financing energy efficiency in the tertiary sector · technology partners and equity for energy...

17/07/2017 1www.trustepc.eu

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


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


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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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




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


TRUST EPC SOUTH

PROJECT OBJECTIVES


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

1

2

34

5


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



TRUST EPC SOUTH

OUTCOMES


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



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


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



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.









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