budapest october 2, 2014 irina kotliar energy efficiency in buildings. european support schemes

BudapestOctober 2, 2014

Irina Kotliar

Capacity building in Central & Eastern Europe

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Energy efficiency in buildings.European support schemes

I. EU subsidy program IEE Horizon2020

II. Joint financial facilities

I. European Energy Efficiency Fund (EEE-F)

II. EIB ELENA programme

in combination with facilities from other development banks (CEB, EIB, EBRD, KfW, etc.)


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EU: mobilising sustainable energy investments

• Grants– Tied to innovation: Horizon2020

– Tied to loans as TA

• Lending and investments– strong emphasis on funds revolving and leverage

– TA grants tied to loans• ELENA: 90% development TA costs; should not affect leverage ratio

• EEE-F: TA <10% of investments budget (€20m vs 265m

• Project size– Generally large projects

– Programmes/ clustering projects

• Instrumental!


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General remarks

• New research and innovation funding programme of nearly €80bn 2014-2020

• Focus on societal challenges facing EU society– Health, clean and efficient energy, transport, etc.


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I. EU Horizon2020: general principles

• EE falls under Societal challenges– Secure, clean and efficient energy. Worth EUR 5,9 bn 2014-2020

• Energy challenge calls (indicative budget bi-annual planning)


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Calls 2014 (M€) 2015 (M€)

Energy Efficiency 97 98

Smart Cities and Communities 92 108

Competitive Low-Carbon Energy 359 372

SMEs and Fast Track to Innovation 34 37

Part B – other actions 75 61

I. H2020 Funding energy efficiency buildings

• Energy efficiency call specificity:– Most actions: min. 3 participants from 3 different countries

• Few exceptions, such as construction skills EE4 and financing EE19, EE20: 1 /1

• Emphasis on innovative industry/ SME

– From EU and/or from Associated Countries (list of FP7). Beyond this: large list of countries, but judge evaluation required

• Topics:– A: Buildings and Consumers - C: Industry and products

– B: Heating and Cooling - D: Finance for sustainable energy

• Type of actions: emphasis on innovation– Research and Innovation (research, knowledge generation) -100%

– Innovation Actions (test to market) - 70/%100% if non-profit

– Coordination and Support (standardisation, policy, financing) 100%


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• A – Buildings and consumers– EE 1- 2014: Manufacturing prefab modules renovation buildings (IA)

– EE 2 – 2015: Buildings design new highly EE performing buildings (IA)

– EE3 – 2014: Energy strategies & solutions deep renovation of historic (residential) buildings (IA)

– EE 4 – 2014: Construction skills (CSA)

– EE 5 – 2014/2015: Increasing energy performance of existing buildings through process and organisation innovations and creating a market for deep renovation (CSA)

– EE 6 – 2015: Demand response in blocks of buildings (intelligent energy management systems) (IA)

– EE 7 – 2014/2015: Enhancing the capacity of public authorities to plan and implement sustainable energy policies and measures (CSA)


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• B – Heating and cooling– EE 13 – 2014/2015: Technology for district heating and cooling (CSA)

– EE 14 - 2014/2015: Removing market barriers to the uptake of efficient heating and cooling solutions (CSA)

• D - Finance for sustainable energy – EE 19 – 2014/2015: Improving the financeability and attractiveness of

sustainable energy investments

– EE 20 – 2014/2015: Project development assistance for innovative bankable and aggregated sustainable energy investment schemes and projects

– EE 21 – 2014/2015: Development and market roll-out of innovative energy services and financial schemes for sustainable energy


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• http://ec.europa.eu/research/participants/docs/h2020-funding-guide/index_en.htm


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I. H2020 online manual

http://ec.europa.eu/research/participants/docs/h2020-funding-guide/index_en.htm

http://ec.europa.eu/research/participants/docs/h2020-funding-guide/index_en.htm

• Follow calls announcements!– Energy efficiency call page: http://ec.europa.eu/easme/energy

• More reading:– H2020 general website:

http://ec.europa.eu/programmes/horizon2020/en

– H2020 FAQ section: http://ec.europa.eu/research/participants/portal/desktop/en/support/faq.html

