introduction to the european energy efficiency...
TRANSCRIPT
Introduction to the European
Energy Efficiency Fund
February 2018
Agenda
2
1
2
Key elements
Portfolio overview
Mis
sio
n eeef is an innovative public-private partnership dedicated to mitigating climate change through market based financing in the member states of the European Union
Capital Initial capitalization
of the fund amounting to €265m provided by the European Commission, the European Investment Bank, Cassa Depositi e Prestiti andDeutsche Bank B
eneficia
ries Municipal, local
and regional authorities or public and private entities acting on behalf of those authorities such as utilities, ESCOs, social housing associations, public transportation providers etc.
Investm
ents
Fund’s investments are split into three project categories:
- Energy Efficiency (EE)
- Renewable Energy (RE)
- Clean Urban Transport (CUT)
eeef at a glance
3
Objectives and sponsors of the eeef
4
ESPT
FR
DE
IT
IE
GB
FI
SE
PL
AT
CZ
RO
BG
HU
LT
LV
EE
DK
NL
BE
LU
GR
CY
SK
SI HR
- Geographical scope of eeef -
Background
▪ EU 2030 Framework for climate and energy
▪ EU-wide targets: cut of greenhouse gas emissions by 40%, increase of the use of renewable energy by at least 27% and improvement of energy efficiency by at least 27%
▪ Massive potential for EE, small scale RE and Clean Urban Transport in the European public sector
eeef target
European
Commission
(Initiator)
European
Investment Bank
(Founding investor)
Cassa Depositi e
Prestiti
(Founding investor)
Deutsche Bank
(Investor)
Sponsors
MT
Added value of the European Energy
Efficiency Fund
If you are a
Public Entity
▪ …similar to City ofVenlo (NL), CHAP Social HousingAssociation (UK)…
Private companyliasing with a publicentity
▪ …similar toManutencop (IT), Enertika (ES), Bolloré(FR), EDF Group (FR), Johnson Controls (DE)…
Financial Institution financing the above
▪ …similar to BancaTransilvania (RO)…
Developing a project in
Renewable Energy
▪ As we have done with: City of Orléans / Rennes (FR), CHAP SocialHousing Ass. (UK)
Energy Efficiency
▪ As we have done with: City of Venlo (NL), Region Rhône Alpes(FR), Sant‘OrsolaHospital (IT), Universidad Politecnicade Madrid (ES), BancaTransilvania (RO), Jewish Museum of Berlin (DE), Munich University (DE), CHAP SocialHousing Ass. (UK)
Clean Urban Transport
▪ As we have done with: Bolloré – Paris, Lyon, Bordeaux (FR)
With thesefeatures
Avoiding CO2e emissions at
least for 20% ofthe baseline
Looking for funding in a
(flexible) range between 5 and
25 €m
In one of the 28 EU countries
eeef can supportyour project providing
Tailor made funding
Debt▪ e.g. City of Venlo (NL),
Bolloré (FR), Region Rhône-Alpes (FR), CHAP Social Housing Ass. (UK), Sant‘Orsola Hospital (IT)
Equity▪ e.g. City of Rennes (FR),
City of Orléans (FR)
Mezzanine▪ e.g. Banca Transilvania
(RO)
Forfaiting structures▪ e.g. Universidad Politecnica
(ES)
Technical Assistance
5
Advantages of the eeef
Know how pooled at the European level with a lean decision process
The Fund is acting as center of competence for financing of EE and RE projects with a public
link across jurisdictions –currently working with nearly
30 cities and regional authorities in Europe
Experienced professionals along the investment decision process, taking no longer than 6 weeks to reach investment
commitment
Broad spectrum of financing instruments with long maturities
Corporate and/or project finance through senior debt,
mezzanine, equity, leasing and forfaiting facilities.
Maturities up to 15 years
Fund can also operate as the sole investor to simplify
implementation and get lower execution costs.
Equity or mezzanine capital can be provided to act as co-
sponsor
Pan-European investment approach
Risk diversification of portfolioacross EU28 Member States
All agreements for investments taking into consideration local
requirements of each European location
6
eeef investment structure
7
Role of Deutsche Bank in the eeef
8
Key point of contact for all sponsors and project companies, eeef investors and service providers
Fund Manager
Identifies, evaluates and structures the investments for the Fund (incl. following portfolio management). The final investment decision is taken by the Management Board.
