Energy efficiency in buildings.
European support schemes
Budapest
October 2, 2014
Irina Kotliar
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Capacity building in Central & Eastern Europe
EU: mobilising sustainable energy investments
I.
EU subsidy program IEE Horizon2020
II.
Joint financial facilities
I.
European Energy Efficiency Fund (EEE-F)
II.
EIB ELENA programme
in combination with facilities from other development banks
(CEB, EIB, EBRD, KfW, etc.)
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General remarks
•
•
•
•
Grants
–
Tied to innovation: Horizon2020
–
Tied to loans as TA
Lending and investments
–
strong emphasis on funds revolving and leverage
–
TA grants tied to loans
•
ELENA: 90% development TA costs; should not affect leverage ratio
•
EEE-F: TA <10% of investments budget (€20m vs 265m
Project size
–
Generally large projects
–
Programmes/ clustering projects
Instrumental!
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I. EU Horizon2020: general principles
• New research and innovation funding programme of nearly €80bn
2014-2020
• Focus on societal challenges facing EU society
– Health, clean and efficient energy, transport, etc.
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I. H2020 Funding energy efficiency buildings
• EE falls under Societal challenges
– Secure, clean and efficient energy. Worth EUR 5,9 bn 2014-2020
• Energy challenge calls (indicative budget bi-annual planning)
Calls
2014 (M€)
2015 (M€)
 Energy Efficiency
97
98
Smart Cities and Communities
92
108
Competitive Low-Carbon Energy
359
372
SMEs and Fast Track to Innovation
34
37
Part B – other actions
75
61
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I. H2020 Funding energy efficiency buildings
• Energy efficiency call specificity:
– Most actions: min. 3 participants from 3 different countries
• Few exceptions, such as construction skills EE4 and financing EE19, EE20: 1 /1
• Emphasis on innovative industry/ SME
– From EU and/or from Associated Countries (list of FP7). Beyond this: large list of
countries, but judge evaluation required
• Topics:
– A: Buildings and Consumers
- C: Industry and products
– B: Heating and Cooling
- D: Finance for sustainable energy
• Type of actions: emphasis on innovation
– Research and Innovation (research, knowledge generation) -100%
– Innovation Actions (test to market) - 70/%100% if non-profit
– Coordination and Support (standardisation, policy, financing) 100%
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I. H2020 Funding energy efficiency buildings
• A – Buildings and consumers
– EE 1- 2014: Manufacturing prefab modules renovation buildings (IA)
– EE 2 – 2015: Buildings design new highly EE performing buildings (IA)
– EE3 – 2014: Energy strategies & solutions deep renovation of historic (residential)
buildings (IA)
– EE 4 – 2014: Construction skills (CSA)
– EE 5 – 2014/2015: Increasing energy performance of existing buildings through
process and organisation innovations and creating a market for deep renovation
(CSA)
– EE 6 – 2015: Demand response in blocks of buildings (intelligent energy
management systems) (IA)
– EE 7 – 2014/2015: Enhancing the capacity of public authorities to plan and
implement sustainable energy policies and measures (CSA)
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I. H2020 Funding energy efficiency buildings
• B – Heating and cooling
– EE 13 – 2014/2015: Technology for district heating and cooling (CSA)
– EE 14 - 2014/2015: Removing market barriers to the uptake of efficient
heating and cooling solutions (CSA)
• D - Finance for sustainable energy
– EE 19 – 2014/2015: Improving the financeability and attractiveness of
sustainable energy investments
– EE 20 – 2014/2015: Project development assistance for innovative bankable
and aggregated sustainable energy investment schemes and projects
– EE 21 – 2014/2015: Development and market roll-out of innovative energy
services and financial schemes for sustainable energy
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I. H2020 online manual
• http://ec.europa.eu/research/participants/docs/h2020-fundingguide/index_en.htm
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H2020 – Energy Efficiency Support
• Follow calls announcements!
– Energy efficiency call page: http://ec.europa.eu/easme/energy
• More reading:
– H2020 general website:
http://ec.europa.eu/programmes/horizon2020/en
– H2020 FAQ section:
http://ec.europa.eu/research/participants/portal/desktop/en/support/f
aq.html
– H2020 National Contact Points: http://ec.europa.eu/research
/participants/portal/desktop/en/support/natoinal_contact_points.html
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II. European Energy Efficiency Fund
(EEE-F)
•
PPP providing EUR 265 mln for investments, 20m TA (grant) available to
structure projects
– EUR125m by EERP, 75m EIB, 60m CDP and 5m Deutsche Bank
– Managed by Deutsche Bank (www.eeef.eu)
•
Beneficiaries: Local and regional public authorities; PPPs are possible
•
Financing
– Direct investments (ESCO’s, project developers) and investments in financial
institutions
– Financing in form of equity, loans, guarantees, forfeiting schemes
•
70% of the investment target EE in buildings
•
Projects ranging €5m to €25m are eligible!
•
No calls, application possible at any time
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EIB ELENA
mobilising sustainable energy investments
• ELENA – European Local ENergy Assistance
– Joint EIB-European Commission initiative
– ELENA is a European Facility
• To support regional or local authorities
• through Technical Assistance
• in accelerating their energy efficiency and renewable energy investment
programmes
• to reach EU ‘20-20-20 targets’
– grant support is provided under IEE II programme (Intelligent Energy
Europe; http://ec.europa.eu/energy/intelligent/index_en.html )
– Beneficiaries:
• public bodies in terms of mission, funding, control and liability
• in eligible countries
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EU support for residential retrofitting and
sustainable energy
Source: ELENA Facility mobilising sustainable energy investments
Roman Doubrava, European Commission Directorate-General for Energy
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EU support for residential retrofitting and
sustainable energy
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What kind of investment programmes
supported by ELENA TA?
• Areas
– Public and private buildings
– Integration of renewable energy sources (RES) into the built environment
– Renovating, extending or building new district heating/cooling networks
– Urban transport
– Local infrastructure
• Certain size
– normally > EUR 30 mln
– Support small projects possible when integrated/ grouped into larger investment
programmes
• reducing transaction costs
• “bankability” of the individual projects, which is one of the ELENA selection
criteria.
•
Contribution to 20-20-20 targets
•
Does not need to be fully elaborated
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What type of technical support can
be financed by ELENA?
• Covers up to 90% of eligible costs TA
– IF related to a clearly identified investment programme
• Eligible costs
– Any TA to prepare, implement and finance investment programme
– hardware costs excluded,
– cost of staff assigned to specific investment programme eligible
– eligible costs can include value added tax
• if documented and cannot be recovered by the beneficiary
• Minimum and maximum costs?
– In principle, no specific limits, but should be fit for potential market
replication
– leverage factor of minimum 20 to be respected
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Relation EIB financing & ELENA
•
EIB provides two main facilities:
– Direct loans
• For large scale projects (>25 mln)
– Intermediate loans
• Small and medium-scale projects (particularly to SMEs) via national
and regional intermediary banks
– Lending decision remains with the financial intermediary
•
receiving ELENA assistance not a prerequisite to obtain EIB financing,
and vice-versa.
– different procedures for EIB loan and ELENA grant (www.eib.org)
– However, improving bankability of the investment programme, ELENA may
facilitate access to financing from the EIB or other banks
• Further reading:
– http://www.eib.org/attachments/documents/elena_faq_en.pdf
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Thank you!
Questions?
irina.kotliar@advancee.nl
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