– H2020 National Contact Points: http://ec.europa.eu/research /participants/portal/desktop/en/support/natoinal_contact_points.html


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H2020 – Energy Efficiency Support

http://ec.europa.eu/easme/energy

http://ec.europa.eu/programmes/horizon2020/en

http://ec.europa.eu/research/participants/portal/desktop/en/support/faq.html

http://ec.europa.eu/research/participants/portal/desktop/en/support/faq.html

http://ec.europa.eu/research%20/participants/portal/desktop/en/support/natoinal_contact_points.html

http://ec.europa.eu/research%20/participants/portal/desktop/en/support/natoinal_contact_points.html

• PPP providing EUR 265 mln for investments, 20m TA (grant) available to structure projects– EUR125m by EERP, 75m EIB, 60m CDP and 5m Deutsche Bank

– Managed by Deutsche Bank (www.eeef.eu)

• Beneficiaries: Local and regional public authorities; PPPs are possible

• Financing– Direct investments (ESCO’s, project developers) and investments in financial

institutions

– Financing in form of equity, loans, guarantees, forfeiting schemes

• 70% of the investment target EE in buildings

• Projects ranging €5m to €25m are eligible!

• No calls, application possible at any time


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II. European Energy Efficiency Fund (EEE-F)

http://www.eeef.eu/

• ELENA – European Local ENergy Assistance– Joint EIB-European Commission initiative

– ELENA is a European Facility • To support regional or local authorities

• through Technical Assistance

• in accelerating their energy efficiency and renewable energy investment programmes

• to reach EU ‘20-20-20 targets’

– grant support is provided under IEE II programme (Intelligent Energy Europe; http://ec.europa.eu/energy/intelligent/index_en.html )

– Beneficiaries: • public bodies in terms of mission, funding, control and liability

• in eligible countries


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EIB ELENA mobilising sustainable energy investments

http://ec.europa.eu/energy/intelligent/index_en.html


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EU support for residential retrofitting and sustainable energy

Source: ELENA Facility mobilising sustainable energy investmentsRoman Doubrava, European Commission Directorate-General for Energy


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EU support for residential retrofitting and sustainable energy

• Areas– Public and private buildings

– Integration of renewable energy sources (RES) into the built environment

– Renovating, extending or building new district heating/cooling networks

– Urban transport

– Local infrastructure

• Certain size– normally > EUR 30 mln

– Support small projects possible when integrated/ grouped into larger investment programmes

• reducing transaction costs

• “bankability” of the individual projects, which is one of the ELENA selection criteria.

• Contribution to 20-20-20 targets• Does not need to be fully elaborated


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What kind of investment programmes supported by ELENA TA?

• Covers up to 90% of eligible costs TA – IF related to a clearly identified investment programme

• Eligible costs – Any TA to prepare, implement and finance investment programme

– hardware costs excluded,

– cost of staff assigned to specific investment programme eligible

– eligible costs can include value added tax

• if documented and cannot be recovered by the beneficiary

• Minimum and maximum costs?– In principle, no specific limits, but should be fit for potential market

replication

– leverage factor of minimum 20 to be respected


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What type of technical support can be financed by ELENA?

• EIB provides two main facilities:– Direct loans

• For large scale projects (>25 mln)– Intermediate loans

• Small and medium-scale projects (particularly to SMEs) via national and regional intermediary banks

– Lending decision remains with the financial intermediary

• receiving ELENA assistance not a prerequisite to obtain EIB financing, and vice-versa. – different procedures for EIB loan and ELENA grant (www.eib.org)– However, improving bankability of the investment programme, ELENA may

facilitate access to financing from the EIB or other banks

• Further reading: – http://www.eib.org/attachments/documents/elena_faq_en.pdf


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Relation EIB financing & ELENA

http://www.eib.org/

http://www.eib.org/attachments/documents/elena_faq_en.pdf

Thank you!

Questions?

[email protected]


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budapest october 2, 2014 irina kotliar energy efficiency in buildings. european support schemes

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