Developing Investment Grade Energy Efficiency Policy for industry

Transcription

1 Developing Investment Grade Energy Efficiency Policy for industry Dr Nigel Jollands Associate Director EBRD IEA Energy Efficiency Training Week Paris, 7 June 2106

2 Contents Introductions Recap on importance and definitions Introductions to a Banker The energy efficiency policy/finance tool box How does the IGEEP approach help us to improve energy efficiency outcomes? Mechanics of policy-finance interaction Characteristics of IGEEP Challenges for IGEEP Examples Practice 2

3 Why is IGEE policy important? $13.5 trillion

4 Why is policy important?

5 What do I mean? What is energy efficiency policy? A set of strategies, legislation, regulations, measures, programmes that together stimulate energy efficiency improvement What is investment-grade energy efficiency policy? A set of strategies, legislation, regulations, measures and programmes that together enable that stimulate investments energy efficiency improvement ENERGY EFFICIENCY POLICY IGEEP 5

6 Introductions to a banker Long term Time horizon Short term Public good Motivation Revenue target Social CBA Evaluation criteria IRR Political Relationship to risk Legal Casio Type of watch Rolex Policy maker Economic impact Political impact Big concern Risk, creditworthiness, bankability Banker 6

7 The energy efficiency policy/finance tool box 7

8 How is IGEE policy different to ordinary energy efficiency policy? 1. Focused goal 2. Focus on specific set of barriers 3. Focused group of stakeholders 4. Specific criteria for evaluating appropriateness of measures for evaluating success of measures 5. Specific types of measures include measures not traditionally associated with energy efficiency 09/06/2016 8

9 What does IGEE policy look like? Policy framework Financial institutions Investors Financial instruments Credit lines Energy efficiency fund Direct lending Energy efficiency project Project originators Tech supplier Project aggregator Energy efficiency improvement 09/06/2016 9

10 Examples Ukraine industrial standards and labelling ESCOs in Western Balkans Kazakhstan energy audit framework and industrial energy efficiency benchmarking - Energy efficiency in Russia multi-family apartments - Western Balkans energy efficiency in buildings - Japan s commercial office space and principal agent problems 09/06/

11 Industrial equipment in Ukraine

12 Ukraine Eco-Design transposition ( ) - Eco-Design legislation for 6 product groups - regulations EBRD FINTECC FINTECC engineer Donor Manufacturer Tech supplier Energy efficiency improvement 09/06/

13 ESCOs in the Western Balkans EE Project preparation EE Project preparation Legislative support for EE Projects TC project preparation for ESCO projects: 9 tenders prepared by REEP 11 tenders under preparation by REEP EE Project preparation Legislative support for EE Projects Legislative support for EE Projects EE Project preparation EE Project preparation Ad-hoc EE Project preparation available Policy dialogue Legislative support for EE Projects TC assignments Energy efficiency (EE) Project preparation Street lighting tenders prepared by REEP ESCO tenders under preparation by REEP Feasibility/scoping studies prepared by REEP 13

14 Western Balkans SEFF REEP is an integrated package of finance, technical assistance and policy dialogue, implemented jointly with the Energy Community Secretariat Objective Sustainable market for energy efficiency in the Western Balkans Window 2 Intermediated financing & Window 3 Direct financing WeBSEFF II 92m financing m grants Credit line for local FI For smaller scale EE & RE projects For both public & private sector borrowers, including ESCOs Grant funds support TA and investment incentives. WeBSEDFF (extension) 50m financing m grants Direct financing facility Medium scale RE and EE improvements in industrial enterprises Window 1 ESCO support & Policy dialogue Energy Service Companies (ESCO) 5m grants Legislative support Technical project preparation Policy dialogue support 1m + 0.5m grants EPBD Procurement of EE goods Utilities 14

15 ESCOs in Western Balkans - E.g. Serbia (legal infrastructure for EnPC, procurement laws) EBRD WEBSEFF Lighting Framework WEBSEFF engineer Donor Municipalities/ manufacturers Tech supplier PIU Energy efficiency improvement 09/06/

16 Kazakhstan energy audits and benchmarking 09/06/

17 Kazakhstan energy audit and benchmarking ( ) - Amendments to by-laws relating to energy efficiency (1047, 1116, 1784, 1040), audits (11729) and benchmarks (11319) EBRD FINTECC FINTECC engineer Manufacturer Tech supplier Donor Energy efficiency improvement 09/06/

18 Japan Principal Agent problems in commercial office space - 70% of rental office space (80 million m 2 ) tenant doesn t pay energy bill - Policy prescriptions: - Compulsory energy audits for large buildings - Stringent energy efficiency standards for buildings - Tenancy contracts that allocate energy costs between owner and tenant 09/06/

19 The tool box with IGEEP 19

20 Group exercise 1. Break in to groups preferably one country/region per group 2. Select a policy instrument (e.g. one you are working on/have worked on/would like to see in your country) 3. Evaluate the strong and weak IGEEP components e.g. what stakeholders were involved? what investment does it lead to? etc 20

21 Summary Recap on definitions Introduced the banker The energy efficiency policy/finance tool box How does the IGEEP approach help us to improve energy efficiency outcomes? Mechanics of policy-finance interaction Characteristics of IGEEP Challenges for IGEEP Examples Practice 21

22 Contacts For all further enquiries, please contact: Dr Nigel Jollands Associate Director Energy Efficiency and Climate Change Tel: jollandn@ebrd.com EBRD, One Exchange Square London, EC2A 2JN United Kingdom 21