ENERGY EFFICIENCY BUILDING RENOVATION … · INTRODUCTION AND KEYNOTES Adrian Joyce, EuroACE Paolo Michele Sonvilla, Creara Timothèe NOËL, DG ENER Ettore Piantoni, CEN/CENELEC Paolo

ENERGY EFFICIENCY BUILDING

RENOVATION OPPORTUNITIES IN

EUROPE: MARKET CHALLENGES,

SOLUTIONS AND FINANCING TRENDS

INTRODUCTION AND KEYNOTES

Adrian Joyce, EuroACE

Paolo Michele Sonvilla, Creara

Timothèe NOËL, DG ENER

Ettore Piantoni, CEN/CENELEC

Paolo Eliezer Foa’, EEFIG

Energy efficiency policy updates and the

Smart Finance for Smart Buildings initiative

Timothèe NOËL

Policy Officer European Commission – DG ENER

CLEAN ENERGY FOR ALL EUROPEANS

What are our goals?

CREATING JOBS & GROWTH, BRINGING DOWN GREENHOUSE GAS EMISSIONS,

SECURING ENERGY SUPPLY

Demonstrating global

leadership in renewables

Delivering a fair deal for consumers

Putting energy

efficiency first


Energy Efficiency is the most cost-effective way of achieving Energy

Union objectives…

Security of supply

Decarbonization (Paris

Agreement)

Global leadership in

renewables

SUSTAINABLE GROWTH

Promoting growth, jobs and

investments


1. Building renovation has to do more

2. Financing has a more

important role to play

1.

3. Digital/ICT has a big potential to contribute

POLICY CONCLUSIONS FOR 2030


Stronger long term renovation strategies for Member States, aiming

at decarbonisation by 2050 and with a solid financial component

A Smart Readiness Indicator, to be implemented through a

combination of delegated and implementing acts

Ducting to allow cables for charging points for electric vehicles in new

and refurbished buildings; (a few) electric vehicle charging points

in all non-residential buildings

Member States will have to express their energy performance

requirements in ways that allow cross-national comparisons

New provisions to promote building automation, room temperature

controls, heating systems that are effective at part load conditions,

and the inspection of ventilation systems

The revision strengthens the EPBD in many ways, including:


Inspections on heating & air-conditioning systems are updated

(Articles 14 and 15) – new provisions on self-regulating devices

(Article 8(1))

Thresholds for inspections are set up at 70 kW for both heating and air-

conditioning systems.

Alternative measures to mandatory inspections based on advice are

kept, with reporting to the Commission.

installation of building automation and control systems in large non-

residential buildings by 2025

Additional requirements on the installation of self-regulating devices for

room temperature level control in new buildings or when heat generators

are replaced.

Focus on inspections & building automation

A GREATER ROLE FOR AUTOMATION


Extended energy

saving obligations

post 2020 (1.5% per

year)

Simplified and

streamlined rules

Coherence with

the EPBD

Review of the Energy Efficiency Directive (EED), Article 7

Will allow attracting private investment and boosting the renovation rate of

buildings, and will contribute to all climate and energy targets for 2030

Strengthened social

dimension


EED Directive 2012/27/EU

A policy framework already supporting the development of Energy

Performance Contracts


Assistance and aggregation

De-risking

The "Smart Finance for Smart Buildings" initiative to

unlock private financing

More effective use of public funds


18 bn EUR for energy efficiency

2014-2020 Already 287 bn EUR invested

(22 % for energy)

The "Smart Finance for Smart Buildings" initiative is built

on:


The "Smart Finance for Smart Buildings" initiative is built

on:


I. More effective use of public funds

deploying financial instruments

• Making more use of financial instruments, to achieve high leverage ratios.

• Supporting the deployment of a flexible model of guarantee instrument at national level, mixing different strands of public financing (i.e. ESIF, EFSI).

• Making the use of Energy Performance Contracting more accessible to the public sector (Eurostat recently updated its guidance on the accounting treatment of Energy Performance Contracts).

• Sustainable Energy Investment Forums (public events, national roundtables, webinars)


• Robust ex-ante assessment.

• Use of "trigger points" to unlock investments.

• Prepare the supply chain.

• Planning a piloting phase.

• Effective communication with the target audience.

• Allow flexibility in the scheme design.

• Monitoring of progress.

• Project champions.

• Technical assistance.

Critical success factors of EE financing schemes, e.g.

Review of EE financing schemes in Member States – Main outcomes


II. Providing aggregation and assistance for

project development

• Reinforce Project Development Assistance (PDA) facilities at the EU level to help project promoters bring their ideas to maturity.

• ELENA, via EIB (PDA facility funded through the European Commission’s Horizon 2020 programme)

• PDA calls launched by EASME for smaller projects

• Development of dedicated local or regional one-stop-shops for project developers.


III. De-risking energy efficiency investments

• Change the risks perception related to energy efficiency investments - in collaboration with the Energy Efficiency Financial Institutions Group (EEFIG):

• The De-risking Energy Efficiency Platform (DEEP), an open source database containing real performance data of energy efficiency projects (> 10.000 energy efficiency projects).

