4-6 October 2016 The NEC, Birmingham, UK. cleanenergylive.co.uk

Transcription

1 4-6 October 2016 The NEC, Birmingham, UK cleanenergylive.co.uk #celive

2 cleanenergylive.co.uk #celive

3 Clean Energy Live 05 October 2016 Alex Gilbert Amber Infrastructure Ltd

4 Amber Green Sustainable Fund Management Amber is a Sponsor and Fund Manager of Social and Environmental Infrastructure Assets. It has within its portfolio over 120 projects and ~ 5bn of assets under management Amber Infrastructure Utilising its own balance sheet for specific infrastructure, new energy and property investments International Public Partnerships (INPP) A public FTSE-listed infrastructure company, launched in 2006, specialising in essential social infrastructure in developed countries The London Energy Efficiency Fund (LEEF) A specialist fund, launched in 2011, established by the Mayor of London and the European Investment Bank (EIB), investing in energy efficiency and district heating in the capital s buildings The Scottish Partnership for Regeneration in Urban Centres (SPRUCE) A specialist fund, launched in 2011 by the Scottish Government and the EIB, with support from RBS, investing in Scottish regeneration 215m of JESSICA capital and a focus on direct investment (risk capital) into Storage and Communal / District Heating schemes

5 LEEF Investment Criteria An Introduction LEEF has 112m from the London Green Fund and the private sector; to be lent to public or private sector borrowers on projects that promote energy efficiency We will work with building owners, developers, ESCOs and other project promoters LEEF can also support larger projects such as Combined Heat and Power, District Heating and Renewable Energy Generation Loans are extremely flexible and competitive; with tenors of up to 10 years and interest rates from 1.70% per annum You can benefit from LEEF if You are undertaking a refurbishment programme / retrofit project in a London-located property Your works contribute to improved energy efficiency through reducing consumption and/or carbon emissions Your funding requirement is between 1m and 20m You wish to work with RE:FIT, RE:NEW or other such frameworks 5

6 Heat & Power in London: Two Sources of Finance London Energy Efficiency Fund A 112m fund; successfully deployed and now in its recycling period (until 2018) Focus on Energy Efficiency; Renewables; and Low Carbon Heat Typically offers fixed rate loan facilities flexible and up to 10 years (may be tailored to projected energy savings) Drawdown profile to match the capital expenditure 100% funding Output Targets 20% energy or carbon saving (building retrofit only) < 5,000 / tonne of CO2 saved Procurement, Finance & Delivery No requirement to procure Borrowers may wish to procure works from an ESCO using an EPC Amber Heat & Power Equity-financing energy infrastructure Likely to be DBFOM May inc. CHP, EfW, Purpose-Built Electricity Generation, Battery Storage Demographics, weak energy infrastructure and local / central government support Synergistic with Amber s PPP background and expertise Output Targets No carbon targets; Project IRR of 8-12% Procurement, Finance & Delivery May involve OJEU or other procurement Developers keen to partner with, but outsource to, ESCo specialists Amber has access to European Funds (for instance, LEEF)

7 The Changing Grid: An Opportunity for Storage Investment Traditional generation such as coal and gas turbines, use rotating equipment that naturally resist changes in frequency due to the sheer mass of the spinning turbines. Renewables like wind and solar are increasing but have less inertia per unit of generation capacity. All coal plants due to shut by 2025 with many already closing as no longer viable. Predicted losses of system inertia somewhere between 15%-20% by 2020, and up to 40% by Energy Storage, in particular, Li- Ion Batteries have the ability to respond faster than any existing technologies, making the grid more stable and reducing the requirement for existing services, effectively reducing NGET costs of managing the grid.

8 The Case for Heat Peak Gas Demand 5x level if spread evenly over the seasons 12x the Summer max 6x current peak in electricity system allowing for the fact that this is changing!

