Introduction to the European Energy Efficiency Fund. February 2018

Transcription

1 Introduction to the European Energy Efficiency Fund February 2018

2 Agenda 1 2 Key elements Portfolio overview 2

3 Mission Capital Beneficiaries Investments eeef at a glance eeef is an innovative publicprivate partnership dedicated to mitigating climate change through market based financing in the member states of the European Union Initial capitalization of the fund amounting to 265m provided by the European Commission, the European Investment Bank, Cassa Depositi e Prestiti and Deutsche Bank Municipal, local and regional authorities or public and private entities acting on behalf of those authorities such as utilities, ESCOs, social housing associations, public transportation providers etc. Fund s investments are split into three project categories: - Energy Efficiency (EE) - Renewable Energy (RE) - Clean Urban Transport (CUT) 3

4 Objectives and sponsors of the eeef Background Sponsors EU 2030 Framework for climate and energy EU-wide targets: cut of greenhouse gas emissions by 40%, increase of the use of renewable energy by at least 27% and improvement of energy efficiency by at least 27% Massive potential for EE, small scale RE and Clean Urban Transport in the European public sector IE GB FR NL BE LU DK DE IT FI SE EE LV LT PL CZ SK AT HU SI HR RO European Commission (Initiator) European Investment Bank (Founding investor) Cassa Depositi e Prestiti (Founding investor) eeef target PT ES GR BG Deutsche Bank (Investor) MT CY - Geographical scope of eeef - 4

5 Added value of the European Energy Efficiency Fund If you are a Developing a project in With these features eeef can support your project providing Public Entity similar to City of Venlo (NL), CHAP Social Housing Association (UK) Private company liasing with a public entity similar to Manutencop (IT), Enertika (ES), Bolloré (FR), EDF Group (FR), Johnson Controls (DE) Renewable Energy As we have done with: City of Orléans / Rennes (FR), CHAP Social Housing Ass. (UK) Energy Efficiency As we have done with: City of Venlo (NL), Region Rhône Alpes (FR), Sant Orsola Hospital (IT), Universidad Politecnica de Madrid (ES), Banca Transilvania (RO), Jewish Museum of Berlin (DE), Munich University (DE), CHAP Social Housing Ass. (UK) Avoiding CO2e emissions at least for 20% of the baseline Looking for funding in a (flexible) range between 5 and 25 m Tailor made funding Debt e.g. City of Venlo (NL), Bolloré (FR), Region Rhône- Alpes (FR), CHAP Social Housing Ass. (UK), Sant Orsola Hospital (IT) Equity e.g. City of Rennes (FR), City of Orléans (FR) Mezzanine e.g. Banca Transilvania (RO) Forfaiting structures e.g. Universidad Politecnica (ES) Financial Institution financing the above similar to Banca Transilvania (RO) Clean Urban Transport As we have done with: Bolloré Paris, Lyon, Bordeaux (FR) In one of the 28 EU countries Technical Assistance 5

6 Advantages of the eeef Know how pooled at the European level with a lean decision process Broad spectrum of financing instruments with long maturities Pan-European investment approach The Fund is acting as center of competence for financing of EE and RE projects with a public link across jurisdictions currently working with nearly 30 cities and regional authorities in Europe Corporate and/or project finance through senior debt, mezzanine, equity, leasing and forfaiting facilities. Maturities up to 15 years Risk diversification of portfolio across EU28 Member States Experienced professionals along the investment decision process, taking no longer than 6 weeks to reach investment commitment Fund can also operate as the sole investor to simplify implementation and get lower execution costs. Equity or mezzanine capital can be provided to act as cosponsor All agreements for investments taking into consideration local requirements of each European location 6

7 eeef investment structure 7

8 Role of Deutsche Bank in the eeef Key point of contact for all sponsors and project companies, eeef investors and service providers Identifies, evaluates and structures the investments for the Fund (incl. following portfolio management). The final investment decision is taken by the Management Board. Fund Manager Investment Manager Will source new investors for the Fund, with a focus on institutional investors from the private sector. 8

