Increasing the flow of investment into energy efficiency in industry

Panel: 5. Business models, finance and investment in the age of digitalisation

Authors:
Steven Fawkes, EnergyPro Ltd, United Kingdom
Luis Castanheira, Investor Confidence Project

Abstract

This presentation examines the current state of the energy efficiency financing market with specific reference to industry. As well as the importance of retrofit projects the paper examines the different types of capital investment that lead to improved efficiency including investment in new production facilities and the need to maximise the opportunities afforded by normal, every day investments that do not have energy efficiency as their prime objective. It examines initiatives in the US and EU market, and discusses the specific barriers to the growth of private capital investment into energy efficiency in industry. These include: lack of standardisation in development and documentation, small project size and the need to develop large pipelines, the need for both development as well as project finance, and the need to build capacity in the demand side, the supply side and the finance industry. It then looks at various examples from around the world that have successfully brought the elements together to increase the flow of capital into energy efficiency in industry. It reviews significant developments including the Investor Confidence Project, the EEFIG Underwriting guide, project performance databases and platforms and their role in the ecosystem of energy efficiency financing. It also looks forward to emerging business models such as metered efficiency and Pay for Performance.

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