Adrien Bullier

Senior Project Adviser

Executive Agency for Small and Medium-sized Enterprises (EASME)

Unit B1 Energy

EE-10: Mainstreaming energy efficiency finance

Challenge

Ø High risk premiums on energy efficiency due to lack of data

Ø High transaction costs

Ø Lack of standardisation prevents aggregation of assets and hampers refinancing by capital markets through securitisation

Ø Energy efficiency investments usually don't aim only at energy savings, but the associated benefits are not factored into financial models (property value, vacancy rates…)

Ø Energy efficiency needs to become as normal as a car loan!

The scopeProposals should address 1 or more of the following issues:

1. Frameworks for the standardisation and benchmarking of energy efficiency investments

2. Capacity building for banks and investors

3. Gathering, processing and disclosing large-scale data on actual financial performance of energy efficiency investments,

4. Further integration of non-energy benefits in project valuation, in particular in the building sector, leading to evolution of existing financial products or creation of new targeted products;

5. Targeting institutional investors (e.g. public pension schemes) in order to increase the share of their funds invested in energy efficiency

6. Exploring the impact of revised risk ratings and requirements for energy efficiency on financial regulations (Basel III, Solvency II).

The expected impact

Ø Number of financial institutions and other stakeholders reached as well as their potential volume of investment concerned;

Ø Frameworks, standardisation, benchmarking, standardised descriptions and data evidence of financial returns of energy efficiency investments agreed and accepted by the market;

Ø Higher allocation of institutional investments to energy efficiency; Ø Standardisation of assets enabling securitisation; Ø Development of a secondary market for energy efficiency assets (in

million Euro of investment within 5 years after the end of the project);

Ø Primary energy savings triggered by the project (in GWh/year);Ø Investments in sustainable energy triggered by the project (million

Euro).

Key features for a successful proposal

Ø Adequate analysis of the market needs and barriers to overcome

Ø Clear and detailed concept answering the real needs of market actors – a good idea is not enough!

Ø Engagement of market actors at proposal stage and during the whole duration of the action – in particular financial institutions

Ø Clear viability of the solution(s) envisaged

Projects selected under call 2017 – under Grant Agreement Preparation

Ø Designing a standardised protocol for reporting large scale technical and financial data on energy efficiency of mortgage assets and to make these data accessible to institutional real estate investors and lenders via a centralised portal

Ø Developing a tool that will allow investors in the commercial real estate sector to analyse the risks of stranded assets due to low energy performance and to reallocate investment into more energy efficient buildings

Ø Creating a framework and a toolkit to support non-state actors and specifically financial institutions, in framing their commitment to the Paris Agreement, setting targets and measuring and reporting their contribution to energy and climate goals.

Relevant projects examples

Ø Investor Confidence Project Europe / I3CP: • Replicates a US initiative in the EU• Increase investor confidence and reduce transaction costs through

standardisation • Joint development with the finance sector of protocols for process and data

management in building energy retrofit projects (ICPEU) and industry, street lighting and district heating (IC3CP)

Ø SEAF – Sustainable Energy Assessment Framework• IT based framework for valuation and benchmarking of smaller sized

sustainable energy projects (energy efficiency, demand response, distributed renewable generation etc.),

• reduction of transaction costs and risks and enhancement of bankability • enhance investors' confidence, through innovative and relevant asset

valuation methodologies accepted by the market and standardized descriptions of sustainable energy investments.

Relevant projects examples

Ø SEI Metrics (Sustainable Energy Investment Metrics)

• Develop an assessment toolbox that will enable to measure the performance of investors' portfolios vis-à-vis climate and energy scenarios.

• Create visibility on the market in order to monitor the impact of investment portfolios.

• Methodology is currently being tested by >70 institutional investorsØ ET RISK (Energy Transition Risk)

• Methodology to assess the risks associated to an Energy Transition scenario for institutional investors.

• Equity valuation models and credit risk models will be integrated into the products of mainstream service providers such as Standard & Poor's (part of the consortium).