9 How to submit a project Get in contact directly with the Investment Manager (see last page for contacts), or Follow the guided application for eligibility check on the eeef s website: Accounts can be created within just one minute. 9

10 New Technical Assistance facility for a higher succes rate of projects eeef coordination & monitoring activities and bankability-oriented TA enhance the implementation rate of projects TA boundaries All activities necessary to prepare investments - feasibility studies, energy audits, assessment of economic viability of investments, legal support etc. No reimbursement required if the agreed conditions are met e.g. timeframe, leverage factor, eeef (co-)funding Background experience COM TA: 16 TA projects in 8 countries, a total project volume of 155m facilitated eeef consultant TA beneficiary (public entity) eeef TA Consultancy Agreement eeef How TA works I. eeef selected consultants II. eeef to match consultant with municipality III. Joint definition of project scope IV. Progresses monthly monitored by eeef V. Bankability built all along the development process. eeef participating to project funding otherwise reimbursement of costs Current status: selected municipalities of Gijón (Spain) and Ferrara (Italy). Further funding available How to apply as beneficiary Remaining funding available on a first-come-first-serve basis Application to submit to technical_assistance@eeef.eu All info at 10

11 Agenda 1 2 Key elements Portfolio overview 11

12 eeef investments as of 12/2017 Investments by Projects Investments by Country 4% 4%3% 2% 1% 0% 24% 7% 3% 1% 0% 7% 6% 9% 37% 7% 19% 19% 23% University Hospital S. Orsola Malpighi Bolloré Autolib Banca Transilvania Santander City of Venlo Dalkia City of Rennes Dalkia City of Olrèans SPL - Region Rhone-Alpes Cardenden Heat and Power Universidad Politécnica de Madrid Jewish Museum Berlin Foundation University of Applied Sciences Munich Investments by type of Partner Institution 24% France Italy Romania Spain Netherlands Great Britain Germany Investments by Sector 19% 13% 23% 64% Direct Investment 81% Financial Institution Energy Efficiency Clean Urban Transport Renewable Energy 12

13 eeef investments by country with project details UK 4.2m senior debt to project entitiy Cardenden Heat and Power (EE: boiler replacement and RE: onshore wind) FRANCE 5.1m junior funds to project vehicle to supply heat to City of Orléans (EE: CHP/biomass) 7.3m junior funds to project vehicle to supply heat to City of Rennes (EE: CHP/biomass) 30m senior funding to Bolloré (Clean Urban Transport: electric cars) 5m senior construction facility to project vehicle of Région Rhône-Alpes (EE: schools retrofit) SPAIN 2.5m forfaiting loan to Universidad Politécnica de Madrid via Enertika (EE: building retrofit) 9.2m forfaiting loan to City of Santander via Elecnor SA (EE: public smart lighting) NETHERLANDS 8.5m senior debt to City of Venlo (EE: public smart lighting) GERMANY 0.9m forfeiting loan to Jewish Museum Berlin via Johnson Controls ESCO (EE: building retrofit) 0.6m forfeiting loan to University of Applied Sciences Munich via Johnson Controls ECSO (EE: building retrofit + CHP) ITALY 32m project and VAT bond facility to project entity upgrading University Hospital S.Orsola Malpighi in Bologna (EE: reduction on energy in entire fluid production and distribution system) ROMANIA 25m subdebt to Banca Transilvania (Financial Intermediary investment: EE, RE, Clean Urban Transport) 13

14 Energy efficiency upgrade of Hospital S. Orsola Malpighi - Bologna, Italy Project description Location Partners: Progetto ISOM S.p.A (project SPV) University Hospital S. Orsola Malpighi (grantor of concession) Bologna, Italy Measures: energy efficiency CCHP Upgrade of entire fluids production and distribution system of the hospital Including a tri-generation plant with a district heating and cooling network of 15 kms and two new thermal plants Results: Reduction of CO2 emissions of 14,136 t p.a., approx. 31% compared to baseline Project structure Manutencoop Facility Management Siram Sinloc Project bond + VAT bond SPV Progetto ISOM S.p.A. Equity funding Concession agreement UHSOM (Grantor of concession) Regional funding of healthcare Region Emilia Romania EPC and O&M EPC & O&M consortium Investment characteristics Key data: Total project volume: 41m (equity provided by Manutencoop Facility Management, Siram, Sinloc) eeef funded volume: 31.8 via a project bond structure Duration of financing: 20 years Highlights: Largest energy efficiency upgrade in Italy under a Public Private Partnership (PPP) framework Lighthouse project for the Italian and European energy efficiency market demonstrating the positive impact of an energy efficiency investment in a complex upgrade of the public hospital 14

