File - Investor Confidence Project

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EDF’s Investor Confidence Project (ICP):
Building Confidence in
Energy Savings
The Investor Confidence Project
• Efficiency Lifecycle Framework
1. Baselining
•
•
2.
3.
4.
5.
Core Requirements
Rate Analysis, Demand, Load Profile, Interval Data
Savings Projections
Design, Construction, Commissioning
Ongoing Commissioning
Measurement and Verification (M&V)
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Enables a clear definition of the complete process necessary to ensure performance
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Can house multiple standards for different building types and business models
• Energy Efficiency Performance Protocol - Large Commercial (EEPP-LC)
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Create an accepted best practice approach to Large Commercial building retrofitting
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Uses existing and accepted industry practices and standards
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Define “appraisal pack” of documentation for EE Performance
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A standardized approach to delivering investment ready project to market
Managing Project Risk Factors
Performance
Risk
Asset
Risk
Credit
Risk
Market Actors
• Building Owners
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Achieve acceptable ROI on their specific project
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Access financing
• Origination Partners
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Be able to close business leveraging ESAs and other products
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Allow for distributed models
• Energy Service Companies
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Deal flow with reasonable transaction costs through channels
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Manageable performance risk
Market Actors
• Financial Markets
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Ensure performance risk is managed correctly (by someone)
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Correlate project performance with asset risk
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Create large pools of consistent projects
• Insurance Industry
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Underwrite performance risk with a narrower band
• Utilities / Capacity Markets
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Bet on demand reductions to meet capacity needs, and achieve regulatory mandates
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Manage EM&V risk
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Treat Energy Efficiency as resource procurement
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Access forward capacity markets
• Carbon Markets?
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AB32 in California
Performance Risk Barriers
•
Project Demand
– Lack of standards puts engineering overhead on each firm
– Channels are rendered ineffective
– Lack of transparency has created market inefficiencies
•
Savings Uncertainty
– Lots of winners and losers (variance), creating uncertainty
– Many approaches to savings estimation, installation, commissioning, etc.
– Averages penalize performing projects, and incentivize low quality
•
Actuarial Data
– Lack of quality and quantity of data results in a high degree of uncertainty
– Getting data from industry, finance, and the energy sector is challenging
– Data does not describe all factors that impact performance
Energy Efficiency Performance Protocol
First Energy Efficiency Performance Protocol designed for
Large Commercial projects (EEPP-LC):
•
Large Buildings, where the cost of improvements and size of savings justifies greater time
and effort in pre- and post- development energy analysis
•
Whole Building Retrofits, projects that involve multiple measures with interactive effects
rather than a single piece of equipment
•
High Performing Projects, projects with sufficient depth necessary for pre- and post-retrofit
meter data yields (i.e., savings can be anticipated to be of greater magnitude than noise)
Energy Efficiency Performance Protocol
• Required Elements
• Required Procedures
• Required Documentation
Energy Efficiency Performance Protocol
• Required Elements
• Required Procedures
• Required Documentation
Project Performance Package
EEPP standard documentation similar to an appraisal package:
• Prescribed methods
• Consistent taxonomy
• Accepted measurement
• Auditable results
• Standardized documentation
Adoption Strategy
• STEP 1: Engagement of market players
– Finance Companies
– Utilities
– Energy Services Companies
– Insurers
– Asset Owners
• STEP 2: Outreach to project origination channels
– Engineering Firms
– Facility Management
– Portfolio Managers,
– Contractors,
– Others?
Next Steps
• Become an ICP Partner
– Specify EEPP-LC as your company’s standard for large commercial EE projects
• Participate in the Process
– Refining the EEPP-LC
– Developing new sector and business model specific protocols
• Hospitality, Multifamily, Residential , Health Care, Schools, etc.
• Help the ICP Reach Critical Mass
– A rising tide floats all boats
– Help identify and engage additional channel and market partners
Investor Confidence Project
For More Information:
Mary Barber
[email protected]
Matt Golden
[email protected]
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