Budapest October 2, 2014 Irina Kotliar Energy efficiency in buildings. European support schemes

I.EU subsidy program IEE Horizon2020 II.Joint financial facilities I.European Energy Efficiency Fund (EEE-F) II.EIB ELENA programme in combination with facilities from other development banks (CEB, EIB, EBRD, KfW, etc.) EU: mobilising sustainable energy investments

Grants –Tied to innovation: Horizon2020 –Tied to loans as TA Lending and investments –strong emphasis on funds revolving and leverage –TA grants tied to loans ELENA: 90% development TA costs; should not affect leverage ratio EEE-F: TA <10% of investments budget (€20m vs 265m Project size –Generally large projects –Programmes/ clustering projects Instrumental! General remarks

New research and innovation funding programme of nearly €80bn Focus on societal challenges facing EU society –Health, clean and efficient energy, transport, etc. I. EU Horizon2020: general principles

EE falls under Societal challenges –Secure, clean and efficient energy. Worth EUR 5,9 bn Energy challenge calls (indicative budget bi-annual planning) Calls2014 (M€)2015 (M€)  Energy Efficiency 9798 Smart Cities and Communities92108 Competitive Low-Carbon Energy SMEs and Fast Track to Innovation3437 Part B – other actions7561 I. H2020 Funding energy efficiency buildings

Energy efficiency call specificity: –Most actions: min. 3 participants from 3 different countries Few exceptions, such as construction skills EE4 and financing EE19, EE20: 1 /1 Emphasis on innovative industry/ SME –From EU and/or from Associated Countries (list of FP7). Beyond this: large list of countries, but judge evaluation required Topics: –A: Buildings and Consumers- C: Industry and products –B: Heating and Cooling- D: Finance for sustainable energy Type of actions: emphasis on innovation –Research and Innovation (research, knowledge generation) -100% –Innovation Actions (test to market) - 70/%100% if non-profit –Coordination and Support (standardisation, policy, financing) 100% I. H2020 Funding energy efficiency buildings

A – Buildings and consumers –EE : Manufacturing prefab modules renovation buildings (IA) –EE 2 – 2015: Buildings design new highly EE performing buildings (IA) –EE3 – 2014: Energy strategies & solutions deep renovation of historic (residential) buildings (IA) –EE 4 – 2014: Construction skills (CSA) –EE 5 – 2014/2015: Increasing energy performance of existing buildings through process and organisation innovations and creating a market for deep renovation (CSA) –EE 6 – 2015: Demand response in blocks of buildings (intelligent energy management systems) (IA) –EE 7 – 2014/2015: Enhancing the capacity of public authorities to plan and implement sustainable energy policies and measures (CSA) I. H2020 Funding energy efficiency buildings

B – Heating and cooling –EE 13 – 2014/2015: Technology for district heating and cooling (CSA) –EE /2015: Removing market barriers to the uptake of efficient heating and cooling solutions (CSA) D - Finance for sustainable energy –EE 19 – 2014/2015: Improving the financeability and attractiveness of sustainable energy investments –EE 20 – 2014/2015: Project development assistance for innovative bankable and aggregated sustainable energy investment schemes and projects –EE 21 – 2014/2015: Development and market roll-out of innovative energy services and financial schemes for sustainable energy I. H2020 Funding energy efficiency buildings

Type of actions –Research and Innovation Actions (RIA) 100% funding rate New scientific and technical knowledge and/exploring the feasibility of new or proved technology, product, process, service or solution Limited demonstration or pilot activities –Innovation Actions (IA) 70% /100% for non-profit Product (re-)design, testing, piloting, market replication –Coordination and Support Action (SCA) 100% funding rate Market uptake activities: standardisation, awareness-rising, policy dialogue, coordination and support services, mutual learning, etc. involving IEE-type activities I. H2020 Funding energy efficiency buildings

guide/index_en.htmhttp://ec.europa.eu/research/participants/docs/h2020-funding- guide/index_en.htm I. H2020 online manual

Follow calls announcements! –Energy efficiency call page: More reading: –H2020 general website: –H2020 FAQ section: aq.html aq.html –H2020 National Contact Points: /participants/portal/desktop/en/support/natoinal_contact_points.htmlhttp://ec.europa.eu/research /participants/portal/desktop/en/support/natoinal_contact_points.html H2020 – Energy Efficiency Support

