Page 43 - European Energy Innovation - spring 2020 publication

Spring 2020 European Energy Innovation 43

COMMUNICATION

Risk management for energy
efficiency investments

EFFECT4buildings project provide a set of financial tools and instruments for lowering the risks
40% of energy consumption
and 36% of CO2 emissions in EFFECT4buildings project team together with public building managers
the EU relates to buildings. visiting Estonian National Museum
To achieve a climate-neutral
Europe by 2050, energy efficiency in

buildings has to be improved. Key

actors to make the change is building

managers. They are often aware of

possible technical solutions, but at

the same time facing challenges

with limited human and financial

resources. To convince decision-

makers to invest in energy efficiency

measures, both financial and of the whole package can be lowering the risk of sub-optimization

technical risks have to be limited. calculated. Less profitable measures and giving more value for money

will then be covered by the more spent. Also, with models for

Project EFFECT4buildings is providing profitability ones, making it possible implementing Green Lease Contracts,

building managers with a set of to implement more energy efficiency users of buildings and tenants can be

financial tools and instruments for measures in total. involved in increased sustainability.

risk management to support the

implementation of more energy The toolbox also contains calculation Technology solutions
efficiency measures, developed tools for Prosumerism, helping Last, but not least, it is of great

and improved in real cases – real building managers to find out the importance to lower the risk of investing

buildings. optimal size of a solar energy power in wrong technology. To make sure

plant as, both from financial and building managers invest in the best

Toolbox for financial calculations energy production perspective. available solutions, more knowledge on
92% of all interviewed building different possibilities is needed as well

managers stated that financial Tools for partnering as confirmation from colleagues that
calculation methods are extremely Investments decisions will of course the solutions performs well.

important when justifying energy be facilitated by funding, green loans

investments, but only half of them or bonds. Financial and technical risks The full toolbox will be presented

found it easy to do or even to can also be lowered by contracting in the EFFECT4buildings final

understand them. Most common way partnership with an external service conference in Krakow in 16th of

for calculations of energy measures company. In the Energy Performance September 2020. Projects working

is pay-back-method, but it does not Contracting (EPC) model results are on similar topics are welcome to join

take aspects of technical lifetime and guaranteed by the Energy Service the conference. ●

profitability demand in consideration. Company (ESCO), making sure that

Conclusions from recalculations of energy savings cover the costs of the

measures has shown that using Net investments. About EFFECT4buildings
present value method or Internal rate Financed by EU Program Interreg

of return, investments with longer The project introduces an improved Baltic Sea Region (European

lifetime will benefit and many more EPC model with contract-based Regional Development Fund) and
measures will be profitable. partnership for the analyses phase. Norwegian Funding. The goal is to

Another very useful tool is the Total The Multi Service Contracting (MSC) implement more energy efficiency
model, based on some of the same measures in public buildings in the

Concept method. When bundling ideas as EPC, includes several Baltic Sea Region. Partners from

several measures into a larger benefits except for energy savings, Sweden, Finland, Norway, Latvia,

investment package, the profitability making investments more effective, Estonia, Denmark, Poland.

www.effect4buildings.se

www.europeanenergyinnovation.eu