Investment Manager
Will source new investors for the Fund, with a focus on institutional investors from the private sector.
How to submit a project
9
▪ Get in contact directly with the Investment Manager (see last page for contacts), or
▪ Follow the guided application for eligibility check on the eeef’s website: http://eeef.eu/eligibility-check.html. Accounts can be created within just one minute.
How TA works
I. eeef selected consultants
II. eeef to match consultant with
municipality
III. Joint definition of project scope
IV. Progresses monthly
monitored by eeef
V. Bankability built all along the
development process. eeef
participating to project funding
otherwise reimbursement of
costs
Current status: selected
municipalities of Gijón (Spain)
and Ferrara (Italy).
Further funding available
New Technical Assistance facility for a higher
succes rate of projects
COM TA: 16 TA projects in 8
countries, a total project volume
of €155m facilitated
All activities necessary to
prepare investments -
feasibility studies, energy
audits, assessment of economic
viability of investments, legal
support etc.
TA boundaries
No reimbursement required if
the agreed conditions are met
e.g. timeframe, leverage factor,
eeef (co-)funding
eeef coordination & monitoring activities and bankability-oriented TA enhance the
implementation rate of projects
How to apply as beneficiary
Background
experience
eeefTA
TA beneficiary
(public entity)
eeefeeef
consultantConsultancy Agreement
Remaining funding available on a first-come-first-serve basis
Application to submit to [email protected]
All info at http://www.eeef.eu/eeef-ta-facility.html
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Agenda
11
1
2
Key elements
Portfolio overview
12
Investments by Projects Investments by Country
Investments by type of Partner Institution Investments by Sector
eeef investments as of 12/2017
24%
23%19%
7%
7%
6%
4%4%
3% 2% 1% 0%
University Hospital S. Orsola Malpighi Bolloré AutolibBanca Transilvania SantanderCity of Venlo Dalkia City of RennesDalkia City of Olrèans SPL - Region Rhone-AlpesCardenden Heat and Power Universidad Politécnica de MadridJewish Museum Berlin Foundation University of Applied Sciences Munich
37%
24%
19%
9%
7%3% 1% 0%
France Italy Romania Spain
Netherlands Great Britain Germany
81%
19%
Direct Investment Financial Institution
64%
23%
13%
Energy Efficiency Clean Urban Transport Renewable Energy
13
GERMANY▪ €0.9m forfeiting loan to
Jewish Museum Berlin via
Johnson Controls‘ ESCO
(EE: building retrofit)
▪ €0.6m forfeiting loan to
University of Applied
Sciences Munich via
Johnson Controls‘ ECSO
(EE: building retrofit + CHP)
ROMANIA▪ €25m subdebt to Banca
Transilvania
(Financial Intermediary
investment: EE, RE, Clean
Urban Transport)
ITALY▪ €32m project and VAT bond
facility to project entity
upgrading University
Hospital S.Orsola Malpighi
in Bologna
(EE: reduction on energy in
entire fluid production and
distribution system)
FRANCE▪ €5.1m junior funds to project
vehicle to supply heat to City
of Orléans
(EE: CHP/biomass)
▪ €7.3m junior funds to project
vehicle to supply heat to City
of Rennes
(EE: CHP/biomass)
▪ €30m senior funding to
Bolloré
(Clean Urban Transport:
electric cars)
▪ €5m senior construction
facility to project vehicle of
Région Rhône-Alpes
(EE: schools retrofit)
eeef investments by country with
project details
SPAIN▪ €2.5m forfaiting loan to
Universidad Politécnica de
Madrid via Enertika (EE:
building retrofit)
▪ €9.2m forfaiting loan to City
of Santander via Elecnor SA
(EE: public smart lighting)
UK▪ €4.2m senior debt to project
entitiy Cardenden Heat and
Power
(EE: boiler replacement and
RE: onshore wind)
NETHERLANDS▪ €8.5m senior debt to City of
Venlo
(EE: public smart lighting)
Project description
Partners: − Progetto ISOM S.p.A (project SPV)
− University Hospital S. Orsola Malpighi (grantor
of concession)
Measures:
energy
efficiency
CCHP
− Upgrade of entire fluids’ production and distribution
system of the hospital
− Including a tri-generation plant with a district heating
and cooling network of 15 kms and two new thermal
plants
Results: − Reduction of CO2 emissions of 14,136 t p.a.,
approx. 31% compared to baseline
14
Energy efficiency upgrade of Hospital
S. Orsola Malpighi - Bologna, Italy
Location
Project structure Investment characteristics
Key data:
− Total project volume: € 41m (equity provided by Manutencoop
Facility Management, Siram, Sinloc)
− eeef funded volume: € 31.8 via a project bond structure
− Duration of financing: 20 years
Highlights:
− Largest energy efficiency upgrade in Italy under a Public Private
Partnership (PPP) framework
− Lighthouse project for the Italian and European energy efficiency
market demonstrating the positive impact of an energy efficiency
investment in a complex upgrade of the public hospital
SPV Progetto
ISOM S.p.A.
