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Financing Energy Efficiency in the Tertiary Sector
Paolo Michele Sonvilla – Creara
Investor Days Madrid – 15 July 2017
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WELCOME
OVERVIEW OF THE DAY
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WELCOME
INVESTOR DAYS - MADRID 2017 CaixaForum Madrid, Paseo del Prado 36, Madrid (Auditórium, level -2)
Monday 10 July 2017, 10:00 AM - 16.30.PM
Theme Time Content Speaker
Energy
Performance
Contracts
10:00 - 10:15 Welcome and Trust EPC South project
introduction Paolo Michele Sonvilla, Creara
10:15 - 11:00 Energy Performance Contract
principles, contract models, key issues Rodrigo Morell, Creara
11:00 - 11:30 The GREPCon tool Francisco Javier Lemus,
Bureau Veritas Iberia
11:30 - 12:00 Coffee Break
Investment
opportunities in
the tertiary
sector
12:00 - 12:30 Financing opportunities arising from
Trust EPC South
Paolo Michele Sonvilla, Creara
Francisco Javier Lemus,
Bureau Veritas Iberia
12:30 -12:45 The Investor Confidence Project Jorge Rodrigues de Almeida,
RdA - Climate Solutions
12:45 - 13:00 The eQuad platform Caroline Milne, Joule Assets
Europe
13:00 - 13:30 Discussion panel: de-risking energy
efficiency investments
Moderated by Antonio Lopez
Nava, A3E
13:30 - 14:30 Lunch – Networking
Emerging
financing models
for energy
efficiency
investments
14:30 -14:40 Crowdlending for energy efficiency
projects Matthieu van Haperen, Ecrowd
14:40 - 14:50 PACE on-tax financing for energy
efficiency
Davide Cannarozzi, GNE
Finance
14:50 - 15:00 The renting solution for energy
efficiency projects David Barquilla, BBVA
15:00 - 15:30
Presentation of the ENERINVEST
platform, panel discussion and Q&A
with the audience
Moderated by Fernando
García, ENERINVEST
The role of
private funds in
developing the
energy efficiency
market
15:30 - 15:40 ESCO Alternative Financing Ruperto Unzué, SUMA Capital
15:40 - 15:50 Technology partners and Equity for
Energy efficiency investments Eusebio Güell, SI Capital
15:50 - 16:00 Off-Balance Sheet Financing for Energy
Efficient Infrastructure Stefano Fissolo, SUSI Partners
16:00 - 16:30 Panel discussion and Q&A with the
audience
Moderated by Caroline Milne,
Joule Assets
16:30 End of the event
OVERVIEW OF THE DAY
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Financial sector
EPC providers
and tertiary sector
/ real estate
agents
We have money, but cannot find “good” projects!
We have “good” projects, but we are looking for
money!
