Public Procurement of Innovation. Torino's experience - by Elena Deambrogio

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Pre-commercial procurement and
procurement for innovation:
driving innovation to ensure energy efficient buildings
in the MED area
Public Procurement of Innovation
Torino’s experience

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• Cities around the world are now facing very similar concerns linked to the impact
of urbanization and its pressures on the environment and onto the economic
and welfare systems. However, they also represent centers of exchange,
economic, knowledge and cultural resources.
• To handle these urban challenges, city administrations have to find new ways to
manage complexity, increase efficiency, reduce expenses, and improve quality of
life.
• There is a need, then, to redefine city operating models and develop new visions
and tailor-made strategies for the sustainable development of our cities, in line
with territorial traditional and new vocations.
• And to do so, cities have to play a major role in territorial innovation processes,
offering themselves as co-creators of urban solutions, as laboratories for
innovation and hubs for fostering new business opportunities in the growing
areas such as that smart&clean technologies and new urban system models.
The context: urban innovation within the
International debate on “Smart Cities”

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• 2007  Integrated Territorial Programme “Sustainable energy as
local competitiveness factor: a plan for Turin”: first urban integrated
action plan in the filed of energy, aimed at supporting both the demand
(public and private) and the offering of smart&clean
products/services/technologies
• 2009  Signature of the Covenant of Mayors
• 2010 Approval of Turin Action Plan for Energy - TAPE which
includes an inventory of main consuptions sources at city level and defines
a set of interventions in the building and trasport sector (public and private)
with the final objective to decrease Co2 emissions of up to 41,9% by 2020.
• Today
 Torino Smart City Platform, represents the project framework for
the new urban innovation policy
 SMILE “Smart Mobility, Inclusion, Life&health and Energy”
Project, Ongoing Strategic Planning Process.

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Torino Smart City is now perceived more as a project platform – both cultural and
technical – than a rigid receipt to territorial development, specifically aimed at
identifying:
• a collection of urban and metropolitan-scale problems to be addressed …as
well as new ideas to solve them
• Strategic investment priorities, in line with endogenous territorial strengths
as well as with upcoming development trends
• Social and economic inclusion paths
• New Public / private engagement models
• an innovative financial and management structure
• Public sector innovation measures in the field of simplification,
transparency, smart regulation, qualification and strategic procurement
WHAT IS THE TORINO SMART CITY NOW?

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GOVERNANCE
A NEW TERRITORIAL MANAGEMENT STRUCTURE
•TORINO SMART CITY FOUNDATION - Founded in 2011, the Foundation
Torino Smart City involves the City of Torino, the Polytechnic of Turin, University
of Turin, the Chamber of Commerce, the municpalities of the metropolitan area
and other local key actors in the view to assure the territorial management and
support the realization and evaluation of the TSM strategy (now more the 150
attendees)
3 MAIN INSTRUMENTS:
•CRUSCOTTO URBANO (urban dashboard), in partnership with CSI
Piemonte, it is a platform of business intelligence for the analysis of data
coming from the territory
•PORTALE TORINO SMART CITY, in partership with CSI Piemonte, it is a
webnetwork for sharing activities and strategies of Torino Smart City with the
community of citizens
•MATCHING BOARD, in partnership with Fondazione Torino Wireless, it is a
structured action plan for the involvement and the engagement of different
economic and productive realities on the territory

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5 SECTORAL PRIORITIES:
• ENERGY
• ENVIRONMENT AND TERRITORY
• MOBILITY
• DIGITAL CITY
• SOCIAL INNOVATION AND COHESION
2 TRANSVERSAL PRIORITIES:
• ADMINISTRATIVE INNOVATION
• CITY USERS INVOLVEMENT
Strategic use of public
procurement to
support innovation
in the sustainable
construction sector

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Main objective: CONTRIBUTE TO DECREASE ENERGY CONSUMPTIONS AND
RELATED CO2 EMISSIONS THANKS TO THE ENHANCEMENT OF ENERGY
EFFICIENCY, THE DIVERSIFICATION OF ENERGY PRODUCTION AND BETTER
ENERGY MANAGEMENT AT URBAN LEVEL
• Towards and beyond “Zero energy Buildings”: Trigger energy efficiency
investments into the built environment (public and private buildings)
• Smart Grids: improve the infrastructures for a more efficient energy production,
management and distribution
• Smart Consumers/Smart behaviours/Energy Management: to rationalize
energy consumption patterns also thanks to energy management systems and
behavioural change measures
• Smart & Clean Technologies/R&D : to support research, development and
innovation activities into the energy sector.
ENERGY

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Strategic use of PPI in order to:
- Better qualify the public demand to respond to the upcoming needs of the
smart city and of its users
Improved solutions to manage the territorial assets and offer improved services
- More efficient use of existing financial resources in time of budget constraints
Do more and better with less!
- Boost the market for innovative products/services/solutions for the smart city
Act as a launching customer to stimulate the market for technological and
social innovations
- Promote innovation and efficiency within the administrative structure itself
Administrative/process innovation within the PA
ADMINISTRATIVE INNOVATION

