Local authorities are among the first victims of rising energy prices.

The Observatory of Finances and Local Public Management (OFLG) notes an increase of 29.3% in energy-electricity expenditure by municipalities in 2023, after an increase of 22.4% in 2022!

If inflation decelerates in 2024, energy spending continues to threaten the balance of local authorities.

How can municipalities, intermunicipalities and departments deal with this financial pressure and maintain a balanced budget? Reducing energy consumption is key.

Sirenergies offers you an overview of winning strategies.

Energy expenditure: a heavy burden for communities

Public buildings, public lighting, technical infrastructures: to exercise their skills and provide public services, local authorities have an incompressible heritage, often consuming electricity and gas.

Public buildings: energy chasms

76% of municipal energy consumption is generated by public buildings. Town halls, schools, colleges, gymnasiums, gymnasiums, gymnasiums, libraries,...: with more than 225,000 public buildings and 280 million square meters, the built heritage of local authorities is impressive, both by its surface area and by the energy expenditure it generates!Nearly 3 billion euros are spent every year by municipalities for the consumption of their buildings, 75% of which is spent on lighting and heating.

Public lighting: a key expenditure item

Public lighting is the second item of energy expenditure communities. According to ADEME, it represents 41% of the energy consumption of municipalities and 37% of their electricity bill total (compared to 32% and 18% respectively in 2017).

This trend is explained by the increase in electricity costs, coupled with outdated, energy-consuming and inefficient equipment. 40% of the lights are over 20 years old. Fluorescent mercury vapor balloons symbolize the obsolescence of the public lighting park. Particularly demanding on electricity, they have been banned from marketing since 2015 but still authorized for exploitation.

Technical infrastructures: hidden consumption

Technical infrastructures generate energy costs that are often forgotten. Les pressurized drinking water networks consume electricity to fill tanks and water towers, but also for pump stations and boosters. Likewise, the sewage treatment plants consume energy to treat wastewater.

In a 2022 survey, the AMORCE association estimates that the energy required for the drinking water service represents 100 kWh/year and 150 kWh/year for the sanitation service.

Why does a local authority have to control its energy consumption?

Budget balance, protection of public policies, environmental compliance and energy transition are all major challenges hidden behind the necessary control of energy consumption.

Safeguarding public policies

At the heart of the energy crisis, the Association of Small Cities in France (APVF) believes that “the energy expenditure of some municipalities has jumped by 50%”, with increases of up to 300%!

However, municipalities, intermunicipalities and departments haveobligation to present a balanced budget. An explosion in the energy station can force them to remove public policies, Cut back on grants or redirecting investments to offset rising energy costs. They may also be tempted to play on recipes by increasing taxes and local taxes. Controlling energy expenses makes it possible toavoid these harmful choices to public services.

Meet the requirements of environmental regulations

Local authorities are concerned by the Tertiary Energy Eco System (DEET). Resulting from the ELAN law, the Tertiary decree imposes on any tertiary building of more than
1,000 m² to reduce its energy consumption.

France's objective? Achieve carbon neutrality in 2050.

The goals are ambitious. Concretely, communities must reduce the energy consumption of their buildings 40% by 2030, 50% by 2040, and 60% by 2050.

Participate in the energy transition

At the origin of 12% of greenhouse gas emissions, communities have a major role to play in energy transition. Economic choices are also ecological choices. Controlling consumption reduces CO2 emissions. Develop the renewables promotes local natural resources, strengthens the energy sovereignty of territories and consolidates their resilience in the face of crises.

These choices contribute toattractiveness of a territory, by conveying the image of an exemplary community, committed to the energy transition and concerned about the future of its citizens.

What are the strategies for optimizing the energy budget of local authorities?

Even if the public heritage is incompressible, many concrete solutions exist to reduce energy consumption, without threatening the operating and investment budgets of local authorities.

Conduct an energy audit

The energy audit is often the key to raising the awareness of elected officials. Extensive and detailed, this document provides a State of the energy situation of the community. Consumption analysis makes it possible to identify the highest expenditure items, to identify possible malfunctions and to clearly specify the needs.

Armed with this data, the expert can suggest concrete ways of improvement. The conclusions serve as basis for building an energy strategy adapted to the needs and budget of the community.

