The primary objective of this project was to identify options for addressing barriers to financing, for scaling up EE implementation in public buildings in the Philippines.
... See More + Section two of this report provides a summary of the available data on public buildings, including the energy consumption characteristics of government buildings and facilities, estimates of the potential for energy savings, and investments needed. Section three discusses some of the barriers to financing EE that has been seen in other countries, and summarizes such barriers in the public sector in the Philippines, including legal and regulatory barriers; lack of access to commercial financing; institutional barriers; and limited implementation capacity. Section four provides information about international experience in the financing of public sector EE projects. It includes a review of six different financing mechanisms: budget financing; EE revolving funds; dedicated EE credit lines; risk-sharing programs; public or super ESCOs; and commercial financing using ESCOs and performance contracting. It also presents a comparative assessment of the key characteristics of each of these financing options. Section five identifies three options that are considered appropriate for implementation in the Philippines, budget financing, an EE revolving fund, and a public or super ESCO, and provides detailed information on each. It also presents information on the potential role of international financial institutions in providing complementary financial and technical assistance. Section six summarizes the advantages and limitations of the three proposed financing options; presents the World Bank’s recommendations; and provides guidance on moving forward with the development of a national program.
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Energy efficiency (EE) is critical for Turkey to sustain its economic growth while meeting its global commitments for climate change mitigation and environmental sustainability in line with Turkey’s accession to the European Union (EU).
... See More + In 2014, Turkey imported 75 percent of its energy , which accounted for US 55 billion dollars or about 7 percent of its GDP. At current trends, continued growth in electricity demand will deplete the power reserve margins within the next five years. The outline of the report are mentioned below : Section two provides a summary of the country context, including the legislative and regulatory framework, energy consumption characteristics of public buildings, and potential for energy savings and investments needed. Section three summarizes the barriers to financing EE in the public sector in Turkey, including legal and regulatory barriers, lack of access to commercial financing, institutional barriers, and limited implementation capacity. Section four provides information on international experience with financing public sector EE projects. It includes a review of a number of financing mechanisms: budget financing, EERFs, dedicated EE credit lines, risk sharing programs, public or super ESCOs, and commercial financing with ESCOs and performance contracting. It also presents a comparative assessment of the key characteristics of these financing options. Section five identifies the three options considered appropriate for implementation in Turkey – budget financing, Turkey EE revolving fund (TEERF), and Turkey super ESCO (TESCO) – and provides detailed information on each. It also presents information on the potential role of international financial institutions in providing complementary financial and TA. Section six summarizes the advantages and limitations of the three financing options and provides guidance on moving forward with the recommended option: the TEERF. A road map for implementing the TEERF is included.
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Energy efficiency (EE) is critical for Turkey to sustain its economic growth while meeting its global commitments for climate change mitigation and environmental sustainability in line with Turkey’s accession to the European Union (EU).
... See More + In 2014, Turkey imported 75 percent of its energy , which accounted for US 55 billion dollars or about 7 percent of its GDP. At current trends, continued growth in electricity demand will deplete the power reserve margins within the next five years. The outline of the report are mentioned below : Section two provides a summary of the country context, including the legislative and regulatory framework, energy consumption characteristics of public buildings, and potential for energy savings and investments needed. Section three summarizes the barriers to financing EE in the public sector in Turkey, including legal and regulatory barriers, lack of access to commercial financing, institutional barriers, and limited implementation capacity. Section four provides information on international experience with financing public sector EE projects. It includes a review of a number of financing mechanisms: budget financing, EERFs, dedicated EE credit lines, risk sharing programs, public or super ESCOs, and commercial financing with ESCOs and performance contracting. It also presents a comparative assessment of the key characteristics of these financing options. Section five identifies the three options considered appropriate for implementation in Turkey – budget financing, Turkey EE revolving fund (TEERF), and Turkey super ESCO (TESCO) – and provides detailed information on each. It also presents information on the potential role of international financial institutions in providing complementary financial and TA. Section six summarizes the advantages and limitations of the three financing options and provides guidance on moving forward with the recommended option: the TEERF. A road map for implementing the TEERF is included.