Project bond +
VAT bond
Equity funding
UHSOM (Grantor of
concession)
Concession
agreement
EPC & O&M
consortium
EPC and O&M
−
− Manutencoop Facility Management − Siram− Sinloc
Region
Emilia
Romania
Regional funding
of healthcare
Bologna, Italy
Project description
Partners: − City of Orléans, Dalkia France, eeef
Measures:
Biomass
plant/
energy
efficiency
− Dalkia won a public tender realized under a French
Regulation Commission Tender („CRE3“) for
electricity /heat generation fired by biomass
− Biomass-fired combined heat and power plant with
a capacity of 7.5 MW in electricity and 17 MW
thermal energy
Results: − Reduction of CO2 emissions of 20,500t p.a., approx.
89.1% compared to baseline
− Energy production 50,826 kWh p.a.
15
Combined Heat and Power Plant (biomass) –
City of Orléans, France
Location
Project structure Investment characteristics
Key data:
− eee is a 84.4% shareholder of Orléans Biomasse Energie s.a.s
− Total project volume: € 36m
− Total junior funds volume: € 6m
− Duration of financing: 18 years
Highlights:
− Decentralized energy supply for City of Orléans using existing
district network
− Supply of biomass within 100 km
− Long term PPA agreement with EDF
Orléans Biomasse
Energie s.a.s
Dalkia Biomasse
Orléans s.a.s
Operation and
maintenance ,
Incl. biomass supply
Contract for
electricity sale
City of
Orléans
Land rights
agreement
Construction
contract
Public concession for
Heat supply to district
heating network
EDF
Orléans, France
Project description
Partners: − University of Applied Sciences Munich (UoM),
Johnson Controls, eeef
Measures:
Building
upgrade/
energy
efficiency
− Installations of combined heat and power plant
− Installation of energy efficient lighting
− Optimization of heating
− Optimization of building management
Results: − Reduction of CO2 emissions 88t p.a. approx. 11.6%
compared to baseline
− Guaranteed energy savings € 118,860 p.a. (41.7%)
16
Location
Financing structure Investment characteristics
Key data:
− Financing volume: approx. € 0.6m
− Duration of financing: 10 years
Highlights:
− Second project with the innovative forfeiting structure
− EE measure including a CHP plant (decentralized energy
production)
− Role model for further energy efficiency investments in schools,
universities etc.
