EU EBRD SUSTAINABLE ENERGY FINANCE FACILITIES · 2014-07-03 · •EU EBRD Energy Efficiency...

CHOOSE EXPERTS, FIND PARTNERS

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EU EBRD SUSTAINABLE ENERGY FINANCE FACILITIES

AUSTRIAN BUSINESS CIRCLE – FINANȚARE ȘI SUBVENȚII –

ÎN DOMENIUL PRIVAT ȘI PUBLIC ÎN ROMÂNIA

Dan Mircea GHEORGHE – Director - Marketing & Sales Power Generation & Efficiency

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• Why sustainable energy?

• Main barriers in energy efficiency

• EBRD Sustainable Energy Programmes

• Relevant EBRD Energy Efficiency Projects in Romania

• Examples of Energy Efficiency Projects in Romania

• SE, Banks and their Clients needs

TABLE OF CONTENT

1 July 2014 2 EU EBRD Sustainable Energy Finance Facilities

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WHY SUSTAINABLE ENERGY?

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WHY SUSTAINABLE ENERGY?

Safe, clean and sustainable – a major challenge for the 21st Century

• Meeting needs for heating, cooling, electric power and transportation

• Without causing harmful repercussions for future generations

• Displacing fossil fuels – on which we are today overwhelmingly dependent

The good news is that we understand the problems of fossil fuels...

• cost – we need to dig deeper and travel further to find oil, coal and gas

• geopolitics – as lowest cost fossil fuels are far from energy markets, can lead to crises and conflicts

• environment – as evidence mounts of negative impact the health of both humans and our planet

... and we know the solutions to lower our fossil fuel dependence

• energy efficiency – doing more with less

• renewable energy – capturing inexhaustible resources from the sun, earth, wind and water

• behavioural change – finding ways to avoid energy use without adversely impacting quality of life.

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1 July 2014 EU EBRD Sustainable Energy Finance Facilities

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MAIN BARRIERS IN SUSTAINABLE ENERGY

• Lack of capacity

• Lack of information/education on energy efficiency

• Lack of motivation (energy is not the core business)

• High investment costs; Lack of local funding

• Lenders avoid financing EE (the payback of the investment and the profit are

obtained by reducing the energy consumption, not by increasing the revenues)

• Legal / regulatory/ policy barriers

• Technology barriers

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EBRD SUSTAINABLE ENERGY PROGRAMMES

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• EBRD has operated in the energy sector since 2006, during which period it has invested € 8.6 billion in 172 projects in 28 countries of operations

(source: EBRD Energy Strategy; www.ebrd.com)

• The EBRD’s Sustainable Energy Initiative (SEI) brings together investments, technical cooperation and policy dialogue to increase energy efficiency and promote renewable energy

• The Bank's sustainable energy financing includes investments in various renewable energy technologies, as well as investments in energy efficiency:

‒ upgrades and rehabilitation of power generation assets, support for loss reduction projects in T&D systems, grid enhancements to facilitate renewables, gas flaring reduction projects, coal waste recycling projects and investments in the efficient assets, efficient end-uses, etc.


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• Energy sector projects and cumulative financing under the SEI

(source: EBRD Energy Strategy- www.ebrd.com)

• The sustainable energy investments:

‒ from 10 projects for € 400 mil./yr in 2006 to 24 projects for over € 880 mil./yr in 2012

1 July 2014 7 EU EBRD Sustainable Energy Finance Facilities


http://www.ebrd.com/

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• Objective: implementation of sustainable energy projects through investments in energy efficiency

– maximize energy savings (CO2 emission reductions)

– improve productivity and increase profits

• Scope: – EE for end-users: commercial sector, services, industry, residential

– Small scale renewable energy: wind farms, run-of-river hydro plants, solar systems to provide hot water for heating, biomass, gas engines using biogas, geothermal heat supply

• Perimeter of application: all countries of operation, with initial focus in South-East Europe of 514 million €

• Values up to end 2013: 2 Billion € (55,000 clients in 20 countries)

• Concept: – Credit lines to local financial institutions for lending in energy efficiency to their clients

– Consultancy - Expert guidance to build capacity in appraising the financial and technical potential of investments for the Financial institutions and Clients (supporting in identification of eligible projects, support for financing application, marketing the benefits of the finance programme, training, etc.)