Relevant projects examples

Ø EEMAP – Energy Efficiency Mortgage Action Plan• Investigating the effects of energy efficiency improvements on the

value of a home and the risks of default associated to a mortgage, and how this could result in lower interest rates and higher lending capacity for home energy renovations

Ø QualitEE• Establish 8 national quality certification frameworks for energy

efficiency services, and develop guidelines on EU-wide standardized criteria

Thank you! #H2020Energy

www.ec.europa.eu/research

Björn ZAPFEL

Project Adviser

Executive Agency for Small and Medium-sized Enterprises (EASME)

Unit B1 Energy

LC-SC3-EE-9-2018-2019

Innovative financing for energy efficiency investments

Challenge

• "Smart Financing for Smart Buildings" initiative• More effective use of public funding

• Aggregation and assistance for project development

• De-risking

• Innovative regional/national financing schemes• Adequate private finance supply for EE investments

• Maximised leverage ratio of private finance to public funds

• Development or replication and implementation of innovative financing schemes for EE investments• Various financing models/schemes

• Different organisation types/ownership structures

• Complementarity to already available funding

• Provision of finance and structuring of demand (regional/national level)

• Targeting specific areas (e.g. energy-intensive industries, buildings etc.)

• Tailored and innovative for the targeted regions and market segments

• Demonstration of market potential, as well as business case and financial viability(including investment sizes targeted, expected savings, transaction and management costs, expected returns etc.)

Scope

• Exemplary financing schemes• Dedicated credit lines

• Guarantee facilities

• Factoring/forfaiting schemes

• On-bill (e.g. utility-financed) or on-tax financing schemes

• Citizen financing (e.g. crowd-funding) for EE

• Models for deep renovation of buildings (property and rental market)

• Schemes for different industry sectors and cross-sectorial initiatives

• Solutions integrating existing market-based instruments relevant for EE(e.g. carbon finance instruments, including those under the EU ETS; EE obligations, incl. white certificates etc.)

• Schemes based on project aggregators/clearing houses at regional/national level (project development support; matching demand & supply of EE finance)

Scope (cont.)

• Set-up of new innovative, operational financing schemes

• Replication of previously successful solutions(e.g. developed/implemented under various PDA facilities, incl. ELENA of EIB)

• Establishment of regional/national aggregators able to develop large (standardized) project pipelines

• Creation of EU or regional/national energy efficiency investment roundtables/platforms to• Organise dialogue with and between the relevant stakeholders and

• Develop roadmaps

• Propose improvements in the legal frameworks

• Develop and validate template documents and contracts, leading to a better understanding of the market

Clear action plan to communicate across Europe towards potential replicators

Scope (cont.)

Expected Impact

Ø Depending on scope addressedØ Quantified indicators and targets, wherever possible

• Delivery of innovative financing schemes that are operational and ready to finance EE investments

• Regional/national aggregators with demonstrated/traceable capacity to set up large-scale pipeline of (standardized) sustainable energy investments (in terms of number of and/or amount of investment)

• EU or regional/national EE investment roundtables/platforms providing a comprehensive range of support and/or services to facilitate access to EE finance

• Primary energy savings triggered by the project (in GWh/year)

• Investments in sustainable energy triggered by the project (in million Euro)

• Additional positive effects (reduction of GHGs/air pollutants)

Relevant Horizon 2020 projects

CITYnvestØ Introduction of innovative financing schemes (revolving funds, EPC,

third party financing, cooperative models etc.)in 3 pilot regions (Belgium, Bulgaria, Spain)

Ø Analysis of models (opportunities and barriers)Ø Large-scale capacity building and training (for public authorities)Ø Web-based portal for practical guidance and match-making3

TrustEEØ Investment fund focused on industrial energy efficiencyØ Fund-internal guarantee facility to reduce risksØ Third Party Financing – institutional investors

Relevant Horizon 2020 projects (cont.)

Call 2017

Ø Energy savings insurance mechanism for SMEs combined with retention guarantees by technology providers and (simplified) independent validation/verification based on standardised contractual arrangement.

Ø On-tax financing mechanism for energy renovations linking debt to the property rather than to the owner and collecting debt repayment through property taxes.

