Environmental Defense Fund’s

Investor Confidence Project

New Jersey Clean Energy ProgramEnergy Efficiency CommitteeMay 16th 2014

Breaking Down Barriers to EE Finance

Performance

Risk

Credit

Risk

Asset

Risk

• On-Bill Repayment• Commercial PACE• Green Banks

• Benchmarking• Asset Labeling• Disclosure

Project Finance

Long-term financing

of projects based

upon the projected

cash flows of the

project rather than

the balance sheets of

its sponsors.

Near-Term: Increase Deal-Flow

• Increase Confidence in Savings

• Reduce Transaction Costs

• Streamline Origination Process

• Develop Data to Manage Performance

• Attract Project Finance Investors

• Enable Portfolios and Securitization

Long-Term: Reduce Performance Risk

How Do You Know What Your Getting?

A

B

C

BASELINING

• Existing Building • Drawings• Weather File• Energy Usage• Energy Rates• Occupancy

ICP Energy Performance Protocols

SAVINGS

• Model File• Calibration Data• Bid Packages• Certifications

COMMISSION

• Cx Plan• Cx Authority• Test Procedures• Facilities Req.

OPERATIONS

• BMS Points• Fault Plan• Maintenance

Plan

MEASUREME

• M&V Model • Regression

Model• Adjustments• Impact• Baseline

Adjustments

Cx

Investor Ready Energy Efficiency

• Simplify technical underwriting process

• Ensure projects follow industry best practices

• Increase confidence in project savings

QualityAssurance

Project Development

Investor Ready Energy Efficiency

Building OwnersGreater confidence in savings

Access competitive financing

Financial Markets Ensure performance risk is managed

Create large pools of conforming projects

Project DevelopersConnect projects to capital

Manage performance risk

Insurance IndustryUnderwrite performance risk

Reduce transaction time and costs

Energy Service CompaniesIncrease deal flow by accessing channels

Reduce engineering transaction costs

Manage performance risk

Technology ProvidersCommon project taxonomy that crosses platforms

Help your customers connect projects to investors

Utilities / Capacity MarketsMeet capacity and regulatory requirements

Manage EM&V risk

Programs and NGOsLink efforts to a marketplace of investors

Develop a national market with common standards

Investor Confidence Project Roadmap

• Large Commercial– Larger Project (over $1MM), Whole-building retrofits

– Large Commercial Update v1.1 Released June ‘13.

• Standard Commercial – Smaller projects (under $1MM), Lighter engineering requirements

– V1 Released September 2013

• Targeted Commercial– Single Measure or Non-Interactive Retrofits

– Released January 2014

• Multifamily (Targeted / Standard / Large)– Release April / May 2014

Open Energy Data can be freely used, shared and built-on by anyone, anywhere, for any purpose.

OPEN ENERGY DATA Initiative

• PHASE I - Residential Unsecured Energy Efficiency Loan Data4 Programs / $103,649,269 Loan Volume / 11,479 Loans

• PHASE II – Expand Dataset / Open Energy Data Platform – Commercial / Multifamily / Single Family

– Project / Building Details / Underwriting

– Energy Efficiency Performance

Energy Efficiency Loan Dashboard – Volume by Program

Next Steps for ICP

• Ally Network and Partnership– Expand Network of ICP Allies

• Project Developers• Energy Efficiency Investors

– Create alignment across Public Energy Efficiency Programs• Commercial PACE / OBR• Benchmarking Initiatives• Market Transformation (Better Buildings / Arch 2030 / etc.)

• Open Energy Data– Expand platform to include additional datasets

– Capture actuarial data associated with ICP protocols

• Investor Confidence Project - Europe– Developing sister international ICP for the EU and UK

Thank You to our ICP Ally Network

www.EEperformance.org