Page 45 - European Energy Innovation - winter 2018 publication
P. 45
Winter 2018 European Energy Innovation 45
DISTRICT HEATING
European Bank of Reconstruction Public-Private Partnerships to into an agreed financing plan and
and Development. Within four years, Accelerate Investment new business model and leading
we have tripled our partners, while The majority of new district energy the project to market with a US$9.8
increasing the number of pilot investment involves the private million investment loan from the
cities committed to implement sector. That is because district energy EBRD.
district energy six-fold with the is good for planet and pocket, like
accompanying amount of investment many energy efficiency investments. The retrofits increased the share
and carbon emissions reductions. of renewables by 75%, slashed CO2
On average, district energy projects emissions by 91%, improved air
And more is coming. make returns from 12 to 20%, break- quality, and saved US$1 million a year
even in 2 to 8 years, providing steady in reduced fuel use. The utility has
When we started our work in annual revenues over the long term. gone from a negative balance sheet
countries like India and Chile, for to making US$1.5 million in annual
example, district energy was not on But to really take advantage, we need revenues.
the political agenda. to address upstream barriers and
make it easier for the private sector As you can imagine, the utility is
Today India has included district to invest. happy, the city is happy, and so are
energy under its National Cooling the taxpayers.
Action Plan to phase down hydro- The Initiative’s model encourages
fluorocarbon (HFC) refrigerants. We investment by partnering early in To sum up, acting on heating and
are working with the city of Thane/ market development to prepare cooling through modern district
Mumbai, among several others in India, financially sound projects. In Banja energy can take an enormous
to determine a tendering strategy for Luka, this approach unlocked US$22 bite out of climate change, bring
two district cooling projects, along million in project finance to upgrade other benefits across sustainable
with a 20-year city wide plan of district the city’s 35-year old network. development, and support healthy
cooling action plan. and green bottom lines – but it can
The Initiative worked alongside the only be done through partnership.
Looking to scale, we are designing European Bank for Reconstruction
a national programme together and Development (EBRD) from the Europe’s capacity to lead the energy
with Energy Efficiency Services outset to ensure that plans and transition through innovation and
Limited, the largest publicly-owned assessments conform to finance leadership is vast and the call to
ESCO in India, including a US$200 providers’ requirements. The Initiative accelerate the energy efficiency
million revolving fund to leverage also worked with the CTCN, private revolution is clear – we hope you join
investments in district cooling worth sector, local stakeholders, and the us in this urgent mission.
US$2.8 billion. city authority to build consensus and
trust on planned interventions. *District Energy in Cities Initiative,
Chile, meanwhile, is prioritizes district a global network of 46 partners
heating under its 2018 Presidential Engaging relevant and diverse accomplishing energy efficiency
Plan and its National Air Quality Plan. stakeholders from the beginning projects in 36 cities across 14
Ten Chilean cities have prepared proved vital in turning uncertainty on countries, housed in UN Environment,
district energy project assessments the district heating network’s future Paris office. l
and the Ministry of Energy recently
created a specialized district energy
unit dedicated to support this project
pipeline to investment, employing
Initiative tools and methodologies.
We achieve such scale by For further information please contact:
understanding that demonstration
projects shift markets, creating a Sophie Loran, Communications Officer, Energy & Climate Branch,
replicable approach. The Initiative United Nations Environment Programme
works with cities until we get to a E-mail: sophie.loran@un.org, Tel: +33144374283
tipping point that can drive national
policy change. Then we set up a
national delivery unit to support roll-
out nationwide.
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