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The content of this presentation is the sole responsibility of Tractebel Engineering SA and can in no way be taken to reflect the views of the EU or EBRD

Mark Velody - Project Manager, RoSEFF October 9th 2014

RoSEFF – an integrated package of financing, technical consultancy and EU grants to help SMEs invest in sustainable energy solutions

AGENDA FOR TODAY

1. What is RoSEFF?

2

October 2014 EU EBRD Romania SME Sustainable Energy Finance Facility

AGENDA FOR TODAY

1. What is RoSEFF?

2. Why Sustainable Energy?

3

October 2014 EU EBRD Romania SME Sustainable Energy Finance Facility

AGENDA FOR TODAY

1. What is RoSEFF?

2. Why Sustainable Energy?

3. How to use RoSEFF

4

October 2014 EU EBRD Romania SME Sustainable Energy Finance Facility

AGENDA FOR TODAY

1. What is RoSEFF?

2. Why Sustainable Energy?

3. How to use RoSEFF

4. Eight selected RoSEFF investments

5

October 2014 EU EBRD Romania SME Sustainable Energy Finance Facility

SO LET’S BEGIN

1. What is RoSEFF?

2. Why Sustainable Energy?

3. How to use RoSEFF

4. Eight selected RoSEFF investments

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October 2014 EU EBRD Romania SME Sustainable Energy Finance Facility

1. Financing of up to 1 million Euro per investment 2. Free (EU-financed) technical consultancy from Tractebel Engineering 3. EU Grants of 10% or 15% 4. Permanently lower energy/fuel bills 5. Fast!

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RoSEFF is an attractive financing product for SMEs

October 2014 EU EBRD Romania SME Sustainable Energy Finance Facility

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Stakeholders are SMEs, banks, consultants and EU

Programme

Financing

Consultants

Verifier

Beneficiaries: Private Sector SMEs

October 2014 EU EBRD Romania SME Sustainable Energy Finance Facility

RoSEFF is one of many EBRD ‘SEFFs’

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October 2014 EU EBRD Romania SME Sustainable Energy Finance Facility

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Tractebel Engineering is Consultant for Romania*

* Project Consultant working under a series of contracts with EBRD

October 2014 EU EBRD Romania SME Sustainable Energy Finance Facility

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* Project Consultant working under a series of contracts with EBRD

Tractebel Engineering is Consultant for Romania*

October 2014 EU EBRD Romania SME Sustainable Energy Finance Facility

12

* Project Consultant working under a series of contracts with EBRD

Tractebel Engineering is Consultant for Romania*

October 2014 EU EBRD Romania SME Sustainable Energy Finance Facility

13

* Project Consultant working under a series of contracts with EBRD

Tractebel Engineering is Consultant for Romania*

October 2014 EU EBRD Romania SME Sustainable Energy Finance Facility

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Some words about Tractebel Engineering

October 2014 EU EBRD Romania SME Sustainable Energy Finance Facility

Worldwide Presence

20 Regional offices

Latin America Brazil Chile Panama Peru

Europe Belgium Czech Republic France

Italy Poland Romania Turkey United Kingdom

Africa Algeria South Africa

Asia & Middle East China India Indonesia Thailand United Arab Emirates Saudi Arabia

& projects in 110 countries

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October 2014 EU EBRD Romania SME Sustainable Energy Finance Facility

Tractebel Engineering in Romania Products and services

• Energy transportation and distribution

• Consultancy for energy systems

• Power generation

• Renewable Energy

• Energy Efficiency

• Roads and Bridges

• Hydro-technical works

• Water and sewage networks

• Traffic Management

► Energy and Environment

► Risk Management and Safety ► Renovation projects ► Operator Support Systems ► Power System Analysis

Installation Management

► Owner’s Engineer ► Project Management Consultancy (PMC) ► EPCM (multi-package PMC) ► Basic and Detailed Design

Project Management

► (Pre-) Feasibility

► Due Diligence ► Conceptual Design ► Contract specifications

Project Development

October 2014 EU EBRD Romania SME Sustainable Energy Finance Facility

Tractebel Engineering in Romania Products and services

• Energy transportation and distribution

• Consultancy for energy systems

• Power generation

• Renewable Energy

• Energy Efficiency

• Roads and Bridges

• Hydro-technical works

• Water and sewage networks

• Traffic Management

► Energy and Environment

► Risk Management and Safety ► Renovation projects ► Operator Support Systems ► Power System Analysis

Installation Management

► Owner’s Engineer ► Project Management Consultancy (PMC) ► EPCM (multi-package PMC) ► Basic and Detailed Design

Project Management

► (Pre-) Feasibility

► Due Diligence ► Conceptual Design ► Contract specifications

Project Development

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SEFFs help companies afford better tehnologies

Production lines Automation Compressors CNC machines Forklifts

Energy Management Systems Motors Pumps Tractors Harvesters

Cogeneration

Insulation ‘termopan’ Heat recovery Boilers

Biomass Biogas

Lighting Heating Ovens Cooling/chilling

Solar Small hydro … and more!

