belesco esfd 2014 session 2 ppt4 eaci · it replaces the 7th framework programme, intelligent...

Results'from'the'Intelligent'Energy'Europe'Programme'

&'EU'Funding'Opportuni;es'in'2014'

'Timothée'Noël,'Project'Officer'EASME,'European'Commission'

Results from Intelligent Energy Europe (IEE) in the field of energy services

>20 Energy services projects

> 200 partners from nearly all MS > 25 mio€ budget

-  Good practices, guidelines &

Model contracts -  Raised awareness -  Market analyses -  New business models -  Training & capacity building -  Direct Support

IEE projects supporting the EPC market uptake

4

Pooling Energy service

companies

What is an EPC? How much savings can we do? How to make it bankable? How to procure an EPC?

Audits Performance requirements Technical specifications Legal framework

Procurement (negotiated procedure or competitive dialogue)

Bundling

Owner A

Owner B

Owner C

With more buildings I can level risks and reduce transaction costs

Sou

rce:

A. B

ullie

r, 20

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Market facilitation Assistance to building owners

This presentation requires oral explanations, source A Bullier

Need for innovative financing schemes

ESCO

Bank

Factoring fund

Financial markets

Loan

Guarantee fund(s) to cover first losses

Soft loans / interest rates buy down

Loan

EPC

Securitisation

Bonds

Initial capital + first risk coverage

! Requires critical size and standard assets

! Banks and ESCOs don't want to increase their debts either

! Banks don't trust energy savings as revenues

! High interest rates kill savings potential

Project development assistance

MLEI PDA & ELENA

Forfeiting

Sou

rce:

A. B

ullie

r, 20

13

5

!  Energy Performance Contracting database >250 resources on EPC available in one place (www.ec.europa.eu/energy/intelligent/in-action/energy-performance-contracting/index_en.htm)

IEE highlights - projects

What is Horizon 2020?

!  Horizon 2020 is the EU framework programme for research, innovation and market uptake: ~€80 billion, 2014-2020

!  It replaces the 7th framework programme, Intelligent Energy Europe, and other programmes

!  Grants are allocated through annual calls for proposals

!  Projects usually require 3 entities from 3 eligible countries – but there are exceptions

!  For the finance topics, grants do not fund investments – eligible costs are mostly staff costs, subcontracting, travels

8 Information on this slide is indicative - Only the Horizon 2020 call for proposals has a legal value

H2020 – The Energy Challenge •  3 main focus areas: ~5,6 billion €

"  "Energy Efficiency" "  "Competitive Low-Carbon Energy" "  "Smart Cities and Communities"

•  Full innovation cycle:

Proof of concept

Applied research

Pre-commercial demonstrati

on

Market uptake

measures

H2020 – The Energy Challenge

! Energy Efficiency •  3 funding priorities (EE 19, EE 20, EE 21)

on Financing for Sustainable Energy

# Call Deadline 5 June 2013 €25 million available in

2014! 10 Information on this slide is indicative - Only the Horizon 2020 call for

proposals has a legal value

Key objectives to support financing for sustainable energy

11

Financial markets

Promoteurs de projets

Innovative financing? ESCO ?

Adapté de C. MILIN, ECEEE 2013

Soft loans

Project development assistance

& Roll out EPC and other

innovative financing schemes

Investment funds

Guarantee funds

Structural funds

Horizon 2020

Attractive investments

Raise investors confidence

Establish a dialogue

Build capacity

National financing

Information on this slide is indicative - Only the Horizon 2020 call for proposals has a legal value

EE 19: Improving the financeability and attractiveness of sustainable energy investments

1.   Develop frameworks for the standardisation and benchmarking of investments, such as •  labelling and standardisation of sustainable energy investments or

portfolios •  valuation techniques integrating the 'green value' of buildings •  Proposals integrated in a broader approach such as socially responsible

investment or 'green buildings' should focus on the energy component.

