How to apply for the ELENA facility
Reinhard Six
Energy efficiency & Renewables Division
European Investment Bank
ManagEnergy Capacity Building Workshop
Bilbao 7 November 2012
Bilbao,
07/11/2012
European Investment Bank / ELENA Facility
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ELENA Facility
y
Background
g
Objectives
Eligibility
g
y
Supported activities
Application procedure
Examples
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European Local ENergy Assistance
ELENA
Energy and Climate Change goals require cities to invest
in large-scale EE/RES programmes;
Key is to find scaleable and replicable investment
models.
models
Opportunities:
Large investment potential at local level (buildings;
transport; local energy)
Significant
subset of investments have p
positive NPV; ie
g
grants not needed.
Hurdles: cities often constrained by lack of:
Investment capacity;
Technical expertise, administrative barriers.
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Why to support project development?
Need to accelerate investment and reduce transaction costs:
Group together small projects and develop a standard
approach
Attract investor attention
N d tto access competitive
Need
titi fifinancing
i
Efficient use of grants
EIB (but not limited to) can provide financing.
=> results in need for better project development
Go beyond “business as usual approach” (scale &
timing)
Lack of funding for project development
Studies in the shelf or p
pilots implemented
p
but no large
g
scale replication
Need for Project Implementation Units (increase of
internal staff needs and external expertise)
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ELENA in short
EC-EIB cooperation to support local and regional
authorities to reach 20-20-20 targets.
Technical Assistance facility: managed by EIB;
funded by EU budget (CIP/IEE programme).
Application to energy efficiency; local renewables;
clean urban transport.
M k t replication
Market
li ti ffocus (min
( i investment
i
t
t EUR 50 m).
)
Investment leverage required (ratio 20; from 2011
onwards)
90% funding rate (grant)
Budget
2009-2011
B d t allocation
ll
ti 2009
2011 EUR 49 m ((allocation
ll
ti
possible until end 2013); Envisaged budget 2012:
EUR 22 m
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OVERVIEW
INVESTMENT
PROGRAMMES/PROJECT
ELENA
(Project Development Services)
Support to Final Beneficiaries with:
• Additional technical staff
• additional Technical studies
• additional Feasibility studies
• Procurement/tendering
• Financial structuring
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EE and RES investment in
public and private buildings,
including social housing and
street and traffic lighting;
g
g
Urban transport to support
increased energy efficiency
and integration
g
of renewable
energy sources;
Local energy infrastructure
to support developments in
previous sectors including
smart grids, ICT, etc.
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Eligible investment areas
public and private buildings, including social
housing
street and traffic lighting,
integration of renewable energy sources (RES) into
the built environment –
i
investments
t
t into
i t renovating,
ti
extending
t di or new
district heating/cooling networks including networks
based on combined heat and power (CHP);
decentralised CHP systems (building or
neighbourhood level);
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Eligible investment areas
Urban transport to support increased energy efficiency and
integration of renewable energy sources, such as:
high
g energy
gy efficiency
y buses,, including
g hybrid
y
buses,,
electrical or low-carbon propulsion systems;
investments to facilitate the introduction of electric cars,
investments to introduce new more energy efficient
concepts to improve freight logistics in urban areas;
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Eligible promoters/Final Beneficiaries/Costs
Final beneficiaries of project development services:
Local or regional authority or
Other public body or
Groupings of such bodies
Established in an IEE participating country
Implementation of investment programme:
Local or regional authorities or other public bodies or
entities like holder or operator of a concession or an
ESCO
Eligible costs:
Additional staff hired for ELENA project by beneficiary
External experts and services
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Project maturity
Preparatory
p
y studies carried out and main decisions
taken before ELENA support request
Leverage performance measured after 3 years
In case leverage of 20 not achieved : grant may be
clawed back
ELENA proposal should demonstrate high
implementation probability
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Determination of investment costs
1st investment
tender launch
Investment
implementation
(EUR 30 m)
Start
1st year
Last investment
tender launch,
(EUR 40 m
estimated)
ti t d)
2nd investment
tender launch
2nd year
Investment
implementation
(EUR 40 m)
3rd year
End of
project
L
Leverage
ffactor
t d
determination
t
i ti
Sum of investment volume: EUR 30 m + EUR 40 m + EUR 40 m = EUR 100 m
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ELENA application process
Two stage application procedure:
1 P
1.