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October 2014 EU EBRD Romania SME Sustainable Energy Finance Facility

SEFFs finance companies from many sectors

Metalworking Retail Plastics Textiles Hotels Food and drink Wood processing Machine building printing Agriculture and many more…

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October 2014 EU EBRD Romania SME Sustainable Energy Finance Facility

… and many Romanian companies use the SEFFs

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October 2014 EU EBRD Romania SME Sustainable Energy Finance Facility

So far, credits of 97 MEUR for 220 investments + >14 MEUR in EU grants financed with EEFF, RoSEFF, MFFEE to September 2014

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• From 2008 – EU EBRD EEFF – Energy Efficiency Finance Facility • From 2012 – EU EBRD MFFEE – Municipal Finance Facility for Energy Efficiency • From 2012 – EU EBRD RoSEFF – SME Sustainable Energy Finance Facility

October 2014 EU EBRD Romania SME Sustainable Energy Finance Facility

AGENDA FOR TODAY

1. What is RoSEFF?

2. Why Sustainable Energy?

3. How to use RoSEFF

4. Eight selected RoSEFF investments

22

October 2014 EU EBRD Romania SME Sustainable Energy Finance Facility

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/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 impacting quality of life.

October 2014 EU EBRD Romania SME Sustainable Energy Finance Facility

23

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/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 impacting quality of life.

October 2014 EU EBRD Romania SME Sustainable Energy Finance Facility

24

25

Why are so many Romanian companies investing in Sustainable Energy?

October 2014 EU EBRD Romania SME Sustainable Energy Finance Facility

Investing to lower energy costs can be profitable

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Most companies invest for purely financial reasons

October 2014 EU EBRD Romania SME Sustainable Energy Finance Facility

27

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There are also many other reasons to invest…

October 2014 EU EBRD Romania SME Sustainable Energy Finance Facility

Why borrow to invest in Sustainable Energy?

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 feature non–energy benefits – such as increased productivity, better quality

– and perhaps other benefits associated with replacing older machines and production lines.

• There are often non-financial benefits

– warmer, more comfortable, better lit, more productive 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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October 2014 EU EBRD Romania SME Sustainable Energy Finance Facility

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Companies also invest to gain a competitive edge

October 2014 EU EBRD Romania SME Sustainable Energy Finance Facility

A scary thought…

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Companies also invest to gain a competitive edge

October 2014 EU EBRD Romania SME Sustainable Energy Finance Facility

A scary thought…

Do your competitors have lower utility costs? What is the impact…

• on your competitiveness in a tough market?

• on your profitability?

• on your survival?

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October 2014 EU EBRD Romania SME Sustainable Energy Finance Facility

Companies also invest to gain a competitive edge

A scary thought…

Do your competitors have lower utility costs? What is the impact…

• on your competitiveness in a tough market?

• on your profitability?

• on your survival?

A reassuring solution…

Invest in Sustainable Energy for your business! • Cut your utility bills by investing in energy efficiency

• Seize opportunities to capture renewable energy

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October 2014 EU EBRD Romania SME Sustainable Energy Finance Facility

Companies also invest to gain a competitive edge

AGENDA

1. What is RoSEFF?

2. Why use RoSEFF?

3. How to use RoSEFF

4. Eight selected RoSEFF investments

33

October 2014 EU EBRD Romania SME Sustainable Energy Finance Facility

Let’s start this section with an important keyword

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October 2014 EU EBRD Romania SME Sustainable Energy Finance Facility

BUREAUCRACY

Let’s start this section with a important keyword

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October 2014 EU EBRD Romania SME Sustainable Energy Finance Facility

BUREAUCRACY

Let’s start this section with a important keyword

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We don’t like it!

