Content CEBC Energy Efficiency Working Group 2019 ESCO Survey - PowerPoint PPT Presentation

Clean Energy Business Council 2019 ESCO Survey Mustapha Aanzi, CEBC Energy Efficiency Workgroup, ESCO Subgroup 15 September 2019

1 Content CEBC Energy Efficiency Working Group  2019 ESCO Survey   Profile of the ESCOs  Business opportunities (past & future)  Enhancing the ESCO market Conclusions 

CEBC Energy Efficiency Working Group

3 CEBC Working Groups Future Mobility Club;  Climate Finance Working Group;  Women in Clean Energy;  Energy Efficiency Working Group;   Industry  ESCO

2019 ESCO Survey

Invited ESCOs for the Survey 5 25 ESCOs invited to participate in the survey – 21 completed the survey Al Mazrouie & Partners Sharaf Electronics Al Shirawi FM Siemens RESPONDENTS Al Tayer Engineering Smart Automation Energy BK Gulf Smart4Power 5% Bond Interiours Taka Solutions 5% 5% Cofely Besix FM Honeywell 14% Duserve Imdaad 43% Enova ISTA Middle East Environmental Solutions Johnson Controls & Consultancy 29% Envirofina Signify Lighting Farnek TFM Quantum Eurostar GECO QTM Hansa Energy Solutions Executive Senior Manager VP CEO Director Manager

Profile of the ESCOs 6 5% Core business of 14% Energy Services 38% the company FM Service Provider 19% OEM Retail/Trade 24% MEP/Construction Years active as ESCO 43% 33% 14% 5% 5% ≤ 1 year ≥ 5 year 1 to 2 year 2 to 3 years 3 to 4 years

Investments by ESCOs 7 43% 33% 29% 29% 14% 14% 10% 10% 10% 5% 5% 0% ≤ 3 ≥ 12 3 to 6 6 to 9 9 to 12 N/A Investments to data Investments next 3 years

Recruitment plans for next 3 years 8 0% 5% 19% 10% Expected new job opportunities at 14% ESCOs in next 3 years are ranging from 117 to 242 52% ≤ 3 4 to 10 11 to 20 20 to 30 ≥ 30 N/A

Project Revenues 9 Necessary annual revenue (mAED) Average project value for last 3 years (mAED) 5% 5% 38% 24% 10% 29% 24% 29% 14% 14% 10% ≤ 3 3 to 6 6 to 9 9 to 12 ≥ 12 ESCOs require a total of more then AED 220 million ≤ 3 3 to 5 6 to 8 8 to 10 ≥ 10 N/A revenue annually to sustain

Project Cycle 10 From initial contact to signing of the performance contract ≤ 6 months 10% 14% 19% up to 12 months 24% 12 to 16 months 16 to 24 months 33% ≥ 24 months

Expansion Plans 11 Expansion in MENA Expansion in the UAE 9% 9% 45% 8% 8% 46% 36% 38% Expansion in GCC Saudi Arabia Egypt Kuwait Bahrain Abu Dhabi / Al Ain Ras Al Khaimah Sharjah Dubai 7% 7% Saudi Arabi Umm AL Quwain Fujairah 43% Ajman 21% Oman Bahrain 21% Kuwait Qatar

Business Evaluation & Forecast 12 48% 43% 38% 33% 14% 10% 5% 5% 5% 0% Very Good Good Neutral Bad Very Bad Evaluation last 2 years Outlook next 3 years

Major Stumbling Blocks 13 24% 24% 19% 14% 5% 5% 5% 5% Client Complexity of Lack of project Number of clients liquidities Policy/regulation Quality of ESCO Confusions in willingness ESCO Contracts funding ESCO tenders in the market services the market

Initiatives to promote energy efficiency 14 48% 24% 19% 10% Insentivice buildings with Introduce insurance for Building benchmarking Phase out of inefficient efficient energy guanteed savings equipment in buildings performance

CONCLUSIONS

Conclusions 16 The ESCOs   Most of the ESCO have energy services as core business, followed by FM companies.  ESCO plan to recruit 117 to 242 people in the next 3 years Business Opportunities   Majority of the ESCOs evaluate the recent 2 years business as neutral  Most ESCOs expect good business opportunities next 3 years  ESCO require at least a total of AED 220 million annually to sustain  Enhancing the ESCO Market  Majority of ESCO sees client willingness and complexity of ESCO contracts as main hurdles  Most of the ESCOs would like to see incentives for efficient buildings to stimulate energy efficiency

Thanks you Questions & follow-up Ahmed Samir Elbermbali Email me at ahmed@cebcmena.com Or visit CEBC website at http://www.cleanenergybusinesscouncil.com 17