Category Archives: Investor Confidence Project

Connecticut’s Green Bank Gives Commercial PACE a $24 Million Boost

CEFIALast week, Connecticut’s Clean Energy Finance and Investment Authority (“CEFIA”), the state’s Green Bank, announced the sale of $24 million in loans for clean energy retrofits of commercial properties. The loans were originated through the state’s Property Assessed Clean Energy (PACE) program, which allows property owners to access 100 percent up-front financing for energy efficiency and renewable energy improvements on their buildings.  Repayment is attached to a lien on the property tax bill, making PACE loans very attractive assets for investors.

According to Jessica Bailey, Director of PACE for CEFIA, “Connecticut’s PACE program is able to provide financing for commercial property owners to implement money saving clean energy projects. Without PACE, most of these property owners might not have access to attractive financing and these projects would not be completed.” Read More »

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EDF Adds Multifamily Homes to its Energy Efficiency Protocols

MULTIFAMILYBy: Matt Golden, Senior Energy Finance Consultant

The Investor Confidence Project (ICP) is pleased to announce the release of a new series of Multifamily Energy Performance Protocols (EPP) that build on ICP’s successful commercial protocols to bring the benefits of standardization to a broader array of project types. This suite of three protocols include Large Multifamily for whole building projects over $1M, Standard Multifamily for smaller whole building projects typically less than $1M, and Targeted Multifamily for single measures.

The multifamily protocols were developed with the collaboration of industry experts including participating members of the ICP Multifamily Development Team and the ICP Ally Network. The bulk of the protocols are comprised of the same market tested methodologies that can be found in all of ICP’s Energy Performance Protocols. However, the multifamily versions have been designed to address considerations that apply to the multifamily sector including the issues of split incentives and tenant privacy.    Read More »

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EDF Helps Standardize Energy Efficiency Projects in Texas

By: Matt Golden, Senior Energy Finance Consultant

Texas Pace In A BoxTexas currently has the highest rate of energy consumption of any U.S. state and accounts for 10% of the country’s total energy consumption. Most of that energy goes to energy-intensive industries, such as aluminum, chemicals, forest products, glass, and petroleum refining, which consume 50% of the state’s energy, compared with a national average of 32%.

Last year, the Texas legislature passed statewide legislation enabling cities to use their property assessment as a way to finance clean energy and energy efficiency for industrial, agriculture, water, and commercial buildings. This innovative financing tool, generally referred to as property-assessed clean energy (PACE), has the potential to unlock a considerable amount of funding for both renewable energy and energy efficiency projects in the state, while simultaneously offering building owners cheaper financing options and secure repayment through their property assessment. Read More »

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LA Better Building Challenge Partners with EDF’s Investor Confidence Project to Accelerate Citywide Energy Efficiency Goals

By: Matt Golden, Senior Energy Finance Consultant

 

Source: LA Better Buildings Challenge

Source: LA Better Buildings Challenge

Environmental Defense Fund’s Investor Confidence ProjectSM (ICP) is pleased to announce a partnership with the Los Angeles Better Buildings Challenge to help develop a more robust marketplace for energy efficiency retrofits in the city. Los Angeles has set a goal of achieving 20% energy savings across 30 million square feet of existing buildings by 2020 as part of the Better Buildings Challenge, a national leadership initiative sponsored by the U.S. Department of Energy. If achieved, it is estimated that this 20% reduction in energy costs will create over 7,000 high-quality local jobs, and avert annual carbon emissions equivalent to taking more than 18,000 cars off the road.

The LA Better Buildings Challenge will be promoting the ICP Protocols through its network of building owners and industry stakeholders to help bring even greater transparency and accountability to the energy efficiency market by introducing a system of standardization in the way commercial building retrofits are developed, funded, and managed. The ICP framework assembles best practices and existing technical standards into a set of protocols that define a clear roadmap for developing projects, determining savings estimates, and documenting and verifying results. Read More »

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Conference on Clean Energy Financing Signals a Shift in Funding the Low-Carbon Economy

Source: eProGuide

Source: eProGuide

In 2010, I began working on financial policy at EDF. Our objective was to implement policies that would allow private sector companies to profitably deliver financing solutions to residential and commercial property owners footing the upfront cost of money-saving energy efficiency and clean distributed generation (such as rooftop solar) projects. While the residential solar market was already gaining steam at the time, most of the other markets had very limited momentum. But after attending the clean energy finance conference that EDF co-hosted yesterday with Citi, energy efficiency solutions provider Elevate Energy, and law firm Wilson Sonsini Goodrich & Rosati, it appears that the market for financing clean energy projects is beginning to accelerate rapidly.

The agenda featured 12 private companies from the clean energy sector (Kilowatt Financial, Clean Power Finance, Renovate America, AFC First Financial Corp., Renewable Funding, Clean Fund, Joule Assets, Noesis Energy, SCIEnergy, Metrus Energy, Hannon Armstrong, and Honest Buildings), plus a few more in the audience, that are executing a wide range of transactions using Property Assessed Clean Energy (PACE), On-Bill Repayment, Energy Services Agreements (ESAs), and many other innovative techniques to fund the transition to a low-carbon economy. Read More »

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Transitioning to a Clean Energy Future Will Require Lots of Private Capital, but How Do We Get There?