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“Sci-network project” (CIP)
•The project built up a network of European public authorities sharing
experiences in driving innovative and sustainable solutions for their public
construction projects.
•Funded by the EU Lead Market Initiative
•5 working groups have delivered a series of recommendations for public
authorities to apply in construction procurement
• A final guide was produced as a result of cooperation called
“Procuring innovative and sustainable construction
– A guide for European Public authorities”.
It was accompanied by
“European public authority snapshots”
www.sci-network.eu

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“Sci-network project” : Main outcomes for Torino
• Training and Capacity building
-> Improved administrative capacity in the field of public procurement, covering different
internal sectoral expertise: technicians, legal advisors, market facilitators.
75 internal Staff trained during the project
• Cooperation & Networking at national and International level
-> Participation to relevant working groups and think tanks
EU Smart City Stakeholder Platform – Group on Finance
Advisory Board of the EU PPI Platform
National Working Group on PCP
• Territorial cooperation: stimulus to the creation of an innovation-friendly
environment among local key-actors also thanks to the organization of a public
conference on PPI in June 2011
• Political Commitment: PPI becomes part of Torino Smart City Strategy
• Identification of real PPI case to be realized in different fields:
Public Lighting
Sustainable Construction (Building Renovation + Energy Management)
School Catering

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Pro-LITE project (CIP)
• Title: PROLITE - Procuring Lighting Innovation and Technology
• EU Funds to the project: 2.058.766,00 € (95%), out of which
355.761,56 € to the City of Torino, 142.500,00 for financing 20% of
an innovation tender
• Partners: Greater London Authority - Transport for London, City of
Bremen, Ente Vasco de la Energia, CONSIP, PIANO
• Period: 48 months (September 2012 - September 2016)
• Description: the projects aims at exploiting the leverage of public
demand to stimulate the innovation on the market of public lighting.
To this end the following activities are foreseen: demand analysis,
market analysis and early market management, drafting of the
documents for the call for tenders (with particular attention to the
development of functional specifications and adequateinnovation
orientated evaluation criteria), risk management, opening the call for
tenders, supplying.
• Torino takes part in cooperation and study activities finalized to the
definition of procedures for and to the realization of an innovation
tender for supplying new solutions in the field of school-
building and takes also part in comparative and cooperation
activities in the field of innovative tenders for traffic lights.

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Pro-LITE: approach and main activities
1 st step: DEMAND ANALYSIS

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Pro-LITE: scope of the “demand analysis"

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The objective will be to procure innovative school lighting systems that are able to:
A. Respond better to both traditional and new functions of school buildings, with a view to
improve the overall performances of the lighting in the different school spaces (including,
classrooms, common areas, recreational and educational spaces, gyms and external
spaces) acting not only on lighting technologies but also on other conditions
(e.g. architectural; cultural; behavioral; etc).
B. Reduce current energy consumptions – by at least about the 20-25% - from a direct
(related to the technology performance) and indirect (related to the functional and
educational side of the proposed solutions) perspective. The technology innovation
may concern not only the “lighting body” (e.g. the lamp) but also the external
coverage, the overall electrical systems as well as associated management
systems. From an indirect point of view, we mean also process/organizational innovations
related to the energy management of the building as well as associated educational
activities targeted to the building users.
C. New functionalities:
- integrating lighting systems with building automaton systems for monitoring and
regulating lighting and heating consumptions and/or for monitoring security conditions
- use of electrical systems to deliver data delivery services, access and use of internet-
enabled contents and services in the view to improve the educational experience and foster
accessibility for all.
D. Opportunities to trial innovative contractual arrangements (e.g. energy performance
contracting).
First outcomes of Demand analysis for Torino: a well defined
focus for next EME activities

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• creation of an internal working group which will follow the overall PPI cycle for
innovative solutions for the renovation of lighting systems in school buildings
Internal WG including: School Building Dpt; Energy Sustainability Dpt; Local public
utility in charge of the management of the overall lighting systems in Torino; Muncipal
Institution for education. To be integrated with the Legal Dpt.
• experimentation of demand side analysis techniques
Delivery of a detailed state of the art report of Torino’s demand for lighting technology
•Identification of further scopes and tools to deepen internal demand analysis
Development of an integrated audit model to be realized in school buildings
Participative demand analysis with building occupants -> managers; teachers, pupils
Further confrontation with sectoral experts (targeted demand analysis/state of the art
workshops)
•Definition of a framework for activating early market engagement activities at
local, national and international level
First outcomes of DA for Torino in terms of capacity building

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Next perspectives
• Further experiment PPI - and maybe PCP - in the sustainable
construction sector
Possible application areas:
1. Energy management systems for the overall muncipal buildings (800
building with different uses);
2. Innovative and cost-effective solutions for energy retrofitting of public
buildings
• Develop capacities in PPI to mainstream the tool in other fields in
order to maximise benefits using the available funds, also in the view
to best use next Structural Funds Financial period(2014-2020)

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Elena DEAMBROGIO – City of Torino
Elena.deambrogio@comune.torino.it
Further Info: