Energy Efficiency Standards for sustainable financing

Transcription

1 Efficiency Standards for sustainable financing Ettore Piantoni - Comat S.p.A. Coordinatore CT 212 Uso razionale e gestione energia del CTI Chair JTC 14 efficiency & management CEN-CENELEC Antonio Panvini - CTI Financing Renovation of Buildings in Italy, Croatia and Slovenia Rome May

2 Agenda The dimensions of energy efficiency improvement in buildings efficiency standards Financeability of energy efficiency improvement actions Alignment and integration of Efficiency Process and financial processes Take Aways

3 The standardization framework for Efficiency

4 Standardization in Eu 1 European standard replaces 34 national standards Gives market access to 600 mio consumers Experts 486 Technical Committees Working Groups

5 efficiency & management standards Support Decision Making Deliver Sustainable Efficiency Improvement De risk Efficiency improvement Actions Streamline processes

6 The tools to effective decision making on sustainable energy efficiency projects Audit Baseline EE Improvement evaluation Borrower Lender Engineering Construction Commissionin g Operation & maintenance Measurement & Verification Value creation Value chain enabling Value capturing EN Audit. 1 General requirements 2 Buildings 3 Processes 4 Transport 5 Competence of energy auditors EN efficiency Sservices EN efficiency benchmarking ISO EMS Measuring energy performance using energy baselines and energy performance indicators. General principles and guidance EPBD 2010/31/EU Performance Certificates Labelling Directive 2010/30/EU ISO General quantification methods for ex ante or expected energy savings TEGoVA European Valuation Std NEB: Computationa l method, Comparative Valuation, Willingness to pay, UNI Property professional valuers UNI Property Assets Valuation Performance Certificates Performance Contracting Procurement contract Maintenance contract Borrower credit worthiness Saving to investment Ratio Debt Coverage Ratio Probability of Default Loan to Value ratio Debt to Income ratio Financial institutions own risk assessment and evaluation criteria (performance and credit risks) IS. 399 Efficient Design Management Good Engineering practices and tools: ASHRAE, EN, IEC, standards, National standards, technology provider guidelines EN Performance of building. Impact of BACs and TBMs EXEED Designed certifies the asset has designed constructed, commissioned, operation and handover to the owner/operator EXEED Verified Certification of an asset against measured and verified energy performance with quantified avoided energy consumption (3 yrs) ISO Asset management ISO Criteria for design management and control of maintenance services for buildings ISO General technical rules for measurement, calculation and verification of energy savings of projects ISO Saving. Definition of methodological framework applicable to calculation and reporting on energy savings ISO EMS. M&V of energy performance for organizations EXEED Managed Certification of M&V protocol and energy performance and continual improvement (>3 yrs) EVO IPMVP Non Benefits UNI CEI Management Expert EN Efficiency Services. Definition and requirements UNI CEI Service Company. Minimum requirements

7 De-Risking framework using standardized and integrated processes Audit Baseline EE Improvement evaluation Borrower Lender Engineering Construction Commissioning Operation & maintenance Measurement & Verification Value creation Value chain enabling Value capturing Make Performance Risks acceptable efficiency & management stds Make Credit Risks acceptable IFRS EAB Accounting stds Make Performance Risks acceptable Technical + financial standards Remove uncertainty to support decision making

8 Integrated framework for sustainable EE Projects Measurement Monitoring Workflow Operation Construction Due diligence Underwriting Procedure Contractual Agreement Audit EPC Financing Commissioning Maintenance Verification Reporting Value generation Value Capturing +

9 Continuous improvement of sustainable EE improvement actions Measurement Monitoring Workflow Operation Construction Due diligence Underwriting Procedure Contractual Agreement Audit EPC Financing Commissioning Maintenance Verification Reporting

10 From EE projects to sustainable financing Simple Transparent Standardized Avoided cost + revenues Measurement Monitoring From sunk costs to value growth Running costs (& personnel) EBITDA Depreciation- Amortization EBIT Interests EBT Cash flow Sunkcosts Audit Construction Due diligence Underwriting Proced. Guaranteed Perform. Operation EPC Financing Value generation Commissioning Maintenance Reporting Verification Value Capturing

