OECD-CEFIM Energy Savings Insurance: international focus group discussion, 14 March 2023, Virtual event

1. “Credit lines for Energy
Efficiency in SMEs”

2. BACKGROUND
• Lack of confidence in estimated savings
from energy efficiency projects
• Low level of knowledge on the
benefits of energy efficiency
• Poor familiarity with new technologies
and most efficient equipment
• High risk perception of investments
and low return expectations
• Financing availability misaligned
with investment needs

3. ESI PROGRAMME
Regional Energy Savings
Insurance programme, validates
and guarantees savings from
implementation of energy
efficiency projects and/or
measures

4. The ESI Programme, developed by the IDB, removes barriers to energy investments through four instruments that
mitigate Project risks and foster business confidence in this type of Investment:
Mitigation Instruments
1. Standard contract that formalizes the energy savings
proposal and the conditions in which the project will be
developed.
2. Energy saving insurance, which is activated in the event
of non-compliance with the savings or generation
promise.
3. Technical validation of the savings, that is carried out by
an independent entity with experience in the certification
of energy projects.
4. Financing under competitive conditions that is channeled
through Financial Institutions interested in creating a
market and a portfolio of projects with guaranteed energy
savings.
Mitigation instruments
1. SI ESI information system for project
registration and monitoring
https://esievaluacion.org
2. Evaluation methodologies and
methodological guide
3. Contract model for the development of
projects
Tools

5. INTEREST RATE 3.17%
TERM* Up to 20 years
BROKERAGE FEE
3.00%
MAXIMUM AMOUNT
FINANCED** US$2.00 Million
Conditions of the Credit Line
Addressed to:
1. SMEs sector
2. Energy Efficiency Projects
3. Generation projects with self-consumption component (up to 2 MW)
*Maximum term for fixed assets.
** Allowed co-financing
GRACE PERIOD Up to 2 years

6. 84
Energy efficiency credit lines for SMEs
$18.47 Million available
Year Quantity Value
2021 5 $2,881,950.60
2022 39 $10,015,698.81
2023 4 $2,229,087.84
In progress 36 $6,405,208.70
TOTAL 84 $21,531,945.95
Energy Efficiency
projects
$ 21,531,945.95
Total Project Value
5
39
4
36
97
$2.88
$10.02
$2.23
$6.41
$37.95
0
20
40
60
80
100
120
$0.00
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
$35.00
$40.00
2021 2022 2023 En proceso PIPELINE
Millions
Current investments
Cantidad Montos

7. Status of the placement of the Energy Efficiency Line in SMEs
YEAR Quantity TOTAL
2020 1 $ 164,000.00
2021 4 $ 2,717,950.60
2022 38 $ 10,015,698.81
TOTAL 43 $ 12,897,649.41
# SME TOTAL
44 SME 1 $2,000,000.00
45 SME 2 $46,307.86
46 SME 3 $162,000.00
42 SME 3 $20,779.98
TOTAL $2,229,087.84
TOTAL ACCUMULATED $15,126,737.26
Banco Hipotecario, 10,
22%
BANCOVI, 6, 13%
BANCO INDUSTRIAL,
11, 24%
Banco Azul, 11, 24%
G&T, 2, 5%
ACACYPAC, 1, 2%
INTEGRAL, 1, 2% CREDICOMER,
1, 2%
PENTAGONO, 1, 2% PRIBANTSA, 1, 2%
ATLANTIDA, 1, 2%

8. 1 2
3
4
5
6
ESI
Model
Accredited Entity Accredited Entity
Company
Bank
Technology Provider
Insurance Company
FINANCING
SAVINGS

9. ESI Process
COMPANY -
DEVELOPER
Contract defining
project
DEVELOPER -
VALIDATOR
Technical validation
and financing
BANK - COMPANY
Credit analysis
BANK - COMPANY
Funding request
DEVELOPER –
INSURANCE CO
Approval of energy
savings insurance
BANK - BANDESAL - COMPANY
Loan dispersement
COMPANY - VALIDATOR
Verification of
installation
DEVELOPER
Savings report

10. ESI Programme

11. BARRIERS OF
THE LINE
Low demand from financial institutions for the line of Credit (only 5 FIs)
The brokerage margin for the Credit line disincentives participation by more FIs
Presence of other Credit lines in the market that competed with the EE Credit line for
SMEs
Long Project Development period (6 months). Delays in obtaining permits required for
projects.
SMEs delayed the start of projects due to time needed for cost Benefit análisis of the
project
Substantial increases in equipment and international freight costs
Transaction costs of the Banks offset concessional lines of Credit provided to the financial
institutions and impacts project viability.

12. Lessons Learned
01
The approach and accompaniment of the Executing Agency to the Intermediary Financial
Institutions allows speeding up the rediscount processes of the credits placed under the Line of
Energy Efficiency in SMEs.
02
Events with unions helped to increase interest among SMEs in the implementation of energy
efficiency projects and increase project pipelines.
03
The establishment of Energy Efficiency Credit lines allowed the financial institutions to attract new
clients