Finance & Economics

The key to scaling up energy efficiency – new business models and structures

There are signs that the foundations of a functioning energy efficiency financing market are now being put in place. Investor Confidence Project is rolling out its Investor Ready Energy Efficiency™ project certification system in the US and Europe, with growing interest from India, China and Australia and New Zealand. The energy efficiency sector generally lacks a development mentality and eco-system. Public capital could be used to kick-start the development market using low cost convertible loans or grants such as the EUs Project Development Assistance. There is a need to finance the development of projects, that risky stage between here is a good project idea and here is Non-energy benefits such as increased asset value or improved health and well-being need to be stressed above energy costs savings as they are usually much more interesting and strategic and strategic to most organisations. Energy efficiency projects tend to be developed on a building by building amongst clients - the demand side and supply side building needs to focus on developing standardised and bankable projects.