• http://deep.eefig.eu

• An Underwriting toolkit on the value and risk appraisal of energy efficiency investments (released on 22 June 2017). http://valueandrisk.eefig.eu

http://deep.eefig.eu/

http://valueandrisk.eefig.eu/

http://valueandrisk.eefig.eu/


And wider efforts within the Commission to

scale up sustainable finance

Action plan on sustainable finance (March 2018): • reorient capital flows towards sustainable

investment, in order to achieve sustainable and inclusive growth

• manage financial risks stemming from

climate change, environmental degradation and social issues

• foster transparency and long-termism in

financial and economic activity


#EnergyUnion

Thank you!

Timothée Noël

Policy Officer – Energy Efficiency Unit

DG ENER, European Commission

https://ec.europa.eu/energy/en/news/commission-proposes-new-rules-consumer-

centred-clean-energy-transition

https://ec.europa.eu/energy/en/news/commission-proposes-new-rules-consumer-centred-clean-energy-transition



















Energy Efficiency Standards for sustainable

financing Ettore Piantoni - Comat S.p.A.

Vice chair SFEM CEN/CENELEC

Chair JTC 14 Energy efficiency & management CEN-CENELEC

• Energy efficiency standards

• Financeability of energy efficiency

improvement actions

• Alignment and integration of Energy

Efficiency, Financial, Accounting,

Energy Transition processes

• Take Aways

Agenda

The multiple dimensions of energy efficiency

improvement in buildings

Source: Elaboration from: Multiple benefits of investing in energy efficient renovation of buildings Copenhagen Economics,

Boosting Building Renovation : What potential and value for Europe ITRE

IEEP Review of costs and benefits of energy savings

The challenge

The tools to effective decision making on

sustainable energy efficiency projects Audit

Baseline

EE Improvement

evaluation BorrowerConstruction

Commissioning

Measurement &

Verification

Value creation Value chain enabling Value capturing

EN 16247 Energy Audit.1 General

requirements2 Buildings 3 Processes4 Transport5 Competence of

energy auditors

EN 16231 Energy efficiency benchmarking

UNI 11588 Property professional valuers

EPBD 2010/31/EU Energy Performance Certificates

ISO 50006 EMSMeasuring energy performance using energy baselines and energy performance indicators. General principles and guidance

Energy Labelling Directive 2010/30/EU

ISO 17743 General quantification methods for

ex ante or expected energy savings

TEGoVAEuropean Valuation Std

NEB: Computational method, Comparative Valuation, Willingness to pay, …

UNI CEI 11352 Energy Service Company. Minimum requirements

UNI CEI 11339 Energy Management Expert

EN 15900 Energy Efficiency Services. Definition and requirements

Lender EngineeringOperation &

maintenance

Non Energy

Benefits

UNI 11612Property Assets Valuation

Borrower credit worthiness

Saving to investment Ratio

Debt Coverage Ratio

Probability of Default

Loan to Value ratio

Debt to Income ratio

Financial institutionsown risk assessmentand evaluation criteria (performance and credit risks)

IS. 399 Energy Efficient Design Management

Good Engineering practices and tools: ASHRAE, EN, IEC, standards,National standards, technology provider guidelines

EXEED Designed certifies the asset has designed constructed, commissioned, operation and handover to the owner/operator

EXEED Verified Certification of an asset against measured and verified energy performance with quantified avoided energy consumption (3 yrs)

ISO 55001Asset management

ISO 15331Criteria for design management and control of maintenance services for buildings

ISO 17741General technical rules for measurement, calculation and verification of energy savings of projects

ISO 17743Energy Saving. Definition of methodological framework applicable to calculation and reporting on energy savings

ISO 50015 EMS. M&V of energy performance for organizations

EXEED Managed Certification of M&V protocol and energy performance and continual improvement (>3 yrs)

EVO IPMVP

Energy Performance Certificates

Energy Performance Contracting

Procurement contract

Maintenance contract

EN 15232 Energy Performance of building. Impact of BACs and TBMs

EN 115900 Energy efficiency Sservices

Audit

Baseline

EE Improvement

evaluation BorrowerConstruction

CommissioningMeasurement &

Verification

Value creation Value chain enabling Value capturing

Lender EngineeringOperation &

maintenance

Make Performance Risksacceptable

Make Credit Risksacceptable

Make Performance Risks acceptable

Remove uncertainty for market development success

De-Risking framework using standardized

and integrated processes

Energy efficiency &

management stds

Financial &

Eurostat, IFRS –

EAB

Accounting stds

Technical + financial + Accounting

standards

Remove uncertainty to support decision making

Energy

Audit

Fin

ancin

g

Work

flow

Construction

Com

mis

sionin

g

Contractual

Agreement

Due diligence

Underwriting Procedure

Operation

Main

tenance

Measurement Monitoring

Veri

ficati

on

Report

ing

Value generation Value Capturing + –

EPC

Standardized framework for sustainable

EE Projects

Energy Management of sustainable EE

improvement actions

Energy

Audit Fin

ancin

g

Work

flow Construction

Com

mis

sionin

g

Contractual

Agreement

Due diligence

Underwriting Procedure

Operation

Main

tenance


Veri

ficati

on

Report

ing

EPC

From EE standards to sustainable financing

Energy

Audit Fin

ancin

g

Construction

Com

mis

sionin

g

Guaranteed Perform.

Due diligence

Underwriting Proced.

