2nd Workshop07. - 08. September, 2006

Sofia / Bulgaria

Financial Instruments

Examples of Financial Instruments – Federal Level:

- Subsidy / Loan Programmes of KfW- BAFA – creating market incentives for usage of RES

through lump-sum allowances- Eco-Tax on fossil fuels, electricity and heat - Renewable Energy Sources Act /EEG/: feed-in

tariff for photovoltaic power plants- Fed. Ministry of Food, Agriculture and Consumer

Protection: funding programme for R&D on renewable energy

Financial Instruments

Financial Instruments – Berlin:

1. Environmental Mitigation Programme (UEP)2. Energy Saving Partnership3. Solar Power Roof Initiative4. Citizens Solar Facility Berlin (Bürger

Solaranlage)

Financial Instruments

1. Environmental Mitigation Programme (UEP)

Environmental Mitigation Programme (UEP) is Berlin's most importantfunding programme to promote environmental change within the city.

running since 2000 funding of measures for the improvement of the env. situation of

Berlin aim: to accelerate the ecological structural change, to accomplish

long-term improvements in the quality of life and the environment, and to integrate the use of innovative environmental technologies in Berlin.

Funds provided by Senate State Department for Urban Development base on recommendations of B.&S.U. acting as implementing agency

1. Environmental Mitigation Programme (UEP)

UEP financed through the European Regional Development Fund (ERDF) and Berlin State

Main areas of support Max. rate of support

Business investment projects (30 – 40%)

R&D projects (30 – 65%)

Environmental management systems Socio-ecological urban development (max. 90% if public sector/

non-profit measures) Measures promoting the maintenance

and extension of nature protection

Environmental relief infrastructure projects (max. 90% if public sector/non-profit)

1. Environmental Mitigation Programme (UEP)

Results:• Total volume: 125 Mil €(thereof 80 Mil € ERDF

contribution); to date 84 Mil. • 350 project expect to be funded until 2008, at the

moment 324 projects• 45 Kindergartens, 57 schools, 14 facilities for

youngsters• CO2 reduction = 2.552 t/a• Savings on primary energy = 10.191 MWh/a

1. Environmental Mitigation Programme (UEP)

Example:

SULFURCELL offers highly innovative PV solar modules based on the absorber material

copper-indium sulfide (CIS) and are characterised by a high electricity yield - even at elevated

temperatures or under partial shading.

Financing of Sulfurcell includes public funds granted by the federal state of Berlincontributing to 45% of the overall investments of the Sulfurcell's R&D phase.

Funding is partof the Environmental Mitigation Programme which is co-financed by the European

RegionalDevelopment Fund (ERDF).

Instrument developed in Berlin by Berliner Energieagentur GmbH and Unit of Climate Protection of Department of Urban Development, City of Berlin

Aim: Reduction of energy consumption and CO2 emissions and costs for public authorities

Situation: State of Berlin enacted energy concept in 1995 with the obligation to reduce CO2 emissions by 25 % until 2010

Idea: Financing investments by Private – Public Partnership

Investments into new energy related equipment of public buildings and maintenance financed by private investors

2. Energy Saving Partnership (ESP)

2. Energy Saving Partnership (ESP)

Project philosophy

Building pools with different users (schools, office buildings, kindergartens, swimming pools, universities, nursing homes etc.)

Mix of high profitable with less profitable buildings

Investors get financed with the savings

Berlin gets a fixed share of the savings

Share of additional savings

Installed plants become property of Berlin

The contractor has to maintain all devices

2. Energy Saving Partnership (ESP)

Building Pool

City of Berlin

Energy- Saving- Partner

Energy Supplier

Construction maintenance

Energy saving measures; Technical maintenance

Natural gas

District Heating

Co-ordination, Agreement coveringSupply and Technology

OilPower

Payment

Guaranteed savings

Payment

2. Energy Saving Partnership (ESP)

Energy costs

Share

Contractor

Energy Savings

Berlin

0

20

40

60

80

100

120

96 97 98 99 0 1 2 3 4 5 6 7 8 9 10 11 12

Typical Measures Modernising existing plants like boilers, pumps, motors; heat insulation of

equipment; CHP

Demand-controlled plant optimisation and performance adjustment

Switch of energy source

Adjusting the temperature spread in the heating system

Installing heat recovery equipment

Optimisation of air-handling system

Replacement of old fashioned light bulbs by energy saving light bulbs

Measures to decrease water consumption

Creating energy savings by change of behaviour

2. Energy Saving Partnership (ESP)

Benefits Guaranteed energy cost savings during the entire contract period

Immediate share of cost savings between public authority and contractor

Guaranteed reduction of CO2 emissions

No in-house investments

One responsible contact agency for all measures for the public authority

Achieving environmental & political goals

Overcoming financial barriers caused by financial situation of the City of Berlin

2. Energy Saving Partnership (ESP)

2. Energy Saving Partnership (ESP)

Results

19 building pools with 1.300 public buildings

So far 60 Mil € invested by private contractors (incl. maintenance costs)