2.   Target public institutional investors (e.g. public or semi-public pension schemes) in order to •  increase the share of their funds invested in sustainable energy •  to develop specific funds or investment products


EE 19: Improving the financeability and attractiveness of sustainable energy investments

Template documents and contracts

!  1 country proposals are eligible for this sub-topic Bridge the gap between the financial sector and the sustainable energy sector. •  dialogue, •  Roadmaps •  Legal framework improvements •  Template documents and contracts

!  1 country proposals are eligible for this sub-topic


EE 20: Project development assistance (PDA)

• set up financial engineering instruments, • 

address legal and procurement issues

!  Targeted at public and private project promoters, e.g. - public/private infrastructure operators - real estate managers - SMEs/ industry

! 

€1 of EU support must trigger €15 of investments to be launched by the end of the project (not necessarily fully implemented)

!  1 country proposals are eligible ! 

€17 million available the end of the project (not necessarily fully implemented)

!  1 country proposals are eligible

!  €17 million available


EE 20: Project development assistance (PDA)

Investments must have a lighthouse €6 – 50 million dimension and

! Projects should contain organisational innovation

in the mobilisation of the investments and/or the financial approach • 

Innovation should be demonstrated taking into account the situation in the targeted country. • 

No technical innovation is required !  Investments must have a lighthouse dimension

!  Projects should contain organisational innovation in the mobilisation of the investments and/or the financial approach •  Innovation should be demonstrated taking into account the situation in the

targeted country. •  No technical innovation is required


EE 21: innovative energy services and financial schemes for sustainable energy

1.  Roll-out of business models for innovative energy efficiency services (e.g. energy performance contracting), enabling to fully monetise the resulting energy savings

2.  Replication of successful innovative financing solutions and energy services already implemented across the EU. •  Particular attention should be given to innovative solutions

enabling aggregation, securitisation, project bundling, structuring of clearing houses, or developing new investment mechanisms (e.g. crowd-funding for sustainable energy).

3.  Large-scale capacity building for public authorities and SMEs to set-up or use innovative financing schemes for sustainable energy


H2020 – Energy Efficiency call - Deadline 5 June 2013 Online resources

!  Practical information on H2020:

http://ec.europa.eu/programmes/horizon2020/en/how-get-funding


Thanks for your attention Timothée Noël Project Officer – Energy Efficiency Belesco [email protected] http://ec.europa.eu/energy/intelligent

EESI - Promoting the implementation of Energy Performance Contracting (EPC)

Capacity building activities for local and regional decision makers (2.000 stakeholders involved from 10 Member States). Development of EPC model documents and contracts. Direct support via 10 Help-desks: initiation of 24 signed EPC projects representing 36 mio€ of investments and annual savings of 4,5 mio€ Promotion of the European EPC best practices throughout high-profile annual awarding events (European Energy Service Award).

MLEI Paride (Teramo , IT) Bundling EPCs on street lighting !  Energy-efficient street lighting !  Investment: €17.1m !  Leverage factor: 15 !  Expected energy saving of 44%.

!  34 municipalities in the province are bundled into 3 project associations which will each launch 1 call for tender

!  Province of Teramo and energy agency in charge of data gathering, performance specifications and tender preparation

!  Contracts will be procured jointly but signed individually !  Innovation: bundling project (joint procurement)

A. Bullier – NETCOM / ManagEnergy event – Brussels 10 October 2013 This presentation requires oral explanations

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Lack of awareness/ trust

Lack of examples "close to my door"

Public procurement rules

Lack of skills High transaction costs Lack of guidance on how to do

Difficult access to credit (++ long term)

Lack of demand for EPC

Operational barriers

Limits for ESCOs

Perceived risks for financiers

Addressing the market barriers

Costs and staff needed to set up a

project

belesco esfd 2014 session 2 ppt4 eaci · it replaces the 7th framework programme, intelligent...

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