Sustainable Energy Initiative

Transcription

1 Sustainable Energy Initiative Sustainable Energy Finance Facilities in the residential sector Nigel Jollands Securing finance for energy efficiency a practical guide for policy makers Brussels, 6 November 2012

2 Contents TheRolling Stones areright! right! EBRD at a glance EBRD s Sustainable Energy Initiative EBRD s Sustainable Energy Finance Facility general and residential Slovak Republic: SLOVSEFF Bulgaria: REECL 07/11/2012 2

3 CATALYZING PRIVATE 3 3

4 EBRD at a glance International financial institution established in 1991, promotes transition to market economies in 29 countries from Central Europe to Central Asia Owned by 63 countries and two inter governmental institutions Expanding in 2009 added Turkey, now expanding to the southern and eastern Mediterranean region Capital lbase of 30 billion Invested over 9 billion in 380 projects in 2011 Sound Banking Principles Transition Impact Environmental Sustainability Mandate 4

5 The EBRD s Sustainable Energy Initiative and investments in Municipal and Env Infrastructure EBRD region energy intensity on average 3x higher than EU. Investments in energy efficiency are key to competitiveness enhancement, global reduction of emissions of greenhouse gases, and national energy security. SEI highlights Number of projects 464 in 30 countries SEI investments 8.75 billion Expected CO2 emissions reductions million tco 2 /year Percentage of total EBRD total investments in % 1,670 SEI business volume in by sector, millions 1,030 Industrial EE Sustainable Energy Financing Facilities Cleaner Energy Production Renewable Energy Municipal and Env Infrastr 2,560 2,020 1,470 5

6 EBRD SEI Business Model The SEI portfolio is managed by the Energy Efficiency and Climate Change team and consists of the climate change /energy efficiency -relevant components of projects from across all other Banking teams. 6 SEI areas: Industrial Energy Efficiency Sustainable Energy Finance Facilities Cleaner energy production Renewable Energy Municipal and Env. Infrastructure Carbon Markets Development 6

7 Sustainable Energy Finance Facilities (SEFFs) General business model 7

8 SEFFs Coverage Central Europe and Baltic States South-eastern Europe Eastern Europe and Caucasus Central Asia Other 01 Croatia 10 Albania 17 Armenia 23 Kazakhstan 29 Russia 02 Czech Republic* 11 Bosnia & Herzegovina 18 Azerbaijan 24 Kyrgyz Republic 30 Turkey 03 Estonia 12 Bulgaria 19 Belarus 25 Mongolia 31 Egypt 04 Hungary 13 FYR Macedonia 20 Georgia 26 Tajikistan 32 Jordan 05 Latvia 14 Romania 21 Moldova 27 Turkmenistan 33 Morocco 06 Lithuania 15 Montenegro 22 Ukraine 28 Uzbek 34 Tunisia 07 Poland 16 Serbia 08 Slovak Republic 09 Slovenia *as of the end of 2007, the EBRD no longer makes investments in the Czech Republic 8

9 SEFF Advantages One-stop-shop for sub-borrowers via integrated package of loans, grants and technical assistance Overcome recognised market barriers via toolkit of technical, financial and awareness raising support activities Effective distribution channel via intermediary financial institutions to originate and enhance a wide range of sustainable energy investment opportunities Proven track record with demonstration effect of the benefits of such investments Capacity building at all levels (participating financial institutions, end-users and local experts) to promote sustainable energy finance on a sustainable basis High grant efficiency by leveraging grant money with commercial financing 9

10 SEFFs in operation Bulgaria 50m - Bulgaria 50m - 90m Ukraine 150m Slovak Republic 155m 60m - 150m Armenia 20m Georgia 20m Bulgaria Romania Western Kazakhstan 20m 80m Balkans 60m 60m Russia Turkey 100m 180m Poland Moldova Turkey Romania Bulgaria Moldova 150m 20m - 72m 675m 60m 150m 35m 10

11 SEFFs & the residential sector Two dimensions important for design of residential energy efficiency Strong HOAs and private HMCs High proportion houses High proportion apartments Weak HOAs and private HMCs How does this affect the scope of the lending for each SEFF?

