energy efficiency building renovation … · introduction and keynotes adrian joyce, euroace paolo...
TRANSCRIPT
ENERGY EFFICIENCY BUILDING
RENOVATION OPPORTUNITIES IN
EUROPE: MARKET CHALLENGES,
SOLUTIONS AND FINANCING TRENDS
INTRODUCTION AND KEYNOTES
Adrian Joyce, EuroACE
Paolo Michele Sonvilla, Creara
Timothèe NOËL, DG ENER
Ettore Piantoni, CEN/CENELEC
Paolo Eliezer Foa’, EEFIG
Energy efficiency policy updates and the
Smart Finance for Smart Buildings initiative
Timothèe NOËL
Policy Officer European Commission – DG ENER
CLEAN ENERGY FOR ALL EUROPEANS
What are our goals?
CREATING JOBS & GROWTH, BRINGING DOWN GREENHOUSE GAS EMISSIONS,
SECURING ENERGY SUPPLY
Demonstrating global
leadership in renewables
Delivering a fair deal for consumers
Putting energy
efficiency first
CLEAN ENERGY FOR ALL EUROPEANS
Energy Efficiency is the most cost-effective way of achieving Energy
Union objectives…
Security of supply
Decarbonization (Paris
Agreement)
Global leadership in
renewables
SUSTAINABLE GROWTH
Promoting growth, jobs and
investments
CLEAN ENERGY FOR ALL EUROPEANS
1. Building renovation has to do more
2. Financing has a more
important role to play
1.
3. Digital/ICT has a big potential to contribute
POLICY CONCLUSIONS FOR 2030
CLEAN ENERGY FOR ALL EUROPEANS
Stronger long term renovation strategies for Member States, aiming
at decarbonisation by 2050 and with a solid financial component
A Smart Readiness Indicator, to be implemented through a
combination of delegated and implementing acts
Ducting to allow cables for charging points for electric vehicles in new
and refurbished buildings; (a few) electric vehicle charging points
in all non-residential buildings
Member States will have to express their energy performance
requirements in ways that allow cross-national comparisons
New provisions to promote building automation, room temperature
controls, heating systems that are effective at part load conditions,
and the inspection of ventilation systems
The revision strengthens the EPBD in many ways, including:
CLEAN ENERGY FOR ALL EUROPEANS
Inspections on heating & air-conditioning systems are updated
(Articles 14 and 15) – new provisions on self-regulating devices
(Article 8(1))
Thresholds for inspections are set up at 70 kW for both heating and air-
conditioning systems.
Alternative measures to mandatory inspections based on advice are
kept, with reporting to the Commission.
installation of building automation and control systems in large non-
residential buildings by 2025
Additional requirements on the installation of self-regulating devices for
room temperature level control in new buildings or when heat generators
are replaced.
Focus on inspections & building automation
A GREATER ROLE FOR AUTOMATION
CLEAN ENERGY FOR ALL EUROPEANS
Extended energy
saving obligations
post 2020 (1.5% per
year)
Simplified and
streamlined rules
Coherence with
the EPBD
Review of the Energy Efficiency Directive (EED), Article 7
Will allow attracting private investment and boosting the renovation rate of
buildings, and will contribute to all climate and energy targets for 2030
Strengthened social
dimension
CLEAN ENERGY FOR ALL EUROPEANS
EED Directive 2012/27/EU
A policy framework already supporting the development of Energy
Performance Contracts
CLEAN ENERGY FOR ALL EUROPEANS
Assistance and aggregation
De-risking
The "Smart Finance for Smart Buildings" initiative to
unlock private financing
More effective use of public funds
CLEAN ENERGY FOR ALL EUROPEANS
18 bn EUR for energy efficiency
2014-2020 Already 287 bn EUR invested
(22 % for energy)
The "Smart Finance for Smart Buildings" initiative is built
on:
CLEAN ENERGY FOR ALL EUROPEANS
I. More effective use of public funds
deploying financial instruments
• Making more use of financial instruments, to achieve high leverage ratios.
• Supporting the deployment of a flexible model of guarantee instrument at national level, mixing different strands of public financing (i.e. ESIF, EFSI).
• Making the use of Energy Performance Contracting more accessible to the public sector (Eurostat recently updated its guidance on the accounting treatment of Energy Performance Contracts).
• Sustainable Energy Investment Forums (public events, national roundtables, webinars)
CLEAN ENERGY FOR ALL EUROPEANS
• Robust ex-ante assessment.
• Use of "trigger points" to unlock investments.
• Prepare the supply chain.
• Planning a piloting phase.
• Effective communication with the target audience.
• Allow flexibility in the scheme design.
• Monitoring of progress.
• Project champions.
• Technical assistance.
Critical success factors of EE financing schemes, e.g.
Review of EE financing schemes in Member States – Main outcomes
CLEAN ENERGY FOR ALL EUROPEANS
II. Providing aggregation and assistance for
project development
• Reinforce Project Development Assistance (PDA) facilities at the EU level to help project promoters bring their ideas to maturity.
• ELENA, via EIB (PDA facility funded through the European Commission’s Horizon 2020 programme)
• PDA calls launched by EASME for smaller projects
• Development of dedicated local or regional one-stop-shops for project developers.
