Upgrading SISMA SET (Subsidy Evaluation Tool)

Within the framework of the SISMA project, a tool for energy and financial evaluation of energy efficiency measures was developed. The basic idea of the tool comes from the fact that for such measures or projects, the payback period is usually longer and the internal rate of return (IRR) is low.

In projects financed through the model of energy contracting, the minimum rate of return is not precisely defined, but it is an empirical value based on the risk profile and yield for such measures or projects. This means that it is only possible to define the lowest IRR, which is still acceptable for the project to be carried out based on cooperation among energy service providers (ESCOs), financial institutions and other interested parties. If for a particular project the profitability is not high enough, it is necessary to provide a certain amount from public funds (subsidy or a grant) to make it feasible. The SISMA SET tool, a grant evaluation tool, enables authorities to calculate the exact amount of subsidies needed to make the project viable. This also optimizes the use of public funds to finance such projects. The tool is basically intended for the evaluation of four types of public buildings: schools, gyms, offices and health facilities and has two calculation methods. Method A is intended for users with less technical knowledge, while Method B enables the input of data for projects where savings and other technical elements of the investment have already been defined or calculated. The tool is designed for calculating an individual building.
 
In the framework of the ENERJ project, GOLEA agency decided to upgrade the SET tool in such a way that it would allow calculation for the so-called joint actions and will serve mainly energy managers dealing with public buildings as a support tool in the planning of joint actions. Joint actions or joint action are projects where one or more public contractors with larger number of individual projects or individual energy efficiency improvements are combined in one joint investment. In this way, as a rule, a higher investment and a higher potential of savings are achieved, which makes it easier to mobilize or attract private capital (ESCO companies) that are usually not engaged in smaller projects. The SET tool has also been added to calculate CO2 savings.
 
In the upgraded SET tool, the Joint action coordinator may add or withdraw individual measures to the calculation of the joint action and monitor the impact on the financial indicators of the entire investment. In this way, it can optimize the joint action according to the different goals or scenarios set. For example, if a joint action of good indicators has been created, it can convey another additional measure that has poorer individual indicators, and vice versa, if common indicators are not appropriate, by eliminating individual measures that do not result in proper savings, the indicators of the overall project can be improved. In this way, we can optimize the project to the extent that it is as balanced as possible from the expectations of everyone in the project of the parties involved, i.e. public institutions - investors, private capital (ESCO companies) and public institutions - donor incentives (subsidies).