Investments in Energy Efficiency                  TBLI Conference, London 2011                                     SUSI En...
SUSI PartnersAbout us                                                               Sustainable                           ...
Improving Energy Efficiency is Key to Reducing Greenhouse Gases              Development of global potential for          ...
Energy Efficiency Market: Great Potential, Strong Growth         Estimated necessary investments for       implementation ...
Energy Efficiency Projects Based on Existing TechnologiesPayback periods of various technologies                         L...
Proof of Concept: Successfully Implemented Energy Efficiency Projects                                                     ...
Hurdles in Energy Efficiency Retrofit Projects What is the biggest barrier to potential energy savings in your organizatio...
Example Financing Solution for Energy Efficiency Projects  Building Owner                                 Technology Partn...
Concept of an Energy Performance Contract                                                                           Custom...
Business Model With Stable Cash Flows and no Exit RiskFigures in Thousand €  € 600                                        ...
What do investors want – What do Energy Efficiency investmentsoffer?                                       Returns        ...
ConclusionsEnergy efficiency is a growth market with great potential:•   Energy efficiency is the biggest lever for reduci...
Kontakt                                Contact Information                                SUSI Energy Efficiency AG       ...
Upcoming SlideShare
Loading in …5
×

Investments in Energy Efficiency - Tobias Reichmuth

341 views

Published on

TBLI CONFERENCE™ EUROPE 2011- London - United Kingdom

TBLI CONFERENCE™ is the prime annual global networking and learning event on Environment, Social, Governance (ESG) and Impact Investing.

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
341
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
8
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Investments in Energy Efficiency - Tobias Reichmuth

