1. SESSION IV: INVESTMENT AND FINANCING OPPORTUNITIES
Topic: Development funds from a borrower’s perspective
Presenter: Bafoday Sanyang
Workshop on energy efficiency opportunities while phasing down HFCs
2/25/2019

2. Introduction Challenges to the spread of EE improvements:
Lack of awareness about energy consumption
The benefits of energy efficiency improvements and how to implement such measures
What technical solutions are available ?
What products and brands exist?
What technical specifications are most suitable ?
What financial help is available? and this takes us to the discussion…..

3. Workshop on energy efficiency opportunities while phasing down HFCs
What are the main challenges in engaging financial institutions to provide loans for energy efficiency projects, in relation to the borrower’s goals?
1. INFORMATION GAP
On customer side: lack of awareness on benefits or misunderstanding of technical and financial risk of energy efficient projects (usually perceived as high )
On financier side: lack of knowledge in general and in experience in financing energy efficient projects
2. BANKS’ PERCEPTION ON ENERGY EFFICIENCY PROJECTS
Most of the energy efficiency projects are smaller-sized and they are categorized as niche business for financial institutions, with higher transaction costs compared to conventional larger energy projects
3. STRUCTURAL IMPEDIMENTS
Smaller energy efficiency equipment/ facilities have low collateral asset value, making it difficult to set up appropriate financing structure
Treating cash flows from energy saving as revenues is less common in asset-based markets, measuring and verifying the flows is not easy. This discourages financial institutions from entering the market
Workshop on energy efficiency opportunities while phasing down HFCs
2/25/2019

4. Thank you

5. Questions & Points for discussion
How familiar are financial institutions in you country with financing EE projects & Measures?
How favorable are conditions for repayment & servicing EE loans with saving generated from improved efficiency?
What types of financing are available in your country for EE project implementation?
Does your country have legislation, programmes & policies to support investment in EE?
Percentage of energy efficiency project portfolio that would need to rely on securing large loans
Performance on previous energy efficiency loans
2/25/2019
Workshop on energy efficiency opportunities while phasing down HFCs