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Stephane le Gentil – CEO Etihad ESCO

29 May 2014

a DEWA venture

Financing Lighting Projects

AGENDA

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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: stephane.legentil@etihadesco.com

T: +971 (0) 4 322 0383

F: +971 (0) 4 307 2164

Follow our news: twitter.com/EtihadESCO