Incorporating the ECORailS instruments step by step into the PSC between Region Lombardy and TRENORD Results from the Lombardy Pilot Application

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Incorporating the ECORailS instruments step by step into the PSC between Region Lombardy and TRENORD Results from the Lombardy Pilot Application Ferdinando Stanta, Nicola Pascal ALOT IEE/08/690, 06.05.2009 05.07.2011 1

Present situation No environmental standards by law for rail are known in Italy till now (except for noise) The market of energy is open to competition and regulated by an independent Authority: incentives to save energy are provided, but not specifically for public transport TOCs pay: electric power through the infrastructure managers fuel at market prices Rail Infrastructure Managers buy the electric power on the market TOCs do not correctly feel the real cost of electric power: under the law, the fare applied by the national infrastructure manager (= 0,357 /km) is heavily under the market cost the costs paid by the TOCs on every kind of rail infrastructure are not linked to the energy consumed by each train (flat fare) PTAs pay to the TOCs a contract price from 8 to 10 /train*km where the share due to the cost of energy is not known; the increased costs of energy are usually paid by the PTAs Need of incentives to energy efficiency in the rail market IEE/08/690, 06.05.2009 05.07.2011 2

Opportunities 20,00 19,00 18,00 17,00 16,00 15,00 14,00 13,00 12,00 11,00 10,00 9,00 8,00 7,00 6,00 5,00 4,00 3,00 2,00 1,00-15,92 16,40 16,69 8,55 8,43 7,90 17,48 17,70 8,45 8,36 18,46 8,89 1,12 1,07 1,13 1,30 1,36 1,47 User Platform 2003 22 June 2011 2004 2005 IEE/08/690, 2006 06.05.2009 2007 05.07.20112008 3 Energy Cost Total cost Regional subsidy Electric power was in 2008 8% of total cost or 17% of subsidy From 2003 to 2008 31% increase 15% energy saving is about a 2,5% subsidy reduction

Lombardy: regional rail and test lines LENGH: 1,921 Km S3 VALCAMONICA IEE/08/690, 06.05.2009 05.07.2011 4 LINES: 42 R + 10 S TRAVELLERS: 650,000/day STATIONS: 418 SUBSIDY: 347.3 Million /year (10.5 /Km) RUNS: 2, 200/work-day PRODUCTION: 35 Millions Train*Km/year OPERATOR: TRENORD WORKERS: 3,900 INFRASTRUCTURE MANAGERS: FerrovieNord (321 Km) RFI (1,600 Km) TRACTION: 93% electric ROLLING STOCK: 330 trains (average 5 coaches long), of which 64 diesel

The Pilot Application Lombardy Two lines of the regional rail network: Valcamonica line, from Brescia to Edolo: mixed diesel service including the Brescia metropolitan area, rural villages and the mountains S3 line, from Milan to Saronno: included in the Milan suburban network of S lines The Regional Government of Lombardy - together with the Province of Brescia for the Valcamonica line plays the role of PTA by planning the service specifications and paying the financial compensations Rolling stock: new DMUs for the Valcamonica line recent EMUs for the line S3 Direct awarding to the public/private operator Trenitalia-LeNORD (TLN) by the use of a Public Service Contract. Competitive tendering was experimented in past years. No use of Energy Efficiency (EE)/Environmental (Env) criteria in current contracts IEE/08/690, 06.05.2009 05.07.2011 5

Valcamonica line LENGH: 103 Km STATIONS: 35 SUBSIDY: about 8.5 ml per year (about 7.7 /Km) RUNS: 65/work-day PRODUCTION: 1.1 Million Train*Km/year OPERATOR: TLN INFRASTRUCTURE MANAGER: FerrovieNord TRACTION: 100% diesel ROLLING STOCK: 10 trains (about 2.5 coaches) IEE/08/690, 06.05.2009 05.07.2011 6

Milan S3 line Milano Cadorna - Saronno LENGH: 21.5 Km LINE: S3 STATIONS: 13 RUNS: every 30 minutes PRODUCTION: 592,000 Tr*Km per year OPERATOR: TLN INFRASTRUCTURE MANAGER: FerrovieNord TRACTION: 100% electric ROLLING STOCK: double deck EMUs class TAF electric car + coaches Capacity: - TAF: 467 seats - Other: from 363 to 875 seats IEE/08/690, 06.05.2009 05.07.2011 7

Organization and involvement of Stakeholders WP4 Manager (ALOT) Site Manager Lombardy (Province of Brescia / ALOT) Site Stakeholders Group Lombardy: Province of Brescia Region Lombardy FerrovieNord (Regional Infrastructure Manager) TRENORD (Regional TOC) Federmobilità representatives of rolling stock manufacturers reporting to the National Agency of Rail Safety Site Working Group Lombardy: ALOT Province of Brescia Department for Infrastructure and Transport of the Regional Government User Platform of Lombardy, 22 June 2011 Office for the IEE/08/690, Regional 06.05.2009 Rail Service 05.07.2011 8 FerrovieNord (Regional Infrastructure Manager)

