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1
Rahul Pratap Singh
Investment Manager of the European Energy Efficiency Fund
rahul.pratap-singh@dws.com
SUSTAINABLE COMMUNITY INVESTMENT
19-20 February 2019Brussels, Belgium
Agenda
2
The European Energy Efficiency Fund1
2 Cardenden – Heat and Power Project
3 What eeef offers ?
4 Advantages of eeef solution
Massive potential for EE, small
scale RE and Clean Urban
Transport in the European
public sector
EU-wide targets: cut greenhouse gas emissions by
40%, increase use of renewable energy by at least 27% and
improvement of energy efficiency by at least 27%
EU 2030 Framework for
climate and energy
Objectives and sponsors of the eeef
3
ESPT
FR
DE
IT
IE
GB
FI
SE
PL
AT
CZ
RO
BG
HU
LT
LV
EE
DK
NL
BE
LU
GR
CY
SK
SI HR
Background
European
Commission
(Initiator)
European
Investment Bank
(Founding investor)
Cassa Depositi e
Prestiti
(Founding investor)
Deutsche Bank
(Investor)
Sponsors
MT
eeef target
Geographical scope of the eeef
4
GERMANY
€0.9m forfaiting loan to Jewish
Museum Berlin via Johnson
Controls‘ ESCO (EE: building
retrofit)
€0.6m forfaiting loan to
University of Applied Sciences
Munich via Johnson Controls‘
ECSO (EE: building retrofit + CHP)
ITALY
€32m project and VAT bond
facility to project entity upgrading
University Hospital S.Orsola
Malpighi in Bologna (EE:
reduction of energy consumption in
the entire fluid production and
distribution systems)
€16m equity investment in the JV
“Illuminated Citites” with Siram
by Veolia for a portfolio of
investments (EE: smart public
lighting)
€7m equity investment in the JV
“Smart Hospitals &
Universities” with Sinloc for a
portfolio of investments (EE:
building retrofit)
FRANCE
€5.1m junior funds to project
vehicle to supply heat to City of
Orléans (EE: CHP/biomass)
€7.3m junior funds to project
vehicle to supply heat to City of
Rennes (EE: CHP/biomass)
€30m senior funds to Bolloré(Clean Urban Transport: electric
cars) – investment matured
€5m senior construction facility
to project vehicle of Région
Rhône-Alpes (EE: schools retrofit)
– investment matured
SPAIN
€2.5m forfaiting loan to
Universidad Politécnica de
Madrid via Enertika (EE: building
retrofit)
€9.2m forfaiting loan to City of
Santander via Elecnor SA (EE:
smart public lighting)
UK
€4.2m senior debt to project
entitiy Cardenden Heat and
Power (EE: boiler replacement and
RE: onshore wind)
NETHERLANDS
€8.5m senior debt to City of
Venlo (EE: smart public lighting)
PORTUGAL
€5.1m junior funds to PV
portfolio to be developed by
Wattosun (RE: rooftop PV)
€12.1m forfaiting facility to 14
municipalities in Alentejo region
via CIMAC (EE: smart public
lighting)
eeef investments by country with
project details
ROMANIA
€25m subdebt to Banca
Transilvania (Financial
Intermediary investment: EE, RE,
Clean Urban Transport)