Operation

Main

tenance


Veri

ficati

on

Report

ing

EP

C

Value generation Value Capturing

Avoided cost + revenues

Running costs (& personnel)

EBITDA

Depreciation- Amortization

EBIT

Interests EBT

Cash flow

Sunkcosts Fro

m s

unk c

ost

s to

valu

e g

row

th

Simple Transparent Standardized

• Baseline

Measurement

• Modelling

• Energy efficiency

improvement

estimation

• M&V plan

• Risk analysis

• EPC

Energy Audit +

EPC Financing

Construction - Commissioning

Operation & maintenance

Measurement & Verification

• Due diligence

• Underwriting

Procedures

• Business risks

• Credit worthiness

• Design for energy

efficiency

• Project

management

• Commissioning

• Operate for

energy efficiency

• Maintain for

energy efficiency

• Measurement

• Monitoring

• Reporting

Technical

Foundation Business

Foundation

Technical / Business

Foundation

(R%Audit x R%Financing x R%Construction x R%O&M x R%M&V) x Value Creation

=

Value Captured

The value chain is multiplicative: is as

good as the weakest component

Align policies, Energy service models, de risking tools, accounting

procedures, to unlock financeability,

Energ

y A

udit

& E

PC

Third Party Financing

Constru

ctio

n

&

Com

missio

nin

g

UNI CEI 11352

UNI CEI 11339

EN 15900

ISO 50001

ISO 50044

ISO 50006

ISO 50015

ISO 50044

EN 16231

EN 16212 Governance

Measurement

& Monitoring

plan

EN 16247

ISO 15331 ISO 17741 ISO 17742

Multiple

benefits

Metered

energy savings

Alignment, Engagement, Commitment

EUROSTAT

IASB

CAPITAL

MARKET

New methodology: define the common

framework as management toolkit

EPIA

&

Guara

nte

ed

Perf

orm

ance

Financing - Accounting

Constru

ctio

n &

Com

missio

nin

g

EPIA

&

Guaranteed

Performance Financing

&

Accounting

Construction &

Commissioning

Operation &

Maintenance

Measurement

&

Verification

Due diligence


Underwriting procedures – Stress Tests

Loan repayment

Eurostat

En

erg

y a

ud

it

En

erg

y s

avin

g c

alc

ula

tio

n

Me

asuring

Ve

rific. C

alc

ula

t. E

nP

I

To

tal co

st o

f o

wn

ers

hip

TO

C

Me

asuring

mo

nito

r &

ve

rific. p

lan

Mu

ltip

le b

en

efits

eva

luatio

n

Ris

ks a

sse

ssm

ent &

mitig

ation

Pro

ject m

an

ag

em

ent

Eq

uip

me

nt sp

ecific

atio

n

Pro

fessio

nal i

nsu

rance lia

bili

ty

Qu

alif

ied

/cert

ifie

d p

rofe

ssio

na

l

Qu

alif

ied

/cert

ifie

d S

erv

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up

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r

Gu

ara

nte

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erf

orm

ances E

PC

Ettore Piantoni based on Oshin Kanry management process

Integrated management toolkit

Streamlined process to match energy efficiency and management

standards, financial Institutions underwriting procedures and Eurostat

IASB Accounting requirements

EN ISO 50006:2014

Energy management systems -- Measuring energy

performance using energy baselines (EnB) and energy

performance indicators (EnPI) -- General principles

and guidance

Eurostat PPPs

Eurostat EPC

European Bank Association

EPIA

&

Guaranteed

Performance

Financing

Construction &

Commissioning

Operation &

Maintenance

Measurement

&

Verification

Due diligence

Pro

ject m

an

ag

em

ent



Loan repayment

Eurosta - IASB T

ier 1

,2,3

Co

ntra

cts

En

viro

nm

ent

H&

S

Inve

stm

ent p

lan

Co

mm

issio

nin

g

Ele

ctric

al s

yste

m

Me

ch

an

ical s

yste

m

Oh

er s

yste

ms

Me

asurin

g &

mo

nito

ring

Insu

rance C

on

stru

ctio

n

En

erg

y a

ud

it

En

erg

y s

avin

g c

alc

ula

tio

n

Me

asuring

Ve

rific. C

alc

ula

tion

EnP

I

To

tal co

st o

f o

wn

ers

hip

TO

C

Me

asuring

mo

nito

ring

&

ve

rific.

pla

n

Mu

ltip

le b

en

efits

eva

luatio

n

Ris

ks a

sse

ssm

ent &

mitig

ation

Pro

ject m

an

ag

em

ent

Eq

uip

me

nt sp

ecific

atio

n

Pro

fessio

nal i

nsu

rance lia

bili

ty

Qu

alif

ied

/cert

ifie

d p

rofe

ssio

na

l

Qu

alif

ied

/cert

ifie

d S

erv

ice s

up

plie

r

Gu

ara

nte

ed P

erf

orm

ances B

P

Ettore Piantoni based on Oshin Kanry management process

Mapping the integrated process

Plan Do

Act Check

Continual

Improvement

EC Financing Sustainable Growth - Actions

Source: https://ec.europa.eu/info/sites/info/files/180308-action-plan-sustainable-growth_en.pdf

EBA Consults on its guidelines

interpreting

STS criteria for risk assessment

• The Guidelines will be applied on a cross-sectoral basis

throughout the Union with the aim of facilitating the adoption of

the STS criteria, which is one of prerequisites for the application

of a more risk-sensitive regulatory treatment under the new EU

securitisation framework.