On-site measurement LeNord (now part of the newco TRENORD) supported the ECORailS pilot application with a measurement campaign: energy meter on board of the EMU TAF n.27 to measure the consumed and recovered energy daily measurement of consumed fuel for each vehicle on the Valcamonica line testing eco-driving measures during ECORailS FerrovieNord the Infrastructure Manager of the regional network, also responsible for the provision of new rolling stock in Lombardy has already experimented the inclusion of some EE/Env criteria in the provision of diesel rolling stock: the Molteno line tender IEE/08/690, 06.05.2009 05.07.2011 9

16,00 14,00 12,00 10,00 8,00 6,00 4,00 2,00 0,00 Valcamonica line: diesel traction 7,39 LINE BRESCIA - EDOLO: Energy consumption July 2009 - June 2010 14,79 15,12 0,11 0,19 0,11 0,19 0,10 0,12 Average old rolling stock Train of 2 old DUs Average new rolling stock kw/trainkm kwh/seatkm kwh/tonnkm OLD NEW ROLLING STOCK kwh/trainkm: new rolling stock consumes 2% more than the older kwh/seatkm: new rolling stock consumes 10% less than the older kwh/tonnkm: new rolling stock consumes 37% less than the older IEE/08/690, 06.05.2009 05.07.2011 10

kwh/trainkm km/h Valcamonica line: eco-driving diesel ATR 220 PESA Test runs on diesel Valcamonica line on 4 th September 2010: Run 1: most energy efficient driving (LeNORD instructor) Run 3: faster and with more use of brakes Example of existing ranges among driving styles On the common section Brescia- Breno (72 km) Run 3 consumed 16% more energy 25,00 80 20,00 70 60 15,00 10,00 27% 22% 11% - 6% 50 40 30 Run_1 Run_3 Speed Run1 Speed Run3 20 5,00 10 User 0,00 Platform 22 June 2011 IEE/08/690, 06.05.2009 05.07.2011 110 Brescia-Iseo Iseo-Pisogne Pisogne-Darfo Corna Darfo Corna-Breno Breno-Edolo

kwh/trainkm km/h S3 Milano Saronno line: electric traction 30,00 25,00 20,00 15,00 10,00 5,00 0,00 Milano Nord Cadorna - Milano Nord Domodossola Milano Nord Domodossola - Milano Nord Bovisa Milano Nord Bovisa - Milano Nord Quarto Oggiaro Milano Nord Quarto Oggiaro - Novate Milanese CONGESTED SECTION WITH STOPS AT RED SIGNALS Novate Bollate Centro - Milanese - Bollate Nord Bollate Centro Two test runs with different energy consumption 8% different driving styles Bollate Nord - Garbagnate Parco delle Groane different traffic conditions Recovered energy about 10% Garbagnate Parco delle Groane - Garbagnate Milanese 90 80 70 60 50 40 30 20 10 0 Run_1 Run_2 Speed Run1 Speed Run3 IEE/08/690, 06.05.2009 05.07.2011 12

The present public service contract Object (annex) = list and timetable of the runs to be done, with specifications: rolling stock to be used, minimum number of seats, accessibility and other features Subsidy = 7.22 /km Procedures to add/delete/change runs Payments = cash advance and balance depending on cancelled runs and fines Obligations related to the rolling stock (costs of maintenance) Quality standards of rolling stock Reliability of the service (delays and cancelled runs) Cleaning standards Ticket selling standards Information&comunication standards Claims and refund prescriptions Monitoring system IEE/08/690, 06.05.2009 05.07.2011 13 FINES WHEN PRESCRIPTIONS ARE NOT FULFILLED AND MINIMUM STANDARDS ARE NOT REACHED

A new awarding text: the agreement RL-TN Present Contract: direct awarding detailed specifications no EE/Env criteria and meters global subsidy 7.22 /km energy cost about 1.50 /km penalty system rolling stock partially owned by the Region TRIMMING STEP: monitoring completed energy efficiency and emission targets for the whole regional rail service eco-procurement of rolling stock subsidy subject to standard energy consumption and cost eco-procurement of electricity PREPARATION STEP: starting of a monitoring system energy meters gradually installed mandatory energy meters on vehicles improved regulations (track access) cooperation with Infrastructure Manager IEE/08/690, 06.05.2009 05.07.2011 14 KICK-OFF STEP: monitoring extended targets of energy efficiency and emission reduction, referred to specific lines or rolling stock training of drivers and technicians eco-procurement of rolling stock incentives, linked to investments