Agenda
5
The European Energy Efficiency Fund1
2 Cardenden – Heat and Power Project
3 What eeef offers ?
4 Advantages of eeef solution
6
Energy efficiency upgrade of social housing homes
& new small-size wind plant – Cardenden, the UK
Project structure
− Cardenden Heat & Power Ltd
− Renewable Energy Infrastructure Fund
(REIF)
Key data:
Total project volume: €5.5m (wind component installed €2.1 m)
eeef funded volume: €4.3m via a senior loan (wind component
€1.4 m)
Duration of financing: 15 years
Highlights:
First small scale wind power project development financed by the
eeef
eeef collaborated with the Scottish community to address the
technical and financial aspects to plan and implement climate
change related project
Partners:
Measures:
Energy
efficiency /
Renewable
Energy
Wind
Results:
Gas boiler upgrade of more than 170 homes
owned by the local housing association
Construction of small size onshore wind-farms
(each 0.5MWe) in the Fife Region
Reduction of CO2e emissions of 758 t/yr, 96%
compared to baseline
Project Description
Cardenden, the UK
Cardenden
Heat &
Power
Senior loan
Equity funding
REIF
Subordinated
loan
EPC and
O&M
partners
EPC and
O&M
Ore Valley Housing Association
Location
Investment characteristics
Agenda
7
The European Energy Efficiency Fund1
2 Cardenden – Heat and Power Project
3 What eeef offers ?
4 Advantages of eeef solution
eeef investments’ scope of work
8
Public entity
ESCO, utility, facility
management company,
social housing
association etc.
Individual Project
Portfolio of projects
Public link
Primary Energy Savings or
CO2e savings ≥ 20%
eeef
Individual Project
Portfolio of projects
Debt / equity* (/guarantees )
around €5m - €25m
Financial
Intermediary
Public entities, ESCOs,
utilities, facility mgm
comp., social housing ass.
…
*eeef doesn’t invest equity into financial intermediaries
Beneficiary Project feat.Financial
instrument
„direct“
financing
„indirect“
financing
(PPP**)
„indirect“
financing
**Generally speaking
Indirect Financing entails
a Public Private
Partnership
Project financing: i) a political decision, ii) a
question of the financial capacity
9
Existing in-house capabilities to manage renovation works and O&M to assume the technical risk of installations and related energy savings realisation/ or O&M service is already run by the private company
Capacity to increase indebtedness
Existing facilities with the banks in placePotential
options
Indirect
financing
Direct
financing
Key decision factors
No internal capacities to manage renovation works /O&M
Limited or no capacities to increase levels of debts
Political will to transfer the responsibility for realisation of energy savings to the private party
Internal capacities to manage tender and selection process
New Technical Assistance facility for a higher
success rate of projects
How TA works
I. eeef selected consultants
II. eeef to match consultant with
municipality
III. Joint definition of project scope
IV. Progresses monthly
monitored by eeef
V. Bankability built all along the
development process. eeef
participating to project funding
otherwise reimbursement of
costs
Current status: selected public
authorities are Gijón (Spain),
Ferrara (Italy), the Italian
Ministry of Defence, and
Kaunas (Lithuania)
Further funding available
10
COM TA: 16 TA projects in 8
countries, a total project volume
of €195m facilitated
All activities necessary to
prepare investments -
feasibility studies, energy
audits, assessment of economic
viability of investments, legal
support etc.
TA boundaries
No reimbursement required if
the agreed conditions are met
e.g. timeframe, leverage factor,
eeef (co-)funding
eeef coordination & monitoring activities and bankability-oriented TA enhance the
implementation rate of projects
How to apply as beneficiary
Background
experience
eeefTA
TA beneficiary
(public entity)
eeefeeef
consultantConsultancy Agreement
Remaining funding available on a first-come-first-serve basis
Application to submit to technical_assistance@eeef.eu
All info at http://www.eeef.eu/eeef-ta-facility.html
What is eeef looking into?
11
Country Sector Technology Short Description
UK Renewable
Energy
Waste to energy The project will process an output generated from the organic fraction of
municipal waste to produce heat to supply the Council via its own district heating
network (DHN) and electricity will be sold to the grid..
Belgium Energy
Efficiency
Waste to Energy,
Biomass and District
Heating Network
The project will realize a district heating network (DHN) to connect the medium
sized city to an existing intercommunity public facility, which incinerates the
residual fraction of waste post-recycling and produces heat as a by-product.
Such a by-product is currently unused and thus goes lost. Additionally, the
project aims to realize a complementary biomass plant which will serve further
the heating needs of the area and input the DHN.
Italy Energy
Efficiency
Buildings Efficiency, PV
Solar and District
Heating Network
The project envisages renovation of public buildings, rooftop PV for self-
consumption of public and private users and district heating network within a
portfolio transaction.