CLEAN ENERGY FOR ALL EUROPEANS
III. De-risking energy efficiency investments
• Change the risks perception related to energy efficiency investments - in collaboration with the Energy Efficiency Financial Institutions Group (EEFIG):
• The De-risking Energy Efficiency Platform (DEEP), an open source database containing real performance data of energy efficiency projects (> 10.000 energy efficiency projects).
• http://deep.eefig.eu
• An Underwriting toolkit on the value and risk appraisal of energy efficiency investments (released on 22 June 2017). http://valueandrisk.eefig.eu
CLEAN ENERGY FOR ALL EUROPEANS
And wider efforts within the Commission to
scale up sustainable finance
Action plan on sustainable finance (March 2018): • reorient capital flows towards sustainable
investment, in order to achieve sustainable and inclusive growth
• manage financial risks stemming from
climate change, environmental degradation and social issues
• foster transparency and long-termism in
financial and economic activity
CLEAN ENERGY FOR ALL EUROPEANS
#EnergyUnion
Thank you!
Timothée Noël
Policy Officer – Energy Efficiency Unit
DG ENER, European Commission
https://ec.europa.eu/energy/en/news/commission-proposes-new-rules-consumer-
centred-clean-energy-transition
Energy Efficiency Standards for sustainable
financing Ettore Piantoni - Comat S.p.A.
Vice chair SFEM CEN/CENELEC
Chair JTC 14 Energy efficiency & management CEN-CENELEC
• Energy efficiency standards
• Financeability of energy efficiency
improvement actions
• Alignment and integration of Energy
Efficiency, Financial, Accounting,
Energy Transition processes
• Take Aways
Agenda
The multiple dimensions of energy efficiency
improvement in buildings
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
The challenge
The tools to effective decision making on
sustainable energy efficiency projects Audit
Baseline
EE Improvement
evaluation BorrowerConstruction
Commissioning
Measurement &
Verification
Value creation Value chain enabling Value capturing
EN 16247 Energy Audit.1 General
requirements2 Buildings 3 Processes4 Transport5 Competence of
energy auditors
EN 16231 Energy efficiency benchmarking
UNI 11588 Property professional valuers
EPBD 2010/31/EU Energy Performance Certificates
ISO 50006 EMSMeasuring energy performance using energy baselines and energy performance indicators. General principles and guidance
Energy Labelling Directive 2010/30/EU
ISO 17743 General quantification methods for
ex ante or expected energy savings
TEGoVAEuropean Valuation Std
NEB: Computational method, Comparative Valuation, Willingness to pay, …
UNI CEI 11352 Energy Service Company. Minimum requirements
UNI CEI 11339 Energy Management Expert
EN 15900 Energy Efficiency Services. Definition and requirements
Lender EngineeringOperation &
maintenance
Non Energy
Benefits
UNI 11612Property Assets Valuation
Borrower credit worthiness
Saving to investment Ratio
Debt Coverage Ratio
Probability of Default
Loan to Value ratio
Debt to Income ratio
Financial institutionsown risk assessmentand evaluation criteria (performance and credit risks)
IS. 399 Energy Efficient Design Management
Good Engineering practices and tools: ASHRAE, EN, IEC, standards,National standards, technology provider guidelines
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 55001Asset management
ISO 15331Criteria for design management and control of maintenance services for buildings
ISO 17741General technical rules for measurement, calculation and verification of energy savings of projects
ISO 17743Energy Saving. Definition of methodological framework applicable to calculation and reporting on energy savings
ISO 50015 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
Energy Performance Certificates
Energy Performance Contracting
Procurement contract
Maintenance contract
EN 15232 Energy Performance of building. Impact of BACs and TBMs
EN 115900 Energy efficiency Sservices
Audit
Baseline
EE Improvement
evaluation BorrowerConstruction
CommissioningMeasurement &
Verification
Value creation Value chain enabling Value capturing
Lender EngineeringOperation &
maintenance
Make Performance Risksacceptable
Make Credit Risksacceptable
Make Performance Risks acceptable
Remove uncertainty for market development success
De-Risking framework using standardized
and integrated processes
Energy efficiency &
management stds
Financial &
Eurostat, IFRS –
EAB
Accounting stds
Technical + financial + Accounting
standards
Remove uncertainty to support decision making
Energy
Audit
Fin
ancin
g
Work
flow
Construction
Com
mis
sionin
g
Contractual
Agreement
Due diligence
Underwriting Procedure
Operation
Main
tenance
Measurement Monitoring
Veri
ficati
on
Report
ing
Value generation Value Capturing + –
EPC
Standardized framework for sustainable
EE Projects
Energy Management of sustainable EE
improvement actions
Energy
Audit Fin
ancin
g
Work
flow Construction
Com
mis
sionin
g
Contractual
Agreement
Due diligence
Underwriting Procedure
Operation
Main
tenance
Measurement Monitoring
Veri
ficati
on
Report
ing
EPC
From EE standards to sustainable financing
Energy
Audit Fin
ancin
g
Construction
Com
mis
sionin
g
Guaranteed Perform.
Due diligence
Underwriting Proced.