Role of the Infrastructure Managers To support measurement of energy consumption (special runs, data collected from the substations, ) To test and install infrastructure-based energy efficiency solutions (capacitors to recover energy in fixed installations, reversible DC substations) To bill the TOCs with energy fares based on real consumption To optimize energy consumption during design of train paths and traffic control: prevention for traffic conflicts and other delay or stop causes improved planning of traveling times which avoids lengthening and speed reductions application of infrastructure maintenance plans to avoid the prescription of speed reductions gradual upgrade of the infrastructure, aimed at removing the causes of speed reductions To analyze the energy-mix and to promote the use of renewable sources and/or with the lowest CO 2 emissions IEE/08/690, 06.05.2009 05.07.2011 15

Direct indicator = kwh/seatkm Side-conditions relevant Network profile relevant Service profile: Standard Real Energy meters specified and required Comfort functions aside Monitoring of operations GUIDELINES "The TOC must accept a monitoring system for the traction energy consumption and provide the necessary equipment and database." AGREEMENT RL-TN Plan to install energy meters: priority to sample vehicles mandatory for new purchase fitting during planned maintenance Energy consumption monitored together with side-conditions: train specifications regularity of service load factor operating speed stopover time (planned or not) speed restrictions weather conditions Use of the ECORailS KPIs: KPI1: kwh/ton*km KPI2: kwh/seat*km KPI4: kwh/passenger*km KPI5: kwh (or%) consumed off-duty KPI6: kwh (or%) recovered IEE/08/690, 06.05.2009 05.07.2011 16

Different approaches for incentives Beginner Advanced first result is to make the TOC aware of the energy consumption if a TOC does not benefit of flat energy rates, it is an incentive itself to save energy a bonus/malus scheme can share this benefit between the TOC and the PTA a starting incentive scheme can give a bonus when consumption is under the baseline: by leaving a share of the saved cost to the TOC or by paying an addition to the subsidy when the database is consolidated and the saving potentials of main technologies acknowledged, a target of energy consumption is fixed: the energy cost share of the subsidy is paid depending on this target energy consumption periodic update of the target IEE/08/690, 06.05.2009 05.07.2011 17

Incentives to save energy GUIDELINES Calculation of a reference value Be aware of unstable infrastructure and operation conditions Careful decision of targets and thresholds Periodic revision of values Balanced incentive with other penalties (punctuality) Bonus/malus values take into account relevance of energy prices for the TOC and contract value AGREEMENT RL-TN During kick-off 80% of the savings will be set aside to finance investments for increasing the energy efficiency; the remaining 20% will be kept by the TOC After kick-off: standard energy consumption elaborated by monitoring system standard energy cost to pay the subsidy IEE/08/690, 06.05.2009 05.07.2011 18

Text module: payment of subsidy IEE/08/690, 06.05.2009 05.07.2011 19

Extended RAM clause for new rolling stock USUAL RAM Pre-defined running conditions, referred to line and service involved Reliability, Availability and Maintainability indexes describing the minimum levels of faults or performances guaranteed by the manufacturer 24 months guarantee with penalties (to be extended if needed) Continuous monitoring during the 24 months period GUIDELINES AGREEMENT RL-TN Usual RAM clause upgraded by asking the manufacturers to add an energy Consumption index (C) referred to the infrastructures and service profiles of the tendered rolling stock Description of infrastructure and service profile in tender specification document The RAM+C indexes offered by the competitors will be evaluated to award the tender Contract with winning manufacturer will ask for the check of real energy consumption of all delivered vehicles. The manufactures will pay a fine in case of lasting differences after a 24 months service As the manufacturer is not responsible for the operation of the rolling stock, the level of energy consumption must be offered and verified according to a defined test cycle: "The User Platform energy 22 consumption June 2011 must IEE/08/690, not exceed 06.05.2009 x kwh 05.07.2011 per seat km 20(litres of diesel per seat km) when used on the specified test cycle".

Text module: purchase of rolling stock IEE/08/690, 06.05.2009 05.07.2011 21

Contacts Province of Brescia A.L.O.T. s.c.a r.l. Agenzia della Lombardia Orientale per i Trasporti e la Logistica Agency of East Lombardy for Transports and Logistics Via Cipro, 16 I-25124 Brescia Italy Fax +39/030/247735 Guido Piccoli GSM +39/348/2291977 - Email: guido.piccoli@alot.it Nicola Pascal GSM +39/3477974973 - Email: nicola.pascal@alot.it Ferdinando Stanta GSM +39/393/5361917 - Email: stanta@mdsnet.it IEE/08/690, 06.05.2009 05.07.2011 22