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Using Innovative Procurement Mechanisms to Help Commercialize New Energy-Efficient Lighting and Ventilation Products

Staffan Stillesjö
Swedish National Board for Industrial and Technology Development, Sweden

Abstract

Technology procurement is a useful process to develop and commercialize new technology. by definition, its purpose is to meet very specific and sometimes unique user requirements when no off-the-shelf solution to a problem is available on the market. Generally, a technology procurement process is based on active co-operation between one customer and one or more industrial contractors. Such processes, thus far, have predominantly been used as a means of satisfying specific needs in the defence, transportation, housing, power generation and heavy industry sectors.

When technology procurement is applied to diversified markets with many customers, it can be almost impossible to produce one single specification which all parties will accept. In a program for more efficient use of electricity, the Swedish National Board for Industrial and Technology Development has therefore introduced a number of innovative technology procurement processes.

The purpose of this paper is to demonstrate how innovative technology procurement has been applied to stimulate the efficient use of electricity in public and commercial buildings. Agreements have been signed with participants who control some 35 million square meters or almost 30% of the total floor area of such buildings. The agreements specify program objectives and a bonus system. Within this given framework individual participants are responsible for priorities and detailed specifications. As a result of this, the participants purchase more energy-efficient lighting and ventilation products.

New efficiency standards - 10W/sq.m. for lighting and 1 kW/cu.m./sec. electric power for ventilation fans - have been introduced. 10W/sq.m. for lighting is quite appropriate and possible to achieve. Without standards, this figure can be anything from 10 to 60W/sq.m. in existing buildings. and 15-30 W/sq.m. in retrofit and in new construction. The new standard - 1kW/cu.m./sec. - for ventilation is rather extreme. Project results indicate that it is possible to achieve a level below 1.5kW/cu.m./sec.. Today we see values ranging from 0.5 to 10 kW/cu.m./sec. in existing buildings and from 2.5 to 4 kW/cu.m./sec. in retrofit and in new construction.

Several projects have been initiated, and some ten have been completed, according to the rules of the agreements. In new construction and retrofit of existing buildings, reductions in electricity use and power demand for lighting and ventilation are substantial, ranging from 40 to 70 percent. In support of the agreements, certain components, such as HF electronic ballasts, refrigerator-freezers, windows, heat pumps etc., will be procured based on collective specifications. These components will be commercialized within said agreements, since a centralized procurement must not be allowed to disturb ordinary market relationships.

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