Finance

All you need to know about Financing Energy Efficiency

1 Dec 2019  by  Jürgen Ritzek

The Energy Efficiency Financing Map

“All you need to know about Financing Energy Efficiency in Europe” is like a map constantly updated by EEIP. It shows and links the different tools, networks and results delivered by the various projects and initiatives in Europe.

For business: to identify the nuggets freely available helping your business to grow. That ranges from e.g. standardized project development protocols to even the respective training material for own staff!

For the financial community: following the EU Green Deal, the work on sustainable taxonomy, EU Green Bond Standard or Financial Disclosure requirements – here you can find latest developments and networks dealing with standardization and aggregation of energy efficiency and -transition financing.

 

Starting point: Investor Confidence Project Europe (ICP)

Where to start is clearly a tricky bit but at the end irrelevant as this active and growing map will deliver a self-structuring (and likely re-structuring over time) while growing. And it clearly benefits from external input such as questions and remarks from business and financial community but also from previous and current projects and initiatives.

Any comments and remarks: please contact juergen.ritzek(at)ee-ip.org

 

Standardisation – ICP (Investor Confidence Project)

ICP core theme is standardisation. Energy efficiency projects are usually not standardised leading to high due diligence costs on investor side to assess the projects financials but also on the client side when comparing different projects. And standardisation does not mean that all projects are the same or are using the same technology. It does only mean that they are developed, documented and measured following a standardized process. This paves the way for various related activities such as a 3rd party certification system or project bundling.

ICP (finished end 2019) worked together with more than 100 leading technical experts in Europe, an investor network representing 1.5 billion EUR of available capital to deploy in energy efficiency and 100´s of companies having signed to become an ICP ally, from global majors such as Siemens, Arup, Cofely or Bilfinger to national energy efficiency project developers.

ICP has developed project protocols covering

  • Buildings (link)
  • Industry & energy supply (link)
  • Streetlighting (link)

The application of protocols is supported by dedicated “project development specifications” as well as training material and webinars in various languages – and all is available for free here. (link to ICP industry & energy supply)

And ICP has delivered IREE™ (Investor Ready Energy Efficiency™), an international certification system built on the ICP framework and its underlying protocols ensuring best practices, the right professionals and third-party validation are used to deliver high-quality projects that investors and clients can bank on.

 

Standardisation – Launch2020

The LAUNCH2020 project (https://www.launch2020.eu/), started June 2019, is building on ICP results. LAUNCH is an EU H2020-funded project that aims to accelerate deal closure and pipeline growth for Sustainable Energy Assets through standardised material. This includes

  • investor-grade Energy Performance Contracts
  • standardised risk assessment protocols for investors
  • a roadmap for project developers to access growth capital, and
  • market-tested value propositions for project developers’ end-clients.

 

Aggregation platform – TrustEE

TrustEE (https://www.trust-ee.eu/) aims to accelerate project development, implementation, and financing of energy efficiency and renewable energy projects by using a three-step approach to address project-financing challenges.

Assessment

  • Technical benchmarking versus state-of-the-art EE or RE technology/systems
  • Financial assessment based upon financial risk/return requirements

Development

  • Technical optimisation
  • Contractual structuring
  • Risk-reducing insurance solutions

Financing

  • Projects meeting investment profile offered refinancing after successful installation and start-up

Recently, TrustEE has become an “Initiative Lead” of the Action Cluster Business Models & Finance of the EU smart city platform EIP-SCC (https://eu-smartcities.eu/clusters ) to extend its scope from industry to cities.

 

Aggregation platform – eQuad

The eQuad online platform (https://www.eu.jouleassets.com/about-equad), developed within the SEAF project, is another demand aggregation platform designed to support ESCOs, engineering firms, and construction companies across Europe access appropriate project investment by providing third-party valuation, performance insurance, project certification, and due diligence that facilitate and expedites funding for Sustainable Energy Assets.

 

What´s next

As said, this is just the beginning of the Financing Energy Efficiency Map. Any comments, proposals and suggestions are more than welcome and can be adressed directly to juergen.ritzek(at)ee-ip.org

Stay tuned...


About Jürgen Ritzek

Juergen Ritzek is co-founder and Business Director of EEIP. Juergen is responsible for strategy, marketing and business development of EEIP and drives the growth of EEIP towards an energy transition platform. Juergen leads EEIPs B2B communication and relations and ensures EEIP relevance for value chain challenges (inter-company) and internal decision-making processes (intra-company). Following an international career at Unilever he founded European network consultancy GBC (2009) and EEIP (2011).