Source: 401(K) Flickr

Source: 401(K) FlicThe past two decades have seen a tremendous growth in our understanding of the climate change imperative and in the enormity of the challenge that confronts us. It has become clear that meeting climate change mitigation objectives will require the aggressive deployment of clean energy technologies, substantial amounts of capital, and creative methods of engaging that capital around these activities.

Transitioning to a low-carbon economy costs money (and lots of it). In fact, the International Energy Agency has estimated that $10.5 trillion will be required between 2010 and 2030 to fund this transition worldwide. Given the continuing challenges confronting global economies, the bulk of the capital needed to transition to this clean energy future will, by necessity, be private capital. As a result, creative financing solutions are essential to engaging and unleashing private, institutional capital, and accelerating the flow of those funds toward clean energy projects.

But the question of how to most effectively unlock the enormous amounts of capital necessary to pay for our transition to a low-carbon economy still remains. Read More »

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EDF Wins Business Achievement Award for Efforts to Advance Clean Energy Financing

By: Matt Golden, Senior Energy Finance Consultant

CCBJawardEach year the Climate Change Business Journal (CCBJ) awards businesses and non-profits for their outstanding work in the climate and environment industry. This year, we are thrilled to announce that EDF’s own Investor Confidence Project (ICP) was named a winner of CCBJ’s Business Achievement Award in the category of Finance. Winners of the 18 categories – ranging from solar and wind power to transportation and energy efficiency – were recognized this month at an Environmental Industry Summit in San Diego.

The Investor Confidence Project received recognition for its efforts to help create a market for investor-ready energy efficiency projects. From the CCBJ award website: “ICP is moving the energy efficiency industry closer to the Holy Grail of securitization, in which energy efficiency projects can be valued based on consistent parameters with little project-specific analysis and vetting-processes that ratchet up soft costs quickly.” Read More »

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NYCEEC, NY State Green Bank Clear the Way for Clean Energy Financing of Retrofits

By: Susan Leeds, CEO of the New York City Energy Efficiency Corporation (NYCEEC)

Source: AtisSun

Source: AtisSun

As New York City gets repeatedly hammered by snow, ice and the evil “wintry mix,” one could almost forget the world is warming at an ever faster clip. But the experts in the room earlier this month at the roundtable discussion on ‘Economics of Energy Retrofits’ at Urban Green Council (New York’s chapter of the U.S. Green Building Council) know the debate is over. Climate change is real and the window for action is closing. That’s why it’s more important than ever to work toward removing barriers to clean energy financing now.

As the De Blasio administration strives to build a more affordable New York City it’s important to note that clean energy building upgrades are central to this mission. By reducing energy use, building owners and their tenants can realize millions of dollars in annual savings while slashing dangerous carbon pollution for cleaner air and water. Read More »

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EDF’s Energy Efficiency Protocols Serve as a Model at ESCO Europe 2014

By: Matt Golden, Senior Energy Finance Consultant 

1ICP LogoAs interest in and adoption of EDF’s Investor Confidence Project (ICP) protocols has continued to grow in the United States, so too has interest internationally. The Investor Confidence Project was invited to showcase our efforts at ESCO Europe, the continent’s largest conference for energy service providers. This year, the conference was held in Barcelona, Spain and drew an array of participants from across Europe and the public and private sectors, including representatives from finance companies, governments, and non-profits with interests in the energy industry.

I was privileged to serve as both a panelist in a roundtable discussion on barriers to ESCO financing, and a speaker on “Improving Access to Finance,” a well-attended session with representatives from the European Investment Bank, European Bank for Reconstruction and Development, and European Energy Efficiency Fund.

EDF was invited to attend this conference based on a series of conversations over the last year with European stakeholders facing the same barriers to investing in energy efficiency as their American counterparts. With policymakers in Europe similarly counting on a vast expansion of the market in building retrofits and an expected influx of private and public capital, there is a focus on standardization and policies that can enable capital and investors to enter the market with fewer transaction costs. Read More »

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$200 Million in Private Capital Financing Signals Investors’ Support for Clean Energy

(Credit: www.poonamsagar.com)

(Source: www.poonamsagar.com)

While 2014 is only just getting underway, it is already shaping up to be a banner year for clean energy finance. Capital investments are being made, funds developed, and securitization tools crafted — all with remarkable speed. And private capital markets are aggressively rallying around these efforts, which will only increase the momentum of our collective efforts to drive investments into essential energy efficiency and renewable energy projects.

Funding for homeowner energy efficiency loans could lead to securitization

Early this year, clean energy consumer finance company, Kilowatt Financial, closed a $100 million deal with  Citi to finance 10-12 year unsecured loans of up to $30,000 for homeowners making energy efficiency improvements to their HVAC (heating, ventilation, and air conditioning) systems, water heaters, windows, roofing, insulation, lighting, and appliances.

The transaction is designed to facilitate a securitization of loans (which promotes liquidity in the marketplace), help establish a secondary market, and spur energy efficiency investments. Kilowatt and Citi expect to create term asset-backed securities from the loans that will provide a sustainable source of capital for homeowners looking to make home energy upgrades. Read More »

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