project development assistance - european commission ·...

Project Development Assistance

HORIZON 2020 INFO DAY

Energy Efficiency Call for Proposals 2017 19 September 2016 / Brussels

16:00-‐16:10 Welcome and Introduc/on Ane$e Jahn, EASME

16:10-‐16:20 Project Development Assistance – Policy framework

Timothée Noël, DG ENERGY

16:20-‐16:50 EE22 -‐ Project Development Assistance Björn Zapfel / MarBn Eibl, EASME

16:50-‐17:10 2020TOGETHER – project example Silvio De Nigris, Piemonte Region

17:10-‐17:30 Ques/on & Answers Ane$e Jahn, EASME

17:30 Close

Agenda

EE22 - Project Development Assistance

Martin EIBL / Björn ZAPFEL B.1.3 H2020 Energy - Public Authorities, Energy Services and Financing

•  Started in 2011 under the Intelligent Energy Europe programme and continued under H2020

•  Build capacity and a project pipeline across Europe

•  28 projects funded triggering >€650m investments à http://ec.europa.eu/energy/intelligent/files/mlei-projects-2011-12.pdf

PDA in a nutshell

EE-22-2017 Project Development Assistance

What?

§  Launch of concrete sustainable energy investment projects

§  Building technical, economic and legal expertise

Who?

§  Public and private project promoters

q  e.g. public authorities or their groupings, public/private infrastructure operators and bodies, energy service companies (ESCOs), retail chains, estate managers and services/industry

§  Proposals from 1 single entity are eligible!

Sectors targeted?

•  Horizon 2020 Energy Challenge supports the transition to a secure, clean and efficient energy system for Europe

•  The calls 2016-2017 provide support for innovation through: •  Research and demonstration of more energy-efficient technologies and solutions

•  Market uptake measures to remove market and governance barriers by addressing financing, regulations and the improvement of skills and knowledge

•  € 0.8 bn between 2014 and 2020

Size of investment portfolio: EUR 7.5 million – EUR 50 million

Main features? Ø  Lead to investments launched before end of the action Ø  (i.e. signed contracts or launched tendering procedures, as appropriate)

Every million Euro of H2020 support should trigger investments worth at least EUR 15 million (1:15)

Ø  Have an exemplary/showcase dimension in their ambition (i.e. reduced energy consumption and/or investment size)

Ø  Deliver organisational innovation in financial engineering (e.g. on-bill financing schemes, guarantee funds, factoring funds) and/or mobilisation of investment programme (e.g. bundling, pooling, stakeholder engagement)

•  Demonstrate high degree of replicability and include clear action plan to communicate experiences/results across EU towards potential replicators

Project examples Ø  RESCOOP MECISE (EU)

•  Portfolio of RES investments in Belgium, France, Spain, UK •  EE measures in public buildings/lighting •  Facilitation of EE (and RES) investments in members' homes •  Establishment of dedicated financing structure (e.g. revolving

fund) or financing facilitation service to enable pooling of resources by "rescoops" for large-scale (bundled) RES/EE projects

•  EUR 111 million investment after 48 months •  Energy savings: 16 GWh/a, renewable energy: 180 GWh/a

Ø  LEMON (IT)

•  Energy retrofit of 622 dwellings in the social housing sector of two provinces of Emilia-Romagna (Parma, Reggio Emilia)

•  40% energy savings guaranteed by ESCOs •  Financing structure combining:

Ø  National and ERDF funds; Ø  "Conto termico" incentive scheme; Ø  Loans to be repaid, inter alia, within the framework of "Energy Performance Tenancy

Agreements"

•  EUR 15 million investment after 28 months •  Energy savings: 5.1 GWh/a

Ø  BEenerGI (ES)

•  Project development support to small/medium-sized municipalities in Girona region

•  Investments associated with the installation of collective heating systems in 85 public buildings and energy efficient retrofitting of streetlighting in 65 municipalities

•  Project bundling and promotion of (local) ESCO market •  EUR 16 million investment after 36 months •  Energy savings: 28 GWh/a, renewable energy: 11.5 GWh/a

Ø  22 MLEI projects supported under Intelligent Energy Europe from 2011-2013: http://ec.europa.eu/energy/intelligent/files/mlei-projects-2011-12.pdf

How to prepare a convincing proposal?

13

Organisational innovation

•  Innovation in the mobilisation of investment programme: bundling, pooling, framework contracts, stakeholder engagement, community finance…

•  Innovation in the financial engineering: alternatives to traditional financing (by public authorities: direct financing or subsidies) o  Soft loans; Energy performance contracting (with third-party financing); Public

ESCO’s; Investment funds on energy efficiency (Jessica / ERDF…); on-bill or on-tax finance; or anything relevant!