Ø Capacity building activities and roll-out of operational innovative financing schemes (incl. energy performance contracting, crowdfunding and leasing) in Eastern Europe and Caucasus region

Project Development Assistance projectsØ EE-11: Aggregation - Project Development AssistanceØ IEE (Intelligent Energy – Europe) PDA projects:

https://ec.europa.eu/easme/en/project-development-assistance-pda

Ø Sufficiently clear, concrete and mature concept(e.g. financial solution(s) to be developed or tailored and replicated, sectors/investment types targeted etc.)

Ø Adequate market and barrier analysis

Ø Demonstrated response to real market needs and corresponding concrete (market) impact

Ø Clear economic/financial viability of the solution(s) envisaged

Ø Suitable addressing of market acceptance(e.g. involvement of and/or engagement strategies regarding key stakeholders and, in particular, financial sector actors)

Key proposal features

Thank you! #H2020Energy

www.ec.europa.eu/research

Céline TOUGERON

B.1.3 H2020 Energy - Public Authorities, Energy Services and Financing

EASME

EE11: Aggregation - Project Development Assistance

PDA in a nutshell

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

• Build capacity and a project pipeline across Europe

• 32 projects funded triggering >€771m investments

LC-SC3-EE-11-2018-2019 (expected 2020): Aggregation - Project Development Assistance

What?§ Launch of concrete sustainable energy investment projects

§ Building technical, economic and legal expertise

Who?• Public and private project promoters (e.g. public authorities or their

groupings, public/private infrastructure operators and bodies, energy service companies, retail chains, large property owners and services/industry)

• Proposals from 1 single entity are eligible!

Sectors targeted?

• Existing public & private buildings including social housing

• Street lighting

• Water / Wastewater services

• Retrofiting of existing district heating/cooling

• Industry and services

• Urban Transport

Main features?

• Lead to investments launched before end of the action (i.e. signed contracts for sustainable energy investment – e.g. construction work, energy performance contract, turnkey contracts)

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

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

• 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

• Build on the experiences from previous PDA

'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: o energy costs could include changing windows, insulating the façade and painting it

after insulation,

o but not painting the hallways or changing the bath tub.

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

Size of investment portfolio: EUR 7.5 million – EUR 50 millionLarge scale investment projects: see ELENA programme

Examples of activities

þ Creating capacity and demand at local level

þ Retrofit of public lighting

þ Retrofit of public buildings (EPC bundling)þ EPC in the rental social housing sector or multi-family housesþ One-Stop-shops, home renovation

Investment

Legal

TechnicalFinancial

Project Promoters

How to prepare a convincing proposal?

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: new target sectors, higher levels of ambition (e.g. EPC’s for low-energy retrofitting of buildings)

• You should demonstrate sufficient project maturity (starting point)

• The final beneficiaries (signing the investment contracts) should be involved

Credibility

Implementation method: Procurement aspects

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

• 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, 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

Impacts: 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)

# Location  (area,  town…)

Type  of  investment Description  of  the  investment

Quanti-­‐fication  

Total  surface  (m2)

Current  energy  consump-­‐tion

Energy  savings  (%)

Renewable  energy  production  (MWh/year)

Other  quantifications

Payback  time

Energy  investment  costs  (thousands  €)

1

2

…

Total/average

More information and help• EASME Energy Efficiency webpage: http://ec.europa.eu/easme/en/energy

• Public workshop on innovative financing for energy efficiency and renewables (28 April 2015): http://bit.ly/1Ohtl42

• Innovative financing for energy efficiency and renewables: feedback from successful projects (8 October 2014): http://bit.ly/1G7tMXC

• Innovative financing solutions: experiences from Intelligent Energy Europe projects (2-3 April 2014): http://bit.ly/1G9L9VQ

10 PDA projects• supported under Horizon 2020 since 2014

• 2014 PDA projects: http://europa.eu/!Mj83GK (EE-11-2014)

• 2015 PDA projects: http://europa.eu/!hX94qJ (EE-11-2015)

• 2016 PDA projects: http://europa.eu/!nd94rd (EE-22-2016)

