Financing Energy
Efficiency
Philip Lowe
Director General
Directorate-General for Energy
Energy
The EU 20-20-20 targets by 2020
Reduce greenhouse
gas emissions by 20%
Current
trend to
2020
Increase share of
renewables to 20%
Reduce energy
use by 20%
Current
trend to
2020
-20%
Current
trend to
2020
20%
Energy
100%
-10%
Despite untapped savings potentials
across all major sectors
Economic potential [Mtoe]
100
80
11%
60
Savings expected
to be achieved
with already
existing measures
16%
40
2%
5%
20
Industry
Commercial
Residential
Sectors covered by EED
Energy
Remaining saving
potential to be
addressed with
new measures
Transport
Policy response: a new Energy Efficiency
Directive
Public
sector
Households
Indicative
national
EE targets
Sectoral
measures
new
EED
Monitoring
& Reporting
Energy
Services
Energy
supply
General
promotional
measures
Industry
…and beyond 2020?
• Roadmap 2050
• Explore routes towards a low-carbon energy
system by 2050
• Give more certainty to governments and investors
• Energy efficiency is a ‘no-regrets’ option
• Well-functioning energy markets are key
Energy
What is the ‘investment’ need?
• Energy savings potential across sectors requires
investment of around 850 billion € (2011-2020)
• Around 85 billion € per year
• Buildings take the lion’s share of around 60 billion
€ per year
Energy
What is currently available at EU level?
• Cohesion policy funds (2007-2013):
• 4,6 billion € for energy efficiency
• Intelligent Energy Europe Programme (2007-2013):
• 735 million € for ‘soft’ energy efficiency/renewables projects
• ELENA Facility:
• 97 million € for technical assistance to mobilise investments
• European Energy Efficiency Fund (EEE-F):
• 265 million € for investments into mature, bankable
efficiency/renewables projects
• 20 million € for technical assistance
Energy
What will be available at EU level?
• Next Multi-Annual Financial Framework (20142020) proposals:
• Cohesion funding to allocate some 17 billion € to
energy efficiency and renewable energy (doubling
current allocations)
• Horizon 2020: 6.5 billion € is to be allocated to
research and innovation in "Secure, clean and
efficient energy"
Energy
What works?
• National funding programmes
• KfW “energy efficient building and renovation”
programmes in Germany
• Every Euro invested returned 2-5 Euros to state
coffers, mainly through job creation!
Year 2008
2009
2010
Credit volume (mEUR)
5.583
9.015
8.860
Promoted investment (mEUR)
12.181
18.597
21.535
Promoted jobs
191.000
298.000
345.000
Source: Impact on public budgets of KfW promotional programmes in the field of "energy-efficient
building and rehabilitation", Research Centre Jülich, October 2011
Energy
What works?
• Energy performance contracting
• Berlin has made use of energy performance
contracting since 1996
• Over 1300 public buildings have been upgraded
• Cost savings of about 10,5 million € - i.e. a
quarter of the energy cost of the buildings
involved
Energy
What works?
• Energy saving obligations in Member States
• Cost of delivered savings lower than price of
energy
Energy
What do we need going forward?
• Engagement, especially of the financial sector, to:
• Convince policy makers
• Assist in policy development
• Support leveraging of public money
Energy
What could we do to help?
• Commission to launch consultation on financial
support for energy efficiency in buildings
• How could access to financing be improved?
• What is the role of the EU regulatory framework?
• How to remove important barriers?
Energy