sostenibilità, ambiente e obbligazioni etiche - senator harris b. mcdowell - novemer 2013

ENERGY EFFICIENCY INVESTMENTS AT SCALEA SUSTAINABLE ENERGY UTILITY MODEL

Senator Harris B. McDowell IIIDelaware Senate

September 22, 2012

MUSH Residential Commercial IndustrialInvestment Potential

$Bill

ions

Ratepayer funded programs

0

10

20

30

40

50

60

70

80

90

$1.2 Trillion (or $180 Billion) E-E Savings Opportunity

…at Risk?

Source: McKinsey Global Institute. The Case for Investing in Productivity. 2008.Consortium for Energy Efficiency. The State of the Efficiency Program Industry: Budgets, Expenditures and Impacts. 2009. Available at: http://www.cee1.org/files/StateofEEIndustry2009.pdf

© 2012 Foundation for Renewable Energy & Environment

The cost of saving energy is significantly less than electricity rates throughout the U.S.

– not consuming

Source: Erhardt-Martinez & Laitner (2008) The Size of the U.S. Energy Efficiency Market. ACEEE.

Addressing Investor Risk

Aver

age

Retu

rn In

dex

Risk Index

0%

5%

10%

15%

20%

25%

30%

35%

0% 5% 10% 15% 20% 25% 30% 35%

US T-BillsCorporate Bonds

Common Stocks

Energy Efficiency

Small Company Stocks

Source: ACEEE, 2008 . The Size of U.S. Energy Efficiency Market.


GREEN JOBS: THE SUSTAINABLE ENERGY ADVANTAGE

Permanent Jobs Created per Million US$ Invested

ENERGY EFFICIENCY & CONSERVATION 12-15

Solar Electric (PV) 15.7

COAL PLANTS

4

RENEWABLE ENERGY

10-19

Smart/Green Buildings 14.7 Air Sealing / Insulation 12.0

Solar Thermal 19.0

Wind 11.9 Geothermal 10.5INFORMATION & COMMUNICATION TECHNOLOGY

18-26 High-Speed Broadband 26.4 Smart Grid 21.7 Intelligent Transport 17.7

& ICT

^

Sources: Erhardt-Martinez & Laitner, The Size of the U.S. Energy Efficiency Market. ACEEE. 2008. American Solar Energy Society (ASES). Renewable Energy and Energy Efficiency: Economic Drivers for the 21st Century. 2007.Singh & Fehrs, The Work that Goes into Renewable Energy. REPP. 2001. London School of Economics (LSE) and the information Technology and Innovation Foundation (ITIF). The UK’s Digital Road to Recovery. 2009. ICT job creation does not include ‘network effects.’


6

The Sustainable Energy Utility

• The SEU was fist established by the State of Delaware on June 28, 2007 to:- Promote, provide and invest in energy efficiency services – Legislated Target: 30% Reduction in energy use by 2020

- Promote, provide and invest in increased deployment of Distributed Renewable Generation – Legislated Target: 10-20% of Electricity Sales from Distributed Renewables by 2020

• The SEU exists as a public/private partnership combining the best of both worlds- SEU is organized as a non-profit tax-exempt 501(c)(3) organization

- Day to day operations are conducted by for-profit companies, non-profits & others specializing in the energy sector

- Eliminates silos and provides solutions throughout the energy spectrum

Old Model New Model

The SEU is a new utility serving the interests of sustainability. It partners with existing utilities while building and investing in a sustainable energy infrastructure.

EducationEducationGasoline/

DieselGasoline/

DieselWaterWaterTransportTransport

Natural Gas

Natural Gas

ElectricityElectricity

SEULess

Transportation Energy

Less Electricity

Less Heating FuelWater/ Materials

Conservation

Distributed Renewables

Education

Green Buildings/

Green Neighborhoods

Affordable Energy

http://www.energizedelaware.org/

http://www.seu-de.org/

Developed at the Center for Energy & Environmental Policy, the Sustainable Energy Utility (SEU) is an innovative public-private partnership exclusively delivering renewable energy and conservation services

Implemented in:− Delaware− Vermont− Washington, DC− Sonoma County, CAIn development:− Philadelphia− Maryland− United Kingdom− Seoul, South Korea− Cities in China

SHIFTING THE ENERGY PARADIGM: THE SUSTAINABLE ENERGY UTILITY MODEL

SNAPSHOT OF THE DELAWARE SEU ENERGY EFFICIENCY BOND

SERIESFOCUS: PUBLIC & NON-PROFIT FACILITIES

TRANSACTION: TAX-EXEMPT BOND FINANCING

SOLD ON AUGUST 1, 2011

RATED AA+ BY STANDARD & POOR’S

PAR VALUE OF THE BOND = $67.45 MIILION;

WITH PREMIUMS, TOTAL INVESTMENT = $72.55 MILLIONBORROWING: EFFECTIVE BORROWING RATE = 3.67%

SERIAL BONDS ranged in maturity from 1 year (borrowing rate = 0.65%) to 20 years (borrowing rate = 4.37%)

BORROWING RATE FOR AVERAGE CONSERVATION MEASURE PAYBACK (~14 YEARS) = 3.77%


SERIESSIX STATE PARTICIPANTS BOND PROCEEDS (incl.

Premium)

Department of Children, Youth and Their Families $ 1.667 million

Department of Correction

$39.699 million

Department of Natural Resources and

Environmental Control & Carvel State Office Building $ 6.205 million

Legislative Hall, State of Delaware$ 5.199

million

The State Courthouse in Sussex County) $ 1.012 million

TWO HIGHER EDUCATION INSTITUTION PARTICIPANTS

Delaware State University

$12.108 million

Delaware Technical and Community College (3 campuses) $ 6.661 million


SERIESSIX ESCOs

Ameresco Honeywell Johnson Controls

Noresco Pepco Energy Services Seiberlich Trane

MAJOR INSTITUTIONAL BUYERS

Definitive Capital

Lord Abbott

Gannett

First New York Securities

Merrill Lynch

SCALING UP NEGAWATT INVESTMENTSA Sustainable Energy Infrastructure Bond

SCALING UP NEGAWATT INVESTMENTS

0

20

40

60

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100

120

140

160

Aggregate Guaranteed Savings Aggregate Payments

Deb

t Ser

vice

/Sa

ving

s ($

Mill

ion

) $38 Million$148m

$110m

~ 1,000 Jobs S&P AA+ Rating

The Delaware SEU Bond Results


Energy Efficiency Bonds, Series 2011Aggregated Projects

The White House Office of the Press Secretary For Immediate Release December 02, 2011

We Can't Wait: President Obama Announces Nearly $4 Billion Investment in Energy Upgrades to Public and Private Buildings

.

In the White House press release on the President’s Better Buildings Challenge, the Delaware & Washington DC SEUs were recognized for accomplishments meriting national attention.

At the 6th Clean Energy Summit in Manila (2011), the Asian Development Bank recommended the SEU Model to the region’s policy-makers.

http://freefutures.org

http://freefutures.org/seu-initiative/free-sustainable-energy-financing-advisory-service

Dr. John Byrne [email protected] Becker [email protected]