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This guidance note, about Energy service companies (ESCO), was prepared under the Energy Efficiency Outreach activity of the World Bank’s Europe and Central Asia region.
... See More + The activity is sponsored by the Energy Sector Management Assistance Program, a multidonor technical assistance trust fund administered by the World Bank and cosponsored by thirteen official bilateral donors. ESCO can aid energy efficiency efforts by providing technical skills, assuming performance risks, facilitating access to finance from commercial lenders, and enabling energy users to repay initial costs through future savings. Although many attempts to encourage the development of ESCO markets in developing countries have failed, some recent experiences demonstrate how governments can help by promoting simple business models; facilitating ESCO financing; making legislative, regulatory, and policy changes; and creating demand. The challenges are real as the ESCO models are complex and require strong legal, financial, accounting, and business infrastructure,which is often lacking in developing countries. However, a combination of simple ESCO models, dedicated financing, enabling policy, regulatory initiatives, and increased public sector demand has resulted in the development of sizeable ESCO markets in some countries.
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The Ukrainian government recognizes investing in energy efficiency (EE) as a pillar of its energy sector strategy for reducing reliance on imported natural gas, mitigating the financial and fiscal stresses of high energy costs, and supporting economic recovery and long-term growth.
... See More + Major government initiatives have been or are being undertaken to scale up EE investments in industries and residential buildings, two of the largest final energy consumers. Efforts to support EE in the public sector also received a boost with the recent enactment of the energy service company (ESCO) law and amendments to the budget code to enable energy performance contracting. The municipal sector - which includes municipal buildings as well as municipal services such as public lighting, district heating, water and sanitation, solid waste, and public transportation - accounts for the lion’s share of final energy consumption in the public sector. Facilitating and scaling up municipal EE finance should be a key component of the government’s national EE support agenda. Creating a dedicated EE revolving fund (EERF) for the public sector - and focusing its initial efforts on financing EE renovation of municipal buildings - will fill a critical gap in municipal EE financing in Ukraine and help address perhaps the most pressing municipal EE investment needs of Ukrainian cities.
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Energy efficiency (EE) is critical to help Turkey continue its trajectory of economic growth in a sustainable manner. The Government of Turkey recognizes this and has placed EE as a key component of its energy strategy and National Climate Change Strategy and Action Plan.
... See More + Over the past 5-10 years, it has made considerable advances in establishing a strong policy and legal framework, creating a robust institutional set-up and developing programs to support EE implementation. Institutionally, the General Directorate of Electric Power Resources Survey and Development Administration (EIE) had been mandated with EE policy making, implementation and promotion since 1981, and an Energy Efficiency Coordination Board (EECB) was established under the 2007 EE Law to coordinate various EE policies, programs and other efforts. In November 2011, EIE was converted into the General Directorate for Renewable Energy (GDRE) and absorbed within the Ministry of Energy and Natural Resources (MENR). The World Bank conducted an EE institutional review in consultation with the Turkish Government with the objective to enhance their ability to more effectively manage EE policies and programs and thus contribute to helping meet its stated national EE targets. The review consisted of a detailed assessment of the current institutional set-up, including roles and responsibilities for EE in Turkey, along with a comparison with international experience and best practices. A final set of institutional options and recommendations are provided at the end of the report.
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Energy efficiency (EE) is critical to help Turkey continue its trajectory of economic growth in a sustainable manner. The Government of Turkey recognizes this and has placed EE as a key component of its energy strategy and National Climate Change Strategy and Action Plan.
... See More + Over the past 5-10 years, it has made considerable advances in establishing a strong policy and legal framework, creating a robust institutional set-up and developing programs to support EE implementation. Institutionally, the General Directorate of Electric Power Resources Survey and Development Administration (EIE) had been mandated with EE policy making, implementation and promotion since 1981, and an Energy Efficiency Coordination Board (EECB) was established under the 2007 EE Law to coordinate various EE policies, programs and other efforts. In November 2011, EIE was converted into the General Directorate for Renewable Energy (GDRE) and absorbed within the Ministry of Energy and Natural Resources (MENR). The World Bank conducted an EE institutional review in consultation with the Turkish Government with the objective to enhance their ability to more effectively manage EE policies and programs and thus contribute to helping meet its stated national EE targets. The review consisted of a detailed assessment of the current institutional set-up, including roles and responsibilities for EE in Turkey, along with a comparison with international experience and best practices. A final set of institutional options and recommendations are provided at the end of the report.