Pre-Application
A li ti
2. Application
EC approvall iis necessary
Important programme management aspects
No submission date for applications
Continuous appraisal/selection
First come, first served; within the budget limits
No international project consortium required
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Pre-Application
Pre Application
Pre-Application
Formless
Required information
information's
s
Brief description of planned investment programme
+ implementation
p e e tat o app
approach
oac
Expected investment cost + development schedule
Amount, scope and main needs for technical
assistance
If positive first reaction from EIB: next step fill in
application form
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ELENA contact details
How to contact European
p
Investment Bank ((EIB)?
)
By fax
fax, letter or e
e-mail
mail (best way through e-mail
e mail to
[email protected] )
English
g s or
o French
e c is
s required
equ ed
Informations available on ELENA web site
(
(www.eib.org/elena):
g
)
ELENA brochure
Frequently Asked Questions
Application form
Short presentation of supported projects
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ELENA progress so far
Facility operational since January 2010
18 projects signed/approved for a total ELENA
grant of EUR 34.5 million
Supported investment programmes around
EUR 2.2 billion
Further projects in the pipeline or under
approval with the EC.
Average ratio investments/grants: 60
Fair distribution between sectors
Support to small & large cities
Use of supporting structures
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ELENA Sector examples
Supporting EPC/ESCO development:
Province of Milan
Greater London Authority (RE:FIT)
City of Paris
Province of Chieti
Main Tasks:
Project identification and preparation
S
Support
t for
f Public
P bli P
Procurementt
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ELENA Sector examples
Supporting Transport Projects:
City of Malmö
Metropolitan Transport Barcelona
Main Tasks:
Technology assessment
Fi
Financial
i l structuring
t t i
Support for Public Procurement
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EE in Province of Milan
The Province of Milan is a supporting structure under the Covenant
of mayors
ELENA contribution: EUR 1,94 m
Expected investment: EUR 90 m
Objective:
Assistance for small or medium-sized municipalities in refurbishment of
public buildings (mainly schools)
pp p
Support
provided under ELENA
Setting up a support unit
Selection of procedure for implementation of investments, via ESCO’s,
designing
g g lots of buildings
g
Preparation of calls for tender and negotiations with bidders
Preparing the preferred financing scheme
State of advancement:
Tender under energy performance contract for ESCO’s published for 100
schools and contract signature with selected ESCO underway; ~ EUR
8m investment costs; energy supply excluded
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Financing schemes encountered
Public bodies own resources
Loans from commercial banks (and/or EIB)
Energy
gy p
performance contracts with financing
g through
g
ESCO or specific project vehicles (SPV) or forfeiting
with commercial banks
Public Private Partnership using i.a. SPV’s
Grants when available (e.g. European structural funds
or national grant schemes)
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Advice for preparing good applications
Strong political commitment from the public body to the
implementation of the programme
Good understanding of the project background – legal and
organisational issues, relevant assets
Precise identification of the needs for Technical Assistance
Sound approach to the implementation of the investment
programme within the limited three year project period
Common understanding of the investment project and
consensus on the means to implement it at all relevant levels
and across relevant sectors
Preliminary studies showing the maturity of the investment
programme
The investment
in estment programme proposed goes be
beyond
ond
“business as usual” activities
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Thank you very much
for your attention !
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European Investment Bank
P fil
Profile
The European Investment Bank is the European Union‘s long-term financing
institution. The Bank acts as an autonomous body set up to finance capital
investment furthering European integration by promoting EU policies.
Present EIB financing in 2011:
Total loan amount signed: EUR 60.9 bn
Renewable energies: EUR 5.5 bn
Energy efficiency: EUR 1.2 bn
Financing instruments available:
From equity to senior loans
Technical assistance notably outside the EU
Specific initiatives related to urban energy
programmes:
p
g
 Jessica, European Energy Efficiency Fund, others
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