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Mind the gap – Financing industrial energy efficiency

Arranged by eceee in cooperation with the Horizon 2020-funded TrustEE project.

"Key findings report on financing related gaps and solutions"
(from seminar at eceee’s Industrial Efficiency 2018).
Download report here

Schedule

09.00–09.30 Coffee and registration
09.30–11.00 First part of workshop
11.00–11.30 Coffee break
11.30–13.00 Second part of workshop
13.00–14.00 Light lunch for workshop participants

Introduction

Mind The Gap, a truly interactive workshop where we discussed how Financing Industrial Energy Efficiency can be realised.

Download introduction presentation (pdf)

We discussed the gap that lies between the asset owner/manager (i.e. the industrial facility) who is positioned and willing to make energy efficiency improvements, and affordable financing of said improvements. This gap has been addressed but it has not been removed to the extent needed.

A growing body of evidence shows that energy efficiency investments with a payback period of longer than 2-3 years typically are not implemented based on the financial case alone. These projects do not proceed despite the fact that there is a promising investment opportunity, and there are investors willing to invest in longer-term investments. If the projects are implemented, the improvements typically fulfil another purpose such as improved productivity or quality.

The challenge

In this workshop we proposed to diagnose and discuss how to address this investment gap.  To diagnose the gap in focus we must identify the primary actors that could impact the gap, their roles and spheres of influence. But we need to know more:

  • What barriers do the companies (asset owners) face when seeking external investments for energy efficiency improvements? Are they aware of options? Do they face internal resistance to external/outside financing? Do they have sufficient resources to develop the business case?
  • Are these barriers contingent upon whether the case is developed by a large industry, an SME or are there differences? Do all types of businesses struggle with technically complicated performance linked financing or with adding anything to their balance sheet?
  • What financial or related services do the solutions providers or intermediaries offer to asset owners? What level of uptake is there? Are there real or perceived challenges (acceptance by the owners) due to the scope of services offered or the communication of what they entail?
  • For those in the financial community interacting with either the asset owners or the intermediaries, are they satisfied with how investment proposals are presented to them? Are they able to adequately analyse them? What do they think is “missing”? For SMEs, how do we provide greater access to capital to scale projects and overcome credit and risk barriers?

The format and structure

This was a workshop without formal presentations. The workshop aimed to bring together panellists representing industrial asset owners, intermediaries and the financial community. The purpose was to share and develop insights to more effectively address the investment gap. The audience was to encouraged to participate so that all new thoughts and avenues are explored.

The discussion was under Chatham House Rule. Panellists and the audience did not present organisational positions but reflected on the gap and what really can – and should – be done to try to close it.

Free of charge, pre-register with summerstudy@eceee.org. Workshop participation was free of charge.

The workshop was free of charge. Registration was required. Please register with summerstudy@eceee.org and state "Financing Workshop 11 June" in the email subject field.


Funded by the Horizon 2020 programme of the European Union

"New ideas, new contacts, rewarding ..."

"... many thought-provoking concepts introduced and good sharing of ideas."

"Excellent training and education facility."

Participants on the previous Industrial Efficiency events.

Industrial Efficiency 2018 partners & contributors