esco exemplu londra london green fund energy
TRANSCRIPT
-
8/12/2019 Esco Exemplu Londra London Green Fund Energy
1/39
London Green Fund
Energy Efficiency Urban Development Fund
Procurement Information Event
17 September 2010
-
8/12/2019 Esco Exemplu Londra London Green Fund Energy
2/39
London Green Fund
Energy Effficiency Urban Development FundInformation Event
Agenda
Section ILondons Environment Strategies 9.30 10.30am
1. Welcome and Opening RemarksBrenda Theodore-Marks, Greater LondonAuthority
2. GLA Environment Strategy for LondonMartin Powell, Interim Mayors Advisor forEnvironment
3. European Investment Bank's (EIB)supporting the London Green Fund andenvironment sector London - Simon Brooks, Vice President, EIB
4. RE:FIT, Londons Building Retrofit ProgrammeEmma Strain, Head of ProjectDelivery, Energy Efficiency, LDA
5. Questions & Answers
Comfort break 10.30
10.50am
Section IIEnergy Eff iciency UDF Procurem ent 10.50 11.30am6. Energy Efficiency UDF ProcurementFrank Lee, Head of Holding Funds and
Advisory Northern Europe, EIB
7. Questions & Answers
Networking and refreshments 11.30 12.00pm
-
8/12/2019 Esco Exemplu Londra London Green Fund Energy
3/39
London Green Fund
Energy Efficiency UDFInformation Event
Section I Londons Environment Strategies
-
8/12/2019 Esco Exemplu Londra London Green Fund Energy
4/39
Environmental Strategy For
London
Martin Powell
Interim Mayoral Advisor for Environment
Friday 17th
September 2010
-
8/12/2019 Esco Exemplu Londra London Green Fund Energy
5/39
Overview of Presentation
London Context and Key Facts
Mayoral Strategies and Priorities
The Mayor is committed to London becoming the greenest city
in the world and a city that becomes a world leader inimproving the environment.
-
8/12/2019 Esco Exemplu Londra London Green Fund Energy
6/39
Challenge for London
Private investors are not currently investing in areas such asretrofitting and decentralised energy.
Projects are too small, too risky, and lack sufficient
precedents to attract finance.
Solutions & investment cannot be addressed by the public
sector alone
The London Green Fund will invest in projects in the form of
equity, loan or guarantee and returns arising from successful
investments will be returned to the fund.
-
8/12/2019 Esco Exemplu Londra London Green Fund Energy
7/39
Mayors Statutory Strategies
The Mayor has general power to promote economicdevelopment in Greater London (GLA Act 1999)
Mayors Economic Development Strategy
Vision & Objectives for the next 20 years
Draft Replacement London Plan
Spatial Development Strategy
Website: www.london.gov.uk
-
8/12/2019 Esco Exemplu Londra London Green Fund Energy
8/39
Londons Economy
Vast, global city economy
International centre of trade & innovationCompetitiveness
Responding to Climate Change
Strengths Threats
Making London greener & cleaner
Turning Londons waste into a resource
Delivering a Low-Carbon London
Moving to a low-emission transport system
Responding to Climate Change : London Priorities
-
8/12/2019 Esco Exemplu Londra London Green Fund Energy
9/39
London Key Facts
Mayor of London and EU Commissionerofficially launch fund, October 2009.
Key Facts:
London produces 22 million tonnes of waste per year
Londons waste could deliver 10-20% of Londonsenergy needs
Energy efficiency, waste & decentralised energy arethe 3 biggest carbon reduction opportunities in London
-
8/12/2019 Esco Exemplu Londra London Green Fund Energy
10/3910
London Green Fund
Influencing national policy / stakeholder management / communications
Olympic Fringe
EnergyEfficiency Energy Supply Waste Transport
Low Carbon
Economy
Homes Energy
EfficiencyProgramme
Better BuildingsPartnership
Re:Fit - BuildingEnergy Efficiency
Programme
Low Carbon Zones
Green500
Green Enterprise
District
Retrofit Academy
London Transport
Strategy
London Cycle Hire
Scheme & CycleSuperhighways
Low Carbon Buses
Electric Vehicle
Delivery Plan
London Mayoral Strategies
London WasteStrategies
LDA Owned EnergySupply Projects
Crystal Palace CHP
London Thames
Gateway Heat
Network
Royal Albert Basin
Energy Master
Planning
London Waste andRecycling Board
Replacement London Plan 2010
Economic
Development
Strategy
Green Jobs & Skills
Low Carbon
Economy Action
Plan
Low Carbon GLA
Fleet
Traffic flow
smoothing
London Climate Change Programmes
Strategy
Delivery
Climate change,mitigation and
energy strategy
10
-
8/12/2019 Esco Exemplu Londra London Green Fund Energy
11/39
Mayoral Priorities for London
London has adopted a comprehensive climate change action plan which aimsto reduce carbon emissions by 60% compared by 2025 compared to 1990levels.