15 Combined Heat and Power Plant (biomass) City of Orléans, France Project description Location Partners: City of Orléans, Dalkia France, eeef Measures: Biomass plant/ energy efficiency Dalkia won a public tender realized under a French Regulation Commission Tender ( CRE3 ) for electricity /heat generation fired by biomass Biomass-fired combined heat and power plant with a capacity of 7.5 MW in electricity and 17 MW thermal energy Orléans, France Results: Reduction of CO2 emissions of 20,500t p.a., approx. 89.1% compared to baseline Energy production 50,826 kwh p.a. Project structure Investment characteristics Key data: eee is a 84.4% shareholder of Orléans Biomasse Energie s.a.s City of Orléans Land rights agreement Orléans Biomasse Energie s.a.s Contract for electricity sale Construction contract EDF Total project volume: 36m Total junior funds volume: 6m Duration of financing: 18 years Highlights: Public concession for Heat supply to district heating network Dalkia Biomasse Orléans s.a.s Operation and maintenance, Incl. biomass supply Decentralized energy supply for City of Orléans using existing district network Supply of biomass within 100 km Long term PPA agreement with EDF 15

16 Building retrofit of the University of Applied Sciences - Munich, Germany Project description Location Partners: University of Applied Sciences Munich (UoM), Johnson Controls, eeef Measures: Building upgrade/ energy efficiency Installations of combined heat and power plant Installation of energy efficient lighting Optimization of heating Optimization of building management Munich, Germany Results: Reduction of CO2 emissions 88t p.a. approx. 11.6% compared to baseline Guaranteed energy savings 118,860 p.a. (41.7%) Financing structure Investment characteristics (Purchaser) 2 Forfaiting agreement: purchase of 70% of receivables / energy savings ESCO (Seller) 1 3 Implementation of EE measures acc. to energy performance contract (EPC) Savings guarantee Pays receivables/ energy savings UoM (Employer) Key data: Financing volume: approx. 0.6m Duration of financing: 10 years Highlights: Second project with the innovative forfeiting structure EE measure including a CHP plant (decentralized energy production) Role model for further energy efficiency investments in schools, universities etc. 16

17 Green lending cooperation with Banca Transilvania- Cluj-Napoca, Romania Project description Location Partners: Banca Transilvania S.A. ( BT ) Measures: EEEF and BT, one of the leading banks in Romania signed a letter of intent regarding green lending to support energy efficiency and renewable energy investments Provision of financing to public and private building owners, homeowner associations and municipalities, public sector entities and private sector companies acting on behalf of the public sector Cluj-Napoca, Romania Results: Average CO2 emission reduction of at least 20% for projects financed via BT Financing structure (Lender) Investment characteristics Key data: Financing volume: approx. 25m Duration of financing: 10 years (Borrower) Loan Agreement Sub-loans for EE and RE projects (Subborrowers) Highlights: First cooperation of the EEEF with a financial institution and also EEEF s first project in Eastern Europe Strong local partner with credentials in financing several energy efficiency projects Role model for further Financial Institutions investments 17

18 Street lighting upgrade of the City of Venlo - Venlo, Netherlands Project description Location Partners: City of Venlo (Borrower) Measures: Energy efficiency Street lighting The City of Venlo upgrades of the existing street lighting network of the city with energy efficient LED lamps The existing O&M contract for the street lighting network with a private service company stays in place and includes the upgraded lighting points Venlo, Netherlands Results: Achievement of primary energy savings of around 62% p.a. compared to baseline Project structure Investment characteristics Key data: Total project volume: 8.5m Loan Agreement eeef funded volume: 8.5m via a senior debt loan covered by the City of Venlo Duration of financing: 15 years Highlights: (Lender) Obligation to invest into energy efficiency projects (Borrower) First direct lending to a municipality by eeef. The street lighting upgrade is part of an overall green development plan of the city Reference project for European public authorities demonstrating efficient financing solutions for energy efficiency and renewable energy projects via eeef 18

19 Car-sharing programme for electric cars - Cities of Paris, Lyon and Bordeaux, France Project description Location Partner: Bolloré S.A. Measures: Public urban transportation Bolloré SA won the concession for the first large scale electric vehicle renting scheme in the greater Paris region (Ile-de-France) expansion of Bolloré s core infrastructure (e.g. cars, charging stations, rental kiosks) Paris, Lyon and Bordeaux, France Results: Reduction of CO2 emissions of min. 50% compared to baseline Project structure Investment characteristics Paris Bordeaux Lyon Key data: Bond issue (private placement): 30m Obligation to expand core infrastructure Bond purchase Duration of financing: 5 years Repayment: Bullet structure 100% 12 year concession for the Paris/ Île-de-France region; Lyon and Bordeaux to come Highlights: First eeef transaction for clean urban transport in Europe 51 municipalities in the Paris/ Île-de-France region participating, accessible to more than 4 out of 7 million inhabitants 19

20 New heating infrastructure for Universidad Politécnica de Madrid, Spain Project description Location Partner: Universidad Politécnica de Madrid (UPM) Measures: Energy efficiency Building retrofit Energy efficiency measures in 32 buildings of the University Substitution of the 63 oil based with the gas based boilers Installation of 6,800 thermal valves in the heating system an solar panels Installation of a global energy management service Madrid, Spain Results: Project structure Targeted primary energy savings of 27% and CO2 savings of 45% compared to baseline Investment characteristics Key data: (Purchaser) 2 Purchase of of receivables 3 Pledge of equipment 4 Monthly payment of the relevant share based on issued invoices Forfaiting structure to purchase receivables obligations related to installation works: 2.5m Duration of financing: 9 years Repayment: monthly ESCO (Seller) 1 Implementation of EE measures acc. to Energy Management Contract UPM (Employer) Highlights: Transaction completed in three months after signing of the Energy Management Contract by the UPM and Enertika, demonstrating the ability of the private and public sectors to align efforts to implement projects in the energy efficiency sector 20

21 Energy efficiency upgrade of social housing homes and new small size wind plants Cardenden, UK Project description Location Partner: Cardenden Heat & Power Ltd Renewable Energy Infrastructure Fund (REIF) Cardenden, UK Measures: Energy efficiency Wind Gas boiler upgrade of more than 200 homes owned by the local housing association Construction of small size onshore wind-farms (each 0.5MWe) in the Fife Region Results: Reduction of CO 2 emissions of 1,732t p.a., 96% compared to baseline Project structure Senior loan Ore Valley Housing Association Cardenden Heat & Power REIF Equity funding Subordinated loan EPC and O&M EPC and O&M partners Investment characteristics Key data: Total project volume: 5.5m (wind component installed 2.1 m) eeef funded volume: 4.3m via a senior loan (wind component 1.4 m) Duration of financing: 15 years Highlights: First small scale wind power project development financed by the eeef eeef collaborated with the Scottish community to address the technical and financial aspects to plan and implement climate change related project 21