•  Innovation can also mean: o  New target sectors o  Higher levels of ambition (e.g. EPC’s for low-energy retrofitting of buildings)

•  Projects aiming only at the establishment of a financing scheme can be submitted under the 2017 topic “EE-23-2017: Innovative financing schemes”

•  Technical innovation is possible, but PDA does not target demonstration

projects (investments must be credible)

•  But … however smart the innovation may be, it is only a means to deliver the investments!

Relation to the work programme

14

Credibility of proposed investments

•  You should demonstrate sufficient project maturity (starting point): •  You have carried out the steps necessary to decide that the

investment is relevant •  The project has support from local stakeholders •  You have obtained the necessary green lights to proceed in

principle

•  The final beneficiaries (signing the investment contracts) should be involved: •  Public authorities should commit either at proposal stage or at the

beginning of the project: explain the contractual arrangements •  For private sector, households, commercial buildings, if such

arrangements are not possible, any letter of support or proof of interest is a positive element

15

Credibility: sufficient maturity

Technical & financial engineering

Impact, innovation & replicability

Project intention

Project planning

Detailed design and financing

Sign investment contracts

Procurement

Business as usual (BAU)

Bundling projects

New financing schemes

PDA targeted projects

PDA objective WE D

O N

OT FU

ND

THESE PROJECTS

Innovative financial engineering

16

Credibility: involvement of beneficiaries

Project development H2020 grant agreement

EASME

Final beneficiary

PDA structure

Needs assessment

Bundling and specifications

Procurement

Achievement of PDA

objectives

Grant payment

Sign investment contracts

Project development services

…

???

17

Impact: Investments

•  Impact indicators: € invested (incl. leverage), saved energy, RES production, capacity building

•  Investments must be described with sufficient precision •  Clarify the evidence provided for the investments

Table 2.1a: Detailed description of the proposed investments Investment sector: (please specify)

# Loca7on (area, town…)

Type of investment Descrip7on of the investment

Quan7-‐fica7on

Total surface (m2)

Current energy consump-‐7on

Energy savings (%)

Renewable energy produc7on (MWh/year)

Other quan7fica7ons

Payback 7me

Energy investment costs (thousands €)

1

2

…

Total/average

18

Implementation method: Procurement aspects

•  Procurement is essential in most PDA projects: o  Services (subcontractors) for the PDA o  Works or turnkey contracts (investments)

•  The procedure must fit the complexity of your project: o  Open or restricted call? o  Simple tender? Negotiated procedure? Competitive dialogue? o  Leave enough time for tenderers to establish their offers – this may not be their usual

business

•  Inform the market in advance – you will get more offers

•  Prepare financing solutions in case of third-party financing: o  Inform the banking and financial sector o  Secure the participation of public financial institutions (EIB, EEEF, EBRD…)

•  Bundling projects and joint procurement: plan how you will work

•  Guide on Innovation through Sustainable Procurement: www.smart-spp.eu/index.php?id=7633

19

'Investment costs' refers to

•  Investments which are directly related to or required for energy savings and/or renewable energy generation (“energy investment costs”)

•  Other measures should not be included in the proposed investments

•  For example in a building refurbishment: •  energy costs could include changing windows, insulating the façade

and painting it after insulation, •  but not painting the hallways or changing the bath tub.

•  Investment costs should include VAT only for entities which cannot reclaim it

•  EASME Energy Efficiency webpage: h$p://ec.europa.eu/easme/en/energy

•  Public workshop on innovaBve financing for energy efficiency and renewables (28 April 2015): h$p://bit.ly/1Ohtl42

•  InnovaBve financing for energy efficiency and renewables: feedback from successful projects (8 October 2014): h$p://bit.ly/1G7tMXC

•  InnovaBve financing soluBons: experiences from Intelligent Energy Europe projects (2-‐3 April 2014): h$p://bit.ly/1G9L9VQ

More information and help

Horizon 2020 – Energy Efficiency Call 2017 Deadline 07 June 2017 17:00 CET Ø  Participant portal - EE 22

http://ec.europa.eu/research/participants/portal/desktop/en/opportunities/h2020/topics/ee-22-2016-2017.html

Ø  EASME Energy Efficiency webpage: http://ec.europa.eu/easme/en/energy

Ø  Horizon 2020 work programme 2016-2017 à  Secure, clean and efficient energy challenge

à  Energy Efficiency Call à  Section 5: Innovative financing for energy efficiency investments

à  Topic EE 22 •  http://ec.europa.eu/research/participants/data/ref/h2020/wp/

2016_2017/main/h2020-wp1617-energy_en.pdf

•  Practical information on H2020: http://ec.europa.eu/programmes/horizon2020/en/how-get-funding

For all questions:

[email protected]

National Contact Points: http://ec.europa.eu/research/participants/portal/desktop/en/

support/national_contact_points.html

THANK YOU FOR YOUR ATTENTION

Martin EIBL, Senior Project Advisor [email protected]

Björn ZAPFEL, Project Advisor [email protected]

