Stuttgart - A study tour to discover innovative financing schemes

By Béatrice Karas on 6 December 2016

On 22 and 23 November, a group of elected representatives, technicians and academics learned how Stuttgart and the Land of Baden Würtemberg have been deeply refurbishing public buildings by using their own budget.

This study tour was organised by Energy Cities in the framework of the INFINITE Solutions project and with the support of the Caisse des Dépôts.
It allowed to gather all stakeholders of energy renovation : elected people, technicians, people form Ministry of Finance and Ministry of Environment in charge of energy efficiency and buildings renovation.

This meeting gave participants the opportunity to get an insight into the energy renovation of public buildings. They notably visited a facility hosting a swimmingpool and a school, and discovered the public lighting system in the disctrict of Feuerbach. All these projects have been financed by the "intracting" scheme.

Intracting scheme

The “intracting” method is based on the idea of Energy Performance Contracting (EPC) but entirely operates within the city administration and with operational accounts. No external player, such as an energy service company (ESCO), is involved. Cooperation is established between two separate organisational units of the same public administration. The money saved through energy efficiency measures flow back to a dedicated budget line – a revolving fund – until the investments have been paid off. Creating an initial revolving fund is a political decision, and the financial department responsible for budget issues needs to be strongly involved in its development.
Set up by the city of Stuttgart in 1995, this financing scheme has already allowed the municipality to implement over 350 energy efficiency measures in public buildings, equipment and facilities generating financial savings of €22 million.

Read our article on the ’care-free’ energy renovation package of Stuttgart

Missed the study tour? If you want to know more about the revolving fund and internal contracting scheme, you can take part in the training session on innovative financing schemes organised in the framework of the INFINITE Solutions project. This one-day workshop will be held on 23 February 2017 in Brussels.

You will get another opportunity to discover Stuttgart’s best practice during our next Annual Conference that will be held from 26 to 28 April 2017 ... in Stuttgart!

© photos : Hubert Briand, CDC

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Tuesday 25 September 11:00-12:30

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