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Improving the energy efficiency (EE) of municipally owned buildings, such as schools and hospitals, and municipal infrastructure, such as public lighting, water supply, and district heating, offers budgetary savings on energy bills and a wide range of environmental and socioeconomic benefits.
... See More + But relatively few municipal EE projects have been developed and implemented successfully. The challenges that limit EE investments in municipal buildings and facilities can be grouped into three broad areas: (i) a lack of awareness and incentives; (ii) insufficient implementation capacity; and (iii) limited access to financing. All three sets of challenges need to be addressed to scale up successful implementation of municipal EE projects. This Guidance Note focuses on the key issues faced by municipalities in accessing financing for EE investments, particularly for projects in the following four areas: indoor lighting, building retrofits, public lighting, and municipal utilities. The guidance note discusses the following potential financing mechanisms that can be used by municipalities to finance EE measures: budget financing, Funds developed specifically to address energy efficiency, public support to leverage commercial financing, and commercial financing.
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Within the six countries of the Western Balkans, Albania, Bosnia and Herzegovina, Kosovo, the Former Yugoslav Republic of Macedonia, Montenegro, and Serbia, energy efficiency (EE) is increasingly seen as a key pillar in national energy strategies, helping to enhance energy security, contribute to economic growth, and ensure environmental sustainability.
... See More + This is for several reasons. EE can reduce the region's heavy reliance on expensive imports, enhance competitiveness and job creation, and reduce the impact of widespread fossil fuel use. EE can also bring important social benefits, helping to improve local air quality (mitigating related adverse health impacts), improve indoor comfort levels through improved heating, and make energy more affordable for low-income families. Finally, EE is seen as a critical tool in helping to mitigate the effects of necessary and planned tariff reforms by offsetting the higher energy costs to the entire economy. To realize these benefits, the Western Balkans countries will have to shift from broad policies and small-scale pilots to scaled-up financing and implementation. There is an urgent need to develop viable financing models in all sectors, as well as suitable delivery mechanisms, information systems, and necessary secondary legislation, in order to meet national targets and fuel economic development in a more sustainable manner. Buildings, which account for almost half of energy use in the regions, have been identified as a key sector in all of the country EE plans.
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An energy efficiency revolving fund (EERF) is a viable option for scaling up energy efficiency (EE) financing in the public sector in the Western Balkans.
... See More + Under a typical EERF targeting the public sector, loans are provided to public agencies to cover the initial investment costs of EE projects; some of the resulting savings are then used to repay the EERF until the original investment is recovered, plus interest and service charges. The repayments can then be used to finance additional projects, thereby allowing the capital to revolve creating a sustainable financing mechanism. This guidance note is intended for government decision makers interested in establishing such EE revolving funds. It defines the typical structure of such funds, conditions under which they can be useful and effective, ways they can address some of the financing barriers, and implementation options. The note also provides examples, case studies, and lessons learned, and a 'road map' for establishing such funds.
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The development of private sector energy service providers (ESPs), including energy service companies (ESCOs), that specialize in energy efficiency (EE) project development and implementation can help overcome some of the important barriers to scaling up implementation of energy efficiency (EE) projects, particularly in the public sector.
