This week in Europe the Energy Efficiency Financial Institutions Group (EEFIG) launched the De-risking Energy Efficiency Platform (DEEP): the largest pan-European open-source database containing detailed information and analysis of over 7,800 industrial and buildings related energy efficiency projects.
The Energy Efficiency Financial Institutions Group (EEFIG) was established as a specialist expert working group by the European Commission and United Nations Environment Programme Finance Initiative (“UNEP FI”), in late 2013, as a result of the dialogue between Directorate-General for Energy (“DG Energy”) and UNEP FI, as both institutions were engaging with financial institutions to determine how to overcome the well documented challenges inherent to obtaining long-term financing for energy efficiency. EEFIG’s 2015 landmark report was the consensus effort of over 120 active participants from around 100 organizations. EiD is proud to be involved in EEFIG through its role on the board of one of members, Energy Efficiency in Industrial Processes.
In February 2015 EEFIG presented its landmark report “Energy Efficiency – the first fuel for the EU Economy: How to drive new finance for energy efficiency investments” which provided a significant advance in the understanding and knowledge about the issues of energy efficiency financing.
DEEP is a direct response to one of the EEFIG report recommendations of the need to better understand the real risks and benefits of energy efficiency investments based on market evidence and track record. By disclosing thousands of data points showing the real technical and financial data from a large number of implemented energy efficiency projects across the economy, the DEEP platform is a new source of operational risk management information, which will help project developers, financiers, and investors better assess the risks and benefits of energy efficiency investments across Europe.
DEEP already has 25 data providers including large companies, public banks, private investment funds, financial institutions and energy service companies (ESCOs). The database includes more than 7,300 projects from Europe and 560 from other countries.
The projects currently in the DEEP database have an aggregate investment total of Euro 1.5 billion with a median avoidance cost of saving energy that is considered very attractive (below EU energy prices and also delivering CO2 emissions reductions): Euro 0.012 /kWh in industry and Euro 0.025 /kWh in buildings. DEEP also shows good business cases with relatively quick repayments: In industry the median payback from DEEP contributed projects is 2 years, while the story is more complex for buildings where single measures such as lighting repay in 3 years and deeper renovations with multiple measures (including building fabric) typically require over 11 years to be paid back.
EEFIG members interpret these findings as a sign that energy efficiency investing continues to be seen as “discretionary” by industrialists and buildings owners, who have tended to focus on the “low hanging fruit” and not on energy efficiency as a strategic investment for the future.
You can access the database here.
Please give us feedback on your experience with the database.