Investment Grade Energy Efficiency Policy

Transcription

1 Investment Grade Energy Efficiency Policy Dr Nigel Jollands Senior Policy Manager EBRD IEA Energy Efficiency Training Week Paris, 8 June 2105

2 Why investment grade energy efficiency policy? 2

3 Contents What is energy efficiency policy? What is investment-grade energy efficiency policy? Why is IGEE policy important? How does IGEE policy differ from ordinary energy efficiency policy development? What does IGEE policy look like? When is it needed? How to target it? Examples from the EBRD 3

4 What do I mean? What is energy efficiency policy? A set of strategies, legislation, regulations, measures, programmes that together stimulate energy efficiency improvement What is investment-grade energy efficiency policy? A set of strategies, legislation, regulations, measures and programmes that together enable investments that lead to improved energy efficiency. 4

5 Why is IGEE policy important? SE4ALL Global Tracking Framework 2015 Summary Report

6 Why is IGEE policy important?

7 How is IGEE policy different to ordinary energy efficiency policy? Focused goal => delivering $ investment Extended stakeholders Criteria for evaluating appropriateness of measures for evaluating success of measures Types of measures include measures not traditionally associated with energy efficiency

8 What does IGEE policy look like? Policy framework Financial institutions Investors Financial instruments Credit lines Energy efficiency fund Direct lending Energy efficiency project Project originators Tech supplier Project aggregator Energy efficiency improvement

9 Russia residential energy efficiency - Buildings energy efficiency law and regulations - HOA law EBRD Credit lines Govt energy efficiency fund Or Apartment building energy efficiency project Credit line engineer Tech supplier HOA HOA fund Energy efficiency improvement

10 Introduction to the EBRD The EBRD is a triple-a rated* bank with a capital base of 30 billion. Operating in 35 countries from central Europe to central Asia, the EBRD: Promotes transition to market economies Mobilises foreign direct investment Improves people s lives through enhancing municipal services Encourages sustainable development The EBRD is owned by 65 countries and two inter-governmental institutions The EBRD s annual business volume (cumulative, EUR in billion) '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 ' * From all three main rating agencies (S&P, Moody s and Fitch) Note: Unaudited as at 31 December June

11 Where the EBRD invests 10 June

12 The Sustainable Energy Initiative The EBRD has been engaged in sustainable energy finance since its establishment. In 2006, the EBRD launched the SEI to address the twin challenges of energy efficiency and climate change. The EBRD was the first MDB with a dedicated pool of technical experts in-house. In 2009, the EBRD became the first MDB to set itself a carbon emissions target. In mid-2014, the EBRD has already exceeded the three year ( ) target under the UN s Sustainable Energy for All initiative. The EBRD s engagement in the context of its countries of operations: high share of heavy industry ageing infrastructure high energy intensity a lack of market-based pricing for energy 16.4 billion invested since June,

13 SEI finance since 2006 SEI investment since 2006 ( in billion) 16.4 billion invested in 926 SEI projects between 2006 and m tonnes CO 2 /y of emissions reduced SEI Phase I SEI Phase II SEI Phase III SEI by business area ( in billion) Corporate energy efficiency 4.5 Cleaner energy production 4.2 Renewable energy Sustainable energy financing facilities Municipal infrastructure energy efficiency Total 16.4 SEI by region ( in billion) Russia 3.2 South-Eastern Europe 3.1 Eastern Europe and the Caucasus 3.0 Central Europe and the Baltic 2.9 Turkey 2.1 Central Asia 1.0 South and Eastern Mediterranean (SEMED) 0.6 Regional 0.7 Total

14 The SEI business model Projects across SEI areas PROJECTS AND INVESTMENTS TECHNICAL ASSISTANCE POLICY DIALOGUE Technical assistance to overcome barriers: market analysis, energy audits, training awareness raising, grant co-financing to provide appropriate incentives and address affordability constraints Working with governments to support development of a strong institutional and regulatory framework that incentivises sustainable energy 10 June,

15 Example: EBRD s Regional Energy Efficiency Programme in the Western Balkans REEP is an integrated package of finance, technical assistance and policy dialogue, implemented jointly with the Energy Community Secretariat Objective Sustainable market for energy efficiency in the Western Balkans Window 2 Intermediated financing & Window 3 Direct financing WeBSEFF II 92m financing m grants Credit line for local FI For smaller scale EE & RE projects For both public & private sector borrowers, including ESCOs Grant funds support TA and investment incentives. WeBSEDFF (extension) 50m financing m grants Direct financing facility Medium scale RE and EE improvements in industrial enterprises Window 1 ESCO support & Policy dialogue Energy Service Companies (ESCO) 5m grants Legislative support Technical project preparation Policy dialogue support 1m + 0.5m grants EPBD Procurement of EE goods Utilities 15

16 IT software Secondary legislation REEP policy support energy efficiency in buildings EPBD support Primary legislation MEPS NCM Albania Law submitted October 2014 BiH Federation Croatia FYR Macedonia Kosovo Serbia Law submitted January 2015 Draft NCM being finalised Regulatory changes drafted and submitted 6 May 2015 NCM amendments submitted 6 May 2015 Regulatory requirements submitted 13 May 2015 Final NCM submitted 13 May 2015 EPC Review completed (14/5) Drafting regulatory amendments Final regulation submitted 11 May 2015 Inspection Calculation software EPC registry (database) Regulations reviewed Recommended amendments submitted May 2015 Beta version of software sent May 2015 Finalising software adaptation Beta version sent May 2015 Final regulation submitted 2 April 2015 Final regulations submitted 7 April 2015

17 Window 2: WeBSEFF II case study - video Energy efficiency for jam & furniture maker 17

18 Residential energy efficiency in Russia

19 Renewable energy in Kazakhstan The 1 st EBRD wind power project in Kazakhstan CLIENT Wind Power Yereymentau LLP, a special purpose vehicle incorporated in Kazakhstan. PROJECT The EBRD will finance the construction, commissioning and launch of the first largescale wind farm in Kazakhstan. The 50 MW greenfield wind power plant is located in Yereymentau in Central Kazakhstan. The project will benefit from feed-in tariffs for renewables which were introduced in The introduction of these tariffs was the result of a successful cooperation between the government of Kazakhstan and the EBRD. FINANCIAL STRUCTURE EBRD loan EUR 59.2 million of which SEI EUR 59.2 million CTF concessional loan up to EUR 18 million Total project value EUR 96 million EXPECTED IMPACT Energy production: 131,400 MWh/year Emission reductions: 120,000 tco 2 /year E2C2 involvement Policy Dialogue. Project preparation support. Structuring of TI angle. CTF concessional loan. Sale of carbon credits (TBC). CAEPC 19

20 Turn to the person next to you Select a sector in your economy you are familiar with What kind of energy efficiency measure could you use to improve the sector s energy efficiency? How would you make that measure investment grade? 20

21 Summary What is energy efficiency policy? What is investment-grade energy efficiency policy? Why is IGEE policy important? How does IGEE policy differ from ordinary energy efficiency policy development? What does IGEE policy look like? When is it needed? How to target it? Examples from the EBRD 21

22 Contacts For all further enquiries, please contact: Dr Nigel Jollands Senior Manager Energy Efficiency and Climate Change Tel: jollandn@ebrd.com EBRD, One Exchange Square London, EC2A 2JN United Kingdom 21