Project bundling to unlock finance for local energy efficiency implementation

Transcription

1 Project bundling to unlock finance for local energy efficiency implementation Knowledge Sharing on Management and Financing of Energy Efficiency in Multi-apartment Buildings 16 May 2018 Yerevan, Armenia Ksenia Petrichenko, Copenhagen Centre

2 The Copenhagen Centre on Energy Efficiency SEforAll and the Global EE Accelerator Platform International EE Agencies: e.g. UN Environment, IEA, IPEEC, WEC Copenhagen Centre on Energy Efficiency Regional Partners e.g. UN Regional Commissions, research/ngo community Assisting energy efficiency change in countries and cities Accelerating energy efficiency through innovation in delivery models Private Sector energy efficiency providers National and Subnational Governments Raising the profile of energy efficiency Development Banks and the Finance Community

3 Our Model: Standardisation, Upscaling and Replication Cities, towns, villages Standardised data collection & analysis Bundling of projects Financing & Procurement Investment & installation

4 The city lies on two banks of the Volga River, close to where it discharges into the Caspian Sea at an altitude of 28 meters City population: 520,000 people Oblast population: 1 mln.people Climate: temperate continental "Aralian" semi-arid climate with cold winters and hot summers

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6 Model project Residential buildings 28 five-storey houses 2 nine-storey houses Population people apartments Public buildings 1 school 2 kindergartens Commercial buildings 4 stores Energy use Hot water Gcal/year Heating Gcal/year Total Gcal/year Cooling is needed from May to October Microdistrict 6 is a part of «Trusovskij Severnyj» district, situated in the north-west part of the left Volga bank s part of Astrakhan City. It is the district with the fastest growth rate of the newly constructed floor area by 2029 (2 396 thousand m2)

7 Challenges in the district Quality and quantity of the supplied heat does not meet comfort needs of the residents Further utilisation of district heating networks may lead to accidents and emergency situations Inefficient building envelops, many buildings require capital repairs Lack of data on energy use, no energy meters, no opportunity to control energy use in apartments Barriers for financing through energy performance contracting and ESCOs Lack of locally available technical solutions and expertise Lack of awareness about EE and its benefits among the residents

8 Proposed measures for energy efficiency improvements in pilot facilities and estimated costs (EUR)

9 Need for implementation at the scale Financiers Energy Efficiency Aggregation Facility Policy-makers Aim: to provide streamlined, structured and aggregated expertise on technical, financial, legal aspects related to energy efficiency investment project development Experts Local banks ESCOs Building owners Equipment providers Industry

10 Typical lending path PROJECTS BUNDLING A structure, which brings together several relatively small-scale energy efficiency projects or activities, to form a single thematic portfolio (i.e. bundle ) above a certain investment threshold, which can be procured, administered and financed under the same structural framework Source: IRENA 2016

11 Aggregation mechanism Street lighting Technical Assessment Local actors Buildings Feasibility studies Mobility District Energy Water Sector Public Procurement Project Financing

12 Example 1: Public Street Lighting Aggregation of Municipalities : 1. Municipality A 2. Municipality B 3. Municipality C 4. Municipality D 5. Municipality E 6. Municipality F 7. Municipality G 8. Municipality H 9. Municipality I 10. Municipality J 10 X Municipalities 1. Forecast savings & Bundling 2. Project development 3. Financing 4. Public procurement 5. Implementation On-going work in Argentina: Technical assessment for the bundle is completed 41 municipalities Light fixtures to replace: Approximate total investment: 135 Million US $

13 Example 2: Public Buildings Aggregation of Buildings: 1. Buildings in Municipality A 2. Buildings in Municipality B 3. Buildings in Municipality C 4. Buildings in Municipality D 5. Buildings in Municipality E 6. Buildings in Municipality F 7. Buildings in Municipality G 8. Buildings in Municipality H 9. Buildings in Municipality I 10. Buildings in Municipality J n Municipalities ~ x million inhabitants On-going work in Belarus: Data collection for technical assessment is in progress 16 municipalities have already expressed the interest High potential for replication across typical buildings Active engagement with CoM coordinating organisation Typical public buildings: schools, & sports centres, hospitals, etc..

14 Can we bundle multifamily buildings?

15 Elements for financing EE modernisation and capital repairs of MF buildings 1. Make EE integral part of modernisation, but distinguish between measures on EE improvement and capital repairs/ maintenance in terms of sources of funding 2. Regular contributions (on a compulsory basis, by all apartment owners) into a dedicated fund/ dedicated account for maintenance and repair 3. Establish and empower management entities governing decision-making and payment collection processes in MF buildings 4. Credit facilities extended by commercial banks to designated management entities 5. Financial support from government in the co-financing of capital repair projects and the provision of state guarantees where needed 6. Any incentives or support schemes should be directly tied to the extent of energy efficiency improvements (and subsequent energy savings) 7. Transition from pilot projects towards aggregated large-scale programs IFC 2012

16 THANK YOU! Ksenia Petrichenko,