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Early Lessons on Introducing Energy Performance Contracts in Italy: Milan’s Energy Efficiency Program
The document examines the Province of Milan's effort to implement a regional energy efficiency program using pure Energy Performance Contracts (EPC) to retrofit public buildings. While the program successfully moved investments off municipal balance sheets and tested new contract structures, it faced significant delays and barriers. These include the prevalence of 'bundled' energy service contracts in Italy, which discourage pure EPC, and the reluctance of local banks to participate in tenders due to the lack of physical collateral for energy efficiency investments. The program relied heavily on technical assistance grants from the ELENA facility and prior audits funded by Fondazione Cariplo to overcome capacity gaps in small municipalities.
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Document type: Briefing