Energy Retrofit in the Municipality of Lentate sul Seveso
The energy retrofit pathway undertaken by the Municipality of Lentate sul Seveso represents a significant example of the application of Public-Private Partnership models and EPC (Energy Performance Contract) in the public lighting sector.
The municipal administration, with funding from Fondazione Cariplo “100 Comuni efficienti e rinnovabili”, which covered the cost of technical-legal assistance for municipalities intending to undertake sustainability and energy efficiency pathways for their buildings and public lighting systems, initiated the buyout procedure of the public lighting system within its territory.
Subsequently the administration launched a Public-Private Partnership tender with the following scope: open procedure for the award, under concession, through project financing promoted by private initiative, of services for the implementation of energy efficiency measures and regulatory compliance, as well as for the management service, including electricity supply, of the public lighting system for the Municipality of Lentate sul Seveso (MB), through the Sintel platform of Aria S.p.A., based on the most economically advantageous tender criterion.
The municipal administration chose to intervene on a strategic infrastructure characterised by high energy consumption, significant operating costs and the need for technological and regulatory upgrades.
The initiative originated from the need to improve the energy efficiency of the public lighting network, consisting of approximately 2’000 lighting points, enhance the quality of maintenance and management services, and reduce supply costs. The intervention involved an integrated approach including technological upgrading of the systems, replacement of lighting fixtures with high-efficiency solutions, optimisation of control and regulation systems, as well as regulatory compliance of the infrastructure. The Public-Private Partnership contract signed is an EPC (Energy Performance Contract), which allocated the main technical, economic and performance risks to the concessionaire, while ensuring a significant reduction in energy consumption for the Administration.
The concession, with a maximum duration of 204 months (subject to reduction during the tender phase), defined a maximum annual fee payable to the concessionaire, contingent upon maintaining the contractually established energy performance levels. In particular, the contract required a guaranteed minimum reduction in energy consumption of 66%, a tender threshold serving as the benchmark for performance verification and for the potential application of corrective mechanisms on the fee. The tender was awarded to Enel X, promoter of the Project Financing initiative, which proposed an energy saving of 83% with a total contract value of € 5’043’392.
THE ROLE OF TERRARIA
Within the public lighting retrofit project of the Municipality of Lentate sul Seveso, TerrAria provided technical-specialist assistance supporting both the Administration and the Sole Project Manager (RUP), assisting in the buyout procedure of the municipal lighting system from Enel Sole, including the estimation of the compensation value. Subsequently, it supported the Sole Project Manager (RUP) and the Province of Monza and Brianza, acting as the reference body for the Central Purchasing Body (CUC), in drafting and preparing all tender documentation, both technical and legal. TerrAria has in fact collaborated for years with Studio Landi on the legal aspects of EPC contracts.
The support specifically included:
- On-site inspections and survey of each lighting point and mapping within a GIS system;
- Assessment of the buyout value of the municipal lighting system;
- Support in defining the appointment of the project promoter, following the receipt of 4 proposals from different entities;
- Definition of the contract’s reference energy baseline, a fundamental element for monitoring declared annual savings;
- Assistance in the preparation of tender documentation;
- Technical support during evaluation and award phases;
- Support during contract signing;
- Monitoring and verification of energy performance and economic consistency of the fee.
Through this contribution, TerrAria enabled the municipal administration to make robust, transparent and consistent contractual decisions aligned with energy efficiency objectives, reducing procedural risks and strengthening the overall quality of the operation.