Optimizing contracts and energy purchases

The community can reduce its energy expenses by optimizing its energy purchases and its electricity and gas contracts. Like businesses, municipalities and intermunicipalities can achieve substantial financial savings thanks to:

• Anticipating purchases to take the time to negotiate the most competitive and personalized offer with energy suppliers.
• Buying at the right time to take advantage of the best price opportunities.
• Optimizing the subscribed power .

THEgroup purchase is also an effective choice for reducing energy costs. The grouping of orders secures the public procurement procedure in the form of a single tender organized by an expert. The pooling of needs stimulates the competition of energy suppliers for get the best rates and services, while freeing the community from the constraints of negotiating and analysing offers.

Fast, effective and inexpensive actions, the informed purchase of energy and the optimization of contracts require expertise and a solid knowledge of the electricity and gas markets.

💡The energy consulting and sourcing firm, Sirenergies supports local authorities for Decrypt their supply contract, select the best supplier and To pilot the energy strategy.
With the Pilott platform, local authorities can know their energy consumption to build a tailor-made energy contract.Contact us

Improving the energy performance of buildings

Encouraged by the State, the energy renovation of public buildings has proved its effectiveness. One average energy savings of 43% is observed in the 6,000 projects of the national plan to stimulate energy renovation.

THEthermal insulation And the modernization of heating and ventilation systems stand out as the actions ofee the most efficient. But local authorities can go further by equipping their buildings with intelligent management energy.

Les energy management systems (EMS) make it possible to save energy thanks to the real-time monitoring of consumption, the automated detection of malfunctions and the remote control equipment.

Another tool available to communities: the energy performance contract (CPE). Signed with an energy efficiency operator, this contract aims at a concrete objective of reducing energy consumption by carrying out works and optimizing equipment management.

If the investment is high, energy renovation opens up the right to numerous public grants : State green fund, departmental grants, calls for projects from departmental energy unions, ACTEE program carried by the FNCCR (1), etc

Modernizing public lighting

According to ADEME, public lighting represents a potential of 50 to 75% in energy savings. Simply switching to LEDs saves up to 60% on electricity.

The use of smart lighting systems (or Smart lighting) maximizes savings. Sensors, astronomical clocks, electronic ballasts, presence detectors and remote control regulate lighting according to hours and needs and reduce electricity bills.

Radical to reduce spending, nocturnal extinction is also increasingly practiced in France. In the 2023 barometer from the French Observatory of Ecological Transition, 80% of the 500 mayors surveyed say they turn off the public lighting after 22 p.m. This quick and effective solution also reduces light pollution and protects biodiversity.

Acting on lighting is the promise of real financial savings.

Develop local renewable energies

Self-consumption its own electricity production reduces energy purchases. But it is also a additional source of income thanks to the resale of unused electricity.

THEinstallation of photovoltaic panels on public buildings is the most popular solution by local authorities. You don't have to be a big city to access this energy transition tool.

Les heating networks are also on the rise. They make it possible to heat public and private buildings using renewable and recovered energies (biomass, wood energy, energy from waste treatment, geothermal energy, etc.)

However, investment remains an obstacle to the development of renewable energies by local authorities. Solutions exist to amortize the cost, including the use of third party private or public-private investors (SEM — Société d'Économie Mixte, SPL — Société Publique Locale,...) and the looking for grants (ADEME Heat Fund).

Raise awareness and involve agents and citizens

How can energy consumption be reduced if agents and users of public buildings leave a window open in the classroom or do not turn off the light when leaving the village hall? La communication is essential to support the community's energy strategy.

Inexpensive, training and awareness-raising campaigns on energy sobriety can make it possible to: reduce expenses by up to 10%.

Faced with budgetary pressure and rising energy prices, local authorities need more than ever to rethink their energy management.

Audits, anticipated purchases, optimization of electricity and gas contracts, development of renewable energies, energy renovation works, energy efficiency measures: local authorities have no shortage of concrete and targeted solutions to control their energy budget. Shared energy consultants, departmental energy unions, local energy and climate agencies, ADEME and its Territorial Committed Ecological Transition program are there to help them overcome technical and financial obstacles.

Are you a community? What if you also called on an expert to optimize your electricity and gas purchases and contracts?
Sirenergies combines strategic expertise with digital technology to build personalized strategies to control your energy costs.

We call you back

(1) ACTEE program (Action by Territorial Communities for Energy Efficiency) supported by the FNCCR (National Federation of Licensing Communities and Authorities)