  1. 1. Investments in Energy Efficiency TBLI Conference, London 2011 SUSI Energy Efficiency AG Feldeggstrasse 12 8008 Zürich Schweiz Tel: +41 44 386 98 00 Fax: +41 44 386 98 09 Email: investors@susi-partners.ch
  2. 2. SUSI PartnersAbout us Sustainable Euro Fund• Swiss Fund Advisor with proven Luxembourg structure Energy Efficiency• Direct investments with measurable impact on environment Fund• Skilled team with experience on 200+ projects Advisory BoardSUSI Sustainable Euro Fund• Invests in solar and wind projects• EUR 32 M; Track Record in D, I, B• Pending EUR 100 M “Conditional Closing”• Performance forecast 2011: 12.1% (distribution)SUSI Energy Efficiency Fund• Invests in Energy Efficiency projects in buildings, infrastructure and industrial processes Sales• EUR/CHF compartments• Launch planned in 2012Investors• EKZ (Utility of the Kanton of Zürich)• Pension Funds• Family offices from CH, D, GB 2
  3. 3. Improving Energy Efficiency is Key to Reducing Greenhouse Gases Development of global potential for European energy consumption and energy efficiency improvements1 savings potential by 20202Gt CO2 Mt CO2 38 600 36 500 34 28% 32 400 26% 25% 30 300 28 200 26 24 100 22 2005 2010 2015 2020 2025 2030 0 Buildings Transport Industry Energy Efficiency Fossil fuel switch Energy savings potential 2020 Renewable energies Nuclear energy Energy consumption 2020 Carbon capture and storage Remaining CO2 emissions Energy consumption 2005  Energy Efficiency is biggest lever for  EU has significant potential for energy reducing global greenhouse gases. savings, especially in buildingsSources: 1 Eco-efficiency. Chapter 6 – Environmental performance of constructions 2 Communication from the European Commission: Action Plan for Energy Efficiency: Realising the Potential 2006 3
  4. 4. Energy Efficiency Market: Great Potential, Strong Growth Estimated necessary investments for implementation of EU legislation on energy European ESCO (Energy efficiency in buildings1 Service Company) Market2 Bil € Bil € CAGR: 7.5% € 500 Mrd. € 13.2 B € 8.5 B Total 2010 2016 InvestmentSources : 1 Communication from the European Commission: Action Plan for Energy Efficiency: Realising the Potential 2006 2 Pike Research, ESCO: Energy Service Companies 4
  5. 5. Energy Efficiency Projects Based on Existing TechnologiesPayback periods of various technologies Lighting - LED Retrofit 2-4 Years Lighting - Controls 2-4 Years BMS - Demand Control Ventilation 2-5 Years BMS - Building Controls 2-5 Years HVAC - VFD Motors 2-4 Years HVAC - Air Handles 2-4 Years HVAC - High Efficiency Boilers 6-8 Years HVAC - VFD Chillers 10-12 YearsSource: SUSI Analysis 5
  6. 6. Proof of Concept: Successfully Implemented Energy Efficiency Projects Empire State Building City of Los Angeles Klinikum Bremerhaven Transport of London € 13.2m / 38% / 3 Y € 57m / >50% / 5.7 Y € 5.2m / 31% / 5.1 Y • 25-50% Energy Savings € 4.5m / >25% / 5 Y Wien Courtyard Marriott • 2-6 Years Payback Universidad Iberoamericana Mervyn Department Stores München Allianz Arena € 1 m / 36% / 2.8 Y € 0.9m / 19% / 6.6 Y € 11.5m / 52% / 2 Y € 1.2m / 29% / 3.4 YInvestment/ % Energy Saving / Years until PaybackSources: Publicly availabe case studies from Cllnton Foundation, Berliner Agentur, Siemens, Naesco.org, Nyconenergy, 6
  7. 7. Hurdles in Energy Efficiency Retrofit Projects What is the biggest barrier to potential energy savings in your organization? Capital Availability 29% Uncertainty Payback/ROI 18% Insufficient Payback/ROI 18% Technical Expertise 12% Buy-in Senior Leaders 6% Inability to Finance 6% Owner/Operator Split Incentives 4% Dedicated attention, Ownership 4% Other 3% 0% 5% 10% 15% 20% 25% 30% 35%Source: Johnson Controls and IFMA, survey on energy efficiency of 1400 managers responsible of real estate budgets, 2009 7
  8. 8. Example Financing Solution for Energy Efficiency Projects Building Owner Technology Partner Description Retrofit • Technology Partners retrofits of building the building • The Fund finances the project upfront 30% energy • Energy Performance Contract savings: € 0.15m signed between Building Annual Energy Initial Mini- Owner and the Fund costs: € 2.0 m1) 70% Energy invest- mum • Resulting Energy Savings are Savings: ment: savings Reduced energy € 0.35m split between the Building € 2.0 m guaran- costs: € 1.5 m Owner and the Fund tee Energy Provider SUSI Energy Efficiency Fund 8
  9. 9. Concept of an Energy Performance Contract Customer BenefitsCosts Minimum Savings Guarantee • Building modernization at no Savings to Customer upfront cost • Reduction of operating and maintenance costs • Measurable environmental Energy Savings paid impact Initial Energy Costs to Efficiency Fund • Increase in property value • No customer capital required • No investment risk • Off-balance sheet energy Energy costs after investment savings contract Contract duration Years 9
  10. 10. Business Model With Stable Cash Flows and no Exit RiskFigures in Thousand € € 600 164 162 161 159 158 156 155 153 152 150 € 400 575 569 563 558 552 383 379 375 372 368 364 361 € 200 357 354 350 €0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 -2000 -€ 200 SUSI Return Customer Savings -€ 400 -€ 600-€ 2‘000 Investment: Revenues: IRR: • Total investment: € 2‘000‘000 • Prior annual energy costs: € 2000000  Total cash flow to the fund over • Fund equity: € 1‘000‘000 • Post-retrofit energy costs: € 1‘500000 10 years: € 3‘662‘000 • Fund debt: € 1‘000‘000 • Annual savings 25%: € 500000  IRR (after costs): 12.5% • Participation owner 30%: € 150000 • Annual fund return for 10 years € 350000 • Annual Energy Price increase 1% 10
  11. 11. What do investors want – What do Energy Efficiency investmentsoffer? Returns • Generating yields • Stable distributions Sustainability Risk Minimization • Financially-Socially-Economically • Project diversification • Measureable positive impact • Capital preservation Liquidity Minimal Correlation • Potential daily access to funds • No correlation to stock market • No yield losses • Predictable returns Transparency • Clear, comprehensible strategy, not a "blind pool" • Full disclosure of all costs / fees 11
  12. 12. ConclusionsEnergy efficiency is a growth market with great potential:• Energy efficiency is the biggest lever for reducing greenhouse gases• Technologies available and proven• Strong market growth expected in the coming years• Innovative concepts to overcome lack of funding are availableInvestments in energy efficiency projects bring the following benefits:• Very good risk-return profile• Minimal correlation to other markets• High and stable distributions (substitute for fixed income products)• No exit risk• Measurable sustainability impactNecessary elements for success:• Reliable technology and operating partner• Expertise in project selection• Good portfolio diversification 12
  13. 13. Kontakt Contact Information SUSI Energy Efficiency AG Feldeggstrasse 12 8008 Zurich Schweiz Tel: +41 44 386 98 00 Fax: +41 44 386 98 09 Email: investors@susi-partners.ch Presenter: Tobias Reichmuth, CEO SUSI Partners AG Tel: +41 44 386 98 01 Email: t.reichmuth@susi-partners.ch Thank you for your attention! 13

×