Transcript Проектний аналіз

Financing Mechanism for Rehabilitation
of Heating Facilities
ESCO’s Role in Financing Heat
Supply Improvement Projects
Alexander Novoseltsev
Ukraine
Association of Energy Engineers
President of the Ukrainian Chapter
E-mail: [email protected]
International Conference
Heating Sector Institutional Reform in the Former Soviet Union
Baku, Azerbaijan, October 21, 2005
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Energy Service Company (ESCO)
this is an answer to questions:
What is the best way to use money?
How to convert a business-idea into
business-plan?
How to attract investors for its realization?
How to reach the best results against the
least cost?
2
Where to Seek For, and How to
Attract Funds Needed?
ESCO's
Finance
State Budget
Local Budget
Technical
Assistance
Funds
Equipment
Leasing
Consolidaed
Money of
Consumers
Joint Stock
(Share Capital)
Commercial
Banks' Credits
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Institutional Structure of ESCO
Financing Mechanism
Investors
Request
for Money
Transfer
Sponsors
Payments for
Equipment &
Services
Heating Companies
State and Local
Budgets
Design Engineering,
Procurement, Erection,
Commissioning, etc.
Credit
Return
Contract,
Pledge
ESCO + Local Energy Conservation Fund
Contract,
Pledge
Equipment & Services
Suppliers
ESPC
Contr
acts
1
2
…
1
2
n
…
m
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Advantages for Energy Service
Companies Involvement
 The ESCO invests in the project and then
ensures adequate performance to accomplish
profitability of the project;
 The ESCO negotiates with the Heating company
(HC) the terms and conditions of project
implementation that the parties agree in an
Energy Saving Performance Contract;
 ESCO gathers technical data on the project that
consequently allows it to achieve a certain level
of energy savings.
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Conditions for Energy Service
Companies Involvement:
 ESCO guarantee that energy savings will exceed
the cost of the investments needed to achieve
those savings (plus the ESCO’s profit for return on
its investment);
 Heating companies pay for the equipment and the
ESCO’s services by giving up the money saved
from the reduction of energy consumption;
 Heating companies must usually also provide some
collateral or other guarantee of the fulfilment of its
contractual obligations.
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ESCO’s Project :
Stages and Performers
State and Local Authorities
Collective & Individual Consumers
Initial
Proposal
Subcontractors
Initiation (~30%)
Energy Resources
Suppliers
Definition (~15%)
ESCO
(Project Manager)
Project Co-ordination
Procurement
Heating
Companies
Implementation
Suppliers of
Equipment and
Services
Monitoring
Project
Completion
Local
Subcontractors
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What are the Profitable
Energy Saving Projects?
Invested
Money
Attracted
Partners and
Funds
Payment for
Equipment &
Services
Saved Money
Pilot Energy
Saving
Project
Credits
Repayment
Revolving
Mechanism
Taxes and
Duties
Local Energy
Saving Fund
M&V
New Energy Saving
Projects
1
2 … n
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Social and Commercial Aspects
of Heating Services
Aspect 1: Social aspects
Aspect 2: Environment aspects
Aspect 3: Improvement of creditworthy
Separation of
Heating
Company (HC)
Activities
social
aspects of
business
Involvement of the local and
state authorities to solving
social, environment and
commercial issues related to
heating companies
modernization
Separation of
commercial
aspects of
business
Mutually beneficial
collective and individual
consumers cooperation
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Improvement of HC’s Creditworthy
Raising local and national
budget funds. Guarantees
from the local and/or the
state authorities
BEGINNING
Investment
of HC own
funds and
involvement
of sponsors
Stage One:
Implementation of small
EE pilot projects
Stage Two:
Implementation of
large investment
projects
Final Stage: LargeDevelopment of models for
raising and repaying
investment funds
Trying out a
“revolving”
mechanism
scale implementation
of EE projects
Involvement of strategic
investors to HC
restructuring
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Payments for Energy Resources Before
and After EE Projects Implementation
Payments to Energy Resources Suppliers
Before EE Projects
100%
Gross Return
80%
60%
Payments to Energy
Resources Suppliers After
EE Projects
40%
20%
0%
1 year
2 year
3 year
4 year
Energy Resources saved
Payments before project implementation
Payments after project implementation
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Ukrainian ESPC Pilot Projects Implementation
Experience in Heating Sector
Planned Sources of Fund
1
HC
USAID
Local
2
HC
USAID
Local
ESCO
ESCO
3
4
USAID
USAID
ESCO
HC
HC
Local
ESCO
Local
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Ukrainian ESPC Pilot Projects Implementation
Experience in Heating Sector
Real Attracted Funds
1 HC
2
HC
ESCO
Fact
ESCO
Fact
Local
Plan
Local
Plan
USAID
USAID
0
3
20
40
60
80
0
100
4
HC
20
40
60
80
100
HC
ESCO
Fact
ESCO
Fact
Local
Plan
Local
Plan
USAID
USAID
0
20
40
60
80
100
0
20
40
60
80
100
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HC’s Working Actions to Attain Funding in Pilot Projects:
1. Summarize the available experience in the self-repayment (SR) energy efficiency and energy
conservation improvement (EE) projects implementation;
2. Develop a model business plan for attracting potential investors and sponsors;
3. Work out a multilateral financing model (the so called “project financing pie”) and support its
viability by contracts;
4. Involve, on a competitive bidding basis, energy service companies (ESCO) to implement the
pilot projects;
5. Form Energy Saving Performance Contracting (ESPC) contracts between the selected ESCO
and heating companies (HC);
6. Carry out, with participation of the ESCO and HC experts, energy investment grade audits, and
provide for the SR EE projects being implemented on a turnkey basis;
7. Render technical assistance to the selected ESCO and HC in implementing a Monitoring,
Measuring and Verification (M&V) plan;
8. Establish a special HC’s energy conservation account to collect, on a monthly or quarterly
basis, funds generated through the SR EE efforts, and agree with the relevant national and local
government bodies upon the norms and rules to regulate the funds;
9. Introduce a procedure for the SR EE-projects-generated profit reinvestment into the further
ongoing SR EE projects (using the so called “revolver” mechanism of the SR EE projects
implementation);
10. Disseminate positive experience of the SR EE projects implementation among other heating
companies.
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