Operation
Main
tenance
Measurement Monitoring
Veri
ficati
on
Report
ing
EP
C
Value generation Value Capturing
Avoided cost + revenues
Running costs (& personnel)
EBITDA
Depreciation- Amortization
EBIT
Interests EBT
Cash flow
Sunkcosts Fro
m s
unk c
ost
s to
valu
e g
row
th
Simple Transparent Standardized
• Baseline
Measurement
• Modelling
• Energy efficiency
improvement
estimation
• M&V plan
• Risk analysis
• EPC
Energy Audit +
EPC Financing
Construction - Commissioning
Operation & maintenance
Measurement & Verification
• 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
Technical
Foundation Business
Foundation
Technical / Business
Foundation
(R%Audit x R%Financing x R%Construction x R%O&M x R%M&V) x Value Creation
=
Value Captured
The value chain is multiplicative: is as
good as the weakest component
Align policies, Energy service models, de risking tools, accounting
procedures, to unlock financeability,
Energ
y A
udit
& E
PC
Third Party Financing
Constru
ctio
n
&
Com
missio
nin
g
UNI CEI 11352
UNI CEI 11339
EN 15900
ISO 50001
ISO 50044
ISO 50006
ISO 50015
ISO 50044
EN 16231
EN 16212 Governance
Measurement
& Monitoring
plan
EN 16247
ISO 15331 ISO 17741 ISO 17742
Multiple
benefits
Metered
energy savings
Alignment, Engagement, Commitment
EUROSTAT
IASB
CAPITAL
MARKET
New methodology: define the common
framework as management toolkit
EPIA
&
Guara
nte
ed
Perf
orm
ance
Financing - Accounting
Constru
ctio
n &
Com
missio
nin
g
EPIA
&
Guaranteed
Performance Financing
&
Accounting
Construction &
Commissioning
Operation &
Maintenance
Measurement
&
Verification
Due diligence
Borrower credit worthiness
Underwriting procedures – Stress Tests
Loan repayment
Eurostat
En
erg
y a
ud
it
En
erg
y s
avin
g c
alc
ula
tio
n
Me
asuring
Ve
rific. C
alc
ula
t. E
nP
I
To
tal co
st o
f o
wn
ers
hip
TO
C
Me
asuring
mo
nito
r &
ve
rific. p
lan
Mu
ltip
le b
en
efits
eva
luatio
n
Ris
ks a
sse
ssm
ent &
mitig
ation
Pro
ject m
an
ag
em
ent
Eq
uip
me
nt sp
ecific
atio
n
Pro
fessio
nal i
nsu
rance lia
bili
ty
Qu
alif
ied
/cert
ifie
d p
rofe
ssio
na
l
Qu
alif
ied
/cert
ifie
d S
erv
ice s
up
plie
r
Gu
ara
nte
ed P
erf
orm
ances E
PC
Ettore Piantoni based on Oshin Kanry management process
Integrated management toolkit
Streamlined process to match energy efficiency and management
standards, financial Institutions underwriting procedures and Eurostat
IASB Accounting requirements
EN ISO 50006:2014
Energy management systems -- Measuring energy
performance using energy baselines (EnB) and energy
performance indicators (EnPI) -- General principles
and guidance
EPIA
&
Guaranteed
Performance
Financing
Construction &
Commissioning
Operation &
Maintenance
Measurement
&
Verification
Due diligence
Pro
ject m
an
ag
em
ent
Borrower credit worthiness
Underwriting procedures – Stress Tests
Loan repayment
Eurosta - IASB T
ier 1
,2,3
Co
ntra
cts
En
viro
nm
ent
H&
S
Inve
stm
ent p
lan
Co
mm
issio
nin
g
Ele
ctric
al s
yste
m
Me
ch
an
ical s
yste
m
Oh
er s
yste
ms
Me
asurin
g &
mo
nito
ring
Insu
rance C
on
stru
ctio
n
En
erg
y a
ud
it
En
erg
y s
avin
g c
alc
ula
tio
n
Me
asuring
Ve
rific. C
alc
ula
tion
EnP
I
To
tal co
st o
f o
wn
ers
hip
TO
C
Me
asuring
mo
nito
ring
&
ve
rific.
pla
n
Mu
ltip
le b
en
efits
eva
luatio
n
Ris
ks a
sse
ssm
ent &
mitig
ation
Pro
ject m
an
ag
em
ent
Eq
uip
me
nt sp
ecific
atio
n
Pro
fessio
nal i
nsu
rance lia
bili
ty
Qu
alif
ied
/cert
ifie
d p
rofe
ssio
na
l
Qu
alif
ied
/cert
ifie
d S
erv
ice s
up
plie
r
Gu
ara
nte
ed P
erf
orm
ances B
P
Ettore Piantoni based on Oshin Kanry management process
Mapping the integrated process
Plan Do
Act Check
Continual
Improvement
EC Financing Sustainable Growth - Actions
Source: https://ec.europa.eu/info/sites/info/files/180308-action-plan-sustainable-growth_en.pdf
EBA Consults on its guidelines
interpreting
STS criteria for risk assessment
• 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.
