6TH PLENARY MEETING CONCERTED ACTION FOR THE ENERGY EFFICIENCY DIRECTIVE

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1 6TH PLENARY MEETING CONCERTED ACTION FOR THE ENERGY EFFICIENCY DIRECTIVE Financing for energy efficiency from commercial bank experience of BOS Bank (Poland) 20 October 2015 Z korzyścią dla Ciebie i świata w którym żyjesz Slajd 1 z 15

2 Bank Ochrony Środowiska S.A. Mission of the Bank for 25 years Support of undertakings dedicated to: renewable energy sources, clean environment (water management, waste management etc.) development of industry and services dedicated to the environment protection, energy efficiency, promotion of proecological attitudes and initiatives for the environment protection. Slajd 2 z 15 2

3 Proenvironmental lending in BOŚ Bank Structure of the loan portfolio (1H 2015) Size of the proenvironmental portfolio PLN 4 bln (44,5% of corporate and public finance portfolio) Other 38% Renewable Energy Sources 41% Energy Efficiency 21% 12% 6% 2% 1% Energy - saving construction Thermomodernisation Modernisation of technological processes Boilers modernisation Slajd 3 z 15

4 Ways of EE financing in BOŚ Bank Every choice may be the right one Commercial loans Price conditions Share of own funds Adaptation of financing to the implementation schedule - flexibility Acceptance of various financing sources Preferential loans Preferential pricing lower interest Incentives regarding investment expenditures subsidy, bonus Incentives in the financing construction lowered share of own funds, longer grace period, longer financing period. Slajd 4 z 15

5 Financing of EE in BOŚ product portfolio Wisdom is expressed with the right choice LOAN WITH GOOD ENERGY Investment and revolving credits dedicated to RES implemented by SPVs Value of investment loan: up to 90% of net investment value (in case of communities up to 100% gross investment value) Maturity period: up to 20 years PROGRAM PROSUMER Credit with grant dedicated to purchase and installation of micro RES (electricity/heat) EKOCREDIT PV A bundle covering: PV panels, financing, installation services, guarantee and insurance of the PV system LOAN ENERGY SAVING HOUSE Loan for individuals supporting construction or purchase of a house or an apartment meeting defined energy standards TERMOULGA (TERMORELIEF) Loan dedicated to thermal modernization and rehabilitation of buildings, including: replacement of conventional heating source with renewable. Slajd 5 z 15

6 Financing of EE in BOŚ product portfolio Co-operation with national and international counterparties LOANS IN COOPERATION WITH INTERNATIONAL FINANCIAL INSTITUTIONS Scope of financing and type of the investor agreed in loan agreements, Maturity period: up to 10 years, Grace period in capital repayment: up to 2 years, Margin and fees lower than in the standard offer LOANS IN COOPERATION WITH REGIONAL FUNDS FOR ENVIRONMENT PROTECTION AND WATER MANAGEMENT Scope od the loan, type of the investor and coditions of the financing defined in agreements with separate Funds Type of incentive: Lowered margin Subsidy to eligible costs Slajd 6 z 15

7 Barriers: Conclusions: BARRIERS FOR THE INVESTORS cost of investment / of financing, access to long term financing, lack of collateral. BARRIERS FOR THE COMMERCIAL BANK lack of collateral, credit worthness of the investor, legal issues. Subsidy needed Slajd 7 z 15

8 Thank you for your attention! Małgorzata Dusza Director of Financial Institutions Departament Phone: Please visit our web site Slajd 8 z 15

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