“Investement”
“Sustainable energy project”
Capacity BuildingGREPCon ToolPipeline of EPC
Projects
FINANCING ENERGY EFFICIENCY
Adapted from C. MILIN, ECEEE 2013
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FINANCING ENERGY EFFICIENCY
KEY BARRIERS
-Credit risk: In most cases, the credit worthiness of the final user/beneficiary is
the key issue driving investor decision making, but also the credit worthiness of
the EPC provider can play a role
-Performance and technical risks: apart from the credit risk, also performance,
equipment and other contractual risks need to be taken account by the investors
-Lack of track record: the relative absence of (numerous) successful cases
causes lack of confidence on the investor side
-Decision making: Especially for EPCs, complex decision making procedures
delay contract start
-Administrative hurdles: can also play a role, especially if civil works are
involved in the planned interventions
Source: Trust EPC South, EEFIG
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KEY DRIVERS
-Standardisation: the energy efficiency investment process, from the definition of
the energy saving measures onwards, should be standardised
-Robust baselining: the definition of the initial energy consumption situation is
key to a correct estimation of savings and financial returns
-Reduction of transaction costs: the reduction of all the costs involved in the
preparation and assessment of an investment opportunity is key to untapping the
investment potential
-Insurances: Insurance products are available to cover the equipment risk and
also (recently) project performance risks
-Clear business case: the customer needs to understand all the benefits of the
proposed energy saving measures (beyond the mere energy dimension) in order
to facilitate decision making and mitigate rejection
-Clear contractual arrangements: Roles/responsibilities of each project
stakeholder, validation of savings, sharing of financial benefits, performance
guarantees, prices and termination cases need all be accounted for.Source: Trust EPC South, EEFIG
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FINANCING ENERGY EFFICIENCY
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TRUST EPC SOUTH
OVERVIEW OF THE PROJECT
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10 diverse European Partners from 6 southern European countries
3 years of duration, until February 2018, with a budget of nearly 2M Euros
The Project started in 2015 within the European Commission’s Horizon 2020 programme
– Finance for Sustainable Energy
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TRUST EPC SOUTH
PROJECT OBJECTIVES
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Main objectives
Developing an investment assessment
and benchmarking tool/service
Setting up National Discussion Platforms
(NDPs) in order to identify, address and
mitigate barriers
Encouraging the use of advanced models such as
Energy Performance Contracts (EPC)
Pipeline of EE projects ready for
financing
Ensuring the dissemination and
exploitation of project results at national and
European level
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To whom?
Banks and other financing institutions
Profitable projects
Need to assess risks
Seek transparency and standardisation
Tertiary and real estate actors
Reducing energy and water costs
Improving user comfort
Increasing the value of the buildings
TRUST EPC SOUTH
KEY TARGET GROUPS
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TRUST EPC SOUTH
OUTCOMES
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What do we offer?
Promotion of dialogue and synergiesbetween the EPC offer side, the tertiary
sector demand side and the financing side.
Training on financing solutions and EPC basics for all stakeholders involved
An investment assessment and benchmarking tool based on the Green
Rating™ methodology and tools by:
Reducing transaction costs thanks to its
standardised approach
Facilitating the financing process for
small/medium projects
Providing a independent third party certification
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GREEN RATING™
MARKET IMPACT
• More than 650 properties with
10 million m2 of commercial real estate
assessed in Europe
• Office, logistics and retail assets rated
in more than 100 cities
and 14 countries
• 20 participating companies among
leading European property
and auditing companies
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Building and
Equipment Technical
Models
Consumption and
Costs Data
Financial data
Feasibility assessment
Profitability projection
Risk assessment
Identification of standardised energy
efficiency measures scenarios
Financial
Assessment
Independent EPC
Assessment and
Verification
Certified by
THE APPROACH
GREPCon TOOL
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PROJECTS PIPELINE
• Identification of projects
• Hospitality, Office buildings, Health, Education &
Sport centres, and Retail
• Total energy consumption higher than 0.5
GWh/year
• Total useful floor area larger than 2,000 sqm
• Primary energy savings of at least 15-20%
• Combination of different EE/SE measures
• Green Rating EPC assessment tool application:
• Preliminary Energy Audit
• Identification of most profitable measures
• Estimation of Investment
• (Identification of EPC provider if needed)
• Support in the financing process
TRUST EPC SOUTH
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THANK YOU FOR YOUR ATTENTION
Contents of this document reflect only the author's view and that the
Executive Agency for Small and Medium-sized Enterprises (EASME)
is not responsible for any use that may be made of the information it contains.
THANK YOU FOR YOUR ATTENTION
Contents of this document reflect only the author's view and that the
Executive Agency for Small and Medium-sized Enterprises (EASME)
is not responsible for any use that may be made of the information it contains.
THANK YOU FOR YOUR ATTENTION
Contents of this document reflect only the author's view and that the
Executive Agency for Small and Medium-sized Enterprises (EASME)
is not responsible for any use that may be made of the information it contains.