22 MLEI projects• supported under Intelligent Energy Europe from 2011-2013

• https://ec.europa.eu/easme/sites/easme-site/files/mlei-projects-2011-12.pdf

For all questions:EASME-Energy@ec.europa.eu

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

ktop/en/support/national_contact_points.html

Thank you! #H2020Energy

www.ec.europa.eu/research

@H2020EE

Christophe MILIN

Project Adviser

Executive Agency for Small and Medium-sized Enterprises (EASME)

Unit B1 Energy

LC-SC3-EE 2-2018-2019

Integrated home renovation services

LC-SC3-EE-2-2018-2019:"Integrated home renovation services"

• Why?- Many project promoters lack the skills and capacity to set up, implement and

finance ambitious sustainable energy projects

- In addition, many lack access to attractive and adequate financing products from the market

• How?- Create (or replicate) "integrated home renovation services", operational by the end

of the action

- Cover the whole "customer journey": from technical and social diagnosis, technical offer, contracting of works, structuring and provision of finance, to the monitoring of works and quality assurance.

- Create more demand for holistic approaches as a result of improved offer by trustful market operators and better awareness from homeowners

CSA100%

LC-SC3-EE-2-2018-2019:"Integrated home renovation services"

• What?- Optimise the services required along the renovation process

(based on a thorough analysis of the local needs and actors in place),

- Reduce renovation costs and time on-site through standardised approaches (e.g. optimized business processes, standardised contractual arrangements, branding of the proposed services, …),

- Mainstream innovative technical solutions adapted to the local context,

- Improve trust and awareness of homeowners towards such services,

- Help improve the legal and regulatory environments and

- Overall improve financing conditions for energy renovation.

• More information- Webinar on "Home Renovation": 21 November 2017 (11:00 – 12:30)

- see https://ec.europa.eu/energy/en/financing-energy-efficiency/sustainable-energy-investment-forums

Thank you! #H2020Energy

www.ec.europa.eu/research

Cooperation  for  refurbishment  of  municipal  buildings  in  Limburg  (B)

Context:  the  partners

• 838  050  inhabitants  in  44  (small)  cities  and  towns

• The  province  as  a  partner  for  the  municipalities

• Limburg  wants  to  be  climate  neutral

• All  44  cities  and  towns  signed  the  COM in  2011

• The  province  is  territorial  coordinator  for  COM

• Infrax:  public  grid  operator  in  Flanders

• Electricity,  gas,  cable  and  sewage

• Provincial  consultancy  for  sustainable  building

• Building  and  renovation  advice

ESCOLIMBURG2020:  our motive

• Building  stock  of  Limburg  local  authorities  was  not    

energy  efficient

• Local  authorities  lacked  expertise  and/or  means  to  

manage  complex  renovation  projects

• Local  authorities  needed  to  set  a  good  example  

for  own  citizens  

ESCOLIMBURG2020:  the  project• IEE  -­ MLEI– PDA  – Call  2012

• Duration:  April  1,  2013  -­ March  31,  2017  (incl.prolongation)

• Accelerated  realization  of  energy-­efficient  government  buildings  by  investing  EUR  19.8  million  in  energy  saving  measures  (17%  leverage)

• Starting  point:  the  existing  ESCO-­service  of  Infrax

ESCOLIMBURG2020:  our approach

• Development  and  implementation  of  an  optimized  

ESCO-­model

• Investigation  of  alternative  financial  models  

• Increasing  the  engagement  of  municipalities  

• Capacity  building  of  local  authorities  and  building  

sector  

Feasibility studies (free)

Detailed studies(charged)

TenderingWorks supervisionPre-financing

Transfer andrepayment

Decision municipality

Decision municipality

Calculated  savings,  ‘unburdening’  and  (pre)financing

But  no  real  EPC

Municipality:- ESCO contract- List of buildings- Global ambition SEAP > Retrofit & Renewables Action Plan

policy dialogues

(in-house or by external engineering consultancy) ESCO process

Municipal projects(via ESCO)

€€€• Own financing• Own bank loans• Loan via Infrax

loans

Initial  financing  possibilities

(Pre-­)Financing  investments  by  Infrax• Deferred  repayment  of  total  amount  after  transfer• Deferred  repayment  in  installments  (~loan) (on  balance  sheet!)

Own  financing  or  bank  loan  by  municipality(on  balance  sheet!)

• Loan  capacity?