October 2014 EU EBRD Romania SME Sustainable Energy Finance Facility

RoSEFF features two options – FAST & VERY FAST

‘Large or Complex’ investments • Credits of up to 1 million Euro per investment. • For improving energy efficiency, or for introducing renewable energy solutions.

• Step-by-step support from Tractebel Engineering – financed by the EU through EBRD, so ‘free’ for the investor.

• EU grants of 10% or (typically) 15%.

Demonstrate Technical Eligibility with a free study from Tractebel Engineering in only 3 weeks.

37

‘Small and Simple’ investments • Credits of up to 250,000 Euro per investment

• For defined measures such as motors, pumps, LED lighting, boilers, burners, tractors, combine harvesters, ‘A++’ rated appliances, solar hot water systems, ‘termopan’, building insulation, ground source heat pumps, more… • EU grants of 10% for one measure or 15% for two or more measures.

Demonstrate Technical Eligibility by generating a certificate (‘AVIZ LEME’) online in 10 minutes.

October 2014 EU EBRD Romania SME Sustainable Energy Finance Facility

March 2012 38

1 • Review the LEME online

2 • Generate an AVIZ LEME - 10 minutes

3 • Credit analysis by the bank you selected

4 • Credit signature

5 • Simple investment - typically 1-4 weeks

6 • Verification (maximum 1 month)

7 • EU Grant paid in Euro

1 • Discuss with consultant and your bank

2 • Sign ‘Letter of Engagement’ (LoE) (5 minutes)

3 • Green Light from the bank you selected

4 • Technical Study (‘REUP’) - 3 weeks

5 • Credit signature

6 • Complex investment - 1-12 months

7 • Verification (maximum 1 month)

8 • EU Grant paid in Euro

Small and simple investments – online – AVIZ LEME A few days

Large or Complex investments – LoE - REUP A few weeks

FAST Procedure VERY FAST Procedure

October 2014 EU EBRD Romania SME Sustainable Energy Finance Facility

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‘Large or Complex’ investments – key steps

Contact the RoSEFF Help Desk at Tractebel Engineering • Discuss your investment proposal with a technical expert

• RoSEFF Help Desk – 031 224 8104, seff@seff.ro, www.seff.ro

We provide a tailored step-by-step response • Aim - to put your investment ‘on wheels’ as soon as possible

Key events and documents • ‘Letter of Engagement’ (download from www.seff.ro) – very short formal application form

• ‘Green Light’ – an ‘OK to start the study’ from the bank that you selected

• ‘Rational Energy Utilisation Plan’ (REUP) – free study to show that your investment is eligible

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October 2014 EU EBRD Romania SME Sustainable Energy Finance Facility

‘Small and Simple’ investments - as easy as 1-2-3!

1. Find the List of Eligible Measures and Equipment (LEME) • On the home page of www.seff.ro

• See if the measure in which you would like to invest is listed on LEME

2. Print your ‘AVIZ LEME’ (Certificate of Technical Eligibility) • A ‘one stop shop’ document with step by step instructions about eligible costs, what to do next

and much more.

3. Take your ‘AVIZ LEME’ to the bank • BCR, BRD, Banca Transilvania or UniCredit Tiriac Bank

• Tell the bank you would like to invest using EU EBRD RoSEFF

• If your bank agrees to lend, you will automatically qualify for the corresponding EU grant

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October 2014 EU EBRD Romania SME Sustainable Energy Finance Facility

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LEME

1. Find the List of Eligible Measures and Equipment

October 2014 EU EBRD Romania SME Sustainable Energy Finance Facility

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- Electric motors with VSDs

- Electric pumps with VSDs

- Appliances: A++ and A+++

- EMS and BEMS

- ‘A’ rated lamps

- LED lighting

- Natural lighting

- Solar hot water systems

- Biomass boilers - Biogas systems

- Condensing boilers

- Other boilers

- Burners

- Infra-red gas heaters

- Ground source heat

pump systems

- Very small-scale

cogeneration

(up to 250k EUR)

- Wall and roof insulation

- Termopan glazing

- Industrial doors

- Window film

- Jalousies and shading

2. Print your ‘AVIZ LEME’ For the measure(s) of your choice from ‘LEME’

October 2014 EU EBRD Romania SME Sustainable Energy Finance Facility

- Compressors

- Tractors

- Combine harvesters

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‘AVIZ LEME’ is a one-stop-shop document • Step-by-step guide to financing your energy efficiency or renewable energy investment • Demonstrates that the equipment you selected is eligible to be financed using RoSEFF • Clearly defines eligible costs (e.g. installation and delivery costs are eligible for some measures)