• April 20, 2018 European Banking Authority opens the consultation

process on STS criteria

• STS criteria: Simple, Transparent, Standardized

Source: https://www.eba.europa.eu/-/eba-consults-on-draft-technical-standards-on-risk-retention-for-securitisation-transactions

Foster effective integration of technical

Financial & Accounting processes

«The specification, monitoring and reporting of the Partner’s maintenance

obligations is typically in addition to (but can be combined with) the

specification, monitoring and reporting of the performance of the EPC

assets in delivering the energy consumption and/or cost savings required

under the EPC.

Eurostat’s comments

Eurostat’s view is that:

• …. omissis,

« An EPC that does not meet either of these conditions does

influence the statistical treatment and is automatically ON

BALANCE SHEET for government»

(1) Eurostat- EIB. A Guide to the Statistical Treatment of Energy Performance Contracts. May 2018 pag.44

Revise EN

16247

Energy Audit

Evaluation of

Energy

Efficiency

Investment

EPC Energy

performance

contracting

minimum

requirements

Energy

Measurement

and

Monitoring

Plan

Emerging needs

• Integrated management toolkit

• Energy Efficiency processes digitalization: predict faster, cheaper, better

• Green finance

• Energy Storage

• Integration of energy efficiency solutions with clean energy sources

• Blockchain

Planned standardization activities

• Market actors engagement to ensure

adherence to a formalized and shared

processes to ensure financeability and

compliance with accounting & governance

procedures

Take Aways

• Integrated Technical, Financial,

Accounting processes requirements:

Simple, Transparent, Standardized

• Technical Standards are business

tools to de-risk energy efficiency

actions

Energy

Audit Fin

ancin

g

Construction

Com

mis

sionin

g

GuaranteedPerform.

Due diligence

Underwriting Proced.

Operation

Main

tenance


Veri

ficati

on

Report

ing

EP

C

Value generation Value Capturing

Avoided cost + revenues

Running costs (& personnel)

EBITDA

Depreciation- Amortization

EBIT

InterestsEBT

Cash flow

SunkcostsFro

m s

unk c

ost

s to

valu

e g

row

th

EPIA

& Guaranteed

Performance

Financing

Construction &

Commissioning

Operation &

Maintenance

Measurement

&Verification

Due diligence

Pro

ject m

anagem

ent

Ope

ratio

n



Loan repayment

Others applicable requirements

Tie

r 1,2

,3 C

ontra

cts

Enviro

nm

ent

H&

S

Investm

ent p

lan

Com

mis

sio

nin

g

Ele

ctrica

l syste

m

Mechanic

al s

yste

m

Oher sy

stem

s

Measurin

g &

monito

ring

Insu

rance C

onstru

ctio

n

Energ

y a

udit

Energ

y s

avin

g c

alc

ula

tion

Measuring V

erific.

Calc

ula

tion

EnP

IT

ota

l cost of ow

ners

hip

TO

C

Measuring m

onitoring &

verific.

pla

n

Multi

ple

benefit

s evalu

ation

Ris

ks

assess

ment &

mitig

atio

n

Pro

ject m

anagem

ent

Equip

ment specific

ation

Pro

fessio

nal in

sura

nce lia

bili

ty

Qualif

ied/c

ert

ified p

rofe

ssio

nal

Qualif

ied/c

ert

ifie

d S

erv

ice s

upplie

r

Guara

nte

ed P

erf

orm

ances B

P

0&M

Tra

ining

M&M

onito

ring

O&M

plan

and

costs

Enviro

nmen

t

H&S

Insu

ranc

e All r

isks

Corrective actions

Energy efficiency improvem

ent report

Other benefits im

provement report

Loan repayment/ Insurance

…………

.M

easuring and Verification EnPI

Guaranteed saving report

[email protected]

Thank you

The challenges of financing energy efficiency

Paolo E. Foa'

EEFIG - Energy Efficiency Financial Institutions Group

• The Energy Efficiency Financial Institutions Group

(EEFIG) was established in 2013 by the European

Commission Directorate-General for Energy (DG

Energy) and United Nations Environment Program

Finance Initiative (UNEP FI)

• A multidisciplinary approach to energy efficiency

issues for existing building thanks to engagement 120

active participants from 100 organizations to deliver

clear and unambiguous messages: this the first step

for the creation of EEFIG.

• EEFIG created an open dialogue and work platform

for public and private financial institutions, industry

representatives and sector experts to identify the

barriers to the long-term financing for energy efficiency.

• It propose policy and market solutions to them.

www.trustepc.eu

About EEFIG

Mission and output

of EEFIG

• Main mission of EEFIG is:

• to identify the critical issues and propose

modus operandi for the de-risking (financial)

of the energy redevelopment interventions of

the existing buildings.

• Main goals of EEFIG are:

• the diffusion of a common language of the

energy requalification of existing buildings

between

• public and private financial operators,

• representatives of the institutions,

• industry and industry experts

• This is possible through sharing knowledge,

information, and process awareness

www.trustepc.eu

Potential Market in EU

• Existing buildings are responsible for 40% of final

energy consumption in the EU

• 75% of Europe's buildings were built with no or

minimal energy-related building codes and most of

today's buildings will still be in use in 2050

• EU need to invest (for 2°C scenario. IEA) USD 1,3

trillion in energy efficiency in buildings from 2014-

2035

www.trustepc.eu

DEEP

• Second output of EEFIG is a platform named DEEP

(De Risking Energy Efficiency Platform).

