1. Financing andManaging
Energy Efficiency
Improvements: the IPEEC
Experience

2. 1 What is IPEEC?
2 Energy Efficiency
Finance.
3 Energy Management.
4 IPEEC-Russia Energy
Management
Training Program –
A Proposal.
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3. 1.
What is IPEEC?
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4. IPEEC is a High Level
International Forum
 Provides global leadership on energy efficiency by identifying and
facilitating government implementation of policies and programs that
yield high energy-efficiency gains.
 Aims to promote information exchange on best practices and
facilitates initiatives to improve energy efficiency.
 Accelerates adoption of energy-efficient policies & practices through
international cooperation & information sharing on policy analysis,
programs, tools, & proven practices.
 Reports to ministerial forums such as the Clean Energy Ministerial
(CEM) and the G-8/G-20 Summits.
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5. IPEEC is an
Autonomous Entity
MEMBERS ACCOUNT FOR OVER
ENERGY USE
EU
80% OF WORLD GDP AND
Germany
United
Kingdom
France
Italy
Russia
Canada
Japan
USA
Republic of
Korea
China
Mexico
India
Brazil
Australia
2009 AT THE G8 SUMMIT IN L'AQUILA, ITALY
RESULTING FROM THE HEILIGENDAMM DIALOGUE PROCESS
FORMALLY ESTABLISHED IN
The IPEEC Secretariatis located in Paris, France
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6. IPEEC - Guiding Principles
 Improving energy saving and energy efficiency is one of the quickest,
greenest, and most cost-effective ways to address energy security and
climate change as well as to ensure sustainable economic growth
 All countries share common interests in improving their energy efficiency


There is abundant potential for international cooperation among them
Will contribute to improvement of energy efficiency at the global level
A WORLD WHERE KEY NATIONAL POLICY MAKERS VIEW
ENERGY EFFICIENCY AS AS RESOURCE AND IMPLEMENT COST
EFFECTIVE POLICIES TO PROMOTE IT.
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7. and Services Follow Parallel
Journeys
Basic research
Applied research
Individual innovators
Demonstration
& sample distribution
General regulation
Early demonstration
Full demonstration
Marketed product
Warranted product
Small group: start-up/
unit in a company
Medium-size operation
Large scale operation
Early adopters & niches
Rational economic purchase
Technology
& market evaluation
General regulation
Specific regulation
General regulation
General regulation
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8. Energy Efficiency – Program
Potential
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9. 2.
Energy Efficiency
Finance
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10. IPEEC Member
Experience
Findings from France, India, Japan, Russia & USA :
•Key observations:
 Most countries target the residential sector (except Japan that
focuses on the industrial & commercial sector)
 Most EE financing programmes are subsidized (e.g. USA &
France)
 Return on investment from EE is higher than the incremental return
from public expenditures
•Initiatives to promote EE finance:
 Super ESCOs
 Clean Development Mechanism (CDM)
 Eliminate free riders
 Credit lines, revolving funds & special purpose fund
 Partial credit guarantees & loss reserves
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11. Support Mechanisms:
ESCOs
Energy Performance Contracting
Loan & interest
payments
Financial
Institution
Remuneration
Customer
Contractor
Loan(s)
Service:
-financing,
- planning & installation of
energy saving measures
- energy savings guarantee
Source: Berlin Energy Agency
Regulations needed for an ESCO to be efficient
 Ensure quality of services and service delivery from ESCOs
 Implement proper M&V protocols
 Set standard procedures for ESCO project implementation
 Form a separate quasi-legal body with adequate technical
knowledge to arbitrate disputes between ESCOs and project owners
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12. Maturity of Markets
Premature
Market
Finance
• Grants
Mechanism • Subsidies
s
Market in
Transition
• Performance
contracting
• Carbon financing
Mature Market
• Innovative lending
Main
barriers
• High
initial&transaction
costs
•Liquidity issues
Recourse financing, • Risk perception
lack of M&V,
• Split incentives
implementation
issues
Financing
tools
• Accelerated
depreciation
• Tax deductions
• Tax Credits
•
Rebates&subsidi
• Guaranteed
savings
• Shared savings
• Carbon financing
• Free lending
• Interest rate
• Loan loss reserve
• Risk guarantee
funding
•On-bill financing
• Revenue decoupling,
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13. EE Finance in IPEEC
Countries
 China:
RMB 4.57 trillion (US$1 = RMB 6.36) in total
government subsidies (95% of residential building
retrofits)
 India:
 Bureau of Energy Efficiency (BEE) provides support
for private investors:


Risk sharing instruments, preferential rate loans, risk
guarantees, loan guarantees, ESCO policies
 Mexico:
Development of « green mortgage »
 Integrated urban development – systemic approach
 Use of climate finance: CDM, NAMAs

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14. Energy Financing Facility
(RUSEFF)
 US$ 300 million from
EBRD for on-lending
through local banks for
EE & RE investments.
 Eligibility: US$ 500,000
to US$ 6.5 million.
 Supported by a
comprehensive
technical assistance
package, to help
identify & develop
projects.
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15. 3.
Energy
Management
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16. IPEEC’s Energy
Performance Work
• Reducing global energy use in industrial facilities and commercial
buildings to improve energy security and reduce global
greenhouse gas emissions by:
– Encouraging industrial facilities and commercial buildings to
pursue continuous improvements in energy efficiency.
– Promoting public‐private partnerships for cooperation on specific
technologies or in individual energy‐intensive sectors.
Working Groups
ENERGY
MGMT
CHP
COOL ROOFS
POWER
STEEL
CEMENT

17. IPEEC - Key Focus
Areas
Energy
Manageme
nt
Foster& accelerate energy management &continuous energy
performance improvements in industrial facilities &
commercial buildings
Cool Roofs
Accelerate the development and deployment of cool roofs
and other passive technologies
Public-Private Partnership to:
- Promote state-of-the-art technologies
- Share best practices
- Conduct performance benchmarking
Sectoral:
Power,
Steel,
Cement
Combined
Heat &
Power
(CHP)
Increase awareness of the vast potential of CHP & District
Heating & Cooling (DHC) to:
- Decrease emissions of GHG gases & other air pollutants
- Reduce fuel consumption & dependence on imported
energy
- Identify barriers to use CHP & DHC
- Recommend policies to overcome them

18. A Systemic Approach – Local
Government Action
New York Plan:
 85% of the NYC 2030 building stock already exists today
 Goal: reduce citywide GHG emissions by 30% by 2030
 Three important measures:
 New York City Energy Conservation Code
 Greener, Greater Building Plan
 Emission cuts in municipal and institutional buildings
 If fully realized, the EE policies that have been
achieved/ongoing/proposed by 2010 should result in 80%
of the 2030 GHG reductions required from efficient
buildings
 Other US Cities are now trying to catch-up (e.g.:
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Chicago)

19. Holistic City Management – Public
Private Partnership
Broad range of services linked with EE to
address new urban challenges:
 Energy services
 Mobility services: traffic
reduction, network management
 Water management & supply
 Public safety, healthcare &
administration
 Building EE
 Resources optimisation
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20. 4.
IPEEC-Russia
Energy Management
Training Program – A
Proposal
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21. Program
Highlights & Purpose
 Use IPEEC in-house capabilities to design & deliver a
comprehensive training program on energy management &
program monitoring in Russia
 Develop qualified workforce in public
authorities/companies who can conduct in-country energy
manager training programs: “train the trainers”
 Establish synergies with other IPEEC initiatives and relevant
training programs.
IPEEC In-House
Capabilities
IPEEC Members’
Bilateral Initiatives
TRAINING PROGRAM
Energy Management &
Program Monitoring
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22. IPEEC-Russia Program –
Proposed Phases
Step 1: Establish
the infrastructure
International experts
from IPEEC
IPEEC members’ bilateral
initiatives
Training, Monitoring & Certification Infrastructure
Training
Training
Step 2: Train the
trainers
State
&Regional
Authorities
Step 3: Expand the
program
State &
Regional
Universities
Industry
(State & Private
Owned)
• Disseminate information in other countries
• Cooperate with other IPEEC member nations to scope out
options for replication of training program outside Russia

23. IPEEC-Russia Program –
Proposed Features
 Develop a qualified workforce that can conduct in-country energy
manager training programs: “train the trainers”
 Establish a centralized sharing platform to collect and distribute
information about energy management
 Develop a common energy savings and management tool kit to be
used throughout the program
 Coordinate pilot programs across countries to showcase the value
proposition of energy management
 Work towards national certification programs to recognize entities
that comply with energy management system standardssuch as ISO
50001
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24. Thank You
Please contact us for further details:
amit.bando@ipeec.org
Tel: + 33 (0) 1 40 57 65 24
www.ipeec.org
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