... See More + ESPs can offer a range of services spanning the energy services value chain and provide the technical skills and resources needed to identify and implement EE opportunities, perform services using performance based contracts (thereby reducing the risks to the energy users), facilitate access to financing from commercial lenders, and enable the energy users to pay for the services from the cost savings achieved. This guidance note provides examples of actions taken by governments in many countries (such as Armenia, Bulgaria, Croatia, Czech Republic, Germany, Hungary, and India) to foster the energy services market and help establish and grow ESPs in their countries. Experience from these countries shows that governments need to adopt a three-pronged approach, involving policy and regulatory initiatives, technical assistance (TA), and financing strategies, to build ESP and public agency capacity, implement ESP projects in the public sector, and provide the platform for moving to more complex implementation and financing models in the future. TA or financing alone does not offer an effective strategy to overcome the multidimensional challenges of ESP market development; efforts in all three areas are needed. Key conclusions of this guidance note are that: (i) there is no specific formula that can be prescribed to instruct governments on how to develop energy services markets; and (ii) fostering the ESP market requires governments to undertake a concerted set of legislative, regulatory, policy, financing, and awareness and information initiatives.
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The Government of Macedonia (GOM) plans to launch a National Program for Energy Efficiency in Public Buildings (NPEEPB, or "the program") to achieve energy efficiency (EE) improvements in the buildings sector and meet the strategic targets outlined in the energy development strategy of the Republic of Macedonia until 2030, the EE strategy until 2020, and the national EE action plan in 2010-18.
... See More + The NPEEPB, coordinated by the Ministry of Economy (MOE), aims to retrofit existing public buildings and to lead by example in the implementation of EE measures. Its targets are public buildings that are used for administrative and other activities of public interest and that are fully owned by government institutions or municipalities. This report focuses on the financing mechanisms that are considered the best fit with the institutional environment to achieve the goals of the NPEEPB, and describes in detail the implementation of the proposed financing mechanisms: a full-service EE fund, a dedicated EE credit line, and a municipal EE improvement program implemented within the government. The national EE target is a 9 percent savings in final energy consumption by 2018, compared to average energy consumption in 2002-06. The NPEEPB target for energy savings in public buildings is 13.6 thousand tons of oil equivalents (ktoe) 2 per year, which is about 56 percent of the national EE target for the commercial and service sector.
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Overwhelming evidence indicates that climate change, caused in large part by human activities, is already adversely impacting all people, with the very real prospect of worse to come.
... See More + Nevertheless, a global treaty to curb carbon emissions remains elusive. In East Asia, all middle-income countries have set national targets for energy efficiency and renewable energy, and some even have targets for carbon reduction. This report focuses on recent experiences in applying public financing instruments and tries to draw the lessons to date: when and how to use the instruments, which instrument to select, and how to design and implement them. The wide range of financial instruments designed to support and catalyze clean energy investment over the last decade is truly remarkable. Such instruments include credit lines and risk guarantees designed to increase both the capacity and confidence of commercial banks for clean energy lending; dedicated funds and concessional financing mechanisms to kick-start new technologies; mezzanine and equity financing targeted at start-ups; small and medium enterprises and energy service companies; and various consumer financing instruments designed to lower the upfront costs of clean energy equipment. This report systematically reviews the successes and failures of innovative interventions and distills the lessons of applying them. This report is organized in following four parts: part one gives overview; part two focuses on financing energy efficiency; part three focuses on financing renewable energy; and part four focuses on clean energy financing case studies.
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This book explores energy savings performance contracts (ESPCs) as a means of overcoming some of the more difficult hurdles in promoting energy efficiency in public facilities.
... See More + ESPCs represent a very attractive solution to many of the problems that are unique to public agencies, since they involve outsourcing a full project cycle to a service provider. From the detailed audit through implementation and savings verification, ESPCs can relieve public agencies of bureaucratic hassles, while service providers can secure the off-budget project financing and be paid from the actual energy savings, thus internalizing project performance risks. ESPC bidding also allows public agencies to select from a range of technical solutions, maximizing the benefit to the agency. Global experience suggests that ESPCs have been more effective at realizing efficiency gains than many other policy measures and programs, since the service providers have a vested interest in ensuring that a project is actually implemented. Many of the country governments interviewed for the study also saw enormous potential in bundling, financing, and implementing energy efficiency projects on a larger scale in the public sector, a method that increases the rate of efficiency gains and creates further benefits through economies of scale.
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