• DEEP has the merit of gathering in a single database

the ex ante and ex post characteristics of thousands of

operations carried out.

• Knowledge is power: sometimes we do not realize that

we are in possession of very precious databases.

• In our field, being in pioneering stages, we need to

create these databases.

• DEEP is a first step: I hope that in the next EEFIG

sessions it will be able to enhance this platform.

• I would also look at EDAP, the nascent platform of the

EeMAP project.

www.trustepc.eu

DEEP

• Using DEEP effectively allows evaluators to

communicate to regulators whether the loans

disbursed for energy redevelopment are more or

less risky, ceteris paribus, of similar brown loans.

• Auspicious is that in the next editions of EEFIG

there is the opportunity to make DEEP more

complete and interactive: insert also the lending and

operations already carried out and forward with the

reimbursements to strengthen the database;

• The working method to be followed starts from the

Pentagon illustrated by ing. Piantoni

www.trustepc.eu

Can finance solve

everything?

• Not all problems can be traced back to quantitative

models suitable for finance.

• In other areas, the contracts came to the rescue to

compensate where the algorithms did not arrive.

• Today the theme relating to energy redevelopment

is particularly complex.

• Insurance companies can solve problems that can

not be solved by finance.

• Just as legislation can come to the rescue of the

system with solutions that help finance to solve

issues of financing

www.trustepc.eu

Next Challenges

• Sustainable Finance Package published last week by

the European Commission contains four pillars:

• A unified EU classification system so called

Taxonomy

• Investors' duties and disclosures

• Low-carbon benchmarks

• Better to advice to clients on sustainability

• The challenge is to contribute, advice and monitor

each single government as single citizens,

organizations, banks, industries, to implement in

local legislation the statement of sustainable

Finance Packaging starting from now!

www.trustepc.eu

THANK YOU FOR YOUR ATTENTION

Contents of this document reflect only the author's view and that the

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

is not responsible for any use that may be made of the information it contains.

SERVICES AND SOLUTIONS TO SUPPORT

THE ENERGY EFFICIENCY MARKET

Javier Lemus, Bureau Veritas Iberia

Jorge Rodrigues de Almeida, ICP Europe

GREPCon Tool - key outcomes, technical

features, and exploitation strategy Javier Lemus

Project Manager, Bureau Veritas

06/06/2018 55 www.trustepc.eu 55

GREPCON TOOL

Source: Trust EPC South, EEFIG

GREPCon Tool - Green Rating

for Energy Performance

Contratcs Tool:

Is a tool that provides a

standardized approach to

calculation of energy saving

measures. This, together with

further technical calculations,

allows for reaching comparable

results, trusted by the market and

financial institutions.

Building types, which can be assessed

using the GREPCon Tool, are:

• Office

• Retail

• Logistic

• Hospitality (e.g., hotels)

• Healthcare

• Education (e.g., schools,

universities, etc)

• Sport & Leisure Centres .

www.trustepc.eu


GREPCON SERVICE

56

What do we offer?

Promotion of dialogue and synergies between the EPC offer side, the tertiary

sector demand side and the financing side.

Training on financing solutions and EPC basics for all stakeholders involved

An investment assessment and benchmarking tool based on the Green

Rating™ methodology and tools by:

Reducing transaction costs thanks to its

standardised approach

Facilitating the financing process for

small/medium projects

Providing a independent third party certification

www.trustepc.eu

06/06/2018 57 www.trustepc.eu 57 57

GREPCON SERVICE

www.trustepc.eu


INTRODUCTION

Why GREPCon Tool? What is different?

• Provides a standardized approach to calculation of energy saving

measures based on Green Rating methodology.

• Able to calculate the cross-effects between the selected energy

saving measures and their economic impact.

• Comparable results, trusted by the market and financial

institutions.

• Provides comparability of project on pan-European scale, adding

further levels of confidence to all aspects of setting up an Energy

Performance Contract (EPC).


www.trustepc.eu


INTRODUCTION

Why this is different from other tools available?

The tool is different, because currently, there is no Tool to

standardize Energy Performance Contracting (EPC) technical

calculations, put them under a common framework and feed them

all into a fully operational tool, which is designed to be used by

accredited experts and to provide fully comparable results.

Regardless of the building; a client, energy service company

(ESCO) or bank is looking at Energy Performance Contracting.


www.trustepc.eu

06/06/2018 60 www.trustepc.eu

USER

BUILDING

TOOL APPROACH

GREEN RATING™ METHODOLOGY

ACTUAL POTENTIAL

ACTUAL

INTRINSIC POTENTIAL INTRINSIC

POTENTIAL ACTUAL

Achievable through

implementation of

operational and

behavioural

recommendations

POTENTIAL INTRINSIC

Achievable through

implementation of tech.

recommendations

covering the building

design & equipment

INTRINSIC

Related to building

design, equipment and

physical provisions

ACTUAL

Covers the building as it

is, with its operation and

tenants’ behavior

Four levels of performance

60 www.trustepc.eu


TOOL APPROACH

KEY INDICATORS

ENERGY: bills, modelling,

conventional scenario

CARBON: Energy

Indicator

WATER bills, modelling,

conventional scenario

TRANSPORT questionnaires (interviews and

audit)

WASTE questionnaires (interviews and

audit)

WELLBEING questionnaires (interviews and

audit)

