Onze claim: Duurzaam is ALTIJD voordeliger dan conventioneel! 2-10-2018 Triple Win - Examples and development NL EPC market

….Sustainable solutions prove always to be more economical Onze claim: ….Sustainable solutions prove always to be more economical than conventional solutions… Duurzaam is ALTIJD voordeliger dan conventioneel! 2-10-2018 Triple Win - Examples and development NL EPC market

….Sustainable solutions prove always to be more economical Onze claim: ….Sustainable solutions prove always to be more economical than conventional solutions… Duurzaam is ALTIJD voordeliger dan conventioneel! 2-10-2018 Triple Win - Examples and development NL EPC market

OVVIA, a Energy Service Company Jan van Hout Jan.vanHout@ovvia.nl OVVIA, a Energy Service Company Focus on reducing CO2 emissions from the build enviroment Est 2011, emerging from a full service HVAC firm established in 1936 Van hout verzorgt niet alleen de technische installatie maar geeft ook advies op de verschillende relevante vlakken in het proces. Dit doen we al 80 jaar en op dit moment met zo’n 75 man.   Onze klanten bevinden zich voornamelijk in de volgende segmenten Overheid, Zorg en eigenaren van vastgoed, gebruikers en projectontwikkelaars. Kernwaarden van een familiebedrijf: Ambitie is om bedrijven een hoger rendement te geven. Dit door toepassing van de juiste techniek gecombineerd met slim investeren zodat er besparingen worden bereikt die oplopen tot wel 50%. Daarnaast hebben we de ambitie om ons verhaal wereld kundig te maken en zo een stevige groei door te kunnen maken. Innovatie techniek.  Van Hout: voor rendement We laten zien dat duurzame energie en installatietechniek niet alleen voordelen heeft voor uw portemonnee, maar zeker ook voor het milieu en het imago van uw organisatie. We helpen u slimme keuzes te maken en optimaal rendement te behalen op uw installaties en investering. 2-10-2018 Triple Win - Examples and development NL EPC market

Our business propositions 2-10-2018 Triple Win - Examples and development NL EPC market

Our business propositions Solar (as a service) PV, flat roof Heat (as a service) Heatpump, Biomass, CHP Sustainable Buildings (as a service) EPC Best Available Technology Major CO2 reductions 2-10-2018 Triple Win - Examples and development NL EPC market

What do we do @ OVVIA? Analysing & advice Financing, structuring and organisation Realisation and operate/ maintain Monitoring and validation Okay, ik wil investeren. Maar ik heb zus en zo met mijn gebruiker afgesproken…. 2-10-2018 Triple Win - Examples and development NL EPC market

Our customer base Our Customers EPC operational base; >5.000.000 m² area 75% 25% 2016: 100.000m² 2017: 160.000m² 2018: 170.000m² +10MW PV 2019: 260.000m² + 20MW PV 2018: origin of EPC: Private sector 85% Public sector 15% They represent …square meters. Of that group our EPC installed base is.. If we zoom in to the origin of the sector we see a marginal contribution of the public sector. Some perspective on whom are utilizing the power of EPC’s in NL 2-10-2018 Triple Win - Examples and development NL EPC market

Our proposition translates to… % of customers:20% 20% 30% 30% OVVIA: Finance + DBFMO EPC long term relations Shared savings -, guaranteed savings- , energy supply model OVVIA: Maintain, Operate + DB MO Long term relations guaranteed savings model Design & Build only B capacity driven Build (conventional contracting) GOAL: Mensen willen geen boor 12mm kopen, ze willen een gat in de muur! 2-10-2018 Triple Win - Examples and development NL EPC market

Triple win approach 2-10-2018 Triple Win - Examples and development NL EPC market

WIIFM - What’s In It For Me? OVVIA started in 2007 with an approach to the split incentive and the viscious circle of blame to solve the split incentive. Based on experiances from abroad. Our main issue; the owner and tenant have different point of views. So we searched in other area’s like psycholy for clues on how to breach this issue. We focussed on loss aversion, specifically the WIIFM… 2-10-2018 Triple Win - Examples and development NL EPC market

WIIFM - What’s In It For Me? vs + Point of view isn’t OVVIA, it’s the Owner and Tenant.. 2-10-2018 Triple Win - Examples and development NL EPC market

WIIFM - What’s In It For Me? vs + 2-10-2018 Triple Win - Examples and development NL EPC market

1 Triple-Win-Solutions Cooperation between owner and tenant One contract for all parties 2-10-2018 Triple Win - Examples and development NL EPC market

1 Triple-Win-Solutions 2-10-2018 Triple Win - Examples and development NL EPC market

2a Triple-Win-Solutions: Owner invests on own accounts Requirements: Need for energetic refurbishment Long-time philosophy Advantageous: High fluctuation of tenants 2-10-2018 Triple Win - Examples and development NL EPC market

2a Triple-Win-Solutions: Owner invests on own accounts Building Type, Name: Strijp-TQ, 45.000m2 Renovation ‘50 building Industrial high-tech + Offices + Education Location: Eindhoven, Netherlands Implemented measures: Use of algorithms to find solutions Heat recovery of all ventilation systems Renovation of building envelope Insulation New facade Heat pumps Climate control systems Low temperature heating LED lighting Solar PV panels Savings: CO2 reduction >78% 1.750.000 kg/a NL-EPBD A label (from G), 2-10-2018 Triple Win - Examples and development NL EPC market

2b Triple-Win-Solutions: EPC-contract with forwarding of savings Tenant is persuaded to forward savings through increased quality of building Balconies PV/green electricity Green facades Smart technologies 2-10-2018 Triple Win - Examples and development NL EPC market

2b Triple-Win-Solutions: EPC-contract with forwarding of savings Nadeel economisch en juridisch eigendom. Gescheiden contracten. mijnenveld. Irt natrekking 2-10-2018 Triple Win - Examples and development NL EPC market

2c Triple-Win-Solutions: Sequential improvement of quarters Suitable for large quarters Requirements: “mobile tenants” Need for energetic refurbishment Incentive to change house further additional benefits must be generated 2-10-2018 Triple Win - Examples and development NL EPC market

2c Triple-Win-Solutions: Sequential improvement of quarters Voor de grote verbouwing & van gas los zijn dergelijke processen voorwaardelijk 2-10-2018 Triple Win - Examples and development NL EPC market

2d Triple-Win-Solutions: All- inclusive rent Elegant solution, but (mostly) only legally applicable for: Student homes Residential care homes Commercial properties (e.g. shopping centres, offices) Increasingly: nearly-zero-energy-building 2-10-2018 Triple Win - Examples and development NL EPC market

2d Triple-Win-Solutions: All- inclusive rent Building Type, Name: Office in Eindhoven Renovation, offices 2.500m2 Location: Eindhoven, Netherlands Implemented measures: Use of algorithms to find solutions High standard indoor climate quality Heat recovery of all ventilation systems Add-on Heat pump Climate control systems Low temperature heating LED lighting Savings: CO2 reduction >30% NL-EPBD A label Zeer kansrijk! 2-10-2018 Triple Win - Examples and development NL EPC market

3a Triple-Win-Solutions: EPC contract with owner‘s consent Requirement: long-time tenancy agreements 2-10-2018 Triple Win - Examples and development NL EPC market

3a Triple-Win-Solutions: EPC contract with owner‘s consent Building Type, Name: Multiple locations in the Netherlands Warehouses, offices Location: Multiple locations Implemented measures: PV solar panels 12MW Ca 100.000m2 Solar as a service Savings: CO2 reduction > 6.000.000 kg/a 2-10-2018 Triple Win - Examples and development NL EPC market

3b Triple-Win-Solutions: On-bill financing combined with energy supply 2-10-2018 Triple Win - Examples and development NL EPC market

3b Triple-Win-Solutions: On-bill financing combined with energy supply Building Type, Name: Office in Tilburg Renovation, offices 2.500m2 Location: Tilburg, Netherlands Implemented measures: Use of algorithms to find solutions High standard indoor climate quality Heat recovery of all ventilation systems Heat pump Climate control systems Low temperature heating LED lighting Solar PV panels Savings: CO2 reduction >35% NL-EPBD A label BREEAM Excellent Deze vorm moet zich nog verder ontwikkelen. Vandaag is de juridische bodem dun. Opnieuw ivm natrekking fiscus. 2-10-2018 Triple Win - Examples and development NL EPC market

Our experience while developing EPC market Factors of Success Trust Sense of Urgency Put you’re money where you’re mouth is Improve indoor climate comfort (our track record) Fail factors Information gap: If it sounds to good to be true, then it possibly is Knowledge gap: how to quantify and verify measures Financial + Technical Fear: “EPC replaces my job” (public sector) Dit is onze ambitie en realiteit. We moeten nog veel doen voor 2020 en daarna. Om zeer goede redenen. We hebben de techniek, organisatie, middelen. Het zijn banen, werkgelegenheid innovatie. 1800=400 gezinnen CO2 neutraal. De markt wil graag aan de slag! 2-10-2018 Triple Win - Examples and development NL EPC market

The Split-Incentives-Dilemma – managed by a project facilitator Fair balance of obligations and rights in all scenarios through skilled project facilitators Er is een rol weggelegd. Wel denk ik dat uiteindelijk een 2 partijen oplossing wordt gekozen als uitkomst van het balanceren. 3 partijen overeenkomsten is en blijft lastig 2-10-2018 Triple Win - Examples and development NL EPC market

Feasible forms off EPC in the NL Which we use/encounter which we don’t use/encounter 2a Owner invests on own accounts 2d All-inclusive rent 3a EPC contract with owner‘s consent 3b On-bill financing combined with energy supply 1 tripartite contract 2b EPC-contract with forwarding of savings 2c Sequential improvement of quarters De blauwe zijn kansrijke modellen 2-10-2018 Triple Win - Examples and development NL EPC market

Feasible forms off EPC in the NL, development/potential Mature 3a 2a 2b 1 2d 3b 2c Medium potential High potential (on effect & scalibility) De blauwe zijn kansrijke modellen Developing 2-10-2018 Triple Win - Examples and development NL EPC market

Postive development in EPC market Conclusions Postive development in EPC market The triple win approaches diversity tactics to “fit” customer needs There is (serious) growth potential in some tactics Reservations for professional development Even with an-offer-they-can’t-refuse, customers are not eligible to take action on CO2 reduction. A strong Climate agreement in NL would help. Our experiences rule out a tripartite approach and confront us in with ultimate benificiary party We need better marketing and stories to ‘sell’ CO2 reduction and the EPC approach Dit is onze ambitie en realiteit. We moeten nog veel doen voor 2020 en daarna. Om zeer goede redenen. We hebben de techniek, organisatie, middelen. Het zijn banen, werkgelegenheid innovatie. 1800=400 gezinnen CO2 neutraal. De markt wil graag aan de slag! 2-10-2018 Triple Win - Examples and development NL EPC market

Thank you for you’re attention Jan van Hout Jan.vanHout@ovvia.nl Thank you for you’re attention Questions? 2-10-2018 Triple Win - Examples and development NL EPC market