• April 20, 2018 European Banking Authority opens the consultation
process on STS criteria
• STS criteria: Simple, Transparent, Standardized
Source: https://www.eba.europa.eu/-/eba-consults-on-draft-technical-standards-on-risk-retention-for-securitisation-transactions
Foster effective integration of technical
Financial & Accounting processes
«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 Energy Performance Contracts. May 2018 pag.44
Revise EN
16247
Energy Audit
Evaluation of
Energy
Efficiency
Investment
EPC Energy
performance
contracting
minimum
requirements
Energy
Measurement
and
Monitoring
Plan
Emerging needs
• Integrated management toolkit
• Energy Efficiency processes digitalization: predict faster, cheaper, better
• Green finance
• Energy Storage
• Integration of energy efficiency solutions with clean energy sources
• Blockchain
Planned standardization activities
• Market actors engagement to ensure
adherence to a formalized and shared
processes to ensure financeability and
compliance with accounting & governance
procedures
Take Aways
• Integrated Technical, Financial,
Accounting processes requirements:
Simple, Transparent, Standardized
• Technical Standards are business
tools to de-risk energy efficiency
actions
Energy
Audit Fin
ancin
g
Construction
Com
mis
sionin
g
GuaranteedPerform.
Due diligence
Underwriting Proced.
Operation
Main
tenance
Measurement Monitoring
Veri
ficati
on
Report
ing
EP
C
Value generation Value Capturing
Avoided cost + revenues
Running costs (& personnel)
EBITDA
Depreciation- Amortization
EBIT
InterestsEBT
Cash flow
SunkcostsFro
m s
unk c
ost
s to
valu
e g
row
th
EPIA
& Guaranteed
Performance
Financing
Construction &
Commissioning
Operation &
Maintenance
Measurement
&Verification
Due diligence
Pro
ject m
anagem
ent
Ope
ratio
n
Borrower credit worthiness
Underwriting procedures – Stress Tests
Loan repayment
Others applicable requirements
Tie
r 1,2
,3 C
ontra
cts
Enviro
nm
ent
H&
S
Investm
ent p
lan
Com
mis
sio
nin
g
Ele
ctrica
l syste
m
Mechanic
al s
yste
m
Oher sy
stem
s
Measurin
g &
monito
ring
Insu
rance C
onstru
ctio
n
Energ
y a
udit
Energ
y s
avin
g c
alc
ula
tion
Measuring V
erific.
Calc
ula
tion
EnP
IT
ota
l cost of ow
ners
hip
TO
C
Measuring m
onitoring &
verific.
pla
n
Multi
ple
benefit
s evalu
ation
Ris
ks
assess
ment &
mitig
atio
n
Pro
ject m
anagem
ent
Equip
ment specific
ation
Pro
fessio
nal in
sura
nce lia
bili
ty
Qualif
ied/c
ert
ified p
rofe
ssio
nal
Qualif
ied/c
ert
ifie
d S
erv
ice s
upplie
r
Guara
nte
ed P
erf
orm
ances B
P
0&M
Tra
ining
M&M
onito
ring
O&M
plan
and
costs
Enviro
nmen
t
H&S
Insu
ranc
e All r
isks
Corrective actions
Energy efficiency improvem
ent report
Other benefits im
provement report
Loan repayment/ Insurance
…………
.M
easuring and Verification EnPI
Guaranteed saving report
The challenges of financing energy efficiency
Paolo E. Foa'
EEFIG - Energy Efficiency Financial Institutions Group
• The Energy Efficiency Financial Institutions Group
(EEFIG) was established in 2013 by the European
Commission Directorate-General for Energy (DG
Energy) and United Nations Environment Program
Finance Initiative (UNEP FI)
• A multidisciplinary approach to energy efficiency
issues for existing building thanks to engagement 120
active participants from 100 organizations to deliver
clear and unambiguous messages: this the first step
for the creation of EEFIG.
• EEFIG created an open dialogue and work platform
for public and private financial institutions, industry
representatives and sector experts to identify the
barriers to the long-term financing for energy efficiency.
• It propose policy and market solutions to them.
www.trustepc.eu
About EEFIG
Mission and output
of EEFIG
• Main mission of EEFIG is:
• to identify the critical issues and propose
modus operandi for the de-risking (financial)
of the energy redevelopment interventions of
the existing buildings.
• Main goals of EEFIG are:
• the diffusion of a common language of the
energy requalification of existing buildings
between
• public and private financial operators,
• representatives of the institutions,
• industry and industry experts
• This is possible through sharing knowledge,
information, and process awareness
www.trustepc.eu
Potential Market in EU
• Existing buildings are responsible for 40% of final
energy consumption in the EU
• 75% of Europe's buildings were built with no or
minimal energy-related building codes and most of
today's buildings will still be in use in 2050
• EU need to invest (for 2°C scenario. IEA) USD 1,3
trillion in energy efficiency in buildings from 2014-
2035
www.trustepc.eu
DEEP
• Second output of EEFIG is a platform named DEEP
(De Risking Energy Efficiency Platform).
• DEEP has the merit of gathering in a single database
the ex ante and ex post characteristics of thousands of
operations carried out.
• Knowledge is power: sometimes we do not realize that
we are in possession of very precious databases.
• In our field, being in pioneering stages, we need to
create these databases.
• DEEP is a first step: I hope that in the next EEFIG
sessions it will be able to enhance this platform.
• I would also look at EDAP, the nascent platform of the
EeMAP project.
www.trustepc.eu
DEEP
• Using DEEP effectively allows evaluators to
communicate to regulators whether the loans
disbursed for energy redevelopment are more or
less risky, ceteris paribus, of similar brown loans.
