Aggregating solar PV installation demand in small municipalities to boost clean energy transition

The start of this aggregation process was triggered by the announcement of the Call for proposals within the Energy and Climate Change programme – a financial mechanism of the European Economic Area. The call provided co-financing for solar rooftop PV installations with the main condition that the total amount of support should not be lower than €200,000. This condition posed a challenge to many local governments and public institutions who could not meet the threshold on their own.

To involve small(er) local governments in the project application, REA North engaged in project development assistance activities over a period of six months – hundreds of phone calls, email correspondence with decision-makers and public servants to motivate them, providing technical support in the complex preparation process that involved procurement and development of technical documentation, negotiations with local branches of the national DSO, coordinating diverse local challenges.

In total, 21 Croatian public institutions became partners, ranging from small municipalities and cities to the county hospital and regional water distribution company.

The main challenge in the implementation phase was the preparation and execution of the joint public procurement procedure. Surging prices, problems in supply chains, lack of installation companies, payment terms were all considered during the market research. The insight into the market conditions proved to be crucial for the preparation of the documentation. Although installation companies were overwhelmed with orders, the agency managed not only to raise interest from suppliers, but they also received very competitive prices and bids. PV capacities ranged from 3.6 kWp to 400 kWp.

In addition to financial savings, standardisation allowed to streamline part of the activities, simplify project monitoring and reduce risks. The knowledge and experience gained resulted in replicable (and further improved) procurement documentation that REA North used in similar projects.

Ultimately, the Solar Roofs for Green Virovitica and One Sun Connecting North & South projects were funded by a €1.7 million budget, resulting in the installation of 36 solar PV installation on the roofs of public buildings such as hospitals, kindergartens, schools, faculties, utilities, sports, and cultural heritage buildings in 17 Croatian municipalities and cities.

This best practice is extracted from our publication ‘Sustainable Regions in Action‘. Discover more best practices here!