Qualitative Indicators Quantitative Indicators

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GREEN RATING FOR EPC

INTERFACE

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INTERFACE



INTERFACE

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RESULTS – Energy assesment

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RESULTS – Energy assesment

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UPDATED GR METHODOLOGY

Identification of Energy Efficiency Measures:

• By the Tool, based on building data provided

• By the Auditor, from the default list

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Identification and calculation of EE

and RES measures

Each EE and RES Measure calculation is based on the data provided by the auditor

9 Thermostatic valves for radiators No

Measure n.º Title Criterion 1

TRV

unitary

cost (€)

128

Heating system

Current

consumption

(kWh/year)

Introduce TRV's?Number of TRV's

to be installed

Heating system 1 1,500,000.00 Yes 75

Number of

radiators

1,500,000

75

Savings

(kWh/year)

Simple payback

time (years)

9,600 1,425,000 1,425,000 75,000 5.1

Total cost

(€)

New

consumption

(installed) (kWh)

New

consumption

(total) (kWh)

5.19,600 1,425,000 1,425,000 75,000

Savings (€)

1,875

1,875

Gas kWh/year 34%

Electricity Heating 2 kWh/year 10%

Electricity kWh/year 11%

1,500,000

456,000

Heating 1

500,000Cooling

THE PROCESS


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and RES measures

Each EE and RES Measure can be implemented for the whole or only a part of its respective system / energy use



Gas kWh/year 34%

Electricity Heating 2 kWh/year 10%

Electricity kWh/year 11%

1,500,000

456,000

Heating 1

500,000Cooling

TRV

unitary

cost (€)

128

Number of TRV's

to be installed

Savings

(kWh/year)

50 6,400 950,000 1,450,000 50,000

Total cost

(€)

New

consumption

(installed) (kWh)

New

consumption

(total) (kWh)

6,400 950,000 1,450,000 50,000

Heating system

Current

consumption

(kWh/year)

Heating system 1 1,500,000.00

Number of

radiators

1,500,000

75

THE PROCESS


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and RES measures

Each EE and RES Measure calculation is based on the data provided by the auditor



Building system link: Heating

EPC RECOMMENDATION SHEET

Energy Efficiency Measure 9

Thermostatic valves for radiators

Measure automatically identified? YES

Recommendation criterion type: No TRV's

Number of possible criteria: 1

Number of criteria met: 1

Measure criteria

Criterion met?

Criterion 1: No Thermostatic Radiator Valves on radiators. Yes

Normal boiler

125

Number of boilers (or other heating

equipment)*

Output power boiler 2 (kW)*

Production type*


Description Heating 1

Input power boiler 1 (kW)* 140

5



Number of TRV's If TRV's present0

Wet radiatorsEmission type*

Number of emitters* 75

Heating*

Cooling*

Gas

Electricity

THE PROCESS


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MEASURES


Energy Use No. Title

Lighting

(5)

1 Substitution of conventional lamps

2 Replacement of lamps ballast

3 Occupancy and presence sensors

4 Photocell to dim luminous flux based on natural light

5 Occupancy and presence sensors combined with photocell

HVAC

(20)

6 Substitution of a low efficiency chiller with inverter chiller

7 Substitution of a low efficiency heat pumps with high efficiency

8 Freecooling system

9 Thermostatic valves for radiators

10 Variable frequency drives for air handling units by CO2 sensors or occupancy sensors

11 Variable frequency drives for extraction vents controlled by CO2 sensors or occupancy sensors

12 Variable frequency drives for air handling units and extraction vents controlled by CO2 sensors or occupancy

sensors

13 Installation of biomass boiler for heating

14 HVAC schedule definition

15 Automatically shut off air conditioning or heating when a monitored door or window remains open for a period of

time

16 Substitution of doors

17 Substitution of windows

18 Air curtains

19 Thermal insulation of building envelope

20 Installation of sun shading devices

21 Improve solar factor

22 Substitution of conventional boiler with condensing boiler

23 Substitution of the boiler burner

24 Pipework and boiler insulation

25 Variable frequency drives for pumps

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06/06/2018 72 www.trustepc.eu 72 www.trustepc.eu

MEASURES


Energy Use No. Title

HW

(8)

26 Heat recovery systems

27 Water saving aerators

28 Swimming pool heat cover

29 Substitution or implementation of heat exchanger

30 Substitution of conventional boiler with condensing boiler

31 Substitution of the boiler burner

32 Pipework and boiler insulation

33 Variable frequency drives for pumps

Reneweble

energy

sources

(6)

34 Micro Cogeneration

35 Geothermal heat pump

36 Solar thermal plant

37 Photovoltaic plant

38 Small wind turbine

39 Micro hydropower

Others

(7)

40 Capacitive power factor correction

41 Building Energy Management System

42 Substitution of hydraulic motors with electric motors in elevators

43 Substitution of conventional pumps with high efficiency pumps

44 Implementation of Energy Star procedure in computers

45 Substitution of conventional computer monitors with TFT

46 Substitution of conventional appliances with efficient appliances

All (1) 47 Operation times redefinition



THE PROCESS: SUMMARY

Iterative Financial Calculation

Each copy of the Financial Tool calculates its own set of measures

GR Tool extracts results from all copies of the Financial Tool and presents six top results

Measure Transfer

GR Tool generates one Financial Tool per Measure or Group of Measures

GR Tool transfers Measure Data to the Financial Tool

Measure Generation

GR Tool Calculates the EE Measures

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INTERFACE

FINANCIAL ASSESSMENT

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FINANCIAL TOOL SCENARIOS

FINANCIAL TOOL SCENARIOS

• EPC project

the project is funded or participated by an Energy Performance Contract (EPC), which is an alternative financing mechanism designed to accelerate investment in cost effective energy savings. In this scenario, energy saving benefits can be shared with the client

• Client financing through a loan

is the typical case of financing a project through a loan between the client and the bank directly

• 100% equity (no financing)

when the client decides to implement the project through own funds.