Exploring  alternative  financial  models

Feasibility  study  by  KPMG

Two  models  were  selected  (and  tested)  • EPC  light  with  sculpted  financing

• Cooperation  with  public  financial  parties:  

Green  Investment  Fund

public grid operator €€€

loan

Innovative  financial  models?EPC  Light  with  sculpted  financing

Municipal projects(via ESCO)Bank €€€

EPC Light:• Calculation energy savings = Repayment ‘loan’ • ‘Loan’ term max. 20 years and adaptable• Postcalculation (3 years) > Adaptation of repayment or ‘loan’ term• No real savings guarantee or contract• Only real energy investments (no other investments/maintenance)• On balance!

• Offered  to  municipalities  on  various  occasions• No  real  success  because:  • Most  Limburg  municipalities  lack  a  real  cash  flow  issue• Due  to  the  fall  in  commercial  interest  rates,  municipalities  seek  funding  on  private  finance  market

• We  continue  offering  EPC  Light  to  municipalities  with  

cash  flow  issues  and/or  limited  borrowing  capacity

Innovative  financial  models?EPC  Light  with  sculpted  financing

Municipal projects (via Infrax ESCO!)

€€€

shares

public grid operator

Other projects

Green

Private bank(s)

NUHMAholding

equity

equity

loans

€€€

loansorleasing

loans

Innovative  financial  models?Green  Investment  Fund

ESCOFIN(Green Investment Fund)

loans

Limburg  Climate  FundMobilise  ‘cheap’  money  for  municipal  ESCO-­projects  by  using  existing  Limburg  Climate  Fund:  

• Cooperative  fund  (subordinated  loans,  shares,  …)

• Create  revenue  for  shareholders  (1%  >  savings  account)

• Founded  2012,  approval  by  supervisory  authority  2014

• Create  involvement  of  citizens  and  organisations

• Put  on  hold  for  the  time  being,  but  can  quickly  be  reactivated  when  

interest  rate  environment  changes

www.limburgsklimaatfonds.be

Double-­check  assumptions  before  you  start• Few  Limburg  municipalities  have  actual  cash  flow  problems

• Many  Limburg  municipalities  have  subjective  feeling  of  risk  aversion  because  of:

– Uncertainty  about  impending  cuts

– Uncertainty  about  changes  in  government  financing  

– Possible  mergers  of  departments  and  municipalities  

– Lack  of  knowledge  and  LT  vision  on  patrimony

LESSONS  LEARNED

Context  and  unexpected  set  backs  can  

undermine  planning  and  good  ideas

• Local  elections  

• Organizational  restructuring  

• Low  interest  rates  making  alternative  financing  

uncompetitive

• …

Keep  this  in  mind  and  set  realistic  goals  

LESSONS  LEARNED

Persuasion  is  custom  work:  

take  time  to  invest  in  relationships!

•Knowledge  of  whom  to  approach  and  with  which  arguments

•Knowledge  of  natural  changes  and  urgent  renovation  needs

•Not  only  generates  follow-­up  projects,  but  also  creates  ambassadors

Decision-­making  is  not  (always)  rational!  

LESSONS  LEARNED

www.escolimburg2020.eu

Dirk  Schreursdirk.schreurs@infrax.beInfrax,  Trichterheideweg  8,  3500  Hasselt  (Belgium)www.infrax.be

Ine  Schilsine.schils@dubolimburg.beDubolimburg,  Centrum-­Zuid  1111,  3530  Houthalen-­Helchteren  www.dubolimburg.be

Patrick  Boucneaupatrick.boucneau@limburg.beProvince  of  Limburg,  Universiteitslaan  1,  3500  Hasselt  (Belgium)www.limburg.be

ESCOLimburg20201  april  2013  -­ 1  april  2017www.ESCOLimburg2020.eu

Björn ZAPFEL

Project Adviser

Executive Agency for Small and Medium-sized Enterprises (EASME)

Unit B1 Energy

LC-SC3-EE-17-2019

European City FacilityEuropean cities as key innovation hubs to unlock finance for energy efficiency

Challenge

• Cities and Communities key for energy transition• Tremendous potential for building substantial pipeline of investment

projects across Europe (energy efficiency and renewable energy)