22 Street Lighting PPP for the City of Santander - Forfaiting - Cantabria Region, Spain Project description Location Partners: ELECNOR (Sponsor) Municipality of Santander (grantor of concession) Santander, Spain Measures: energy efficiency Conversion of existing street lights to energy efficiency LEDs (22.300) in the City of Santander (located in the Cantabria Region in Spain with a population of 174,612 inhabitants) Results: Reduction of CO2 emissions of 4,395 t p.a., approx. 80% compared to baseline. Primary Energy Savings: 39,848 MWh p.a (80%) Project structure (Purchaser) Purchase of the remuneration receivables / Drawdown at the completion of the installation 2 ESCO (Seller) Payment of remuneration (eeef s share of receivables) transferred to eeef by the Municipality Agreeing to eeef s terms & conditions according to Notification Street Lighting Management Contract (Concession) Agreed remuneration 15 yrs in accordance with the tender Investment characteristics Key data: eeef funded volume: 9.2 m via a forfaiting structure (54% purchase of existing receivables) Duration of financing: 13.5 years Highlights: One of the largest street lighting upgrades in Spain under a Public Private Partnership (PPP) framework. The project emerges from the Technical Assistance of the European Commission, with the Municipality of Santander receiving funding to conduct energy audits and prepare the investment programme Elecnor and eeef have agreed on the financing structure, signed the forfaiting agreement, completed installations in the 6 months period City of Santander savings with 360K per year after the remuneration of the ESCO partner 22

23 Self Consumption PV Plants for Public Sector Clients in Portugal Junior Funds investment Project description Partners: Wattosun (Sponsor) Measures: Renewable energy Several Public Sector Clients (grantor of PPAs) Self Consumption small scale PV Plants for several Public Sector Clients (as municipalities, stated owned companies). Located all across Portugal. Up to 5 Mwp. The total project, comprising of 7 sub-projects, estimated to use circa 21,100 of 1.68 m2 solar panels Results: When compared to the baseline, the total project estimates CO2e savings of 2,650 tonnes per year and primary energy savings of 20,736 MWh per year Project structure 2 Financial Investor Equity and debt injection / Dividends and Repayment NewCos 1 3 Wattosun (Sponsor) Equity and debt injection / Dividends and Repayment PPA Contract Public Sector Clients Agreed remuneration 15 yrs in accordance with the PPA Location Investment characteristics Key data: eeef funded volume: 5.15 m via a mix of equity and debt Duration of financing: 15 years Highlights: Portugal (Several locations) The self-consumed electricity would enable the public authorities to minimize or even reduce their exposure to changes in energy prices and benefit from effective electricity cost reduction. eeef has signed a MoU with Wattosun and will provided the funds when successful acceptance test is achieved for each of the Sub-Projects. Portugal continues to be a global leader in the greenification of their country s energy mix by incorporating renewable energy generation methods. More than 50% of its energy comes from wind, solar and hydropower. 23

24 Contacts European Energy Efficiency Fund (eeef) Lada Strelnikova +49 (69) Iñigo Prior +49 (69) Paola Rusconi +49 (69) Rahul Pratap Singh +49 (69) Zarpana Signor +49 (69)

25 Copyright European Energy Efficiency Fund, SICAV-SIF, 31 Z.A. Bourmicht, L-8070 Bertrange, Luxembourg. All rights reserved. This presentation (the Document ) has been prepared by European Energy Efficiency Fund, SICAV-SIF ( European Energy Efficiency Fund ) exclusively for the benefit and internal use of the potential client ( Client ) in order to indicate, on a preliminary basis, the feasibility of a possible transaction or transactions. The Document may only be used for these purposes. The Client is not permitted to duplicate the information provided in this Document and to communicate the received information of this Document to any third party without the prior written consent of European Energy Efficiency Fund. The Document is incomplete without reference to, and should be viewed solely in conjunction with, the oral briefing provided by European Energy Efficiency Fund. The Document is neither intended to serve as legal or tax advice nor should it replace it. The information in the Document reflects prevailing conditions and European Energy Efficiency Fund's views as of this date, all of which are subject to change. Neither the European Energy Efficiency Fund nor their directors, officers, agents or employees, customers or professional advisers make any representation, warranty or undertaking, express or implied, as to the accuracy, reliability, completeness or reasonableness of the Document. The aforementioned persons will be under no duty to provide access to any additional information or to update or correct (if required) any Information. Accordingly, neither the European Energy Efficiency Fund nor the aforementioned persons will be liable for the accuracy, reliability, completeness or reasonableness of the Document.