Lithuania Clean
Transportati
on
Electric Vehicles The project targets to build a JV which intends to own electric buses and lease
these on the basis of long term concession agreements to public entities at costs
lower than the current costs to maintain and operate diesel buses.
Spain Energy
Efficiency
LED street lights The project targets to upgrade the street lighting infrastructure in the medium
sized city to LED and install PV ion the public buildings.
Agenda
12
The European Energy Efficiency Fund1
2 Cardenden – Heat and Power Project
3 What eeef offers ?
4 Advantages of eeef solution
If you are a
Public Entity
…similar to City ofVenlo (NL), CHAP Social HousingAssociation (UK)…
Private companyliasing with a publicentity
…similar toManutencoop (IT), Enertika (ES), Bolloré(FR), EDF Group (FR), Johnson Controls (DE)…
Financial Institution financing the above
…similar to BancaTransilvania (RO)…
Developing a project in
Renewable Energy
As we have done with: City of Orléans / Rennes (FR), CHAP SocialHousing Ass. (UK)
Energy Efficiency
As we have done with: City of Venlo (NL), Region Rhône Alpes(FR), Sant‘OrsolaHospital (IT), Universidad Politecnicade Madrid (ES), BancaTransilvania (RO), Jewish Museum of Berlin (DE), Munich University (DE), CHAP SocialHousing Ass. (UK)
Clean Urban Transport
As we have done with: Bolloré – Paris, Lyon, Bordeaux (FR)
With thesefeatures
Avoiding CO2e emissions at
least for 20% ofthe baseline
Looking for funding in a
(flexible) range between 5 and
25 €m
In one of the EU Member States
eeef can supportyour project providing
Tailor made funding
Debt e.g. City of Venlo (NL),
Bolloré (FR), Region Rhône-Alpes (FR), CHAP Social Housing Ass. (UK), Sant‘Orsola Hospital (IT)
Equity e.g. City of Rennes (FR),
City of Orléans (FR)
Mezzanine e.g. Banca Transilvania
(RO)
Forfaiting structures e.g. Universidad Politecnica
(ES), City of Santander (ES)
Technical Assistance
Added value of the eeef
13
Advantages of the eeef
Know how pooled at the European level with a lean decision process
The Fund is acting as center of competence for financing of EE and RE projects with a public
link across jurisdictions –currently working with nearly
30 cities and regional authorities in Europe
Experienced professionals along the investment decision process, taking no longer than 6 weeks to reach investment
commitment
Broad spectrum of financing instruments with long maturities
Corporate and/or project finance through senior debt,
mezzanine, equity, leasing and forfaiting facilities.
Maturities up to 15 years
Fund can operate either as the sole investor to simplify
implementation and get lower execution costs or co-invest.
Equity or mezzanine capital can be provided to act as co-
sponsor
Pan-European investment approach
Risk diversification of portfolioacross EU28 Member States
All agreements for investments taking into consideration local
requirements of each European location
14
Contacts
European Energy Efficiency Fund (eeef)
Lada Strelnikova
+49 (69) 910 46444
lada.strelnikova@dws.com
Rahul Pratap Singh
+49 (69) 910 42612
rahul.pratap-singh@dws.com
Paola Rusconi
+39 02 4024 6513
paola.rusconi@dws.com
www.eeef.eu
© Copyright 2018. European Energy Efficiency Fund, SICAV-SIF, 31 Z.A. Bourmicht, L-8070 Bertrange, Luxembourg. All rights
reserved.
This presentation (the ‘Document’) has been prepared by European Energy Efficiency Fund, SICAV-SIF (‘European Energy
Efficiency Fund‘) exclusively for the benefit and internal use of the potential client (‘Client’) in order to indicate, on a
preliminary basis, the feasibility of a possible transaction or transactions. The Document may only be used for these
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The information in the Document reflects prevailing conditions and European Energy Efficiency Fund's views as of this date,
all of which are subject to change.
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