In the renewable energy sector,
initiatives such as CrowdFundRES
(H2020 project) or REScoop.eu
(European federation of renewable
energy cooperatives) have proven the
potential of citizen financing for RES
projects. However, the enforcement
of citizen fi nancing schemes for
energy effi ciency projects is still far
from having reached its full potential.
Energy efficiency is a decisive factor
of the European Union's energy
policy as it is considered essential
for competitiveness, energy security
and to meet international goals on
climate change.
In the building sector, to meet these
objectives, it is key that energy
effi ciency financing models are
consolidated through innovative
financing solutions that leverage
the cooperation between all actors
(project promoters, public/private
financial institutions, end users),
especially with citizens. Not only
that, but it is essential to establish
mechanisms that enable making
more effective use of public funding,
mobilising private fi nancing towards
large-scale energy efficiency
programs and helping to overcome
specific barriers faced by energy
citizens and communities' projects
wishing to invest in sustainable
projects.
In this context, CitizEE is a European
funded project aimed at supporting
European public authorities to scale
up investments for energy efficiency
in the building sector by attracting
citizen private investments.
CitizEE will address this goal by
means of creating national or regional
Investment Platforms that drive the
integration of tailored and widely
adopted citizen financing schemes,
crowdfunding and cooperative
funding, with adequate available or
to be developed Public Financing
Instruments (PFIs). As a result, CitizEE
will facilitate the set-up of largescale
community energy efficiency
programs while strengthening the
know-how of regional/national key
stakeholders.
CitizEEs' project strategy is therefore
conceived to support public
authorities with a two-fold purpose:
1. Setting up Citizen Investment
Platforms (IP). IPs backed by
the European Fund for Strategic
Investments (EFSI)1 are considered
as Investment facilities channelling
public and private fi nancing from
several co-investors to provide
financial products to designated
final beneficiaries and/or projects.
Focused on:
- Identifying market gaps and
providing financing or support
to sectors and/or projects that
are not currently sufficiently
serviced by traditional financial
intermediaries
- Facilitating the inclusion of
investors towards the financing
of projects
- Focus on blending/crowding-in
public and private funds
- Contributing to aggregation and
pooling of projects
- Focus on geographic and/or
sectoral/thematic scope (e.g.
building renovation)
- Flexible structuring options (cofinancing, risk-sharing, managed
accounts, special purpose
vehicle)
- Easing the integration of the
citizen financing scheme
2. Developing, testing and evaluating
tailored and widely adopted
citizen financing schemes for
energy efficiency. So-called by
the project as CFs4EE2 Financing
Schemes, these are composed of citizen financing mechanism,
crowdfunding or cooperative
funding, supported by Public
Financing Instruments (PFI). These
mechanisms will include different
financial, private and public
alternatives, aiming at progressively
maximising the leverage ratio of
public funds to private financing,
in accordance with the European
Smart Finance for Smart Buildings
initiative under the Investment Plan
for Europe to make more efficient
use of public funds.
- The competitiveness and market
potential of the CitizEE CFs4EE
Financing Schemes will be
evaluated through four pilot
demonstrations at regional or
country level in Portugal, Belgium,
Lithuania and Croatia. The typology
of projects addressed by the pilots
ranges from energy efficiency
retrofitting in buildings, schools,
lighting and used infrastructure to
renewable energy integration via
photovoltaic modules installations.
The strategy followed by the
project will be completed with
the development of policy
recommendations for improving the
market and regulatory framework and
the creation of a network of experts
with enhanced in-house capacities to
support the project concepts and its
advantages among those who could
support citizen financing schemes
deployment.
CitizEE celebrates its first year in
May 2020, during this time CitizEE’s
actions geared towards preparing
the groundwork for the
establishment of the Investment
Platforms in 3 of the 4 pilots, since
the Lithuanian pilot has already an
investment platform established.3
These activities include:
- Identification of stakeholders that
will be convened into groups at
pilot level to support the kick start
of the platforms.
- Legal, regulatory4 and market
characterization.5
- Analysis of the institutional,
organisational and procedural
aspects concerning EFSI-backed
Investment Platforms.6
- Development of a master plan for
the founding of the Investment
Platforms in the CitizEE’s pilots.7
In addition, first steps were taken
to assess the market opportunities
for the citizen financing solutions
for energy efficiency and to outline a
map of structured financial solutions
for CFs4EE Financing Schemes that
will be used at the implementation
stage of the project.
This project has received funding from the European
Union‘s Horizon 2020 research and innovation
programme under grant agreement No 847147. The sole
responsibility for the content of this publication lies with
the authors. It does not necessarily reflect the opinion of
the European Commission. The European Commission is not responsible
for any use that may be made of the information contained therein.
The project results are available in the project webpage: www.citizee.eu
For further information please contact:
Pablo Alonso //WIP Renewable Energies //pablo.alonso@wip-munich.de
Silvia Caneva // WIP Renewable Energies //silvia.caneva@wip-munich.de
1. D2.1 Institutional, organisational and procedural report - Page 11 - https://www.citizee.eu/wp-content/uploads/2020/01/D2.1-Institutional-organisational-and-procedural-report_PU_compressed.pdf
2. CFs4EE: Citizen Finance Schemes for Energy Efficiency
3. EU support for first energy efficiency investment platform in Lithuania: https://www.citizee.eu/news/eu-support-for-first-energy-efficiency-investment-platform-in-lithuania/
4. D2.10-Legal & regulatory investment framework analysis report: https://www.citizee.eu/wp-content/uploads/2020/02/D2.10-Legal-regulatory-investment-framework-analysis-report_PU.pdf
5. D2.11-Report on Market characterization: segments and boundaries analysis: https://www.citizee.eu/wp-content/uploads/2020/02/D.11-Report-on-Market-characterization-segments-and-boundaries-analysis_PU.pdf
6. D2.1 Institutional, organisational and procedural report: https://www.citizee.eu/wp-content/uploads/2020/01/D2.1-Institutional-organisational-and-procedural-report_PU_compressed.pdf
7. D2.2 Master Action Plan for the Establishment of the Citizen Investment Platforms: https://www.citizee.eu/wp-content/uploads/2020/01/D2.2-Master-Action-Plan-for-the-Establishment-of-the-Citizen-Investment-Platforms_PU.pdf