ENERGY INNOVATION FINANCIAL NETWORK Dr HANNA BARTOSZEWICZ-BURCZY INSTITUTE OF POWER ENGINEERING WARSAW - POLAND 19 June 2007, WARSAW EIFN WORKSHOP

EIFN CD2 The EIFN is an initiative promoted by EU 6 th FP to finance energy innovation activities. THE EIFN AND EUROPE INNOVA COMMUNICATIONS

EIFN CD3 OBJECTIVES OF THE EIFN PROJECT Design and develop a comprehensive framework for a better understanding between innovation energy enterprises, institutions and financial agents based on: Collaboration to update the financial services to the energy sector innovation needs. Providing practical and efficient solution to facilitate innovation agents in the energy sector the access to financial services. European scope.

EIFN CD4 CONSORTIUM MEMBERS Partic. No.Participant nameParticipant short nameCountry 1Deloitte, S.L.(DT)Spain 2Instituto Tecnológico de Canarias(ITC)Spain 3Institut für Solare Energieversorgungstechnik(ISET)Germany 4SC IPA SA CIFATT Craiova(IPA SA CIFATT)Romania 5Lietuvos energetikos institutas(LEI)Lithuania 6Ente Vasco de la Energía(EVE)Spain 7Korona Power Engineering d.d.(KORONA)Slovenia 8Innovation NCP(NCP)Poland 9ZAB ZukunftsAgentur Brandenburg(ZAB)Germany 10Consorzio Catania Ricerche(CCI)Italy 11Instituto de Empresa(IE)Spain 12Institute of Power Engineering(CENERG)Poland

EIFN CD5 EUROPEAN UNION ENERGY POLICY AND THE LISBON STRATEGY Limits to greenhouse gases emissions (EU has the commitment to deliver the collective 8%, with the reference to 1990 level, cut in emissions by ). Promotion of renewable energies (EU objective: 12% market share of renewable energy in 2010 total primary energy consumption. Cogeneration Strategy (Target of doubling the share of electricity production from cogeneration to 18% by 2010) Reduce energy dependency Lisbon European Council established that Europe’s future economic development would depend on its ability to create and grow high value, innovative and research-based sectors

EIFN CD6 INNOVATION IN THE ENERGY SECTOR The European innovation in the energy sector has found relevant barriers to access to finance services: Some project promoters needs more knowledge about: innovation financing alternatives, access to financial resources procedures, structured finance, project evaluation methodologies, economic valuation of the project environmental impact, business plan elaboration, risk management. Energy projects have long maturation periods that needs to adapt project financial structure to this characteristic. Usually these projects require high volume of financial resources, in some cases the promoters has problems to engage guaranties to obtain the finance support. Energy projects have high cash flows due to: technology risk, regulatory risk, price risk.

EIFN CD7 ENERGY INNOVATIVE FINANCIAL NETWORK INITIATIVE  Providing practical and efficient solutions to facilitate innovation agents the access to financial services.  Collaboration to update the financial services to the energy sector innovation needs.  Overcoming the barriers of the existing investments for financing innovation in the energy sector  European scope The EIFN project is an initiative promoted by European experts to finance energy innovation activities focused on designing and developing a comprehensive framework for a better understanding between the innovation energy enterprises, the institutions and financial agents.

EIFN CD8 ENERGY INNOVATIVE FINANCIAL MODEL  Establishment of a comprehensive network to improve financing for innovation in the energy sector (Europe Innova Energy Network)  Identification of financial services (solutions) according to the specific characteristics of the innovation in the energy Sector  Design and develop methodologies and tools to prepare business plans and to financially analyze the energy projects  Design and implement a facility that improves the access of innovation energy enterprises and institutions to financing

EIFN CD9 STAKEHOLDER COMMITTEE  The Stakeholder Committee are composed by ca. 350 members from different EU countries.  Members of the Stakeholder Committee are representing the financial organizations (banks, venture capital funds, business angels, etc.) private companies of the energy sector and their intermediaries, innovation promoter, managers and researches.  The members of the Stakeholder Committee are experienced in innovation, project finance or energy sector.  The members have to co-operate with the project consortium in testing the functionality of the project tools and materials and they are interested in contributing to disseminate the general interest aspects raised by the project development.  The nomination for the Innova Energy Network is honorific.

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EIFN CD11 METODOLOGIES AND TOOLS  Identification and analysis of sector characteristics in relation to innovation financing (map linking needs of innovation in energy sector and funding sources).  Design and develop methodologies, tools, guidance materials and procedures. - Business plan preparation tool package - Business plan diagnostic - Financial analysis - Multi –scenario analysis, sensitive analysis, simulation analysis, - Real options methodology, etc. Co-operation with other EU initiatives: Gate 2 Growth and PAXIS.

EIFN CD12 EIFN PROVIDES A complete information package including an assessment tool to enable promoters to establish the state of advancement of their prospective venture and a business planning model to help them prepare a viable business plan and other economic approaches. Access to guides and directories on innovation finance and sources of finance at EU, national and regional level. Access to workshops and roundtables providing both a general introduction to innovation finance and more specific and practical guidance on the financing process and presentations to investors. Online helpdesk support to provide a readily accessible source of assistance and advice.

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EIFN CD15 Thank you very much for attention