• Auspicious is that in the next editions of EEFIG
there is the opportunity to make DEEP more
complete and interactive: insert also the lending and
operations already carried out and forward with the
reimbursements to strengthen the database;
• The working method to be followed starts from the
Pentagon illustrated by ing. Piantoni
www.trustepc.eu
Can finance solve
everything?
• Not all problems can be traced back to quantitative
models suitable for finance.
• In other areas, the contracts came to the rescue to
compensate where the algorithms did not arrive.
• Today the theme relating to energy redevelopment
is particularly complex.
• Insurance companies can solve problems that can
not be solved by finance.
• Just as legislation can come to the rescue of the
system with solutions that help finance to solve
issues of financing
www.trustepc.eu
Next Challenges
• Sustainable Finance Package published last week by
the European Commission contains four pillars:
• A unified EU classification system so called
Taxonomy
• Investors' duties and disclosures
• Low-carbon benchmarks
• Better to advice to clients on sustainability
• The challenge is to contribute, advice and monitor
each single government as single citizens,
organizations, banks, industries, to implement in
local legislation the statement of sustainable
Finance Packaging starting from now!
www.trustepc.eu
THANK YOU FOR YOUR ATTENTION
Contents of this document reflect only the author's view and that the
Executive Agency for Small and Medium-sized Enterprises (EASME)
is not responsible for any use that may be made of the information it contains.
SERVICES AND SOLUTIONS TO SUPPORT
THE ENERGY EFFICIENCY MARKET
Javier Lemus, Bureau Veritas Iberia
Jorge Rodrigues de Almeida, ICP Europe
GREPCon Tool - key outcomes, technical
features, and exploitation strategy Javier Lemus
Project Manager, Bureau Veritas
06/06/2018 55 www.trustepc.eu 55
GREPCON TOOL
Source: Trust EPC South, EEFIG
GREPCon Tool - Green Rating
for Energy Performance
Contratcs Tool:
Is a tool that provides a
standardized approach to
calculation of energy saving
measures. This, together with
further technical calculations,
allows for reaching comparable
results, trusted by the market and
financial institutions.
Building types, which can be assessed
using the GREPCon Tool, are:
• Office
• Retail
• Logistic
• Hospitality (e.g., hotels)
• Healthcare
• Education (e.g., schools,
universities, etc)
• Sport & Leisure Centres .
www.trustepc.eu
06/06/2018 56 www.trustepc.eu 56
GREPCON SERVICE
56
What do we offer?
Promotion of dialogue and synergies between the EPC offer side, the tertiary
sector demand side and the financing side.
Training on financing solutions and EPC basics for all stakeholders involved
An investment assessment and benchmarking tool based on the Green
Rating™ methodology and tools by:
Reducing transaction costs thanks to its
standardised approach
Facilitating the financing process for
small/medium projects
Providing a independent third party certification
www.trustepc.eu
06/06/2018 58 www.trustepc.eu 58
INTRODUCTION
Why GREPCon Tool? What is different?
• Provides a standardized approach to calculation of energy saving
measures based on Green Rating methodology.
• Able to calculate the cross-effects between the selected energy
saving measures and their economic impact.
• Comparable results, trusted by the market and financial
institutions.
• Provides comparability of project on pan-European scale, adding
further levels of confidence to all aspects of setting up an Energy
Performance Contract (EPC).
Source: Trust EPC South, EEFIG
www.trustepc.eu
06/06/2018 59 www.trustepc.eu 59
INTRODUCTION
Why this is different from other tools available?
The tool is different, because currently, there is no Tool to
standardize Energy Performance Contracting (EPC) technical
calculations, put them under a common framework and feed them
all into a fully operational tool, which is designed to be used by
accredited experts and to provide fully comparable results.
Regardless of the building; a client, energy service company
(ESCO) or bank is looking at Energy Performance Contracting.
Source: Trust EPC South, EEFIG
www.trustepc.eu
06/06/2018 60 www.trustepc.eu
USER
BUILDING
TOOL APPROACH
GREEN RATING™ METHODOLOGY
ACTUAL POTENTIAL
ACTUAL
INTRINSIC POTENTIAL INTRINSIC
POTENTIAL ACTUAL
Achievable through
implementation of
operational and
behavioural
recommendations
POTENTIAL INTRINSIC
Achievable through
implementation of tech.
