Despite the well-recognised potential for, and steps to promote, energy efficiency progress in deployment has been slow. Scaling up an integrated utility service model presents an opportunity for the utility to become a player within the emerging energy service paradigm in the region.

1. Scaling up the
Integrated Utility Service Model
CDB GCF Programme

2. Scaling up the IUS Model
Rationale:
• Despite the well-recognized potential for, and steps to promote, energy efficiency
progress in deployment has been slow
• An over reliance on a risk averse private sector to carry out EE projects in the absence of
a suitable market framework, which lack such options as ESCOs, to support them.
• Frequently, the private sector lacks access to financing and the institutional and technical
capacity to carry out these projects
• Utilities face a future of revenue decline due to loss of load from the penetration of both
renewables and efficiency
• This is an opportunity for the utility to become a player within the emerging energy service
paradigm within the region.

3. Scaling up the IUS Model
Goals:
• Introduce a practical ‚delivery mechanism’ for demand side EE, RE and DR projects
behind the meter in the CARICOM region
• Enable utilities to extend their business models by providing energy services and scale up
EE and RE interventions
• Facilitate a platform approach, which is open to all qualified technology suppliers (not
primarily the utility), which generates additional business models for project
implementation
• Financing of up-front investments shall be secured through a regulated on-bill refinancing
mechanism
• Provide access to the regulated on-bill refinance mechanism to different utility costumer
segments

4. Scaling up the IUS Model
Technical Energy
Service Providers
Technical Energy
Service Providers
Clients:
- Commercial
- Public Sector
- Residential
Clients:
- Commercial
- Public Sector
- Residential
Clients:
- Commercial
- Public Sector
- Residential
Clients:
- Commercial
- Public Sector
- Residential
Utility
Technical Energy
Service Providers
Technical Energy
Service Providers
IUS Market Platform
Source: [Bleyl et al. 2017]
Legend:
• Information
• Contracts
• Energy service
• Cash flows
On-bill customized tariff, tied to meter
Opt-in on-bill refinance tariff
w. regulated WACC,
tied to meter
Opt.: DR-ressources incl. storage, EV …
Electricity cost savings, DR-payments
Installation + O&M + sM&V
CAPEX
+
O&M
Pre-qualification
Quality
assurance
Regulator
Finance
Institutes
Debt
Principal +
interest
Opt. Facilitators
Independent M&V
independent advice
IUS Market Platform
Model
© Jan W. Bleyl – Energetic Solutions For requests: EnergeticSolutions@email.de

5. Scaling up the IUS Model
The Regulated Model:
• Regulator: agrees on a voluntary “opt-in on-bill refinance tariff” for utility investment in EE -> RoI is
regulated
• Utility Client: chooses EE measure(s) and selects own qualified technology provider to install/replace
equipment
• Technology provider: installs and maintains EE equipment
• Facilitator: independent entity assists utility costumer in selecting EE measures and technology
provider
• Utility: pays upfront capital cost for EE measures and coordinates the individual opt-in on-bill tariff; incl.
DR-service
• Financial Institute: refinance the upfront capital cost for the entire program

6. Scaling up IUS Model
Implementation
Phase I
• Collecting of available information on the ESCO experience of the Caribbean
• Preparing a Proposal for the IUS model, to be piloted in two or more utilities
Phase II
• CARICOM led implementation of pilot projects
• Barbados, Belize, Guyana, Jamaica
• CDB - preparation of scaling up the IUS Model with Green Climate Fund financing

7. Scaling up IUS Model
• Context:
• The programme builds on IUS pilots in Barbados, Belize, Guyana and Jamaica, which are being
supported by GIZ and the CARICOM Secretariat.
• What:
• Support electric utilities to institutionalize IUS and administer it at scale.
• Simultaneously strengthen the enabling environment for IUS and distributed RE, EE and other DERs in
the participating countries.
• How:
• Concessional loans to provide utilities with the resources needed to provide services to a critical mass
of customers, as well as grants to finance complementary TA and capacity-building support.
• To be financed through a combination of CDB and GCF resources.

8. Scaling up IUS Model
• Who:
• At programme level: Led by CDB in partnership with GIZ and the CARICOM Secretariat. Looking
to collaborate with CCREEE and CARILEC as well.
• At country level: Barbados Light & Power (BL&P), Belize Electricity Limited (BEL), Guyana Power
and Light (GPL) and the Jamaica Public Service (JPS) Company, other energy sector
stakeholders, and the GCF National Designated Authorities.
• When:
• GCF concept note finalized and submitted in Q2 2021.
• Design, feasibility and other preparatory work to be completed in 2021-22.
• Aiming for submission to GCF in Q1/2 2022.
• Tentatively aiming for commencement of programme activities by Q4 2022.

9. Scaling up IUS Model

10. Scaling up IUS Model
For more information contact us at
reee@caribank.org