11 The value chain is multiplicative: is as good as the weakest component Technical Foundation Business Foundation Technical / Business Foundation Audit + EPC Financing Construction - Commissioning Operation & maintenance Measurement & Verification Baseline Measurement Modelling efficiency improvement estimation Due diligence Underwriting Procedures Business risks Credit worthiness Design for energy efficiency Project management Commissioning Operate for energy efficiency Maintain for energy efficiency Measurement Monitoring Reporting M&V plan Risk analysis EPC (R Audit x R Financing x R Construction x R O&M x R M&V ) x Value Creation= Value Captured R= risk %

12 Service Business Models MISE - ENEA CONSIP Servizio Energia Plus BOOT Build Own Operate Transfe LaaS Light as a Service ESA/MESA Service Agreements PPA Power Purchase Agreement Chauffage YELDCO EPC project aggregator BOOT Build Own Operate Transfer MEETS Metered Eff. Transaction EPC 2012/27/UE Annex XIII

13 Alignment, Engagement, Commitment Align policies, service models, de risking tools, accounting procedures, to unlock financeability, Metered energy savings Measurement & Monitoring plan Multiple benefits ISO ISO ISO EN EN EN Construction & Commissioning EN ISO ISO UNI CEI EN UNI CEI ISO ISO ISO Audit & EPC Third Party Financing Streamlined process for energy efficiency project and underwriting procedures

14 EC Financing Sustainable Growth - Actions Source:

15 EBA Consults on its guidelines interpreting STS criteria for risk assessment (1) April 28, 2018 European Banking Authority opens the consultation process on STS criteria STS criteria: Simple, Transparent, Standardized The Guidelines will be applied on a cross-sectoral basis throughout the Union with the aim of facilitating the adoption of the STS criteria, which is one of prerequisites for the application of a more risk-sensitive regulatory treatment under the new EU securitisation framework. (1)

16 The need to foster effective integration of technical and financial processes (1) «The specification, monitoring and reporting of the Partner s maintenance obligations is typically in addition to (but can be combined with) the specification, monitoring and reporting of the performance of the EPC assets in delivering the energy consumption and/or cost savings required under the EPC. Eurostat s comments Eurostat s view is that:. omissis, An EPC that does not meet either of these conditions does influence the statistical treatment and is automatically ON BALANCE SHEET for government.» (1) Eurostat- EIB. A Guide to the Statistical Treatment of Performance Contracts. May 2018 pag.44

17 Planned standardization activities Measurement and Monitoring Plan Revise EN Audit Evaluation of Efficiency Investment EPC performance contracting minimum requirements Emerging needs Integration of energy efficiency solutions with clean energy sources Efficiency processes digitalization Green finance Storage management through ESCO programs (capacity building)

18 Sustainable Growth Source: Elaboration from Multiple benefits of investing in energy efficient renovation of buildings Copenhagen Economics, Boosting Building Renovation : What potential and value for Europe ITRE IEEP Review of costs and benefits of energy savings

19 Take Aways Technical Standards are business tools to de-risk energy efficiency actions Integrated technical and financial processes requirements: Simple, Transparent, Standardized From sunk costs to value growth Avoided cost + revenues Running costs (& personnel) EBITDA Depreciation- Amortization EBIT Interests EBT Cash flow Sunkcosts Audit Construction Guaranteed Perform. Measurement Operation Due diligence Underwriting Proced. EPC Financing Value generation Monitoring Commissioning Maintenance Verification Reporting Value Capturing Market actors engagement to ensure adherence to a formalized and shared processes to ensure financeability Construction & Commissioning Measurement Multiple & Monitoring benefits plan ISO ISO ISO EN EN EN ISO ISO Metered energy savings UNI CEI UNI CEI Third Party Financing EN EN ISO ISO ISO Audit & EPC

20 Thank you 20