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FINANCIAL SCENARIOS


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FINANCIAL ASSESMENT


Scenario Case IRR1 NPV2 (€)

Discounted

Payback

(years)

Minimum

DSCR3

Average

DSCR3

Negative

FCF4

(years)

Project

rating

EPC financing

Worst 5,2% -67.005 9,0 1,7 3,2 0

B Base 12,6% 40.055 8,0 2,5 3,3 0

Best 19,0% 153.646 6,0 3,2 3,6 0

Client

financing

Worst 18,9% 204.619 6,0 2,9 8,0 0

A Base 25,9% 427.409 5,0 4,2 6,9 0

Best 31,6% 717.938 4,0 6,0 6,8 0

Project (100%

equity)

Worst 14,4% 154.885 7,0 - - 0

A Base 18,8% 367.910 6,0 - - 0

Best 22,8% 648.995 5,0 - - 0

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GREPCON ASSESSMENT

GLOBAL RESULTS

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OOVVEERRAALLLL PPEERRFFOORRMMAANNCCEE

QQUUAANNTTIITTAATTIIVVEE IINNTTRRIINNSSIICC VVAALLUUEESS

PPEERRFFOORRMMAANNCCEE RRAATTIINNGG SSUUMMMMAARRYY

2 3 4 5 6 7 8 9

H igh 1

Low

5,5

Indicator

Intrinsic Value

162

46

0,18

kgCO2eq/m2/year

kWh/m2/year

m3/m2/year

Weighting

30%

20%

15%

15%

10%

10%

7+

5+

6

6

4 4+

7+

5

INTRINSICPOTENTIAL

INTRINSIC

6

5,4 5,9 5,5

6 5+

5+ 6

4 5

6,0

5

3+ 3+

5+

3+

4+

OVERALL RATING (from 1 to 9) ACTUAL POTENTIAL

ACTUAL

Overall Performance

7+ 7+

4+

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GREPCON ASSESSMENT

GLOBAL RESULTS – Quality ratings


A. Water

> 1,7 1,7 – 1,3 1,3 – 1,0 1,0 – 0,7 0,7 – 0,5 0,5 – 0,3 0,3 – 0,15 0,15 - 0,05 < 0,05 > 1,9 1,7 – 1,9 1,5 – 1,7 1,3 – 1,5 1,1 – 1,3 0,9 – 1,1 0,7 – 0,9 0,7 - 0,5 < 0,5 > 450 450 - 375 375 - 300 300 - 240 240 - 210 210 - 180 180 - 120 120 - 30 < 30

Actual 0,22

m3/m2/year

7+

7+

Potential Actual

0,22

2 3 4 5 6 7 8 9

H igh 1

Low

Intrinsic 0,18 7+

7+ Potential Intrinsic

0,18

A. Carbon (energy related CO2 equivalent emissions)

Actual 44

kgCO2eq/m2/year

6

6

Potential Actual

40

2 3 4 5 6 7 8 9

H igh 1

Low

Intrinsic 46 5+

6

Potential Intrinsic

39

> 135 135 – 108 108 – 84 84 – 63 63 – 45 45 – 30 30 – 18 18 - 9 < 9 > 450 450 - 375 375 - 300 300 - 240 240 - 210 210 - 180 180 - 120 120 - 30 < 30

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GREPCON ASSESSMENT

GLOBAL RESULTS – Quality ratings


A. Transport

Actual

5

4

Potential Actual

2 3 4 5 6 7 8 9

H igh 1

Low

Intrinsic

4

4+

Potential Intrinsic

A. Wellbeing

Actual

5

4+

Potential Actual

2 3 4 5 6 7 8 9

H igh 1

Low

Intrinsic

4+

5+ Potential Intrinsic

A. Waste

Actual

3+

3+

Potential Actual

2 3 4 5 6 7 8 9

H igh 1

Low

Intrinsic

3+

5

Potential Intrinsic

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GREPCON ASSESSMENT

GLOBAL RESULTS


No.

Energy saving measures to be

implemented

Estimated

Savings

(kWh/year)

Estimated

investments (€)

Estimated

Payback

1 Thermostatic valves for radiators 35.030 6.300 < 3 years

2 Occupancy and presence sensors 32.760 9.357 < 4 years

3 Variable frequency drives for pumps - HVAC 16.450 4.200 < 4 years

Indicator Improvement Potential:

Intrinsic Performance

Energy

Rec1: Substitution of conventional lamps

Rec3: Occupancy and presence sensors

Rec25: Variable frecuency drives for pumps

Transport To reduce the number of parking places

Carbon Recommendations to improve carbon performance are shown in the

Energy section

Water None

Wellbeing

Replacement of standard ballasy by high frecuency or electronic

ballasts

Establishment of zoned controls

Establishment of disabled facilities

Waste Introduduction of clearly labelled indivudual bulk recycling containers

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GREPCON ASSESSMENT

PROJECT RATING


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EXPLOITATION

Topic Description

Intellectual property BV holds the tool and license to all (Consortium and others) Open to

market

Fees

Minimum fee for 2 years period after project end for consortium members

then the same as for each auditing company

Fees for auditing companies (annual)

Auditors selection process Individual certification (easier to set-up and maintain)

Business model Auditing companies commercialize and invoice the end client directly. Fees

are paid to BV on annual basis (see above)

Registration process Auditing companies must register the audits with BV for the quality review or

certification.