12 Slovakia: Legal framework Legal empowerment of housing associations: Mandatory form of housing organisation, where collective ownership of the property; Full ownership rights of stakeholders over building and the land as reflected in the property register; Full responsibility on M&O; Housing associations elects executive body, which adopts and implements decisions i as adopted d by the simple majority of shareholders; Decisions adopted are mandatory for all shareholders in compliance with the civil code;

13 Structure of SLOVSEFF EBRD BISDF EBRD BIDSF Funded Funded Contract Contract Credit Line Consultant Technical Assistance Energy Audits Training And Marketing Support Participating Bank Loan Agreement Independent Energy Expert Implementation Verification Sub-Borrower

14 SLOVSEFF ( ) Residential Sector Grant Incentives 10-15% of loan amount (calculated on % of expected savings) Average Savings 34% against baseline Total Share of CO 2 Emissions Reduction 23% Eligible Sub-projects: insulation of the building envelope (external walls, roofs, basements) efficient boilers, micro-cogeneration heat substations and heat meters balancing of heat systems individual heat consumption measurement systems new double-glazed windows new radiators urban renewable energy systems Total 500 sub-projects so far

15 Sustainable Energy Financing Facilities Case Study SLOVSEFF Residential Sector Case Study Spokojné Bývanie ( Happy Living ) Specific energy consumption for space heating - Before 115 (kwh/m²) - After 65 (kwh/m²) - Savings 44%

16 Bulgaria: REECL REECL (Oct April 2012) Key Facts KIDSF Funded Contract Project Consultant Confirms Sub-Project compliance; Verifies implementation Training and Marketing Support 1 st loss guarantee (HOA and whole building only) EBRD Participating Banks (PBs) Sub Borrower (SBs) Credit Line Loan Agreement Framework: 90 million 50 million ( ) 40 million ( ) Signedwith PBs: 74 million Eligibility: houses, apartments and apartment buildings, HMCs KIDSF support of 24.6 million for incentives and TA Finance disbursed: 47 million Seasonal performance with strong and accelerating y o y trend Number of projects: 31,000 Energy savings: 10.6 m/year Energy savings: 140 GWh per year Carbon reductions: 178,000 tons CO2 per year 16

17 Bulgaria REECL: Eligibility Criteria Dwelling level Subprojects Sub- Borrowers Dwelling and Building level Subprojects Sub- Projects Individuals / households owners or registered residents of apartments / family houses Group of individuals / residents implementing the same type of technical measures Association of Apartment Owners / Condominiums allowed to apply for several Sub-projects and for implementation of different measures in each of them, but without duplicating the same measure in one single Sub-project (dwelling or building) Only one Sub-loan application per eligible measure may be submitted for the same Sub-project (dwelling or building) Replacement of windows, gas boilers, biomass boilers/stoves, heat pumps, solar thermal, and thermal insulation (walls, roofs, floor), building photovoltaic systems, up-grade of building-level central space heating installation Apartment Buildings are eligible for thermal insulation of outdoor walls, only if one or more façades of a Building are going to be insulated completely from the ground level to the roof Groups of residents should implement technical measures according to conceptual design prepared by the Consultant and agreed on General Meeting Building level Subprojects Costs Costs for equipment / technology, installation, engineering and commissioning, energy certificate 17

18 Bulgaria: REECL Market Penetration Rates Impact High performing (eligible) technologies Share funded by REECL EE Windows Close to zero => 4% 30% High grade insulation (roof, wall, floor) Efficient gas boilers and associated heating systems Close to zero => 3% 18% Close to 45% => 78% 13% Solar water heaters Close to 8% => 14% 34% Heat pump heating (air-to-air) air) Close to 5% => 25% 18% 18

19 Donors Kozloduy International Decommissionin g Support Fund (KIDSF) Austria Regional Early EBRD Early Transition i Bohunice EBRD Transition Countries International Shareholder Countries Energy Decommissionin Special Fund Fund Efficiency g Support Fund Programme Fund 19

20 Summary The Rolling Stones are right! EBRD at a glance EBRD s Sustainable Energy Initiative EBRD s Sustainable Energy Finance Facility general and residential Slovak Republic: SLOVSEFF Bulgaria: REECL 07/11/