Renewable Heating Systems for Schools

The aim of the procurement procedure was to replace existing fossil fuel furnaces in schools with reliable and renewable heating systems. Environmental considerations were central to each stage of the process. An improvement in existing technical and operational performance was also a major requirement of the procurement, along with improved environmental performance and value for money. Before the procurement procedure started, 52 out of 177 schools in Oslo used fossil fuels as the primary fuel for heating. The City of Oslo wanted to replace the heating systems of these 52 schools with renewable energy based systems. A partnership was established between the Confederation of Norwegian Business, the National Program for Supplier Development and Oslo Renewable Energy & Environment Cluster, in order to find a more innovative and effective approach to purchasing renewable heating systems. A 4-stage procedure was chosen; consultation and dialogue with the market, a pre-commercial competition for innovative solutions, a development phase, and the final tenders, where solutions identified from the 3 earlier steps were purchased. Procurement criteria: - Technical criteria: • No fossil fuels should be used as an energy source. Electric space heating should not be used. - Award criteria used in the early stage pre-commercial contest for new and innovative ideas: • Competitiveness from a life cycle perspective, including investment costs, cost of management, operation and maintenance and lifespan • Reliability of the system • Degree of innovation • Positive gains for the environment • Ease of implementation • Replication potential in schools and other buildings Success factors Throughout the procurement process, the City of Oslo successfully involved all relevant groups of academic, professional and commercial stakeholders, as well as Council leaders and maintenance technicians at the schools. A sufficient amount of time was allocated for this consultation, which allowed detailed and fruitful dialogue, and helped to ensure an open and comprehensive procurement process. Approval from Council Leaders at the highest level was important for changing current practice within the organisation. The City Council gained access to technical solutions unlikely to have arisen from an ordinary purchasing process with no pre-commercial activities. Early dialogue was crucial to creating these new, innovative ideas, as was the use of competitions. Workshops organised by the industry itself made way for new and productive cooperation between suppliers. Key Results and Achievements As part of the competition 12 proposals were put forward and 4 were awarded. Several of these proposals were made by consortia as opposed to individual organizations. Novelty: Ideas from the competition and outputs from the subsequent development projects were implemented in many heating systems during 2010 and 2011. Some of the technologies include ground solar heat collectors, geothermal heat pumps and air-to-liquid heat pumps. Also bio-oil, bio-gas, solid biofuel, and various combinations of these are now used instead of fossil fuels in Oslo's schools. There were between 3 and 7 bids for each separate tender. The City Council successfully met the aim of phasing out these 52 non-renewable systems before the end of 2011. The heating systems developed during this procurement process have been considered along with other systems in later constructions. Improved competence within the region's renewable heating industry was achieved as a consequence of this series of procurement procedures, as were the skills and knowledge of the Municipality. Sustainability Impacts: Burning fossil fuels generates greenhouse gas emissions and has negative effects on human health, biodiversity and water quality. Replacing fossil fuel furnaces in schools with renewable heating systems mitigates the negative environmental effects of fossil fuel extraction and combustion. An annual reduction of approximately 3,000 tonnes CO2 has been achieved as a result of this project. In 2010, 5,4 tonnes of CO2 was produced from fossil fuels, which decreased to zero by 2014. Air pollution from other emissions, including carbon monoxide (CO), nitrogen oxides (NOx ), sulphur oxides and dust have also been reduced. Cost-effectiveness: The change of heating systems in schools has been one part of an extensive plan to reduce environmental impacts in the City of Oslo. The whole plan has been quite profitable, but it is not possible to calculate effects of this measure alone. Challenges: The main challenge successfully overcome by Oslo was to maintain and implement the experience and knowledge gained through market dialogue, the competition stage and the project development phase, in a way that did not exclude competition and respected the principle of non-discrimination. Due to a rapidly expanding population, Oslo schools are now being extended and built at an unprecedented rate. There are construction investments planned to take place annually until the year 2017, which are in total 2000-3000 million NOK per year. The need for renewable heating must be addressed in all of these buildings. Contact person for more information: Bjørn Antonsen, Undervisningsbygg Oslo, bjorn.antonsen@ubf.oslo.kommune.no