PPP providing EUR 265 mln for investments, 20m TA (grant) available to structure projects –EUR125m by EERP, 75m EIB, 60m CDP and 5m Deutsche Bank –Managed by Deutsche Bank ( Beneficiaries: Local and regional public authorities; PPPs are possible Financing –Direct investments (ESCO’s, project developers) and investments in financial institutions –Financing in form of equity, loans, guarantees, forfeiting schemes 70% of the investment target EE in buildings Projects ranging €5m to €25m are eligible! No calls, application possible at any time II. European Energy Efficiency Fund (EEE-F)

ELENA – European Local ENergy Assistance –Joint EIB-European Commission initiative –ELENA is a European Facility To support regional or local authorities through Technical Assistance in accelerating their energy efficiency and renewable energy investment programmes to reach EU ‘ targets’ –grant support is provided under IEE II programme (Intelligent Energy Europe; ) –Beneficiaries: public bodies in terms of mission, funding, control and liability in eligible countries EIB ELENA mobilising sustainable energy investments

EU support for residential retrofitting and sustainable energy Source: ELENA Facility mobilising sustainable energy investments Roman Doubrava, European Commission Directorate-General for Energy

By end 2013, 26 projects approved and signed One project cancelled by the beneficiary ELENA contribution of EUR 43 million Investments to be launched of EUR 2.5 billion The average leverage factor for signed projects = 60 Cumulative energy savings: GWh/y Cumulative RE generation: 530 GWh/y Cumulative GHG emission reductions: t of CO2 The total actual investments committed by the end of 2012: > EUR 260 mln ELENA EIB Project status

EU support for residential retrofitting and sustainable energy

Investment (lending) programmes (up to EUR 50 mln) developed by banks. –TA provided to beneficiaries (mostly regions and municipalities) –Accompanied with the credit line by the KfW, –On-lent by local bank to final users (households, SMEs, cities) 4 programmes approved –BCPE France, Kommunalbank Germany, Erste Austria, Deutsche Bank Germany 2 programmes signed –BCPE, Kommunalbank 4 new programmes under development –Denmark, the Netherlands, Scandinavian countries, France) ELENA KfW Status

First CEB-ELENA application delivered (Poland, large-scale urban renovation) Three potential projects in the pipeline (BE, PL, SVK) Difficulties with demand and specific position of the CEB This window has not been opened in 2012 and New ELENA-EBRD window opened in 2012 (contract signed in Dec 2012) First project application under development (HR) ELENA CEB and ELENA EBRD

Areas –Public and private buildings –Integration of renewable energy sources (RES) into the built environment –Renovating, extending or building new district heating/cooling networks –Urban transport –Local infrastructure Certain size –normally > EUR 30 mln –Support small projects possible when integrated/ grouped into larger investment programmes reducing transaction costs “bankability” of the individual projects, which is one of the ELENA selection criteria. Contribution to targets Does not need to be fully elaborated What kind of investment programmes supported by ELENA TA?

Covers up to 90% of eligible costs TA –IF related to a clearly identified investment programme Eligible costs –Any TA to prepare, implement and finance investment programme –hardware costs excluded, –cost of staff assigned to specific investment programme eligible –eligible costs can include value added tax if documented and cannot be recovered by the beneficiary Minimum and maximum costs? –In principle, no specific limits, but should be fit for potential market replication –leverage factor of minimum 20 to be respected What type of technical support can be financed by ELENA?

Eligibility of an applicant from an IEE participating country Eligibility of the planned investment programme Expected contribution to the objectives of the " " initiative EU added value, in terms of compliance with EU policies, including: –EU sustainable energy policies and priorities, targets and legislation –EU Cohesion Policy –state of the art sustainable energy technologies –needs of local communities and possible impacts on the local/regional development, including a positive impact on SMEs –contribution to dissemination of good practices or technologies at early market penetration phase, within the EU Selection criteria ELENA

Potential bankability of the project Applicant's financial and technical capacity to implement and complete the project Expected Leverage Factor –cost of investment supported must at least 20 times the amount of the ELENA contribution Verification that the ELENA Facility will not be used for investment programmes that can be better supported by other similar EU funds and facilities, including Cohesion and Structural Funds –if funding can be obtained from other facilities, the applicant must justify why the use of this Facility is more appropriate Absence of other EU support granted to the same applicant for ELENA in relation to the same project Selection criteria ELENA (continued)

EIB provides two main facilities: –Direct loans For large scale projects (>25 mln) –Intermediate loans Small and medium-scale projects (particularly to SMEs) via national and regional intermediary banks –Lending decision remains with the financial intermediary receiving ELENA assistance not a prerequisite to obtain EIB financing, and vice-versa. –different procedures for EIB loan and ELENA grant ( –However, improving bankability of the investment programme, ELENA may facilitate access to financing from the EIB or other banks Further reading: – Relation EIB financing & ELENA

Thank you! Questions?