– Verification



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• EBRD is involved in SEFF programmes in:

Europe

Middle East

Central Asia



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RELEVANT EBRD PROJECTS IN ROMANIA > Ongoing Energy Efficiency financing support

• EU EBRD Energy Efficiency Finance Facility (EEFF) (www.eeff.ro): – 80 MEuro EBRD financing through Romanian Participating Banks

– For private sector companies to invest up to 2.5 million Euro in energy efficiency

– Features EU grants of 15% and EU – financed technical consultancy

• EU EBRD Romania SME Sustainable Energy Finance Facility (RoSEFF) (www.seff.ro):

– 60 MEuro EBRD financing through Romanian Participating Financial Institutions

– Lending of up to 1 Million Euro for EE or RE investment projects, for SMEs and block associations

– Features EU grants of up to 15% and EU – financed technical consultancy

• EU EBRD Municipal Finance Facility – Energy Efficiency (MFFEE): – 10 MEuro EBRD financing through BRD – Societe Generale, Romanian Participating Bank

– For public sector entities to invest up to 5 million Euro in energy efficiency or renewable energy

– Features EU grants of 10% – 20%, and EU – financed technical consultancy


http://www.eeff.ro/

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Scope: support the preparation, successful operation, administration and monitoring of the Facilities by providing technical, marketing and administration services

TRACTEBEL ENGINEERING MISSION

- Consultancy for industrial customers &

participating banks

• Customers’ projects identification and assessment

• Preparation of bankable technical studies

• Trainings

- Consultancy to EBRD

• Project management of the facilities

• Marketing of the facilities

EXAMPLES OF EE PROJECTS IN ROMANIA Consultancy for EE Financing


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EU EBRD Energy Efficiency Finance Facility (www.eeff.ro)

Participating Banks:

156 Studies prepared by Tractebel Engineering

• which support investments of 150 MEuro, with potential sub-loans of 104 MEuro

116 approved credits for energy efficiency … total value of 70 MEuro

• EU Grants of 15% for the 105 projects

• Free technical consultancy by Tractebel Engineering

EE PROJECTS IN ROMANIA


*Note: BRD, BT, CEC Bank, OTP Bank, and Raiffeisen Bank have loaned their entire EEFF funds to their clients.

http://www.eeff.ro/

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Doosan IMGB - the largest forging and casting company in Romania

•Replacing the existing steam plant, installation of an Energy Management System and rehabilitation of three furnaces

•Total energy consumption reduction: 39 GWh/year (20 %)

•GHG emissions reduction: 12,135 tCO2e/year

•Finance: based on EU/EBRD EEFF, with a sub-loan of 2,500,000 €

Sam Mills/SE-GES - the leader on the corn products market in

Romania and one of the biggest maize producers in Europe

•Installing a Jenbacher cogeneration unit of 1.72 MWe

•Energy savings: more than 19 GWh/year (32%)

•Emissions reductions: 3,145 tCO2e/year

•Finance: based on EU/EBRD EEFF, with a sub-loan of 2,500,000 €

EEFF EXAMPLES Results of Consultancy support for EE financing


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Comalat produces and markets milk, sour cream, cheese and yoghurt

using traditional Romanian recipes

•Installing a biogas boiler, an absorption chiller and heat recovery from combustion gases

•Total energy consumption reduction: 886 MWh/year (26 %)

•GHG emissions reduction: 186 tCO2e/year

•Finance: based on EU/EBRD EEFF, with a sub-loan of 257,900 €

Sterk Plast manufactures more than 200 household plastic products

•Replacing the plastic injection molding machines and extrusion blow molding machines

•Energy savings: about 2.9 GWh/year (49 %)

•Emissions reduction: 1,500 tCO2e/year

•Financed using EU/EBRD EEFF with a sub-loan of 345,000 €

EEFF EXAMPLES Results of Consultancy support for EE financing


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EU EBRD Romania SME Sustainable Energy Finance Facility (www.seff.ro)