EASME on Twitter @H2020EE • @H2020SME • @EEN_EU • @EU_ECOINNO

Silvio De Nigris Piedmont Region

Sustainable Energy Development Sector

HORIZON 2020 INFO DAY – Monday 19 September 2016

The proposal

• 2 preparation meetings with LA beneHiciaries (11th and 26th of March 2013 – about 2 months in advance to the submission deadline)

• Desk feasibility studies carried out in order to estimate the potential savings on a selected list of buildings and street lights

• Regional guidelines for EPC to be tested and review

• Financial simulations about sustainability of the approach § An active Covenant of Mayors network, used to meet and work together

Background activities

Promote energy ef,iciency during the refurbishment of public buildings and street lights with EPC and Third Party Investments

The proposal: outputs and WPs •  9.5 M€ of investments in energy ef?iciency

•  Leverage factor: 19 •  4.300 tons of CO2 avoided

•  1.8 ktoe of primary energy saved

•  103 toe of Ren. En. produced

Audit and ?inancial analysis

Discussion with stakeholders and set up

conditions for durability of the outputs (ROP-‐ERDF and regional guidelines for EPC)

Training and preparation of the market

Launch of tenders

Communication

Tasks for the Investments

Tasks for the market

Key point for the proposal §  A strong partnership inside the project:

§  1 Regional Institution (main tasks: provide durability of the outputs) – Piedmont Region

§  1 Regional institution (main tasks: act as tender contracting authority and coordination of Municipalities) – the Metropolitan City of Torino

§  1 technical partner (main tasks: elaboration of energy audits and financial assessment) – Environment Park

§  1 large City (main tasks: test and replication in the future) – The City of Torino

A large partnership outside the project:

•  A selected list of beneficiary Municipalities (outside of the partnership)

§  The budget §  Total budget of: about 490 k€ §  Total working hours: 8.000 h §  Project duration: 30 months §  Breakdown of budget:

Key point for the proposal

Management16%

Training5%

Audit and analysis34%

Tender process18%

Communication9%

Durability of outputs18%

Type of activity

Coordinator and general contractor32%

Technical Partner42%

Regional Institution (durability)

19%

Testing Capital City7%

Type of partner

The model: technical/administrative issues

§  Few buildings belonging to a range of Municipalities §  Selection of buildings on the basis of their attractiveness for ESCOs §  A binging agreement was signed by beneHiciaries Cities and Contracting Body

§ We are bundling investments for about 2.5 M€ (2/3 tenders) + one large investment plan for the City of Torino

Municipality 1 Municipality 2 Municipality 3 Municipality 4

General contractor

ESCO

The model: technical/administrative issues

City 1 City 3

City 4

City 2

4 Agreements among Public Bodies 1 Procurement process 1 General contract 4 Energy Performance Contracts

An external auditor, selected by the general contractor and paid by ESCO through the general contractor

Finacial suport

ESCO

The model: >inancial issues Investments on each building

City 3

City 2

City 4

City 1

Check and Monitor the performance

Annual fees

…..from planning to implementation COMPETITION IN THE MARKET

CHANGE OF THE INSTITUTIONAL FRAMEWORK

CHANGE OF THE LEGISLATIVE FRAMEWORK

…..so we decided to >ind our way….

CHANGE OF THE INSTITUTIONAL FRAMEWORK

COMPETITION IN THE MARKET

CHANGE OF THE LEGISLATIVE FRAMEWORK

Main achievements, so far….

KPI Planned Achieved*

Investments 9.5 M€ 14 M€

CO2 emissions avoided 4.300 tons 1.780 tons

Primary energy saved 1.800 toe 745 toe

Renewable energy produced 103 toe 33 toe

*still to be validated by EASME

Lessons learnt so far

Keyword is TIME

ThreatsSeveral LAs are willing to do, but there are still a lack of knowledge/understanding and a lot of uncertainties. The market is still to be prepared

OpportunitiesCase of success are needed for replication to a wider scale

WeaknessThe general contractor can be a bottleneck due to other priorities and heavy workloads

Political changes due to elections can slow down the process.

StrengthsUnpredictable success in terms of energy savings and investments




































Questions for tips





















A lot of market players can make direct proposals showing shortcuts. How strong is the project network?

Training and local/regional capacity building workshops are useful. Are project partners and local beneHiciaries speaking the same language?

Do you have local neighbouring examples to show?











How strong is the level of inHluence of beneHiciaries toward the contracting body?

Is energy efHiciency a priority in the policies of the contracting body?

A formal and binging agreement between the contracting body and the beneHiciaries is useful/essential, but how strong is it in terms of time and penalties?











…..still some steps to go….

2020Together project: Silvio De Nigris: [email protected] -‐ 0039.011.432.3177

….at least one call for tender still to be launched…. It is always a matter of time

project development assistance - european commission ·...

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