Your bank should already have a copy of your ‘AVIZ LEME’ • … but maybe not your branch… so it is better to print it and take it with you

If your bank agrees to lend, you qualify for an EU grant! • 10% of eligible credit if you select one measure from LEME (e.g. a boiler); • 15% of eligible credit value if you select multiple measures (e.g. a boiler and a compressor)

3. Take your ‘AVIZ LEME’ to the bank

October 2014 EU EBRD Romania SME Sustainable Energy Finance Facility

RoSEFF Help Desk

Tel. 031 22 48 104

seff@seff.ro

www.seff.ro

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Taking the first step is easy!

Apply online… … or get in touch with our friendly expert team in Bucharest

October 2014 EU EBRD Romania SME Sustainable Energy Finance Facility

You will find links to the RoSEFF product page of

each partner bank at www.seff.ro

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You may also take the first step through your bank

Click the logo of the bank you

prefer

October 2014 EU EBRD Romania SME Sustainable Energy Finance Facility

AGENDA

1. What is RoSEFF?

2. Why use RoSEFF?

3. How to use RoSEFF

4. Eight selected RoSEFF investments

46

October 2014 EU EBRD Romania SME Sustainable Energy Finance Facility

47

… so here is a representative sample of eight

93 of 220 SEFF investments so far are with RoSEFF

‘Large or Complex’ With ‘free’ REUP

Max. credit 1 million Euro EU Grants 10% or (typically) 15%

1. Small hydro – Alba

2. Plastic extrusion – Mureş

3. Metalworking in Cluj

4. Food processing in Dâmbovița

5. Biomass Cogeneration in Suceava

‘Small and Simple’ Selected from ‘LEME’

Max. credit 250,000 Euro EU Grants 10% (one measure), 15% (multiple measures) 1. Tractor, compressor and more in Prahova

2. Biomass boiler and LED lighting in Maramureş

3. Combine harvesters in Prahova and Constanţa

October 2014 EU EBRD Romania SME Sustainable Energy Finance Facility

Small hydro refurbishment in Alba County

Uzinsider General Contractor (UGC) Has a small portfolio of hydro plants on River Firiza, Maramureș; River Târnava Mare, Harghita; and River Cerna, Hunedoara. Built a small hydro on the existing Mihoeşti Dam on River Arieş

• 2 x Kaplan Horizontal turbines of 1,236 kW each

Tractebel Engineering carried out two studies • An Environmental Impact Assessment to check that the

investment meets environmental criteria set by EBRD; • A Rational Energy Utilisation Plan (REUP) to demonstrate the

main financial, economic and technical aspects of the investment to the investor, its financiers and the EU.

• Studies were both financed by the EU, so ‘free’ for UGC. The investment was financed with the help of a RoSEFF credit of 900 000 Euro from Banca Transilvania

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October 2014 EU EBRD Romania SME Sustainable Energy Finance Facility

An energy efficiency trail blazer in Târgu Mureş!

Indra Import Export – a plastic producer Indra, who produces polyethylene foils, shrinkable foils, bags and more

• Had already invested in energy efficiency using the EEFF; and • Became the very first company to use the RoSEFF

Installed a new cooling system for an extruder, enabling

• a 60% increase in production capacity • a 30% fall in specific energy consumption.

Replaced a screw-cylinder assembly on another extruder

• A 100% increase in production capacity • A 50% fall in specific energy consumption

These investments, which pay back from energy savings in only 14 months, were financed using a RoSEFF credit of around 41,000 Euro from Banca Comercială Română and qualified for a 15% EU grant.

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October 2014 EU EBRD Romania SME Sustainable Energy Finance Facility

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Profinox – a metalworking company Makes a range of stainless steel products

• Structures, pipework, tanks and reservoirs. • Items for the food and pharmaceutical industries

Replaced a hydraulic press brake machine

• An energy-inefficient old unit, dating from 1992, with: • A new Colly PS 3000 hydraulic press brake with adjustable force

The investment brought both energy savings and a capacity increase

• 2.5 times increase in production capacity • 11% absolute energy saving; which represents • A specific energy saving (per manufactured item) of 64%.

Profinox partially financed the new machine with a 80,000 Euro RoSEFF credit from BRD Groupe Société Générale, and qualified for a 15% EU Grant through RoSEFF. .

