New Approaches for Energy Efficiency Investments in Buildings

Transcription

1 New Approaches for Energy Efficiency Investments in Buildings Susann Bollmann (Germany) Milan, 9 November 2015

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3 DENEFF Members

4 DENEFF Members Initiative: > 120 companies selling energy saving solutions Mission: Unlock tremendous energy savings potential > 20 reknown experts in the field of EE Principles: Cross-industry, technology neutral, highly credible Approach: Strong voice for good EE policy framework

5 After some initial progress in EE improvements Germany is lagging massively behind (10fold improvements needed!) /GJ Target EP improvement at 2,15 % p.a. Endenergieproduktivität IS: 0,26 % p.a. ( ) Entwicklung der temperatur- und lagerbestandsbereinigten gesamtwirtschaftlichen Endenergieproduktivität Quelle: BMWi Fortschrittsberiecht zur Energiewende, Dezember 2014 IS

6 Best of German EE: Policy Practices Existing Policies Most effective according to NEEAP 1. Energy Taxes 2. Building Codes 3. EEG 4. Grid Charges 5. KfW scheme Mostly based on 1970s energy crisis (e.g. building codes) 2007 climate package (e.g. KfW funding) 2011 Fukushima (e.g. targets) 2012 EU-Directive (EED) Catatstrophies, not reason is the main driver! 6

7 Co-evolution of building-codes and funding standards Progressive level of funding New built Undershooting in % MEPS (funding only for renovations) e.g. passive house Please also note: scale effects to most wanted funding level increase costeffectivenes and enable cost-effective future standards standards KfW-Effizienzhaus x also works as label e.g for resale 7

8 The next big thing: competitive tenders How it works Tendering Energy efficiency Awards those market actors who safe the most energy (by measures) at the least costs Complements existing instruments Activates innovation and searching capabilities of the market International practices Switzerland (ProKilowatt) Portugal (PPEC) USA (Efficiency Vermont, Efficiency Maine ) UK: Pilot with Peak-EE Germany: Start 2016 (envisages also heat) Ludwig Erhardt would love it! Create the right political frame for a vital energy efficiency market 8

9 Tremendous business potential to engage in energy efficiency in buildings Annual investments required to achieve targets in Billion EUR Major market players already exploring business opportunities 7 34 Single Familiy Homes Residential Commercial Public Total Source: effin 9

10 But: Currently little actual investments in energy efficiency measures Actual annual investments in Billion EUR (in 2010/2011) Investment Gap: ? 0,6 11 Single Familiy Homes Residential Commercial Public Total Required Source: effin 10

11 So why are actual investments so far behind required? Lack of capital demand from building owners? Lack of capital supply from financial sector? 11

12 Both sides have similar issues when investing in energy efficiency But from different perspectives Transactional Cost Cost of Risk Capital Supply (Financial Institutions) Individual buildings / projects Project acquisition difficult Know-how intensive Difficulty of predicting energy savings No guaranteed cash flows Solvency of user Capital Demand (Buildings Owners) Individual business cases Searching cost Set-up Measurement & Verification Integrate into business planning No guaranteed delivery of savings Long payback periods Future usage of buildings External factors (e.g. energy prices) Cost of Capital No issues in GER due to low interest rates and KfW financing schemes Results from CoR and TC of capital supply 12

13 Brainstorming about potential solutions along the value chain of financial institutions Single Family Homes Residential RE Commercial RE Public Buildings Financing Products Sales / Marketing Risk Energy Savings Plan? Integrated Sales and Consultation Model? Green Funds? Advanced Risk Assessment? Green Bonds? Crowdfunding + Contracting? Competence Centre for Contracting? Technology Pooling? Process Datamining? Portfolio Analysis & Renovation Roadmap incl. Financial Planning? Standardization? Public Participation? 13

14 Pilot project single familiy homes: Accessing 26 Mio. EUR additional market potential with leveraging customer contact points of a Bausparkasse Who and where is the target group? What are the most promising arguments? How can financial and energy consultancy be connected? Target group-oriented approach developed! Sales power of LBS leveraged! Communication guidelines & process implemented!

15 To get there we conducted an structured 4-step-approach Identifying/ defining Understanding customer the customer contact points 2 Designing customer profiles Creating guidelines for sales people 15

16 Pilot project Residential RE: Demonstrating and implementing business case for energy efficiency in residential real estate Where are the savings potentials? How much energy can be saved? From an investor s perspective: What is the first, second, third step and why? Method to analyze savings potential developed! Portfolio analyzed and structured! Renovation roadmap developed!

17 To get there we conducted an structured 3-step-approach Analyzing and structuring the portfolio Integrating investor s financial perspective Developing renovation roadmap 17

18 Beside pilot projects, innovative business ideas and initiatives for energy efficiency in buildings are evolving Low Segment Specific High Single components Depth of Renovation Full retrofits 18

19 effin key insights There is no silver bullet: Investments in energy efficiency need segment-specific approaches. Not a question of availability but allocation of capital: Financiers can become part of the solution. The market alone won t make it: A strong and ambitious political framework must accelerate the development.

20 The project results have been transferred into practical tools Open Source Tools Innovation effin Innovation Manuals Best Practice Database

21 Now available: English Handbook For Financing Energy Efficiency Measures 21

22 Contact details Deutsche Unternehmensinitiative Energieeffizienz e.v. (DENEFF) Kirchstr Berlin Germany Susann Bollmann Project Manager Telephone: +49 (0) Mail: