investor days 2016 - bpiebpie.eu/wp-content/uploads/2016/03/investordays... · eu markets...

MAKING MONEY FLOW – STRATEGIES TO INCREASE ENERGY INVESTMENTS IN THE

EUROPEAN BUILDING SECTOR

F E B R U A R Y 2 2 - 2 3 R E P R E S E N T A T I O N O F T H E S T A T E O F N O R T H R H I N E - W E S T P H A L I A T O

T H E E U

P A N E L 2 : I N V E S T O R S ’ V I E W O N P O L I C Y R E Q U I R E M E N T S A N D M A R K E T N E E D S

M o d e r a t i o n : T a m a s S o l y m o s i ( C o v e n a n t o f M a y o r s O f f i c e ) L a d a S t r e l n i k o v a ( D e u t s c h e B a n k ) , J e s s i c a S t r o m b a c k ( J o u l e

A s s e t s ) , S e b a s t i a n C a r n e i r o ( D i r e c t o r C F A , S U S I P a r t n e r s ) , A l e x G i l b e r t ( A m b e r I n f r a s t r u c t u r e )

Investor Days 2016

Investor view of policy EU Jessica Stromback,

February 22nd, 2016

2

Company Offerings

• Based out of New York and Brussels

• Financial Fund Manager energy efficiency and demand

response projects

• Financial Facilitation tool SEAF

• Chair of the SEDC

Smart Energy Demand Coalition

SEAF will build a bridge between the investor and the contractors community to enable the funding of small to medium sized energy

efficiency projects

3 of 11

Project Objective

03/02/16

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Project Goal

03/02/16

The project will combine the following existing functionalities: • Valuation: (JOULE) Robust independent ex-ante automatic valuation

of SEA projects for both SEA contractors and SEA investors in different market environments against current market data;

• Risk Assessment: (HSB) Initial audit of the project’s technical risks,

including the proposal of risk transfer mechanisms such as insurance of equipment, business interruption or asset performance to increase investors’ trust level in a project;

• Optimization: and Standardisation: (ICP) SEA project optimisation through e.g. identifying additional revenue streams and providing partnering options;

The project aims to enable the finance of sustainable energy assets by deploying independent, standardised project evaluation and project optimisation tool. Making Finance Easy

5

Preferred Financing Model

6

Policy and Positive Elements

• Exchange with Industry: Example of EEFIG, • ‘How to drive new finance for energy efficiency investments’

• Funding the development of solutions – which

can act as bridges through Horizon 2020 • Promotion of solution creation • Cycle findings into policy

• Legal Frameworks such as the

• Energy Efficiency Directive and the Network Codes

The Challenges

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Valuation

Regulatory silos

Fragmentation

?

The Challenge Valuation

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3 people working for 6 months on creating a project valuation platform of 15 EU markets approximately 50% completed (SEAF)

Engage the electricity industry in supporting valuation and finance: facilitate: on-bill repayment and on-tax finance mechanisms . • Energy Efficiency Directive Art 7: Strengthen and enforce energy supplier

obligation Support standardization in project evaluation: project rating system to provide a transparent assessment of the technical and financial risks of buildings energy renovation projects and their contracting structure*. Renovation and purchases: Create a standard methodology to include energy costs and energy efficiency potential in mortgage affordability calculations*

(*Energy Efficiency Financial Institution Group)

The Challenge Regulatory Silos

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Risk that regulation is created within narrow departments does not capture synergies.

Energy: Connect the elements Eco Design for appliances – not necessarily take into account the need for flexibility EED Art 7 for Utility obligations – could encourage utilities to use their energy efficiency Obligations for improved consumption flexibility – so that they lower their CO2 footprint EEF Art 8 Building Audits standards should be enforced but also include the capability of a building to be flexible, and support decarbonisation Healthy investment markets are important: Ensure that State Aid rules do not penalize good practice EIS in the UK. Good projects grow in healthy economies. Energy Efficiency investments are part of a larger eco-system of investment.

The Challenge Fragmentation

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• Starting place of Member State regulation

• How Directives and regulations are

applied by Member States

Thank you

Jessica Stromback, Dennis Quinn, Michael Pachlatko [email protected]

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SUSI Energy Efficiency Fund

Page 1SUSI Energy Efficiency Fund


“Panel from the investors’ view on policy requirements and market needs”

Sebastian Carneiro, DirectorFebruary 2016



Renewable Energy Energy Efficiency Energy Storage

SUSI Renewable Energy Fund I

SUSI Renewable Energy Fund II

SUSI Energy Efficiency FundFinancing of energy efficiency measures

SUSI Energy Storage Fund (planned)Investing in storage capacity

Buildings Industry Public Infrastructure

Lighting (LED)

HVAC

Building management systems

Electric motors

Pumps

Waste heat recovery

CHP

Street lighting (LED)

Water treatment

Hospitals

Schools

The SUSI Energy Efficiency Fund is the largest private sector energy efficiency fund in Europe. The fund is capable of investing approximately

EUR 240 m of equity in energy efficiency projects across the Eurozone.

The fund is financing projects, among others, in the following areas:

Verwaltungsrat: Jürg Bucher (Präsident), Kai-Uwe Ricke, Prof. Dr. Uwe Krüger, Stephanie Schoss, RA Björn Bajan

Founders: Dr. Tobias Reichmuth,Otto von Troschke

Board of Directors: Kai-Uwe Ricke (President), Björn Bajan, Prof. Dr. Uwe Krüger, Moritz Leuenberger (former President of Switzerland and Swiss Minister of Energy and Transport), Stephanie Schoss, Jürg Bucher, Florian Seubert

SUSI Energy Efficiency Fund as financing partner



Enable “off-balance” accounting treatment of energy efficiency measures Increase resources and improve knowledge on public authority level regarding energy

performance contracts, e.g. ELENA, information campaigns Set binding targets on national level for public sector

Annual market size of public sector energy performance contracts: USA vs. EU

USD 6 bn

῀EUR175 m

vs.

Recommendations



Make energy efficiency strategically important to corporates

Co2 certificate trading

Higher energy costs

Lack of budget

Lack ofresources

Lack of priority

Lack of knowledge

1 2 3 4

Recommendations

No interest of corporates in implementing energy efficiency measures



Unexploited market potential in the sector for private individuals/home owners due to undeveloped market structures

Focus on short-term payback technologies like “HVAC” or lighting instead of insulation

Tax credits/grants

Lack of knowledge

1Lack of capital

2Lack of convenient

business model

3

Recommendations



Market failure in real estate markets due to owner/tenant dilemma

Eradicate market failure

Set minimum energy efficiency standards for buildings

Make “Green Lease” clauses mandatory

The tenants benefit from an improvement of the energy efficiency of buildings, while the owner has to bear the investment costs

Dilemma

Owner

↓ Reluctant to incur costs for retrofit

Tenants

↑ Lower energy costs

Recommendations



Sebastian CarneiroDirector

SUSI Energy Efficiency AGBellerivestrasse 36CH-8008 ZürichTel: +41 44 386 98 27Mob: +41 76 366 98 [email protected]

Many thanks for your attention

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