Audit process Audit is carried out by auditing company.

Report/ approval process BV to review report and validate report (and issue a certificate)

Marketing Marketing of the service and commercialization is the responsibility of

auditing companies

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SERVICE ORGANIZATION

[st1]ADD TYPE OF STAKEHOLDER

Bureau Veritas – Technical Developments and IP management

AUDITING COMPANIES

Quality control & certificate issuance

CLIENT

Financial institute

Owner

ESCO

Companies with local presence (Spain, Italy, France, Greece,

Portugal, Croatia)

Local promotion of the services

Direct contact point for the client from sales to final report

Including but not limited to consortium partners

84

Expand geographical coverage to Northern Europe markets

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DELIVERY MODEL

CLIENT AUDITOR QUALITY

CONTROL (QC)

BUREAU

VERITAS

85

Project request Project registration

and notification to

QC

Registration

and approval

Delivery Register project

QC Request

Quality Control

Passed

Issue Certificate

Send final report &

certificate to client

Complete project

Grepcon

Certificate &

report

Facilitate site

visit / data

collection

YES

NO

YES

NO

Review /

Justifications

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Investor Confidence Project

Jorge Rodrigues de Almeida

RdA Climate Solutions



To achieve “66% 2oC” scenario requires average investment into energy efficiency > USD 1 trillion a year

between 2016 and 2050

i.e. circa 5 x current level


We need to build the jigsaw of energy efficiency finance


Standardization


Lack of standardization (in project development and documentation) is one of the major barriers to increasing investment into energy efficiency Energy Efficiency – the first fuel for Europe

Energy efficiency projects do not yet meet the requirements of capital markets. No two projects or contracts are alike. Michael Eckhart, MD & Global head of Sustainable Finance

Standards are like DNA. They are the basic building blocks for all technology and economic systems. D.E. Purcell

Lack of standardization is a problem


Greater performance risk

Uncertainty limiting demand

Higher transaction costs

Difficult to build capacity

Difficult to aggregate

Lack of standardization is a problem


An international framework for reducing owner and investor risk, lowering due diligence costs, increasing certainty of savings

achievement and enabling aggregation.

Ensures transparency, consistency and trust-worthiness through best practice and independent

verification.


Stadardization

What is the content of the IREE™ Certification?


IREE™ is delivered prior to investment decision

Underwriting Period

Development Period

Invest Performance Period

06/06/2018 97 www.trustepc.eu 06/06/2018 97

What project types is IREE™ designed for?

Industry

District energy systems

ICP Investor Network represents €1.5 billion in energy efficiency project capital. They are looking for quality projects built to IREE™ standards and some provide incentives for IREE projects.

ICP Investor Network

06/06/2018 99 www.trustepc.eu 06/06/2018

Industry


Certified Projects

3 hospitals in Liverpool, UK

Commercial office in London, UK Commercial office in Portugal Commercial office in Spain Private secondary school, UK Leisure centre, UK …

06/06/2018 100 www.trustepc.eu 06/06/2018 100

Industry


How Can We Help You?

• We can certify your project • We can connect you with investors • We can connect you with industry-leading project

developers • We can help you make your city/regional/national

programme more attractive to investors • We can train and credential you which will enable you

to stand out in your industry • We can add you to our Ally Network

06/06/2018 101 www.trustepc.eu 101

Contact

Jorge Rodrigues de Almeida Managing Director, RdA – Climate Solutions

ICP Europe Director for industry, district energy and street lighting

+351 964738413

[email protected]

This project have received funding from the European Union’s Horizon 2020

research and innovation programme under grant agreement No 754056. The sole

responsibility for the content of this document lies with the authors. It does not

necessarily reflect the opinion of the European Union. Neither the EASME nor the

European Commission are responsible for any use that may be made of the

information contained therein.


FINAL PANEL DISCUSSION: ENERGY EFFICIENCY BUILDING RENOTATIONS

Mariangiola Fabbri, Building Performance Institute Europe

Prof. Theocharis Tsoutsos, ReSEL – Technical University of Crete

Jessica Stromback, Joule Assets Europe

Valerie Plainemaison, EFIEES


CONCLUSIONS

Adrian Joyce, EuroACE

Paolo Michele Sonvilla, Creara


Thank you!

ENERGY EFFICIENCY BUILDING RENOVATION OPPORTUNITIES IN EUROPE: MARKET CHALLENGES, SOLUTIONS AND FINANCING TRENDS

Documents

ENERGY EFFICIENCY BUILDING RENOVATION … · INTRODUCTION AND KEYNOTES Adrian Joyce, EuroACE Paolo Michele Sonvilla, Creara Timothèe NOËL, DG ENER Ettore Piantoni, CEN/CENELEC Paolo