The Mayor is investing unprecedented amounts in climate change programmesin London. 100m over 3 years.
The programmes aim to devise structures and financial models that allow forlarge-scale roll out of programmes across London.
The Mayor of London is committed to addressing the challenge of climatechange and has signed up to the Covenant of Mayors and Eurocities ClimateChange Declaration.
-
8/12/2019 Esco Exemplu Londra London Green Fund Energy
12/39
Priorities into Action
Being more efficient and using greener technologies Making smarter choices
Decentralised energy & waste
Investing in cogeneration and energy networks
Mass market uptake of green technologies
RESULTS
Reduce fragmentation of programmes and increase impact Enable commercial returns to be made alongside the delivery ofmeasured financial and non-financial (e.g. carbon) benefits
-
8/12/2019 Esco Exemplu Londra London Green Fund Energy
13/391313
EIB supporting the
London Green Fund andenvironmental sector
Simon Brooks
Vice PresidentEuropean Investment Bank
-
8/12/2019 Esco Exemplu Londra London Green Fund Energy
14/391414
EIB supporting the London Green Fund
EIB is the principal JESSICA promoterand Holding Fund Manager in the UK
and across the EUincluding London
Overview of EIB JESSICA Task Force
What is JESSICA?
JESSICA in London
Holding Fund
Urban
Development
Fund
Project Portfolio
Loans, equity
or guarantees
-
8/12/2019 Esco Exemplu Londra London Green Fund Energy
15/391515
EIB - growing commitment to climatechange action
Our role in the London GreenFund is part of a wider
commitment to climate change
action across Europe
Climate change lending is key to
meeting the Banks objectives
In 2009 EIB funded over EUR 25
billion of climate change action
projects (32% of total lending)
The EIBs support to the energy
efficiency sector includes:
ELENA
Investment of EUR 2.2 billion across
the EU in last 2 years
3
221
295
3
5
4
73
232
3369
130
42
3
40 60
226
100
118
48
70
224
EIB lending to EU energy efficiencym
-
8/12/2019 Esco Exemplu Londra London Green Fund Energy
16/39
Londons building retrofit programme
September 2010
Formerly
known as
BEEP
-
8/12/2019 Esco Exemplu Londra London Green Fund Energy
17/39
17
London Mayors Climate
Change Target
Today 2020 2025 2050
Reduction in
greenhouse gas
emissions by 60%
below 1990 levels by
2025
UK Climate Change
Act (2008)
Reduction in
greenhouse gas
emissions by 80%
below 1990 levels by
2050.
European 20-20-20
Target (2009)
Reduction in greenhouse
gas emissions by 20%
below 1990 levels by 2020
20% increase in
renewables
20% cut in energy
consumption
The Mayor is committed to London becoming the greenestcity in the world and to a city that becomes a world leader in
improving the environment
-
8/12/2019 Esco Exemplu Londra London Green Fund Energy
18/39Source: CCMES 2009; DEFRA18
43% of Londons total CO2 emissions are from Commercial &
Public Sector buildings
CO2 emissions from London, 2006
(excluding aviation)100% = 47.5million tonnes CO2
Commercial & Public Sector CO2 emissions
from London, 2006100% = 20.5million tonnes CO2
Public sector comprised of health (23%), education(47%) and offices (30%)
Workplaces43%
Homes
36%
Transport
21%
Heating
46%
Lighting
19%
Catering
11%
IT 3%
Cooling 5%
Hot water 9%
Other 7%
-
8/12/2019 Esco Exemplu Londra London Green Fund Energy
19/39
19
The challenge
A key challenge for London is making the existing building stock more efficient
delivering this at scale is not straight forward
Most existing efforts are only delivering incremental carbon savings
Most organisations face two major barriers: capacity and capital
Source: Survey of potential early adopters
Strong
Moderate
Weak
Other barriers noted in discussions:
Perceived disruption to operations
Pre-conceptions & unfamiliarity with performance
contracting
Lackofaccessto
capital
L
ackofinternal
cap
acity/bandwidth
Regulatory
pr
essuresaretoo
weak
N
otimportantto
our
ChiefExecutive
orCouncilLeader
Larg
ercostsavings
elsewhere
Lackofinternal
expertise
Marketcapacityto
deliver(e.g.
lead
timestoolong)
B
usinesscaseis
n
otclearenough
Otherpriorities
-
8/12/2019 Esco Exemplu Londra London Green Fund Energy
20/39
An Energy service companies (ESCOs)
carry out the works and guarantee the
resulting energy savings
This guarantees the payback of the
initial investment with the delivery risk
transferred to the ESCO.