2
UoM
(Employer)ESCO (Seller)
(Purchaser)
Implementation of EE
measures acc. to
energy performance
contract (EPC)
Pays receivables/
energy savingsForfaiting agreement:
purchase of
70% of receivables /
energy savings
Savings guarantee
1
3
Building retrofit of the University of Applied
Sciences - Munich, Germany
Munich, Germany
Project description
Partners: − Banca Transilvania S.A. (‘BT’)
Measures: − EEEF and BT, one of the leading banks in Romania
signed a letter of intent regarding green lending to
support energy efficiency and renewable energy
investments
− Provision of financing to public and private building
owners, homeowner associations and municipalities,
public sector entities and private sector companies
acting on behalf of the public sector
Results: − Average CO2 emission reduction of at least 20% for
projects financed via BT
17
Location
Financing structure Investment characteristics
Key data:
− Financing volume: approx. € 25m
− Duration of financing: 10 years
Highlights:
− First cooperation of the EEEF with a financial institution and also
EEEF’s first project in Eastern Europe
− Strong local partner with credentials in financing several energy
efficiency projects
− Role model for further Financial Institutions investments(Sub-
borrowers)(Borrower)
(Lender)
Sub-loans for EE and
RE projects
Loan Agreement
Green lending cooperation with Banca Transilvania-
Cluj-Napoca, Romania
Cluj-Napoca,
Romania
Project description
Partners: − City of Venlo (Borrower)
Measures:
Energy
efficiency
Street
lighting
− The City of Venlo upgrades of the existing street
lighting network of the city with energy efficient LED
lamps
− The existing O&M contract for the street lighting
network with a private service company stays in
place and includes the upgraded lighting points
Results:− Achievement of primary energy savings of around
62% p.a. compared to baseline
18
Street lighting upgrade of the City of Venlo -
Venlo, Netherlands
Location
Project structure Investment characteristics
Key data:
− Total project volume: € 8.5m
− eeef funded volume: € 8.5m via a senior debt loan covered by the
City of Venlo
− Duration of financing: 15 years
Highlights:
− First direct lending to a municipality by eeef. The street lighting
upgrade is part of an overall green development plan of the city
− Reference project for European public authorities demonstrating
efficient financing solutions for energy efficiency and renewable
energy projects via eeef
(Lender) (Borrower)
Loan Agreement
Obligation to invest
into energy
efficiency projects
Venlo, Netherlands
Project description
Partner: − Bolloré S.A.
Measures:
Public urban
transpor-
tation
− Bolloré SA won the concession for the first large
scale electric vehicle renting scheme in the greater
Paris region (Ile-de-France)
− expansion of Bolloré’s core infrastructure (e.g. cars,
charging stations, rental kiosks)
Results:− Reduction of CO2 emissions of min. 50% compared
to baseline
19
Car-sharing programme for electric cars -
Cities of Paris, Lyon and Bordeaux, France
Location
Investment characteristics
Key data:
− Bond issue (private placement): € 30m
− Duration of financing: 5 years
− Repayment: Bullet structure
Highlights:
− First eeef transaction for clean urban transport in Europe
− 51 municipalities in the Paris/ Île-de-France region participating,
accessible to more than 4 out of 7 million inhabitants
Project structure
Paris, Lyon and
Bordeaux, France
Obligation to
expand core
infrastructure
Bond
purchase
100% 12 year concession for the
Paris/ Île-de-France region;
Lyon and Bordeaux to come
BordeauxParis Lyon
Project description
Partner: − Universidad Politécnica de Madrid (UPM)
Measures:
Energy
efficiency
Building
retrofit
− Energy efficiency measures in 32 buildings of the
University
− Substitution of the 63 oil based with the gas based
boilers
− Installation of 6,800 thermal valves in the heating
system an solar panels
− Installation of a global energy management service
Results:− Targeted primary energy savings of 27% and CO2
savings of 45% compared to baseline
20
New heating infrastructure for Universidad
Politécnica de Madrid, Spain
Location
Investment characteristics
Key data:
− Forfaiting structure to purchase receivables obligations related to
installation works: €2.5m
− Duration of financing: 9 years
− Repayment: monthly
Highlights:
− Transaction completed in three months after signing of the Energy
Management Contract by the UPM and Enertika, demonstrating the
ability of the private and public sectors to align efforts to implement
projects in the energy efficiency sector
Project structure
Madrid, Spain
2
UPM
(Employer)
(Purchaser)
Implementation of EE
measures acc. to
Energy Management
Contract
Monthly payment of
the relevant share
based on issued
invoices Purchase of
of receivables
1
4
ESCO (Seller)
3
Pledge of
equipment
Project description
Partner:− Cardenden Heat & Power Ltd
− Renewable Energy Infrastructure Fund (REIF)
Measures:
Energy
efficiency
Wind
− Gas boiler upgrade of more than 200 homes owned
by the local housing association
− Construction of small size onshore wind-farms (each
0.5MWe) in the Fife Region
Results:− Reduction of CO2 emissions of 1,732t p.a., 96%
compared to baseline
21
Investment characteristics
Key data:
− Total project volume: €5.5m (wind component installed €2.1 m)
− eeef funded volume: €4.3m via a senior loan (wind component €1.4
m)
− Duration of financing: 15 years
Highlights:
− First small scale wind power project development financed by the
eeef
− eeef collaborated with the Scottish community to address the
technical and financial aspects to plan and implement climate
change related project
Location
Cardenden, UK
Project structure
Cardenden
Heat & Power
Senior loan
Equity funding
REIF
Subordinated
loan
EPC and
O&M partners
EPC and
O&M
−
−
Ore Valley Housing Association
Energy efficiency upgrade of social housing homes
and new small size wind plants – Cardenden, UK
Project description
Partners: − ELECNOR (Sponsor)
− Municipality of Santander (grantor of
concession)
Measures:
energy
efficiency
− Conversion of existing street lights to energy
efficiency LEDs (22.300) in the City of Santander
(located in the Cantabria Region in Spain with a
population of 174,612 inhabitants)
Results: − Reduction of CO2 emissions of 4,395 t p.a., approx.