recommendations
covering the building
design & equipment
INTRINSIC
Related to building
design, equipment and
physical provisions
ACTUAL
Covers the building as it
is, with its operation and
tenants’ behavior
Four levels of performance
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TOOL APPROACH
KEY INDICATORS
ENERGY: bills, modelling,
conventional scenario
CARBON: Energy
Indicator
WATER bills, modelling,
conventional scenario
TRANSPORT questionnaires (interviews and
audit)
WASTE questionnaires (interviews and
audit)
WELLBEING questionnaires (interviews and
audit)
Qualitative Indicators Quantitative Indicators
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GREEN RATING FOR EPC
UPDATED GR METHODOLOGY
Identification of Energy Efficiency Measures:
• By the Tool, based on building data provided
• By the Auditor, from the default list
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Identification and calculation of EE
and RES measures
Each EE and RES Measure calculation is based on the data provided by the auditor
9 Thermostatic valves for radiators No
Measure n.º Title Criterion 1
TRV
unitary
cost (€)
128
Heating system
Current
consumption
(kWh/year)
Introduce TRV's?Number of TRV's
to be installed
Heating system 1 1,500,000.00 Yes 75
Number of
radiators
1,500,000
75
Savings
(kWh/year)
Simple payback
time (years)
9,600 1,425,000 1,425,000 75,000 5.1
Total cost
(€)
New
consumption
(installed) (kWh)
New
consumption
(total) (kWh)
5.19,600 1,425,000 1,425,000 75,000
Savings (€)
1,875
1,875
Gas kWh/year 34%
Electricity Heating 2 kWh/year 10%
Electricity kWh/year 11%
1,500,000
456,000
Heating 1
500,000Cooling
THE PROCESS
GREEN RATING FOR EPC
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Identification and calculation of EE
and RES measures
Each EE and RES Measure can be implemented for the whole or only a part of its respective system / energy use
9 Thermostatic valves for radiators No
Measure n.º Title Criterion 1
Gas kWh/year 34%
Electricity Heating 2 kWh/year 10%
Electricity kWh/year 11%
1,500,000
456,000
Heating 1
500,000Cooling
TRV
unitary
cost (€)
128
Number of TRV's
to be installed
Savings
(kWh/year)
50 6,400 950,000 1,450,000 50,000
Total cost
(€)
New
consumption
(installed) (kWh)
New
consumption
(total) (kWh)
6,400 950,000 1,450,000 50,000
Heating system
Current
consumption
(kWh/year)
Heating system 1 1,500,000.00
Number of
radiators
1,500,000
75
THE PROCESS
GREEN RATING FOR EPC
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Identification and calculation of EE
and RES measures
Each EE and RES Measure calculation is based on the data provided by the auditor
9 Thermostatic valves for radiators No
Measure n.º Title Criterion 1
Building system link: Heating
EPC RECOMMENDATION SHEET
Energy Efficiency Measure 9
Thermostatic valves for radiators
Measure automatically identified? YES
Recommendation criterion type: No TRV's
Number of possible criteria: 1
Number of criteria met: 1
Measure criteria
Criterion met?
Criterion 1: No Thermostatic Radiator Valves on radiators. Yes
Normal boiler
125
Number of boilers (or other heating
equipment)*
Output power boiler 2 (kW)*
Production type*
Output power boiler 1 (kW)*
Description Heating 1
Input power boiler 1 (kW)* 140
5
Output power boiler 3 (kW)*
Output power boiler 4 (kW)*
Number of TRV's If TRV's present0
Wet radiatorsEmission type*
Number of emitters* 75
Heating*
Cooling*
Gas
Electricity
THE PROCESS
GREEN RATING FOR EPC
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MEASURES
GREEN RATING FOR EPC
Energy Use No. Title
Lighting
(5)
1 Substitution of conventional lamps
2 Replacement of lamps ballast
3 Occupancy and presence sensors
4 Photocell to dim luminous flux based on natural light
5 Occupancy and presence sensors combined with photocell
HVAC
(20)
6 Substitution of a low efficiency chiller with inverter chiller
7 Substitution of a low efficiency heat pumps with high efficiency
8 Freecooling system
9 Thermostatic valves for radiators
10 Variable frequency drives for air handling units by CO2 sensors or occupancy sensors
11 Variable frequency drives for extraction vents controlled by CO2 sensors or occupancy sensors
12 Variable frequency drives for air handling units and extraction vents controlled by CO2 sensors or occupancy
sensors
13 Installation of biomass boiler for heating
14 HVAC schedule definition
15 Automatically shut off air conditioning or heating when a monitored door or window remains open for a period of
time
16 Substitution of doors
17 Substitution of windows
18 Air curtains
19 Thermal insulation of building envelope
20 Installation of sun shading devices
21 Improve solar factor
22 Substitution of conventional boiler with condensing boiler
23 Substitution of the boiler burner
24 Pipework and boiler insulation
25 Variable frequency drives for pumps
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MEASURES
GREEN RATING FOR EPC
Energy Use No. Title
HW
(8)
26 Heat recovery systems
27 Water saving aerators
28 Swimming pool heat cover
29 Substitution or implementation of heat exchanger
30 Substitution of conventional boiler with condensing boiler
31 Substitution of the boiler burner
32 Pipework and boiler insulation
33 Variable frequency drives for pumps
Reneweble
energy
sources
(6)
34 Micro Cogeneration
35 Geothermal heat pump
36 Solar thermal plant
37 Photovoltaic plant
38 Small wind turbine
39 Micro hydropower
Others
(7)
40 Capacitive power factor correction
41 Building Energy Management System
42 Substitution of hydraulic motors with electric motors in elevators
43 Substitution of conventional pumps with high efficiency pumps
44 Implementation of Energy Star procedure in computers
45 Substitution of conventional computer monitors with TFT
46 Substitution of conventional appliances with efficient appliances
All (1) 47 Operation times redefinition
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GREEN RATING FOR EPC
THE PROCESS: SUMMARY
Iterative Financial Calculation
Each copy of the Financial Tool calculates its own set of measures
GR Tool extracts results from all copies of the Financial Tool and presents six top results
Measure Transfer
GR Tool generates one Financial Tool per Measure or Group of Measures
GR Tool transfers Measure Data to the Financial Tool
Measure Generation
GR Tool Calculates the EE Measures
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FINANCIAL ASSESSMENT
FINANCIAL TOOL SCENARIOS
FINANCIAL TOOL SCENARIOS
• EPC project
the project is funded or participated by an Energy Performance Contract (EPC), which is an alternative financing mechanism designed to accelerate investment in cost effective energy savings. In this scenario, energy saving benefits can be shared with the client
• Client financing through a loan
is the typical case of financing a project through a loan between the client and the bank directly
• 100% equity (no financing)
when the client decides to implement the project through own funds.
