Project Asset Class Energy Efficiency – improving pace and number of energy Efficiency Investments in industry through standardization of the due diligence-processes and risk analysis

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

Authors:
Diana Wang, Institute for Energy Efficiency in Production EEP, University of Stuttgart, Germany
Rüdiger Lohse, KEA Klimaschutz- und Energieagentur Baden-Württemberg GmbH, Germany
Martin Reisinger, EEP Institut for Energy Efficiency in Production, University of Stuttgart, Germany
Kai Schink, Deutsche Unternehmensinitiative Energieeffizienz e.V. (DENEFF), Germany

Abstract

To increase energy efficiency investments in industry and building sectors, private investments are needed. According to EFFIG, standardization is essential in order to increase third party financing. Part of the project ‘Asset Class Energy Efficiency’ (ACE) addresses standardization by setting up a technical and economical due diligence process. ACE is aiming at designing framework conditions which allow investors, financiers and ESCOs to evaluate six cross sectional technologies utilizing technical and economical key performance indicators; on top of this other qualitative empiric performance data allows performing a risk analysis. This paper will summarize the results of the evaluation process in an economic and technical due diligence.

For the investment in energy efficiency measures, the progress is divided into five major activities: a) baseline building, b) modeling & savings calculation as well as planning/design decision making, c) implementation on the construction site, d) operation, maintenance and repair and e) monitoring & verification.

The risk evaluation will be carried out for each of these five fields of activity and consider the evaluated experience resulting from ongoing or concluded projects and from re-calibrated modeling calculations. At the same time different stakeholder perspectives are taken into account as for each risk the importance for different stakeholder groups differs. In the following, a de-risking strategy will be developed for each technology based on qualitative and quantitative target values and technical, economic and organizational quality management criteria. The de-risking strategy will be summarized in a due diligence protocol and will allow financiers, investors, ESCOs to evaluate project proposals in each of the five fields of activity. In order to integrate market experience, the work is carried out in close collaboration with stakeholders from industry, auditors, insurance companies, financiers, ESCOs and companies.

Downloads

Download this presentation as pdf: 5_104_18_Wang_pres.pdf