1. Marrying Business with LEEF Finance Base London 2013

2. Key Issues Reduce price volatility Increase operational efficiency Reduced operational expenditure increasing available working capital Rising Cost of Energy Meet emission / efficiency targets Mitigate supply chain risks Manage reputational risk through awareness of financial penalties Legislation Reduce carbon footprint Promote market leadership Open up new products / markets Enhance brand reputation Corporate Responsibility 2 Benefits of Mitigating the Key Issues Key sustainability issues facing UK Organisations

3. Findings from the EEVS Energy Efficiency Trends Survey, May 2013 3 Chart 1.8 – Expected payback period for energy efficiency

4. Findings from the EEVS Energy Efficiency Trends Survey, May 2013 4 Chart 1.7 – Finance models for energy efficiency

5. Deliverability - the right EE solution Desired / required accounting treatment for host, ESCo & funder Asset finance, operating lease or service agreement The parties, terms and conditions of the Energy savings services to be delivered, including M&V and any Guarantees Predicted or Energy Performance Guarantee Shared Savings Integration with supply contract Availability of own funds Ability to secure external finance Grant or Subsidies- RHI, FIT, ECO Corporate or project based credit FinanceRisk Share Balance Sheet Treatment (on or off) Energy Services Agreement 5

6. Options for Debt Financing Energy Efficiency Projects Salix/HEFCe PWLB / NLF LEEF Commercial Banks GIB Green Deal 6 Higher Availability Lower Availability Higher Affordability Lower Affordability Own Funds ?

7. 7 The London Energy Efficiency Fund (LEEF) £100m London Energy Efficiency Fund (LEEF) Public sector body e.g. Local Authority/ University Joint Venture/ SPV PPP/PFI/ LEP Private sector e.g.. ESCO/ Contractor/ landlord £50m London Green Fund (EIB) £50m RBS Energy Efficiency Retrofit / Refurbishment, CHP, Renewable Projects Loans or Equity LEEF monies fund works Energy savings Repayments of interest & principal

8. Now open to the Private Sector You can access loans up to 10 years and interest rates from 1.65% if: You are a public, private or voluntary sector body; Your project is in the Greater London area; Your project contributes to improved energy efficiency through reducing consumption and/or carbon emissions; and Your funding requirement is between £1m and £20m www.leef.co.uk 8