This project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement No 785061.
This proposal aims to replicate the successful Energy Savings Insurance (ESI) model in the three highest potential countries in Europe – Italy, Portugal and Spain, train key market stakeholders, and deliver an ESI Europe Toolkit alongside a long-term business model to enable the broader roll out of the ESI Europe model in other European countries.
Objectives and Methodology
The ESI model includes financial and non-financial elements designed to work together to reduce the risk for firms to invest in energy efficiency and create trust and credibility among key actors. The model consists of four main components:
• STANDARDISED CONTRACTS: A standardised, simplified contract, sets a clear and transparent framework for negotiations between firms, technology providers and eventually financial institutions. It defines how energy savings are measured, guaranteed and insured.
• ENERGY SAVINGS INSURANCE: With a risk coverage product, firms are insured against the provider failing to fulfil its contractual obligations regarding the energy savings. The insurance creates trust in energy efficiency and also reduces the credit risk of the firm, especially for SMEs.
• VALIDATION: An independent technical validation process is put in place to overcome the perceived high performance risk of energy efficiency projects. A credible validation entity evaluates the capacity of the project to deliver the promised energy savings, verifies the installation, and acts as an arbitrator if required.
• FINANCING: Existing financial instruments, such as green loans, are identified and can be linked to energy efficiency projects using the ESI model. This can result in competitive credit conditions, suitable tenors and support to access collateral, which can help SMEs in particular, to access financing for energy efficient technology solutions.
An energy efficiency upgrade making use of the ESI model is easy – just follow these steps:
• Preparation phase
• Contract activation
• Implementation phase
• Operation phase
• Saving monitoring
• Insurance coverage
- BASE Switzerland
- FIRE Italy
- BCSD Portugal
- EnergyLab Spain
Start date: 1 February 2018 - End date: 31 January 2021