The European Union (EU) has set a target of reducing energy consumption by 20% by 2020 and proposed to reduce by 30% by 2030. Achieving these goals requires mobilizing significant investments in the private sector.
Small and medium-sized enterprises (SMEs) constitute 99% of EU companies, representing a significant market opportunity for Energy Efficiency (EE) improvements. However, this opportunity remains largely untapped due to the high-perceived risk of investment in EE.
The Driving Investment in Energy Efficiency through Energy Savings Insurance in Europe (ESI Europe) project is being developed in Portugal by BCSD Portugal. The project started in February 2018 and lasts for 3 years.
The objective of ESI Europe is to create the conditions for SMEs to be technologically efficient by minimizing investment risk through the creation and implementation of performance insurance. This project, funded by the Horizon 2020 program of the European Commission, is being led by the Swiss NGO BASE and carried out simultaneously in Portugal, Spain and Italy. In previous years, the model has been successfully implemented in Latin American countries such as Colombia and Mexico.
The ESI is an innovative model that allows the reduction of energy consumption, while improving performance and increasing the environmental sustainability of the company’s operations. By using ESI, investment in new equipment for energy efficiency creates guaranteed and assured savings.
– Develop a simple and transparent contract to be signed between the SME and the technology supplier, where the expected energy savings, reimbursement guarantee, measurement methodology and verification of savings will be established;
– Develop an energy saving insurance that comes into play if the expected savings are not achieved and if the technology provider fails to compensate the SME;
– Develop validation parameters that ensure that the installation is done according to the contract and that the expected savings are realistic;
– Disseminate the elements developed with SMEs, technology providers and financial institutions;
– Mobilize investment in Energy Efficiency.
– Involvement of stakeholders in the project such as: banks, insurance companies, technology providers and SMEs;
– Promotion of round table discussions with insurers, lawyers, validation entity, banks, technology suppliers and SMEs for contract development, insurance and validation parameters;
– Development of workshops with SMEs, technology suppliers and financial institutions to disseminate the elements developed;
– Creation of pipeline of projects in Energy Efficiency.
This project counts on the participation of the following entities: