Deutsche Bank - ESCO Finance in Europe PDF

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Deutsche Bank

European Energy Efficiency Funding


Facilitation of Energy Services and the ESCO market in Europe

April 07, 2011

Ron Herbst [email protected]

DBs commitment to Energy Efficiency


Deutsche Bank has an established three pillar climate change strategy:
1) As a climate researcher and policy advisor, we have built a reputable research platform and engage regularly with policymakers around the globe;

2) As an eco-efficiency manager, we are reducing our own carbon footprint on our way to carbon neutrality by 2012;
3) As a financial intermediary, we offer products that can steer investments into lowcarbon companies, as a trader we provide liquidity in the carbon market, and as a capital market actor, we can raise debt and equity capital to fund clean tech companies.

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Challenges for EE/RE Finance Bottlenecks hindering EE & RE project realisation

Missing awareness/focus Demand for financing Access to financing Limited technical knowledge Regulatory constraints
Several studies and country analyses identify a wide range of reasons for the lack of projects in the public sector DB believes that missing demand for financing is the most critical barrier for EE and RE project realisation rather than missing access to financing

EE/RE projects

Problems in getting access to financing

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Challenges for EE/RE funding for ESCO's Competing programs


Share of countries of each (sub-)group with a respective program in place
20 67% 63% 30%
73%

60%

40%

58%

67%

17%

16

4 7

Number of countries

12

4 1

Subsidies only

Soft loans only

Both

3 1 10

3 4 3 1 3 2 3 1 1

4 0

Commercial Residential Transport Commercial Residential Transport Commercial Residential Transport / Public buildings companies / Public buildings companies / Public buildings companies buildings buildings buildings EU 27 EU 15 New member states

Source: Enerdata (2009)

Subsidy and soft loan programs might limit the potential impact of additional market based lending
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DBs competitive advantages

DB is experienced in...

Resulting advantages

... fund management of sustainable investment structures

Deep know how in sustainable assets Access to investor pool Excellent reporting process Reduction of risk/costs charges to EE/RE Funds

... Energy Efficiency and Renewable Energy

Strong track record and know-how in EE and RE projects Internal and external capabilities to provide services in measurement and verification of energy savings and CO2 reductions as well as technical assistance (TA) Public Sector / FI Coverage offering long-term relationships to Wide network of industry partners to source projects

... accessing beneficiaries

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Questions

Disclaimer

Deutsche Bank AG 2011.


This document (the Document) has been prepared by Deutsche Bank AG and/or a subsidiary of Deutsche Bank AG (collectively: Deutsche Bank) exclusively for the benefit and internal use of any party involved with administering and/or reviewing the t ender for the European Energy Efficiency Fund (the Client) in order to indicate, on a preliminary basis, the feasibility of a possibl e transaction or transactions. The Document may only be used for these purposes. The Client is not permitted to duplicate the information provided in this Document and to communicate the received information of this Document to any third party without the prior written consent of Deutsche Bank. The Document is incomplete without reference to, and should be viewed solely in conjunction with, any potential oral briefing provided by Deutsche Bank. The Document is neither intended to serve as legal or tax advice nor should it replace it. The information in the Document reflects prevailing conditions and Deutsche Bank's views as of this date, all of which are subject to change. In preparing the Document, Deutsche Bank has relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or received by or on behalf of the Client. The analyses contained in the Document are not and do not purport to be appraisals of the assets, stock, or business of the Client. The information in the Document does not take into account the effects of a possible transaction or transactions involving an actual or potential change of control, which may have significant valuation and other effects.

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