Energy costs cut by 25% in public buildings

Share of savings for Berlin = 20 Mil €

Accumulated CO2-reduction 60.000 t/a

Perspective: Energy Saving Partners Plus – including building and construction measures

Focus on new customers as industry, trade, hospitals, office buildings and housing industry

New field: ESP for street lighting

Instrument developed in Berlin by employees of the Unit of Climate Protection of Department of Urban Development, City of Berlin and different City District Administrations

Aim: increasing the use of renewable energy sources and reduction of CO2-emission; encouraging decentralized energy supply

Situation: State of Berlin enacted energy concept in 1995 with the obligation to reduce CO2 emissions by 25 % until 2010

Idea: Private – Public PartnershipFinancing the investments by private investorsSupply of roofs by public authoritiesVery low leasehold (1-3% of feed-in tariff) and contract

time for many years

3. Solar Roof Initiative

3. Solar Roof Initiative

Berlin Energy Program 2000 - 2003: Share of renewable energies should be doubled

Since 2002 no financial encouragement from Berlin for solar energy plants

Berlin’s Government Coalition made an agreement in 2002 to offer roofs of public buildings to install solar power plants

Solar Roof Initiative relies on private investors

Berlin’s target with new State Energy Programme 2006-2010 to raise solar energy to 10 MWp power at all.

3. Solar Roof Initiative

Initial problems e.g.

Berlin Senate + districts – lack of experience with new technology, liability and insurance of new plants

Investors: static’s, roof reparations, debt guarantees for banks

Objective trouble: lower solar radiation, EEG law uncertainty

2004 renewal of Renewable Energy Sources Act /EEG/: feed-in tariff for photovoltaic power plants, PV more attractive for investors

New start of the Solar Roof Initiative 2004 via Internet

3. Solar Roof Initiative

Results

Offer: 73 public roofs with >100.000 m2

10 contracts for 12 public buildings

721 kWp under contract

5 plants installed (122 kWp)

3. Solar Roof InitiativeFreizeit- und Erholungszentrum Wuhlheide

Standort An der Wuhlheide 197, 12459 Berlin    Stadtplan

Flach-/Schrägdach [°] Flachdach

nutzbare Dachfläche [m²] ca. 10.000

verschattungsfrei ja

Bemerkung Eine Miteinrichtung von Solar-Thermischen Anlagen ist von Interesse für die SchwimmhalleErwartet wird eine Informationseinrichtung für die Besucher

Gebäudeeigentümer Senatsverwaltung für Bildung, Jugend und Sport

Abteilung III, Jugend und Familie

Adresse Beuthstr. 6-8; 10117 Berlin

Ansprechpartner Herr Trutz/Frau Hahn

Zeichen III E 13

Adresse An der Wuhlheide 205, 12459 Berlin

Telefon 030 - 53071-254 / 419

Telefax 030 - 53071-248

E-Mail Trutz_FEZ@senbjs.verwalt-berlin.de

http://www.stadtentwicklung.berlin.de/umwelt/klimaschutz/solardachboerse/index.shtml

Citizens Solar Facility (Bürger Solaranlagen) Berlin

Instrument developed in Berlin by Citizens respective the association for solar energy – Solar Group e.V.

Aim: increasing the use of renewable energy sources and reduction of CO2-emission, encouraging decentralized energy supply

Situation: State of Berlin enacted energy concept in 1995 with the obligation to reduce CO2 emissions by 25 % until 2010

Idea: Private – Private PartnershipFinancing the investments by private investorsSupply of roofs by private or public authoritiesNo leasehold for using the roof and contract time for many years

4. Citizens Solar Facility Berlin

- Concept: Environmentally conscious citizens get together, invest in one or more shares of a community solar facility according to their financial possibilities and start a civil law association (GbR).

- minimum contribution 500 € for 20 years

- Results: so far 4 Citizens Solar Facilities in Berlin + 3 in Brandenburg

4. Citizens Solar Facility Berlin

4. Citizens Solar Facility Berlin

Example of a citizens’ solar facility in Berlin on the roof of High School

for Technical Computer Science – Berlin Spandau:

Size: 30 kWp Expected electricity production: ca. 25,500 to 30,000 kWh per yearExpected return: ca. € 14,500 to € 17.200 per yearOn-line inception date: 6 Dec 2004Managing group: „Bürger-Solar Berlin 3 GbR“ (Civil Law Association - Citizens’ Solar Berlin 3)Investment: € 80.000 from 46 share holders, minimum investment €500, maximum allowable investment €10.000. Financing: €80.000 in shares, €60.000 loan from the Umweltbank

4. Citizens Solar Facility Berlin

Citizens’ solar facility in Berlin on the roof of High School for Technical Computer Science – Berlin Spandau:

Website: Citizens SolarFacility Berlin

4. Citizens Solar Facility Berlin

Important Websites

www.uep-berlin.de www.berliner-energieagentur.de www.hqs.sbt.siemens.com/sol/d/sol_per_dow.aspwww.E-Streetlight.comwww.solarverein-berlin.de www.sulfurcell.dewww.stadtentwicklung.berlin.de/umwelt/klimaschutz/

solardachboerse/index.shtml