January 31, 2020

Financing energy efficiency projects – comparing the perspectives of investors and project developers – Webinar 26 February 2020

Overview

The Clean Energy for all Europeans package and the Energy Efficiency Directive, together with the higher targets set by the European Union for 2030, require a faster implementation of energy efficiency and renewable energy projects across all sectors. In particular, the building sector, which is responsible for 40% of the final energy consumption, requires a doubling of renovation rates and implementation of significant carbon emissions reduction measures.

Deployment of energy efficiency projects is still very slow and this is often due to inefficient communication between project developers and their potential investors. This creates unwanted delays in the sales process and could even prevent deal closure or lead to misuse of financial resources. Moreover, the low level of trust between the two parties, caused by their different priorities and skill-sets creates confusion and misinformation from the very outset of the project evaluation.

This webinar, which will take place on Wednesday 26th February at 3pm CET, will explain the differences between the financial calculations conducted by project developers and the return on investment calculations carried out by investors, and show how this can lead to the two parties putting widely different valuations on the same project. The webinar will also cover the benefits of enhanced energy performance contracting, which combines revenues from demand response with those of energy efficiency contracting, and the financial implications of this approach.

Organized by IERC and Joule Assets Europe within the NOVICE H2020 Project, this webinar will demonstrate how the project is working to decrease the gap between project developers and investors.

The registration is now open!

bit.ly/36Jr7pm

 

Topics Covered

  • Risk and return: key factors for a project evaluation – explanation of financial calculations made by project developers and investors and how they differ
  • Is there a difference for investors if energy efficiency project is combined with demand response?

 

Agenda

15:00 – 15:05 – Welcome, introduction and context (host)

  • Context: Clean Energy for all Europeans & Energy Efficiency Directive requires a transition in both public and private buildings. To do this, significant private investment is required
  • Problem: From our experience, there is a mismatch between expectations of project developers vs. investors
  • This webinar will explain the differences between how a project developer would typically calculate their margins on a project vs. how an investor calculates the ROI. Why are these different? What other factors influence the finance provider’s decision to invest?

15:05 – 15:30 – Risk and return: key factors for a project evaluation (Michael Pachlatko – Joule Assets)

  • Return calculations: mismatch between project developers and investors
  • Understanding risks: risk assessment is essential for investors
  • What makes a project bankable? Findings from the NOVICE project on the impact of combining revenue streams from energy efficiency and demand response on bankability.

15:30 – 15:45 – Enhanced Energy Performance Contracting – Lessons learned from the NOVICE project (Jo Southernwood – IERC)

  • Overview: what is an Enhanced Energy Performance Contract and what are the benefits?
  • Case studies and lessons learned: when does it make sense to consider combining energy efficiency with demand response? When is it not appropriate?

15:45 – 16:00 – Q&A (Host)

 

Why Attend?

  • Understand the differences between the perspective of the project developer and the investor in the financial valuation of projects
  • Learn how investors assess the bankability of energy efficiency and demand response projects
  • Learn about energy performance contracting (EPC) and the financial implications of combining revenues from energy efficiency and demand response.

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