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FINANCIAL ASSESMENT
FINANCIAL ASSESSMENT
Scenario Case IRR1 NPV2 (€)
Discounted
Payback
(years)
Minimum
DSCR3
Average
DSCR3
Negative
FCF4
(years)
Project
rating
EPC financing
Worst 5,2% -67.005 9,0 1,7 3,2 0
B Base 12,6% 40.055 8,0 2,5 3,3 0
Best 19,0% 153.646 6,0 3,2 3,6 0
Client
financing
Worst 18,9% 204.619 6,0 2,9 8,0 0
A Base 25,9% 427.409 5,0 4,2 6,9 0
Best 31,6% 717.938 4,0 6,0 6,8 0
Project (100%
equity)
Worst 14,4% 154.885 7,0 - - 0
A Base 18,8% 367.910 6,0 - - 0
Best 22,8% 648.995 5,0 - - 0
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GREPCON ASSESSMENT
GLOBAL RESULTS
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OOVVEERRAALLLL PPEERRFFOORRMMAANNCCEE
QQUUAANNTTIITTAATTIIVVEE IINNTTRRIINNSSIICC VVAALLUUEESS
PPEERRFFOORRMMAANNCCEE RRAATTIINNGG SSUUMMMMAARRYY
2 3 4 5 6 7 8 9
H igh 1
Low
5,5
Indicator
Intrinsic Value
162
46
0,18
kgCO2eq/m2/year
kWh/m2/year
m3/m2/year
Weighting
30%
20%
15%
15%
10%
10%
7+
5+
6
6
4 4+
7+
5
INTRINSICPOTENTIAL
INTRINSIC
6
5,4 5,9 5,5
6 5+
5+ 6
4 5
6,0
5
3+ 3+
5+
3+
4+
OVERALL RATING (from 1 to 9) ACTUAL POTENTIAL
ACTUAL
Overall Performance
7+ 7+
4+
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GREPCON ASSESSMENT
GLOBAL RESULTS – Quality ratings
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A. Water
> 1,7 1,7 – 1,3 1,3 – 1,0 1,0 – 0,7 0,7 – 0,5 0,5 – 0,3 0,3 – 0,15 0,15 - 0,05 < 0,05 > 1,9 1,7 – 1,9 1,5 – 1,7 1,3 – 1,5 1,1 – 1,3 0,9 – 1,1 0,7 – 0,9 0,7 - 0,5 < 0,5 > 450 450 - 375 375 - 300 300 - 240 240 - 210 210 - 180 180 - 120 120 - 30 < 30
Actual 0,22
m3/m2/year
7+
7+
Potential Actual
0,22
2 3 4 5 6 7 8 9
H igh 1
Low
Intrinsic 0,18 7+
7+ Potential Intrinsic
0,18
A. Carbon (energy related CO2 equivalent emissions)
Actual 44
kgCO2eq/m2/year
6
6
Potential Actual
40
2 3 4 5 6 7 8 9
H igh 1
Low
Intrinsic 46 5+
6
Potential Intrinsic
39
> 135 135 – 108 108 – 84 84 – 63 63 – 45 45 – 30 30 – 18 18 - 9 < 9 > 450 450 - 375 375 - 300 300 - 240 240 - 210 210 - 180 180 - 120 120 - 30 < 30
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GREPCON ASSESSMENT
GLOBAL RESULTS – Quality ratings
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A. Transport
Actual
5
4
Potential Actual
2 3 4 5 6 7 8 9
H igh 1
Low
Intrinsic
4
4+
Potential Intrinsic
A. Wellbeing
Actual
5
4+
Potential Actual
2 3 4 5 6 7 8 9
H igh 1
Low
Intrinsic
4+
5+ Potential Intrinsic
A. Waste
Actual
3+
3+
Potential Actual
2 3 4 5 6 7 8 9
H igh 1
Low
Intrinsic
3+
5
Potential Intrinsic
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GREPCON ASSESSMENT
GLOBAL RESULTS
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No.
