ENERGY INNOVATION FINANCIAL NETWORK

Dr HANNA BARTOSZEWICZ-BURCZYINSTITUTE OF POWER ENGINEERINGWARSAW - POLAND

19 June 2007, WARSAW EIFN WORKSHOP

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The EIFN is an initiative promoted by EU 6 th FP to finance energy innovation activities.

THE EIFN AND EUROPE INNOVA COMMUNICATIONS

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OBJECTIVES OF THE EIFN PROJECT

Design and develop a comprehensive framework for a better understanding between innovation energy enterprises, institutions and financial agents based on:

Collaboration to update the financial services to the energy sector innovation needs.

Providing practical and efficient solution to facilitate innovation agents in the energy sector the access to financial services.

European scope.

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CONSORTIUM MEMBERS

Partic. No. Participant name Participant short name Country

1 Deloitte, S.L. (DT) Spain

2 Instituto Tecnológico de Canarias (ITC) Spain

3 Institut für Solare Energieversorgungstechnik (ISET) Germany

4 SC IPA SA CIFATT Craiova (IPA SA CIFATT) Romania

5 Lietuvos energetikos institutas (LEI) Lithuania

6 Ente Vasco de la Energía (EVE) Spain

7 Korona Power Engineering d.d. (KORONA) Slovenia

8 Innovation NCP (NCP) Poland

9 ZAB ZukunftsAgentur Brandenburg (ZAB) Germany

10 Consorzio Catania Ricerche (CCI) Italy

11 Instituto de Empresa (IE) Spain

12 Institute of Power Engineering (CENERG) Poland

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EUROPEAN UNION ENERGY POLICY AND THE LISBON STRATEGY

Limits to greenhouse gases emissions (EU has the commitment to deliver the collective 8%, with the reference to 1990 level, cut in emissions by 2008-2012).

Promotion of renewable energies (EU objective: 12% market share of renewable energy in 2010 total primary energy consumption.

Cogeneration Strategy (Target of doubling the share of electricity production from cogeneration to 18% by 2010)

Reduce energy dependency

Lisbon European Council established that Europe’s future economic development would depend on its ability to create and grow high value, innovative and research-based sectors

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INNOVATION IN THE ENERGY SECTOR

The European innovation in the energy sector has found relevant barriers to access to finance services:

Some project promoters needs more knowledge about: innovation financing alternatives, access to financial resources procedures, structured finance, project evaluation methodologies, economic valuation of the project environmental impact, business plan elaboration, risk management.

Energy projects have long maturation periods that needs to adapt project financial structure to this characteristic.

Usually these projects require high volume of financial resources, in some cases the promoters has problems to engage guaranties to obtain the finance support.

Energy projects have high cash flows due to: technology risk, regulatory risk, price risk.

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ENERGY INNOVATIVE FINANCIAL NETWORK INITIATIVE

Providing practical and efficient solutions to facilitateinnovation agents the access to financial services.

Collaboration to update the financial services to the energysector innovation needs.

Overcoming the barriers of the existing investments forfinancing innovation in the energy sector

European scope

The EIFN project is an initiative promoted by European experts to finance energy innovation activities focused on designing and developing a comprehensive framework for a better understanding between the innovation energy enterprises, the institutions and financial agents .

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ENERGY INNOVATIVE FINANCIAL MODEL

Establishment of a comprehensive network to improvefinancing for innovation in the energy sector (Europe InnovaEnergy Network)

Identification of financial services (solutions) according tothe specific characteristics of the innovation in the energySector

Design and develop methodologies and tools to preparebusiness plans and to financially analyze the energy projects

Design and implement a facility that improves the access ofinnovation energy enterprises and institutions to financing

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STAKEHOLDER COMMITTEE

The Stakeholder Committee are composed by ca. 350 members from different EU countries.

Members of the Stakeholder Committee are representing the financial organizations (banks, venture capital funds, business angels, etc.) private companies of the energy sector and their intermediaries, innovation promoter, managers and researches.

The members of the Stakeholder Committee are experienced in innovation, project finance or energy sector.

The members have to co-operate with the project consortium in testing the functionality of the project tools and materials and they are interested in contributing to disseminate the general interest aspects raised by the project development.

The nomination for the Innova Energy Network is honorific.

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METODOLOGIES AND TOOLS

Identification and analysis of sector characteristics in relation to innovation financing (map linking needs of innovation in energy sector and funding sources).

Design and develop methodologies, tools, guidance materials and procedures.

- Business plan preparation tool package - Business plan diagnostic - Financial analysis - Multi –scenario analysis, sensitive analysis, simulation analysis, - Real options methodology, etc.

Co-operation with other EU initiatives: Gate 2 Growth and PAXIS.

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EIFN PROVIDES• A complete information package including an assessment tool to enable

promoters to establish the state of advancement of their prospective venture and a business planning model to help them prepare a viable business plan and other economic approaches.

• Access to guides and directories on innovation finance and sources of finance at EU, national and regional level.

• Access to workshops and roundtables providing both a general introduction to innovation finance and more specific and practical guidance on the financing process and presentations to investors.

• Online helpdesk support to provide a readily accessible source of assistance and advice.

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space textile

energy ICT/optical

machinery automotive

biotechnology eco-industries

chemicals food/drink

high-growth SMEs

Europe INNOVA Communications

Cluster Mapping Innovation Management

Innovation Finance Networks

Sectoral Innovation Watch Innovation Panels

Cluster Networks

Europe INNOVA Forum

Innovation & Standards

Architecture of the Europe INNOVA Initiative

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Thank you very much for attention