Regional Workshop: National Energy Efficiency Action Plans Kempinski Hotel, Amman, Jordan 5 - 6 December, 2010

1. This project is funded by the European Union
Financing for EE measures under NEEAP
6 December 2010
Florentine Visser - Key Expert Low Energy Building & Urban Planning
Daniel Becker - ECOFYS
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2. MED ENEC Finance Study -
Background This project is funded by the European Union
Background of the study:
•Available financing is a key precondition for
energy efficiency deployment
•Funding is offered by a multitude of
financing institutions
• The orientation in this
‘landscape of funding’ is
challenging and time consuming
• Especially applicability of
funding regulations to energy
efficiency and to the respective
region is often not clear
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3. MED ENEC Finance Study - Service
This project is funded by the European Union
MED-ENEC Finance Study provides for Policy level:
•background information on framework conditions in the countries
•good practice examples of financing programs from the region
•concluding remarks on the interaction between policy framework and
financing instruments
• concluding remarks on the
interaction between policy
framework and financing
instruments
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4. MED ENEC Finance Study - Service
This project is funded by the European Union
MED-ENEC Finance Study provides for Building Project level.
•a compilation of financing information currently applicable to the
region
•a structured overview on financing programs of potential relevance
for energy efficiency projects
• an online service
• (MED-ENEC financing
database) for user friendly
search
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5. Information pattern
This project is funded by the European Union
The information on funding schemes is Criteria Options
standardized by following categories: Name of Financing
Organisation
Type of Financing
European Investment Bank (EIB)
• Name
Development bank
Organisation
Country
• Type (e.g. development bank) City
FEMIP has established a network of field offices in , and .
• Country (of origin) FEMIP focuses on three areas: improving the local population’s access to
sources of energy; integrating the Euro-Mediterranean’s energy markets
and diversifying the sources of supply, particularly by drawing on renewable
• City (main seat)
Type of Measures/ forms of energy. This third area is of growing importance for FEMIP, which
Technologies has undertaken to coordinate the establishment of the Mediterranean Solar
Plan, one of the Union for the ’s six key initiatives. The Plan will concentrate
• Types of measures / technologies (for
initially on research and development, followed by commercialisation of the
alternative energy sources.
Countries eligible Algeria, Egypt, Israel, Jordan, Lebanon, Morocco, Palestinian territories,
which funding is available) for financing Syria, and Tunisia.
Public and private sector bodies and enterprises.
• Countries eligible for financing
Loan: SMEs, Private and public sector
Private equity: Intermediate-sized private enterprises, Investment funds,
Eligible to Microfinance institutions
Technical assistance: All FEMIP customers
• eligible to (type of applicants, e.g. private sector, Guarantees: SMEs, Large corporates, Domestic banks, Public sector
promoters, Sub-sovereigns
governments etc.) Type of Financing
Credit, equity financing, technical assistance;
as the legal and financial set-up is currently being finalized also guarantees
could be made available starting from 2010 for MSMEs, larger corporations,
• Type of financing (e.g. loans, guarantees etc.) Financing range (€)
domestic banks, public sector promoters or sub-sovereign lenders.
As a rule, the Bank lends up to 50% of the capital required for a project.
• Financing range Description &
The project promoted by the public or private client must be in line with the
eligibility criteria of the EIB (see:
• Description & Conditions
http://www.eib.org/projects/topics/index.htm) and be economically and
Conditions
financially sound. Application:
http://www.eib.org/projects/regions/med/funding/index.htm
• Link to webpage Link http://www.eib.org/projects/regions/med/index.htm
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6. Database search interface
This project is funded by the European Union
• The MED-ENEC financing database will be available from January 2011
http://www.med-enec.eu/database/finance
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7. Framework and Financing
This project is funded by the European Union
A general rule:
Financing for energy efficiency measures will be more effective, when
better legal framework conditions exist.
EE Policy
Financing (NEEAP)
Why?
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8. Link Framework and Financing
This project is funded by the European Union
Financing instruments, also with subsidy element, only work if :
Potential projects have a reasonable risk structure
 return on investment,
 time frame
 under stable conditions
This might be the case for the total project,
but may be not for EE measures, but
Obstacles to energy efficiency
subsidized energy prices
low awareness
little experience with technologies…
often deteriorate the financial risk
structure of the projects
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9. Link Framework and Financing
This project is funded by the European Union
Economically sustainable financing requires appropriate legal
framework reducing risks to a reasonable level.
• This is first a task is for policy
makers, then for financing
institutions
• Good practice in financing is found
where policy framework and
financing complement each other,
taking into account country specific
conditions
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10. Good practice examples
This project is funded by the European Union
Examples for an integrated approach of policy framework and
tailored financing instruments are, among others:
Tunisia
EBRD financed Energy Efficiency Project
ANME in close collaboration with
commercial banks, integrating also
FNME subsidies
Audit, Thermal Regulation
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11. Good practice examples
This project is funded by the European Union
Examples for an integrated approach of policy framework and
tailored financing instruments are, among others:
Morocco
FOGEER fund by ADEREE
for energy efficiency and renewable
energy under the PROMASOL program
Legal Framework
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12. Good practice examples
This project is funded by the European Union
Examples for an integrated approach of policy framework and
tailored financing instruments are, among others:
Lebanon
planned NEEREA Fund
Subsidized loan scheme for energy
efficiency and renewable energies
National Bank (Banque de Liban) in
collaboration with local banks, Ministry
of Finance and LCEC
Building Code, Standards & Labelling
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13. Good practice examples
This project is funded by the European Union
Examples for an integrated approach of policy framework and
tailored financing instruments are, among others:
Jordan
planned JREEEF Fund,
Ministry of Energy in collaboration with
GEF / World Bank,
Legal Framework
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14. Gaps & Challenges
This project is funded by the European Union
Why existing financing might not be applicable…
•In many countries obstacles to energy efficiency are high
 the existing financing instruments may in many cases not work
 project risks too high
• If projects are financed despite
a negative risk structure:
 they will not have a
multiplier effect
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15. Gaps & Challenges
This project is funded by the European Union
• Thus:
• Market potentials for energy efficiency
will not be tapped into
This especially a risk for measures
drafted in the National Energy
Efficiency Action Plans
• To avoid such negative impact,
NEEAPs should be sufficiently
concrete in terms of policy
measures to be implemented before
financing for projects is required
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16. Conclusion
This project is funded by the European Union
MED-ENEC Finance Study facilitates much better access to
financing instruments currently in place
 Service will be continuously amended under MED-ENEC II
Applicability of financing to specific projects requires individual checks
Success factor of financing schemes is
higher when policy framework is
more advanced
Policy makers and financing
institutions need to closely collaborate
to unleash the huge energy efficiency
potential (and the accordingly huge
business opportunities)
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17. Thank You
This project is funded by the European Union
Thank You
for your
attention!
!ً‫شكراً جزيل‬
www.med-enec.com - florentine.visser@gtz.de
“The contents of this publication are the sole responsibility of the author and can in no way be taken to reflect the views
of the European Union”.
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