The document outlines the scaling up of the Integrated Utility Service (IUS) model through a CDB-GCF program aimed at enhancing energy efficiency (EE) and renewable energy (RE) projects in the Caribbean. Key goals include enabling utilities to extend their business models, providing a platform for diverse technology suppliers, and securing financing through an on-bill refinancing mechanism. The initiative will involve collaboration across various stakeholders and aims for pilot implementation in select Caribbean countries, with activities anticipated to commence by late 2022.

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