Hence this is a cost neutral means to
reduce energy bills and carbon footprint of
buildings
Insulation Building managementtechnologies
Cooling equipmentLow carbon heating
What is the RE:FIT building energy efficiency programme?
Energy Performance Contracting
approach: The public sector building
owner identifies a portfolio of buildings
they would like to retrofit, sets a target
percentage energy savings and a payback
period
-
8/12/2019 Esco Exemplu Londra London Green Fund Energy
21/39
Retrofits (almost) complete on 42 buildings
10 London fire stations
10 London police buildings
22 office buildings owned by Transport for London
7million investment
28% energy savings on average
1million per year savings from energy bills
7 year simple payback
-
8/12/2019 Esco Exemplu Londra London Green Fund Energy
22/39
Typical ECMs
Variable speed pumps
and fans
PC shutdown
software
Voltage optimisation Insulation
Draft proofing
Lighting upgrades &
controls
Building Management
System Controls and
strategic review
Heat recovery
Boiler replacements
1E Nightwatchman software for PC auto shutdown
Combined Heat &
Power
Solar thermal
Photovoltaic cells
-
8/12/2019 Esco Exemplu Londra London Green Fund Energy
23/39
Savings being delivered
-
8/12/2019 Esco Exemplu Londra London Green Fund Energy
24/39
24
Tranche 1
Initial Pilot
Tranche 2
Extra GLA Buildings
Tranche 3
London Public Sector
Buildings
Aim
To pilot concept of Energy
performance contracting and
help develop retrofit market
Extend approach across mix of
GLA buildings, incorporating
lessons learnt
Facilitate Energy Performance
Contracting across London
public sector buildings
Buildings Covered 42 58 maximum 40% of public sector
CO2 Reduction
(tonnes)6,057 8,371 2,500,000
M2
Retrofitted (est) 145,852 201,276 11,000,000
Total Spend (m est) 7 10 400
Status
Audit & Design Completed.
Fully-costed proposals & savings
guarantees received.
Final approvals submitted
Buildings work almost complete.
Buildings being identified.
Initial approval to proceed due
Audit & Design work due 10/11.
Buildings work due from late
10/11 onwards
Extensive market engagementundertaken and full concept
design nearing completion
Tender completed and enabling
Framework in place since Dec
2009
A pilot has proved the model we are now extending the
model to the whole of Londons public sector
-
8/12/2019 Esco Exemplu Londra London Green Fund Energy
25/39
Framework Agreement to carry out works in public sector
buildings across the UK
Available for 3 years with an option to extend to a fourth year
Call offs from the agreements will be for periods of 10 years,
depending on the payback period that is selected for each
requirement
Managed by the LDA
Call offs contracts will be managed by the respective contracting
organisation
First call-offs commenced in September 2010
Buyer guidance and toolkits have been developed
-
8/12/2019 Esco Exemplu Londra London Green Fund Energy
26/39
The Framework Panel Approved Suppliers
Balfour Beatty
COFELY (GDF SUEZ)
MITIE (Dalkia FM)
EDF Energy
E.ON Sustainable Energy
Business
Hoare Lea Consulting
Engineers (Parkeray)
Honeywell
Hurleypalmerflatt
Interserve
Johnson Controls
Schneider Electric - Strategic
Building Solutions
Willmott Dixon Partnerships
-
8/12/2019 Esco Exemplu Londra London Green Fund Energy
27/39
Key Benefits of the RE:FIT Framework
Innovative - provides guaranteed energy savings from ESCOs& access to the latest energy saving products
Significant
energy savings
- 25% energy savings or more
Ready to use - cuts out the time delay, hassle & expense of OJEU
procurement process
Proven - Piloted by TfL, Metropolitan Police and London Fire
Brigade
Sustainable - Makes retrofit of existing buildings sustainable
Alternative
financing Solutions
- eg. Banks
- London Green FundLDA support - Support & advice with standardised contracts &
toolkits
Single Point of
Responsibility
-ESCO has contractual responsibility for
performance
-
8/12/2019 Esco Exemplu Londra London Green Fund Energy
28/39
Public Sector Client Targeted (over 400)
Public
Sector
Clients
Central
Government
TfL
Met Police &
Fire Brigade
Crown
Estate
Cultural &
Heritage
London
Boroughs
NHSUniversities
&
Colleges
City of
London Corp.Historic
Palace
Judicial
Gardens