9 LEEF A Success Story? Backed 7 major carbon saving projects Invested throughout the Capital (76 buildings across 9 London Boroughs) Supported 1,600 construction and operational jobs Committed 67 million of capital Mobilised 350m external finance through our capital Saved 20,000,000 kwh of energy; the equivalent of 1,100 homes Reduced annualised CO2 emissions by 35,000 tonnes; equivalent to taking 32,000 cars off the road

10 Case Studies LEEF: PRIVATE SECTOR HEAT & POWER 14.5m Greenwich Peninsula ESCo Loan to fund an energy centre and district heat network serving the Greenwich Peninsula regeneration development 15,000 residential units and 3,500,000 sqft of commercial space to be served by the CHP and heat network Significant leverage of private sector investment Substantial (20,000 tonnes p.a.) carbon savings over scheme s life LEEF s first private sector deal and its initial funding through Recycled Capital

11 Case Studies LEEF: THE REFURB 20m Tate Foundation Off balance sheet to the Tate Gallery Flexible, low cost financing solution, using public and private sector capital Forecast energy savings of 26% p.a. (7.7GWh) Forecast CO2 savings: 2,500 tonnes Carbon neutral new-build extension Energy Conservation Measures include: pioneering transformer waste heat recovery; River Thames borehole cooling; passive measures to fabric; gallery standard lighting, metering and controls

12 Case Studies LEEF: THE EPC 13.3m St George s NHS Trust Installation of a CHP plant, remodelling of an energy centre and broad ECM retrofit An innovative source of funding to an NHS entity proceeding through the Foundation Trust conversion process Project tender won by British Gas and to be delivered under an Energy Performance Contract with guaranteed energy savings Expected to save over 7,000 tonnes of carbon and reduce energy usage by 6.5 million kwh (58%)

13 Case Studies LEEF: THE FUEL SWITCH 4.6m London Borough of Hackney Installation of a communal heating system in ten social housing blocks, providing significant fuel poverty alleviation Procured via the GLA s RE:NEW framework Provision of energy to 1,500 social housing tenants; average energy bill reduced by 56% ( 980) Potential 40% CO2 savings due to fuel switch Private sector finance, in the form of Npower ECO grant; for domestic works LBH benefits from lower maintenance costs and O&M contract with ESCO

14 Case Studies LEEF: THE FACILITY 3.6m London Borough of Croydon A low cost of finance loan to energy efficiency schemes being prioritised by the Council Over 30 separate buildings being extensively retrofitted, including: schools, libraries, social housing and civic buildings Forecast energy savings of 17% per annum ESCO procured under the GLA s RE:FIT scheme, which includes the benefit of an energy savings guarantee Wider scheme may leverage European Investment Bank monies

15 Case Studies LEEF: THE DE SCHEME 6m London Borough of Enfield Seed-capital for a substantial, path-finding district heating network Waste energy from the Edmonton (EfW) Eco Park, plus additional heat sources, to serve over 6,800 homes and businesses First project in the UK to be matchfunded through collaboration between the EIB and a JESSICA Fund Potential 50% CO2 savings compared to standard alternative (8,000 tonnes p.a.) Project advised by DEPDU, the GLA s Decentralised Energy Project Delivery Unit

16 Case Studies LEEF: THE HERITAGE BUILDING Undisclosed Salters Livery Company A debt-financed project that will reduce energy consumption by 39%, across two sites: the Salters Livery Hall on the Barbican Campus and an office block on King William Street Improves the rental capabilities of the property Forecast CO2 savings: 592 tonnes One of the first refurbishments in London to reach a BREEAM Excellent standard Debt financing ECM upgrades to: lighting; building fabric; space/water heating

17 The Investor Confidence Project The ICP is an EC Horizon 2020 project that aims to unlock access to finance by standardizing how energy efficiency projects are developed, documented and measured On Site Power Generation for a London based private sector office ESCO pays for and installs a CCHP Offtaker purchases power at less than the grid price Payback period longer than banking market is comfortable with Refinancing risk too great for the ESCO and Offtaker LEEF will address market failure given assurances on system performance and savings

18 Contact Info For further background / general information: For project / funding specific information: Contact Name Role Phone Alex Gilbert Relationship / Technical alex.gilbert@amberinfrastructure.com Peter Radford Finance peter.radford@amberinfrastructure.com Joanne Patrick Legal joanne.patrick@amberinfrastructure.com Leo Bedford Director leo.bedford@amberinfrastructure.com