80% compared to baseline. Primary Energy Savings:
39,848 MWh p.a (80%)
22
Street Lighting PPP for the City of Santander
- Forfaiting - Cantabria Region, Spain
Location
Investment characteristics
Key data:
− eeef funded volume: € 9.2 m via a forfaiting structure (54%
purchase of existing receivables)
− Duration of financing: 13.5 years
Highlights:
− One of the largest street lighting upgrades in Spain under a Public
Private Partnership (PPP) framework.
− The project emerges from the Technical Assistance of the European
Commission, with the Municipality of Santander receiving funding to
conduct energy audits and prepare the investment programme
− Elecnor and eeef have agreed on the financing structure, signed the
forfaiting agreement, completed installations in the 6 months period
− City of Santander savings with €360K per year after the
remuneration of the ESCO partner
Santander, Spain
Agreeing to eeef‘s terms &
conditions according to
Notification
(Purchaser)
Street Lighting
Management Contract
(Concession)
Payment of
remuneration (eeef´s
share of receivables)
transferred to eeef by
the Municipality
Purchase of the
remuneration receivables
/ Drawdown at the completion
of the installation
1ESCO (Seller)
3
4
2
Agreed remuneration 15 yrs in accordance with the tender
Project structure
Project description
Partners: − Wattosun (Sponsor)
− Several Public Sector Clients (grantor of PPAs)
Measures:
Renewable
energy
− Self Consumption small scale PV Plants for several Public
Sector Clients (as municipalities, stated owned
companies). Located all across Portugal. Up to 5 Mwp.
The total project, comprising of 7 sub-projects, estimated
to use circa 21,100 of 1.68 m2 solar panels
Results: − When compared to the baseline, the total project
estimates CO2e savings of 2,650 tonnes per year and
primary energy savings of 20,736 MWh per year
23
Self Consumption PV Plants for Public Sector
Clients in Portugal – Junior Funds investment
Location
Investment characteristics
Key data:
− eeef funded volume: € 5.15 m via a mix of equity and debt
− Duration of financing: 15 years
Highlights:
− The self-consumed electricity would enable the public
authorities to minimize or even reduce their exposure to
changes in energy prices and benefit from effective electricity
cost reduction.
− eeef has signed a MoU with Wattosun and will provided the
funds when successful acceptance test is achieved for each of
the Sub-Projects.
− Portugal continues to be a global leader in the greenification of
their country’s energy mix by incorporating renewable energy
generation methods. More than 50% of its energy comes from
wind, solar and hydropower.
Portugal (Several
locations)
Public Sector
Clients
Financial Investor
Equity and debt injection /
Dividends and Repayment
1NewCos
2
Agreed remuneration 15 yrs in accordance with the PPA
Project structure
PPA Contract
Wattosun
(Sponsor)
Equity and debt injection /
Dividends and Repayment3
Contacts
European Energy Efficiency Fund (eeef)
Lada Strelnikova
+49 (69) 910 46444
Iñigo Prior
+49 (69) 910 48603
Paola Rusconi
+49 (69) 910 84768
Rahul Pratap Singh
+49 (69) 910 42612
Zarpana Signor
+49 (69) 910 49858
www.eeef.eu
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