Cathedrals
Royal
Household
Professional
Institutions
-
8/12/2019 Esco Exemplu Londra London Green Fund Energy
29/39
-
8/12/2019 Esco Exemplu Londra London Green Fund Energy
30/39
Funding Options
Own Funds
Borrowing on balance sheet
e.g.:
- Salix- Banks- Public Works Loan Board (PWLB)- London Green Fund- Others
Borrowing off balance sheet- Exploring options for service-based contracts
-
8/12/2019 Esco Exemplu Londra London Green Fund Energy
31/39
London Green Fund
Energy Efficiency UDFInformation Event
Section I Questions & Answers
-
8/12/2019 Esco Exemplu Londra London Green Fund Energy
32/39
London Green Fund
Energy Efficiency UDFInformation Event
Section II Energy Efficiency UDF procurement
-
8/12/2019 Esco Exemplu Londra London Green Fund Energy
33/39
3333
Energy Efficiency Urban
Development Fund ProcurementFrank Lee and Fiona Chisholm
JESSICA Task Force
European Investment Bank
-
8/12/2019 Esco Exemplu Londra London Green Fund Energy
34/39
3434
Projects must be part of an Integrated Plan for SustainableUrban Development, which for the energy efficiency UDF is
both the London Planand the Mayors draft Climate Change
Mit igat ion and Energy Strategy
Projects must involve the establishment of:
the adaptation and/or refurbishment of existing public/voluntary sector
buildings.
improvements to existing social housing to make them more energy
efficient (max. London Green Fund commitment of 11m).
What will the energy efficiency UDF investin?
Subject to the agreement of EIB, the technical focus of the UDF may evolve
over time to include, for example, energy efficiency measures in the
private sector or wider support for decentralised energy projects.
-
8/12/2019 Esco Exemplu Londra London Green Fund Energy
35/39
3535
Energy Efficiency UDF funding structure
Project
Waste UDF
Energy efficiency
UDF
35m investment
European
Commission
London Green Fund
100m
(EIB fund manager)
LWARB LDA
Project
Project
Project
Project level repayable investment (debt/equity)
35m private sector
pari-passu co-
financing
Urban Project level public &/or private
additional financing
50m investment
Minimum 20m state aid
compliant Match Funding
50m cash32m cash and land/buildings18m cash
Complementary
Financing
-
8/12/2019 Esco Exemplu Londra London Green Fund Energy
36/39
3636
Direct lending by December 2015 to:
Public sector bodies and/or voluntary sector organisations for energyefficiency measures to their building stock;
Energy service providers that have been procured by the public/voluntary
sector to deliver a funded energy service solution for energy efficiency in
public buildings or social housing.
Secure state aid compliant match funding, at a UDF level, of at
least 20m, and to the extent possible, additional
complementary financing.
Work with EIB, LDA and other stakeholders to develop afinancing model that would provide further investment
opportunities to the UDF.
Key activities of the energy efficiency UDF
-
8/12/2019 Esco Exemplu Londra London Green Fund Energy
37/39
3737
Response requirements and timetable
Activity Timing
Deadline for Stage 1 requestsfor additional information
20 September2010
Deadline for submission ofStage 1 Expressions ofInterest
1 October2010
Notification to applicants ofoutcome of Stage 1
15 October2010
Deadline for submission ofStage 2 Offers
10 December2010
Notification to applicants ofoutcome of Stage 2 Offers Mid-January2011
Start of negotiations onOperational Agreements
Mid-February2011
STAGE 1 Expression of Interest Provide a declaration of your
suitability (including FSA
authorisation)
Illustrate credible experience
STAGE 2 OffersBusiness plan showing:
Governance and legal structure
Investment strategy
Transaction structure Sourcing of match/Co-finance
Management fees
-
8/12/2019 Esco Exemplu Londra London Green Fund Energy
38/39
3838
www.eib.org/jessica
EIB CONTACT INFORMATION
Clarification questions for Stage 1in writing only by 20 September 2010
Isabelle Rei Procurement Officer)European Investment Bank
98-100, Boulevard Konrad Adenauer
L-2950 Luxembourg
fax: +352 437 968 167
email : [email protected]
-
8/12/2019 Esco Exemplu Londra London Green Fund Energy
39/39
London Green FundEnergy Efficiency UDFInformation Event
Section II Questions & Answers