First training: April 27, 2018 at 10:00 European Summer Time
Recently, I wrote to the “captains of industry” to encourage them to join our approach to de-risking industrial energy efficiency investments. We call it the Investor Confidence Project and this phase is funded by the European Commission under the Horizon 2020 programme. We know we need to accelerate the rate of investing in industrial energy efficiency and this process shows considerable promise to be a major solution.
As I stated, the project will work with all of those involved in the project cycle from owners through to project developers and verifiers. They all have a key role to play. The protocols were prepared in the project with the help and guidance of many of you.
- For asset owners or managers, the ICP approach will provide transparency of the process and will give them the confidence in implementing the measures.
- For the project developer, ICP provides a process that is understood and accepted by all participants. This will reduce transaction costs and should minimise any misunderstandings.
- For the financial community, the ICP approach standardises the project development process and bring the necessary confidence to undertake the investments. Importantly, ICP Europe Investor Network is comprised of energy efficiency investors who recognise the benefit of industry best practice and standardised energy renovation project delivery.
One of the major barriers identified in investing in energy efficiency is the lack of standardisation of the process. The process is essentially the interaction between the asset owner/manager and the project developer (an energy service company, an installation or engineer company).
There are many factors that influence decisions and action. The Investor Confidence Project is there to remove many of the complications and risks in improving your company’s energy performance in improving your company’s energy performance. It ensures that the process of choosing what to do, how to do it and how to finance it is standardised, giving you assurance. It can help senior management better understand energy efficiency from a strategic perspective because it does remove risk.
ICP brought to Europe to develop a system to give confidence to all active stakeholders. There are still concerns that investing in energy efficiency is risky. ICP is designed to change that. ICP started with investments in buildings and is now broadening the scope to include industry, district energy and street lighting through a two-year project funded by the European Commission.
The concept of ICP is relatively simple to understand. A potential project in a factory or a district heating system, for example, is identified. Someone has to do the necessary calculations to determine the viability. Someone has to be identified to install it (often the same organisation). And some organisation needs to fund it. What this project does is standardise the procedures so that all players gain confidence in the system. The factory owner is happy. The developer/auditor/installer is happy. The financial institution is happy. There are protocols in place and third party monitoring to ensure everything is done correctly. The protocols are developed by interested experts and not by commercial interests.
Why we need ICP training
The Protocols are quite technical and designed to assist the project process. The ICP Training System combines the use of the ICP Protocols and independent third party verification to create Investor Ready Energy Efficiency™ (IREE™) projects that provide investors and asset owners with a new level of confidence in project engineering, performance and returns.
ICP Project Developers (PDs) have to be trained by ICP, their qualifications and experience have to be vetted and are the only ones that can develop an IREE™ project and be a member of the ICP Project Developer Network. PDs can be ESCOs, engineering firms, facility managers, asset owners, or others that develop project proposals. Information on the requirements to join the Project Developer Network is available here.
The first training is April 27, 2018 at 10:00 European Summer Time. You can register for this first training here. Training is free due to the EU funding of the ICP project.
If you want to have a look at the protocols, check here
The ICP approach for industry is new. It has a good track record for use in buildings but it is now to be tested for the industrial sector. Even if you are not completely convinced about this approach, take the initial two hours’ training and see for yourself that it forms a good basis for standardising the relationship between the asset owner, the project developer and the investment community.
If you have any queries about the ICP approach for industry, do not hesitate to contact me at rod.janssen(at)ee-ip.org.
Let’s make this a win-win situation.
About Rod Janssen
Rod Janssen is the President of Energy Efficiency in Industrial Processes (EEIP). Rod is also member of various Steering Groups and boards such the ICP Europe Steering Group, the SEIF advisory board and the board of ECEEE.