• Aggregation of smaller projects into sizeable packages

• Mobilisation of significant amount of finance needed

• Barriers for tapping full potential• Lack of credible, robust and sufficiently mature investment concepts to

enable access to financing

• Missing capacity of public authorities to transform long-term strategies (e.g. SEAPs)

• Limited resources to access (financial and legal) expertise to:

• Collect additional data

• Design an investment programme of scale (e.g. pooling projects and/or bundling with neighbouring constituencies)

• Develop adequate finance strategies

Challenge

• Need for robust investment concepts• Clear identification of potential project pipeline,

based on (local) market/barrier analysis, sample energy audits etc.

• Analysis of local stakeholders controlling the project pipeline, incl. commitments (by asset owners) and engagement strategy

• Legal analysis (regional, national, international) to define available investment types and framework conditions, actual investment approach and structuring/timeline of investment steps (incl. e.g. public procurement or debt accounting rules)

• (Pre-feasibility) analysis of available financing solutions, incl. basic modelling of investment costs, transaction costs, expected (cost) savings and other revenues etc.

• Roadmap: basic process to launch investments, incl. work planning and resource allocation

Investment Concept

Draft project pipeline

Market/barrier analysis

Local actor analysis

Legal analysis

Finance pre-feasibility

Investment process

Investment Concept

Scope• Set up/operation of 'European City Facility'• Offering financial support and services to large

number of cities and municipalities (or groupings)

• To develop innovative investment concepts, covering:• Clear identification of potential project pipeline with

critical investment scale (e.g. pooling projects and/or bundling with neighbouring constituencies)

• Financing strategy and process to launch investments, considering different financing routes

• Legal and governance analysis etc.

• Within a limited period of time(e.g. 6-12 months)

• Via "cascade funding"(max. lump sum: EUR 60,000)

Mobilisation of investments(incl. combination with EFSI, ESIF, PDA, investment platforms)

Scope (cont.)

• Selection of intermediate to operate 'European City Facility'• Deep rooting in municipal sustainable energy planning and EE financing

• Ability to:• Mobilise critical mass of cities/municipalities (or groupings)

• Run large-scale support scheme in accordance with Horizon 2020 standards

• Select most cost-efficient and appropriate city/community applications

• Sound, inclusive outreach strategy regarding cities/communities across Europe

• Suitable concept to select, support and monitor city/municipality proposals, e.g.:

• Organisation of calls (e.g. cut-off dates, templates, evaluation criteria and procedure etc.)

• Form of support (e.g. lump sum, access to expertise etc.)

• Definition of output (e.g. standardised investment concepts responding to market needs)

• Duration and form of monitoring (incl. assessment)

Scope (cont.)

• Minimum content of city/municipality applications• Minimum 100,000 inhabitants covered (single city/municipality or grouping)

• Proof of political commitment

• Demonstration of additionality to existing planning processes and resources

• Investment sector(s) targeted

• Ambitious scale of potential investment(s) and level of energy savings(based on a politically approved SEAP, SECAP or similar plan)

• Type of financial solution(s) envisaged

• Plan to engage with representatives of the key segments and citizens

• Governance to develop the investment concept

• Plan for (long-term) capacity building within the public administration

• Commitment for monitoring for 2 years

Scope (cont.)

• Budget• Approx. EUR 10 million

• Min. 80% directly benefitting cities/municipalities (or groupings)

• 10% for common activities/services underpinning European added value

Expected impacts

• Number of investment concepts (overall and transformed into investments)

• Investments (in sustainable energy) triggered by public authorities

• Increased leveraging of finance into EE investments by public authorities

• At least EUR 20 million EE investments triggered for every million EUR of H2020 support (leverage 1:20)

• Primary energy savings, renewable energy production triggered

• Public staff with increased capacity to develop investible EE projects

• Innovation uptake by potential replicators

• Additional positive effects (e.g. reduction of GHGs and /or air pollutants)

LC-SC3-ES-8-2019

European Islands FacilityUnlock financing for energy transitions and supporting islands to develop investment concepts

Thank you! #H2020Energy

www.ec.europa.eu/research