Credit line to support energy efficiency in Slovak municipalities - - PowerPoint PPT Presentation

Credit line to support energy efficiency in Slovak municipalities

Introduction to MunSEFF

Municipal Finance Facility – Energy Efficiency is an initiative of the European Bank for Reconstruction and Development (EBRD) and the European Commission (EC) to stimulate commercial bank financing of energy efficiency projects to municipalities and their utility companies in Slovakia. This means that:  Eligible projects receive financial support in the form of low-cost loans from local commercial banks and grants, and technical assistance vital for successful project implementation.  Municipalities may invest into their building stock in order to increase its energy performance also through public or private firms providing municipal services, ESCOs or housing associations

Available finances

Current:  Available amount 30 mil. €  1 commercial bank - Slovenská sporiteľňa, a.s. Projected:  At least 60 mil. €  Up to 3 commercial banks

Credit Grant line Loan Grant

EBRD Commercial bank Client Project Consultant Verification Consultant

Marketing Training Technical assistance Verification of project implementation

Eligible projects

Component 1: Energy efficiency investments for municipal infrastructure (excluding buildings)

• Examples: - Production and supply of heat and/or electricity
• Production and supply of heat and/or electricity

Component 2: Energy efficiency investments for municipal and residential buildings

• Examples: - Production of heat for space and/or water heating
• Thermal insulation of building envelope

Component 3: Municipal infrastructure and/or municipal building renewable energy

• Examples: - Fuel switch from coal/gas/oil to biomass
• Fuel switching or selected greenfield renewable energy investment

Eligibility conditions and grant levels

 The maximum Sub-project size is EUR5 million.

Component 1: Infrastructure (excluding buildings)

 Energy savings of at least 20% in comparison to the original energy consumption  Grant levels of 10 – 20% of loan

Component 2: Buildings

 Energy savings of at least 30% in comparison to the original energy consumption  Implementation of a single measure – grant 10%  Implementation of at least two measures implemented jointly – grant 15%

Component 3: Renewable energy

 Positive Net Present Value calculated over a 10-year period with an 8% discount rate.  Grant level 5 - 15% of loan

Technical assistance

 Free technical assistance provided throughout the entire Sub-project cycle

Components 1 a 3 (infrastructure and renewable energy)

• Energy Audit to identify and formulate the Sub-project scope
• Rational Energy Utilisation Plan – overall implementation

schedule

Component 2 (buildings)

• Simplified Energy Audit to identify and formulate

the Sub-project scope

• Energy Performance Certificate of a Building

Case study: Primary school Veľká Lomnica

Walls and roof insulation, Windows replacement, Hydraulic balancing and control of heating system, New heat source  Total investment 502 000EUR  Granted loan 229 185EUR  Financial grant 20% = 46 000EUR  Simple payback 22 years Annual savings  Electricity 2MWh  Heat 1 267GJ  Greenhouse gases 98tCO2  Primary energy 485MWh  Energy costs 17 947EUR = 63% Specific indicators  Specific energy consumption before 148kWh/m2 after 55kWh/m2

Case study: Secondary school Pod Bánošom

Walls and roof insulation, Windows replacement, Hydraulic balancing and control of heating system, New heat source  Total investment 669 000EUR  Loan requested 667 000EUR  Financial grant 20% = 133 000EUR  Simple payback approx. 21 years Annual savings  Electricity 45MWh  Heat 1 533GJ  Greenhouse gases 135tCO2  Primary energy 706MWh  Energy costs 28 520EUR = 50% Specific indicators  Specific energy consumption in class area before 100kWh/m2 after 50kWh/m2

MunSEFF so far

 Approved project amount to approximately 10 million EUR  9 projects have been implemented: 1 infrastructure energy efficiency project 8 buildings energy efficiency projects  Granted loans of 7.8 million EUR  Allocated financial grants of 1.52 million EUR  Energy savings – 10.2 GWh/year of primary energy – 49% reduction  Emission savings – 2 094 tons/year

Component 1: Energy efficiency investments for municipal infrastructure (excluding buildings)

Eligible Sub-Projects implementing energy efficiency projects in municipal infrastructure will be those that comprise equipment, systems and processes enabling the reduction of primary energy consumption and/or final energy consumption for The production and supply of heat and/or electricity; The provision of water supply & sewerage services within relevant municipality; Provision of public transport services to the relevant municipality; Provision of street lighting on the territory of the relevant municipality. Municipal infrastructure includes:  Transportation  Sewerage  Drinking water supply  Public lighting  District heating

Component 1: Examples of eligible measures

 On site co-generation of heat and electricity (all heat and electricity shall be used on-site);  On site tri-generation of heat, electricity and cool (all heat, electricity and cool shall be used

• n-site);

 Replacement of existing boilers with more efficient ones (e.g. condensing boilers) or due to fuel switching;  Rehabilitation of boilers (enhanced controls, economizers, improved insulation, regenerative burners, automatic blow-down, etc.);  Rehabilitation of heat distribution systems including implementation of heat control and measurement measures;  Replacement of oversized electrical motors, installation of Variable Speed Drives on electric motors (pumps, fans, drives);  Rehabilitation of power distribution systems (e.g., replacement of old or oversized transformers, installation of capacitors to reduce reactive power consumption, etc.);  Implementation of Energy Management Systems;  Rehabilitation of street lighting (only measures relevant to improvement of energy efficiency).

Component 2: Energy efficiency investments for municipal / residential buildings

Eligible Sub-Projects implementing energy efficiency Sub-projects in municipal buildings will be those that comprise equipment, systems and processes that enable the reduction of primary energy consumption and/or final consumption and/or other forms of energy for:  Production of heat for space and/or water heating;  Cooling and air ventilation  Use of renewable energy sources for the production of heat for space and/or water heating; cooling and air ventilation is eligible and encouraged Municipal buildings include:  Offices  Health care  Education  Entertainment  Sports and leisure  Hospitality services

Component 2: Examples of eligible measures

Municipal buildings  Replacement of old and low efficient boilers  Implementation of on-site micro-cogeneration/tri-generation;  Rehabilitation heating/air-conditioning/ventilation systems;  Implementation of Building Management Systems;  Thermal insulation of the building envelope (external walls, roofs, basements);  Implementation of solar thermal collectors; and  Replacement of old and low efficient lighting with an energy efficiency one Residential buildings  Replacement of boilers/heat exchanger stations  Rehabilitation of heating systems,  Use of geothermal heat with/without installation of heat pumps  Replacement of windows & transparent structures of building envelope  Thermal insulation of building envelope  Energy efficient lighting of common spaces  Solar thermal installations.

Component 3: Municipal infrastructure and/or municipal building renewable energy

Eligible Sub-Projects implementing renewable energy in municipal buildings or in municipal infrastructure will be those that comprise equipment, systems and processes enabling  the switch from fossil fuels or electricity to renewable energy sources or  the use of renewable energy sources in new investments where solid fuel use or electricity use would be a first option. In such case, there is no requirement on energy savings but on savings of non-renewable energy sources. Eligible measures are:  Fuel switch from coal/gas/oil to biomass  Fuel switching or greenfield renewable energy investment for the use of:

• solar thermal energy
• geothermal energy (with or without heat pump)
• biogas production for heating/cooling and/or power generation.

Co-firing of biomass with fossil fuels and biofuels will not be an eligible technology. Sub-projects benefiting from feed-in-tariffs or other pre-existing subsidy scheme will be eligible for financing but will not receive an end-borrower incentive.

www.munseff.eu

• ffice@munseff.eu