SUSTAINABLE ENERGY WEEK 13-17 June 2016 Innovative financing for sustainable energy in practice Wednesday 15 June 2016 9:00 – 10:30 De Gasperi room, Charlemagne building
Speakers Peter SWEATMAN Paul HODSON Didier GAMBIER Louise WHITE James VACCARO Chief Executive Head of Department Head of Unit European Head of Corporate Strategy Climate Strategy DG ENER EASME Investment Bank Triodos Bank European Commission European Commission Claude TURMES Jessica STROMBACK Françoise RÉFABERT Steven FAWKES Member of the Chair CEO Senior Adviser European Parliament Vesta Conseil&Finance Investor Confidence Project Joule Assets Europe
Paul HODSON Head of Unit Energy Efficiency DG ENER, European Commission
EIB Support to Sustainable Energy Finance Louise White European Investment Bank Innovative Financing for Sustainable Energy Brussels 15 June 2016
The European Investment Bank (EIB) Long-term finance promoting European objectives � European Union’s long-term lending bank set up in 1958 by the Treaty of Rome. � Shareholders: 28 EU Member States � Governance – Board of Governors - EU Finance Ministers – Board of Directors - Member States & European Commission – Management Committee - EIB’s executive body – Audit Committee - independent, non-resident � One of its main Priority Objectives is Environment and climate European Investment Bank 5
EIB provides significant financing for Sustainable Energy at EIB Energy 8 Efficiency 7 6,4 5,9 6 5,5 5 EUR bn 3,6 4 3,2 3,3 3 2,3 2,2 2 1,3 1,1 1 0 2011 2012 2013 2014 2015 • EIB contribution to promote EE goes beyond lending: EE is mainstreamed in all projects it finances • The Bank seeks to support all the RE technologies, while ensuring that the supported projects are economically sound • Support to promoters & intermediaries to develop EE projects: • Technical Assistance and developing financial instruments • On its own behalf or in cooperation with EC or other entities European Investment Bank 6
Sustainable Energy support activities at the EIB Lending • Loans (direct and intermediated) • European EE Fund (E-EEF) • Private Finance for Energy Efficiency (PF4EE) • European Fund for Strategic Investment (EFSI) Advising • ELENA (European Local Energy Assistance) • JASPERS (Joint Assistance to Support Projects in European Regions) • EIAH – European Investment Advisory Hub European Investment Bank 7
Project example: EFSI and ELENA PICARDIE REGION “Picardie Pass Rénovation” � Picardie Region received a loan of EUR 25 million and also has an ongoing ELENA technical assistance programme � The works mainly consist of improving the insulation of the private housing - renovation of the buildings' heat generation and distribution system, including ventilation systems, small scale wood-fired boilers or solar thermal collectors � ELENA support to assist homeowners in the implementation of EE measures with initial advice, energy audit, defining the optimal set of EE measures � As of March 2016, the 112 ongoing building sites provide work to more than 400 local craftsmen and companies which participate in the Picardie Pass Renovation programme. � The initiative is expected to create 650 jobs in the building sector by the end of the pilot phase (end of 2018) and more than 3,500 positions in the roll-out phase. http://www.eib.org/attachments/documents/picardie_pass_renovation_factsheet_en.p df European Investment Bank 8
Project example: JASPERS � Development of an investment programme for a scheme for energy efficiency renovation and use of RES in public and residential buildings, private service (tourism and industry) and manufacturing sectors , to use ESIF 2014-2020 � Preparation of Applicant's guide, sample application forms and tendering documents for the scheme based on typical investment programme and funding arrangements for energy efficiency renovation and use of RES related to the potential funding programme. � Assignments in preparation of EE scheme (Romania, Slovakia, Croatia) European Investment Bank 9
Thank you for your attention Further information at www.eib.org 10
James VACCARO Head of Corporate Strategy Triodos Bank
Françoise Réfabert Vesta Conseil & Finance
Challenges in setting up integrated services for home renovation in France • Housing refurbishment market actors will not spontaneously shift towards energy efficiency • Government and most of local authorities try to act as catalysts, but… • market to-date has been developed on a “top-down” basis, driven by incentives and subsidies • A sustainable business model for advising households on how to carry-on an energy-efficient refurbishment is still not present • Energy transition Law (August 2015) allows regions to set up 'public services for energy efficiency' which encompasses: • advising and assisting households in designing the retrofit, • helping them find qualified professionals, • optimizing the funding plan for the renovation, • providing finance (loans) � Confidence in the quality of the works and Access to long term financing are essential drivers of households’ demand
Confidence in the quality of the works • Coordinate … • National level: set standards, reshuffle tax incentives so as to channel consumers demand towards effective energy-efficient works • Regional level: organize training, selection of professionals and control compliance of renovation works • Involve construction insurance players in order to cover consumers against consequences of poor performance • Involve potential prescribers : banks, realtors etc, • … And package a national quality and performance brand • Example to follow: KfW Effizienzhaus brand � regional operators to build up locally offers based on quality and performance as a first step of a national branding
Energy renovation Energy Access to to long te term financ ncing project renovation project Energy renovation • Public Third Party financing companies are paving the project way Long term • LT Financing proposed to households and condominiums for loans refurbishment works • Include in financing the cost of prior advice and follow-up after completion of works • Build a track record of cost of risk and measured energy savings Third-party Public financing guarantee • Experimentation phase should allow to share this track companies (State, record and build-up a loan portfolio large enough to regions) structure long-term green bonds issuance Refinancing Assignment of • Need to structure a debt aggregation vehicle, funded and receivables guaranteed by public sector at inception • Regions would like to use structural funds to set up guarantee Debt Fund mechanism (Securitization Energy Transition Law provides for a national guarantee fund entity) • which is presently directed to lowest income households • Debt aggregation vehicle would allow third-party financing Green Repayment companies to act as originators and reduce their balance sheet bond size issuance • Could induce banks to extend their lending offer Labelled Funds
The Investor Confidence Project Dr. Steven Fawkes Brussels 15th June 2016 The sole responsibility for the content of this presentation lies with the author. It does not necessarily reflect the opinion of the European Commission, which is not responsible for any use that may be made of the information contained therein.
Lack of standardization in EE results in: Greater performance risk Uncertainty limiting demand Higher transaction costs Difficult to build capacity Difficult to aggregate
Investor Confidence Project Protocols C x Protocols standardize best practice in project development COMMISSION OPERATIONS MEASUREME BASELINING SAVINGS • M&V Model • Cx Plan • BMS Points and documentation • Model File • Existing Building • Regression • Cx Authority • Fault Plan • Drawings • Calibration Data Model • Weather File • Test Procedures • Maintenance Plan • Bid Packages • Adjustments • Energy Usage • Facilities Req. • Certifications • Impact • Energy Rates • Baseline • Occupancy Adjustments
ICP EU Protocols Tertiary Apartment Large Whole building retrofit, dynamic modeling 6 European Protocols available Standard now and being applied to a range of projects and Whole building retrofit, no dynamic modeling programmes across Europe Targeted Single or limited number of EE measures
Reducing Transaction Costs for Sustainable Energy Asset Investments Jessica Stromback June 15, EUSEW Innovative Financing for Sustainable Energy in Practice The sole responsibility for the content of this presentation lies with the author. It does not necessarily reflect the opinion of the European Commission, which is not responsible for any use that may be made of the information contained therein.
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