Participating Financial Institutions

53 Studies prepared by Tractebel Engineering

• which support investments of 19 MEuro, with potential sub-loans of 15 MEuro

61 Approved Credits for sustainable energy, total value of 13 MEuro

EE PROJECTS IN ROMANIA


http://www.seff.ro/

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SIMPLE INVESTMENTS– ‘FAST-TRACK’ List of Eligible Materials and Equipment (LEME)

www.seff.ro

Simple as 1 – 2 – 3

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Uzinsider General Contractor, engineering company that

delivers turnkey installations

•Construction of MHPP in Alba County, with 2 x Kaplan Horizontal turbines of 1,236 kW each

•Financed using EU EBRD RoSEFF with a sub-loan of 900,000 €

Saucolemn, wood processing company with a ‘from the tree to

product’ approach

•Cogeneration system that uses wood-waste from the manufacturing processes to create heat and power for its operational needs, producing around 21.6 GWh per year:

• 82% in the form of heat for wood steaming and drying

• 18% is electricity, for Saucolemn’s own needs of 1.56 GWh/year and surplus to sell through the grid

•Financed using EU EBRD RoSEFF with a sub-loan of 778,322 €

RoSEFF EXAMPLES Results of Consultancy support for EE financing


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19 May 2013

Comparison EEFF RoSEFF Eligible borrowers Companies of any size SMEs (and Blocks)

Types of investments Energy Efficiency (EE) EE and Renewables

Max. Credit per company 2.5 MEuro 1 MEuro

Free technical study Yes – for large / complex Yes – for large / complex

Instant technical OK for small investments

Yes – for small / simple with loan <250,000 Euro

Yes – for small / simple with loan <250,000 Euro

EBRD Loan funding 80 MEuro 60 MEuro

No. Participating banks 6 4

Timing 2008 - 2014 2012 - 2015

EU Grants 15% Up to 15%

EU EBRD Sustainable Energy Finance Facilities 1 July 2014 19

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Contact Help Desk

Tel. 031 22 48 104

[email protected] www.seff.ro

[email protected] www.eeff.ro

20 May 2013


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Consultancy for Municipal Finance Facility – Energy Efficiency (MFFEE) ‒Consultancy for financing Energy Efficiency and Renewable Energy investment in public buildings and public infrastructure

‒Example: Consultancy support for EE financing for Bucharest municipality and Luxten: "The modernization and optimization of technical and functional parameters of the public lighting system of Dorobanti area, Bucharest”:

–investment of 4.9 MEuro

–107 MWh energy saving (38%)

–70 tCO2 emissions saving per year

EXAMPLES – EE PROJECTS IN ROMANIA

Results of Consultancy support for EE financing


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SE, BANKS AND THEIR CLIENTS NEEDS

Demand for investment financing

for Sustainable Energy

is growing fast in Romania

22 May 2013


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Business clients of banks need Sustainable Energy solutions

• Not only to 'get ahead'... but increasingly just to 'remain competitive'...

• ... as competitors – in Romania and abroad – are adopting sustainable energy

Non-business clients (e.g. municipalities) also want to invest

• to meet environmental targets and/or minimise energy costs and or meet political objectives

• such as thermal rehabilitation of apartment blocks – which has become politically 'fashionable'

Banks have to able to service customers financing needs

• Understand how to use existing financing products – to finance sustainable energy

• Develop new financing products – for significant new areas of business

• Develop enough technical understanding to be able to take a financing decision

• Training courses are designed to help banks to understand their clients sustainable energy needs!

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What financial decision-makers need to know about...

Energy Efficiency

• Many investments feature a clearly identifiable and often short term positive financial return.

• Financial savings from lower energy bills provide a revenue stream to service the loan.

• Monthly energy cost savings persist (continue to save energy/money) after the loan is repaid.

• May also feature non–energy benefits – such as increased productivity, better quality and other

benefits associated with replacing older machines and production lines.

• There are often non-financial benefits – such as warmer, more comfortable, better lit, more

productive and overall better working environment for employees.

Renewable Energy

• Typically a more capital–intensive, longer term investment than energy efficiency

• Becomes increasingly profitable over time, as energy costs rise but 'free energy' remains free

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Thank you for the attention!

www.tractebel-engineering-gdfsuez.com


EU EBRD SUSTAINABLE ENERGY FINANCE FACILITIES · 2014-07-03 · •EU EBRD Energy Efficiency...

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