, Portugal Bordeaux (CUB), France Brussels-Capital Region, Belgium Delft, The Netherlands Frederikshavn, Denmark Koprivnica, Croatia Parma, Italy Riga, Latvia Stuttgart, Germany Udine, Italy