Energy saving measures to be
implemented
Estimated
Savings
(kWh/year)
Estimated
investments (€)
Estimated
Payback
1 Thermostatic valves for radiators 35.030 6.300 < 3 years
2 Occupancy and presence sensors 32.760 9.357 < 4 years
3 Variable frequency drives for pumps - HVAC 16.450 4.200 < 4 years
Indicator Improvement Potential:
Intrinsic Performance
Energy
Rec1: Substitution of conventional lamps
Rec3: Occupancy and presence sensors
Rec25: Variable frecuency drives for pumps
Transport To reduce the number of parking places
Carbon Recommendations to improve carbon performance are shown in the
Energy section
Water None
Wellbeing
Replacement of standard ballasy by high frecuency or electronic
ballasts
Establishment of zoned controls
Establishment of disabled facilities
Waste Introduduction of clearly labelled indivudual bulk recycling containers
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GREPCON ASSESSMENT
PROJECT RATING
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EXPLOITATION
Topic Description
Intellectual property BV holds the tool and license to all (Consortium and others) Open to
market
Fees
Minimum fee for 2 years period after project end for consortium members
then the same as for each auditing company
Fees for auditing companies (annual)
Auditors selection process Individual certification (easier to set-up and maintain)
Business model Auditing companies commercialize and invoice the end client directly. Fees
are paid to BV on annual basis (see above)
Registration process Auditing companies must register the audits with BV for the quality review or
certification.
Audit process Audit is carried out by auditing company.
Report/ approval process BV to review report and validate report (and issue a certificate)
Marketing Marketing of the service and commercialization is the responsibility of
auditing companies
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SERVICE ORGANIZATION
[st1]ADD TYPE OF STAKEHOLDER
Bureau Veritas – Technical Developments and IP management
AUDITING COMPANIES
Quality control & certificate issuance
CLIENT
Financial institute
Owner
ESCO
Companies with local presence (Spain, Italy, France, Greece,
Portugal, Croatia)
Local promotion of the services
Direct contact point for the client from sales to final report
Including but not limited to consortium partners
84
Expand geographical coverage to Northern Europe markets
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DELIVERY MODEL
CLIENT AUDITOR QUALITY
CONTROL (QC)
BUREAU
VERITAS
85
Project request Project registration
and notification to
QC
Registration
and approval
Delivery Register project
QC Request
Quality Control
Passed
Issue Certificate
Send final report &
certificate to client
Complete project
Grepcon
Certificate &
report
Facilitate site
visit / data
collection
YES
NO
YES
NO
Review /
Justifications
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THANK YOU FOR YOUR ATTENTION
Contents of this document reflect only the author's view and that the
Executive Agency for Small and Medium-sized Enterprises (EASME)
is not responsible for any use that may be made of the information it contains.
THANK YOU FOR YOUR ATTENTION
Contents of this document reflect only the author's view and that the
Executive Agency for Small and Medium-sized Enterprises (EASME)
is not responsible for any use that may be made of the information it contains.
THANK YOU FOR YOUR ATTENTION
Contents of this document reflect only the author's view and that the
Executive Agency for Small and Medium-sized Enterprises (EASME)
is not responsible for any use that may be made of the information it contains.
06/06/2018 89 www.trustepc.eu
To achieve “66% 2oC” scenario requires average investment into energy efficiency > USD 1 trillion a year
between 2016 and 2050
i.e. circa 5 x current level
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Lack of standardization (in project development and documentation) is one of the major barriers to increasing investment into energy efficiency Energy Efficiency – the first fuel for Europe
Energy efficiency projects do not yet meet the requirements of capital markets. No two projects or contracts are alike. Michael Eckhart, MD & Global head of Sustainable Finance
Standards are like DNA. They are the basic building blocks for all technology and economic systems. D.E. Purcell
Lack of standardization is a problem
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Greater performance risk
Uncertainty limiting demand
Higher transaction costs
Difficult to build capacity
Difficult to aggregate
Lack of standardization is a problem
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An international framework for reducing owner and investor risk, lowering due diligence costs, increasing certainty of savings
achievement and enabling aggregation.
Ensures transparency, consistency and trust-worthiness through best practice and independent
verification.
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IREE™ is delivered prior to investment decision
Underwriting Period
Development Period
Invest Performance Period
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What project types is IREE™ designed for?
Industry
District energy systems
ICP Investor Network represents €1.5 billion in energy efficiency project capital. They are looking for quality projects built to IREE™ standards and some provide incentives for IREE projects.
ICP Investor Network
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Industry
District energy systems
Certified Projects
3 hospitals in Liverpool, UK
Commercial office in London, UK Commercial office in Portugal Commercial office in Spain Private secondary school, UK Leisure centre, UK …
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Industry
District energy systems
How Can We Help You?
• We can certify your project • We can connect you with investors • We can connect you with industry-leading project
developers • We can help you make your city/regional/national
programme more attractive to investors • We can train and credential you which will enable you
to stand out in your industry • We can add you to our Ally Network
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Contact
Jorge Rodrigues de Almeida Managing Director, RdA – Climate Solutions
ICP Europe Director for industry, district energy and street lighting
+351 964738413
This project have received funding from the European Union’s Horizon 2020
research and innovation programme under grant agreement No 754056. The sole
responsibility for the content of this document lies with the authors. It does not
necessarily reflect the opinion of the European Union. Neither the EASME nor the
European Commission are responsible for any use that may be made of the
information contained therein.
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FINAL PANEL DISCUSSION: ENERGY EFFICIENCY BUILDING RENOTATIONS
Mariangiola Fabbri, Building Performance Institute Europe
Prof. Theocharis Tsoutsos, ReSEL – Technical University of Crete
Jessica Stromback, Joule Assets Europe
Valerie Plainemaison, EFIEES