„making energy efficiency investible“

„Making Energy Efficiency Investible“

ACE – Asset Class Energy Efficiency

Kai Schinck (DENEFF)Martin Reisinger, Diana Wang (EEP)Rüdiger Lohse (KEA)

Frankfurt, 05.12.2018

Financing EfficiencyWhat we can learn from Renewables

ACE - Asset Class Energy Efficiency | Rüdiger Lohse, KEA 2

Financing Renewables hasbecome a strong and competetive market!

Standardized due diligence process

Risks widely known Performance Data Available

Que

lle: U

mw

eltb

unde

sam

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EE S

tat

High Overhead Costs financing EE: EE measures: complex, not tangible High degree of uncertainity Unknown due diligence processes

Small- Medium Investment Small volume projects (appr. 150 k€/case) High Transaction costs for financing small

projects

Lack of Data Few performance data available for EE projects No reference data available

Competing assets more attractive

Financing Energy Efficiency Projects: Major Hurdles


4

ACE: Asset Class Energy Efficiency

Mission: Provide Structures / Tools to overcome major

hurdles in financing Energy Efficiency in Germany based on the ICP methodology

Guided by Funded by

ACE Initiative – Joint Effort of more than 50 active StakeholdersDevelopping practical approaches to EE financing hurdles


ACE Initiative: Three Products Developping practical approaches to EE financing hurdles


Standardized Due Dilligence Tackles: Quick due diligence for EE projects Quick- analysis of EE financing project cases Simplyfied time saving approach of project finance

Best Practice Data Base Tackles: Data Issue Reference data available on project level Including Performance Data

Pooling-Plattform Tackles: Small projects / high costs issue Plattform matching financiers, project

facilitators, ESCos on the project level efficient pooling mechanisms

Standardized Due Diligence

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Simplified Economic and Technical Assessment

Time saving (< 1 h) 6 cross cutting technologies Status: Evaluation Mockup Routine available

1. Quick evaluation of small and medium sized EE projects (< 0,5 M€/p)

2. Standardization of Input and Output Data for the business and technical KPIs

3. Dynamic business KPIs serving both loan and equity capital

4. Technical KPIsquick plausibility evaluation of potential impacts on the cash flow (baseline, savings, investment costs, availability over time, technical elegibility)

5. Keep it Simple Any kind of major divergence pulling out of EE project due diligence deep analysis (de risking clinic)

6. Self- learning systemimprovement with number of projects

EE project Due Diligence- 5 step project finance checkRequirements


5 step project finance checkEE project Due Diligence


Step 1: Project Framework Data

Step 2: Financial & Technical Statement Analysis (KPIs)

Step 3: Deep Risk Analysis

Step 4: Risk Management

Step 5: Risk Pricing

Minimal Requirements fullfilled?

no

KPI Analysis positive?

OPTIONAL: EE Project DE RISKING CLINIC

Bundeling Plattform

2 step Quick Analysis

5 step project finance check Result EE project Due Diligence


Result: Due Diligence Check for Project Basics, Economic and Technical Parameters

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Project Data Base Provides EE- Project Performance Data Provides first indicative information on

comparable projects Receives project performance data from

projects and bundling platform Status: Mock- Up Version available

Project Data Base: Providing data for improving KPIs in the future, credit and insurance conditions


Insurer

ESCo/User

Financier

Comparative figures KPIs, credit and insurance conditions

KPIs2

3 3

4 4

51

calculates KPIs

Project data (incl. technical data*)

Credit costs and contract conditions*

Insurance costs and contract conditions*

Data base*

Model**

provides comparative

figures

KPIs

Legend:

1 ... n Steps

* Host: must be trustful (e.g. DEEP-extension)

** Model to improve better comparison of efficiency

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Pooling Platform

Pooling PlattformMatching Projects and Finance


Finance

Commercial Banks

Funds

Asset Manager

Financial Service Providers

Project Faciliation

SMEs (end costumer)

Project Facilitators

ESCos

EE Manufacturers 4.0

„Financiers will find pre- checkedEE- projects ready for bundling“.

Pooling PlatformMatching Projects and Finance


Project Facilitation Financiers

Looking for Finance

Due Diligence Processaccomplished

Finance- and Riskprofile

Individual Funding

SMEs (end costumer) Project Facilitators ESCos EE Manufacturers 4.0

Commercial Banks Funds Asset Manager Financial Service

Providers

Due Dilligence, Bundling Platform and Project Database 3 ACE tools interaction


Project data base

EconKPIs

Due Diligence

TecKPIs

Optional: De- Risiking Clinic

Project evaluationComparative figures

for KPIs

Performance data

Input of Performance Data improves overall data

quality.

Bundling Platform

Project Bundling and Matching

KPIs

Request/ transmission of data to forecast financing/

insurance conditions

First indication%- rate

ACE

Data base

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ACE- Next Steps

Save the Date: 12. February 2019 Final Workshop

Deliverable: Tool Box / Website Further Funding available? ß- Version and

Roll out in 2019 (II- IV)

Get in touch with ACE: [email protected], [email protected]; [email protected]; [email protected]

mailto:[email protected]




„making energy efficiency investible“

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