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TRANSCRIPT
Stephane le Gentil – CEO Etihad ESCO
29 May 2014
a DEWA venture
Financing Lighting Projects
AGENDA
2
Etihad Energy Services Co.
Projects Financing
Etihad ESCO l Purpose
Etihad Energy Services Co. (Etihad ESCO) was
established in 2013 as an initiative by DEWA
under the leadership of the Dubai Supreme
Council of Energy to create a viable market in
Dubai for building retrofits using Energy
Services Companies (ESCOs)
3
DSM Plan 2030
4
Etihad ESCO l Mandate
Create a market for Energy Services Companies (ESCOs)
using the Energy Performance Contracting model
Initial focus on Government buildings (lead by example)
Portfolio approach vs. single building approach
Pursue projects on a commercial basis (attractive ROI)
Secure financing for projects when needed
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Building
Owner
ESCOs
Audit & consultingTendering & bid negotiationProject managementVerification of savingsReporting
Chiller Retrofit
Lighting Retrofit
BAS Installation, etc.
Loan
Repayment
PaymentsEnergy EfficiencyEquipment & Services
PaymentSupply of retrofit workGuarantee of savings
Etihad ESCO l Business Model
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Building
Owner
ESCOs
Projectpaymentin Full
Guarantee of savings
ProjectPaymentin Full
Business Model 1 – Owner Financing
Guarantee of savings
Retrofit work(chiller, lighting, controls, …)
Energy Invoices
Savings
Owner pays for theproject in full andenjoys 100% of thesavings from day 1
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Building
Owner
ESCOs
Repayments
Payments(from the savings)
Guarantee of savings
Project payment in Full
Loan
Business Model 2 – Third Party Financing
Guarantee of savings
Retrofit work(chiller, lighting, controls, …)
Energy Invoices
Savings
Owner pays for the project monthly, the same amount saved from his DEWA bill (or close)
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300
AFTEREPC
Year 1 Year 2 Year 3 Year 4
EPC Contract Duration (e.g. 4 years)
1000
Year 0 Year 5
Before EPC
700
300
700
BANK
700
BANK
700
BANK
700
BANKSAVINGS
Inve
stm
en
t
Energy Performance Contracting
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Financed EPC, why it is beneficial?
Investment budget neededNegative cash flow at start
No budget required
Direct positive cash-flow
Traditional Project / non-Financed EPC Financed EPC
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Impact on energy budget allocation
DEWAbill Energy
Budget
Beforeretrofit project
DEWAbill
Etihad invoice
Afterretrofit project
New reduced energy costs from DEWA
Costs to repay for the Bank loan and Etihad fee
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a DEWA venture
THANK YOU
Stephane le GentilCEO
Email: [email protected]
T: +971 (0) 4 322 0383
F: +971 (0) 4 307 2164
Follow our news: twitter.com/EtihadESCO