Energy-efficient stainless steel in Cluj

Before

After

October 2014 EU EBRD Romania SME Sustainable Energy Finance Facility

Cicom – the manufacturer of ‘Happy’ ice-cream Invested in a range of measures to improve energy efficiency

• An ice cream hardening tunnel • Two additional refrigerating chambers • Upgrading five existing refrigeration chambers • Replacing the technological line for ice cream pasteurisation

Received a Rational Energy Utilisation Plan by Tractebel Engineering • The ‘REUP’ demonstrated that the investments brought total primary

energy savings of 564 MWh/year • Part of the ‘free’ technical consultancy that investors who use RoSEFF

receive, financed by the European Union.

Financed with the help of a RoSEFF credit of 192,000 Euro from UniCredit Ţiriac Bank, and a 15% Grant from the EU.

A cool investment in Târgovişte

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October 2014 EU EBRD Romania SME Sustainable Energy Finance Facility

Wood-waste-fired cogeneration in Suceava

Saucolemn – a forestry and furniture company A ‘from the tree to the product‘ wood processing company

• forestry, transportation, timber processing, steaming and drying • producing beech and oak panels, staircases, doors, windows, tables chairs

Tractebel Engineering provided EU-financed technical consultancy

• Helped Saucolemn choose an optimal cogeneration system using wood-waste to create heat and power for its operational needs.

System will produce 21.6 GWh per year

• 82% as heat for wood steaming and drying; • 18% as power to meet own needs and to sell to the grid.

Carbon neutral energy solution

• Will qualify for maximum 15% EU Grant 916,000 Euro investment, 85% of which RoSEFF credit from Banca Transilvania.

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October 2014 EU EBRD Romania SME Sustainable Energy Finance Facility

Multiple LEME investments in Drăgăneşti, Prahova

Aligrig Agro – a farm Invested in both energy efficiency and renewable energy

• a FIAC compressor • a new LED lighting system • a Buderus Logano biomass boiler • a New Holland tractor

All selected from the List of Eligible Measures and Equipment • Generated a Certificate of Technical Eligibility online • Qualified for a 15% grant from the European Union.

Financed with a RoSEFF credit of 66,000 Euro from BCR

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October 2014 EU EBRD Romania SME Sustainable Energy Finance Facility

Biomass boiler and LED lighting in Maramureș

Xpert Project, Coroieni A wood processing company Invested in both energy efficiency and renewable energy

• A LED lighting system • A sawdust-fired KS-ATR-1000 hot water boiler

Used the RoSEFF 'fast track' procedure

• List of Eligible Measures and Equipment • Generated certificates of technical eligibility in minutes

Carried out two separate LEME measures with the same credit

• So qualified for the maximum EU Grant of 15%

Financed by BRD Groupe Société Générale with a RoSEFF credit of around 50 000 Euro

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October 2014 EU EBRD Romania SME Sustainable Energy Finance Facility

Combination of combines in Prahova and Constanţa 300 km apart – same energy saving idea Cedagro Plant of Prahova and Argonaut of Constanţa are both farms:

• Each selected an energy-efficient Class Tucano 430 combine harvester with Mercedes motor from the RoSEFF List of Eligible Measures and Equipment (LEME)

Each generated an AVIZE LEME online at www.seff.ro in minutes

• This, and other harvesters, appear on LEME as they meets the eligibility criterion of maximum diesel consumption 230 g/kW.

Each qualified for a 10% grant from the EU through RoSEFF

• As the rule for ‘Small and Simple’ investments is a 10% EU grant for a single measure, 15% EU grant for multiple measures.

Each financed its investment RoSEFF credits from UniCredit Ţiriac Bank

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October 2014 EU EBRD Romania SME Sustainable Energy Finance Facility

1. Financing of up to 1 million Euro 2. Free (EU-financed) technical consultancy from Tractebel Engineering 3. EU Grants of up to 150,000 Euro 4. Permanently lower energy bills 5. Fast!

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Conclusion – apply for RoSEFF financing today!

October 2014 EU EBRD Romania SME Sustainable Energy Finance Facility

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Questions?

October 2014 EU EBRD Romania SME Sustainable Energy Finance Facility

Vă mulțumesc pentru atenție

Contact

RoSEFF Help Desk

Tel. 031 22 48 104

seff@seff.ro

www.seff.ro

Financed with the support of the European Union

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October 2014 EU EBRD Romania SME Sustainable Energy Finance Facility

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