Engerati’s Adam Malik discusses with Panama Bartholomy, Director of ICP Europe, the challenge of attracting investment into building energy efficiency projects. Bartholomy outlines the certification programme that allows global investors to know that forecasted energy savings will be achieved.
On behalf of the Investor Confidence Project, I am excited to announce a new partnership with the Green Business Certification, Inc. (GBCI) to create a scalable platform that will establish ICP as the global underwriting standard for energy efficiency projects.
I want to personally thank our many stakeholders for helping us reach this critical milestone. It’s one thing to embrace the idea of improving confidence in the performance of energy efficiency projects. It’s another thing entirely to do the hard work necessary to make it happen. ICP’s working group members, Ally Network, Investor Network, Certified Providers, partners, and other stakeholders have made this possible.
Our work together over the past three years has brought ICP to a point where it will now become part of GBCI’s world-renowned portfolio of building certifications and professional credentials and certificates, including the Leadership in Energy and Environmental Design (LEED) green building rating systems, the PEER standard for power systems, the WELL building standard, the Excellence in Design for Greater Efficiencies (EDGE) program, the Sustainable Sites Initiative (SITES®) and the Global Real Estate Sustainability Benchmark (GRESB).
As ICP has continued to gain adoption in both the US and Europe, this new partnership represents a critical and exciting step forward. Starting in the new year, GBCI will assume responsibility for administering the ICP system and will carry forward standards development, credentialing, training and certification to establish ICP as a key component of the GBCI portfolio.
GBCI brings global staffing resources, systems, and relationships that will strengthen the brand and expand the reach of ICP, and enable us to achieve a true, worldwide standard to unlock the potential of energy efficiency. We could not ask for a better partner in this effort.
The core ICP team, who you are used to working with, will continue to operate as part of GBCI and little will change from an operational perspective. The remainder of this year we will be working with EDF and GBCI to define future governance and undertake long-range strategic planning.
All of you, as our key stakeholders, partners, and contributors, have been a huge part of ICP’s success and your continued input and support is critical. We will keep you all in the loop as more details come to light.
Thank you for all your contributions to date, and consider this the start of a new and exciting chapter for ICP. Onwards!
Environmental Defense Fund’s Investor Confidence Project (ICP) recently announced Pacific Gas and Electric (PG&E), the largest utility in the United States, has received approval from the California Public Utilities Commission to accelerate energy efficiency retrofits in existing buildings by providing interest-free loans to projects that follow ICP’s rigorous protocols. ICP Protocols define industry best practices for energy efficiency project development and a credentialing system that includes third-party validation.
“Together, ICP and PG&E are welcoming a new era of market-driven energy efficiency performance,” said Matt Golden, Project Director for EDF’s Investor Confidence Project. “By establishing a series of benchmarks and best practices for the retrofitting of existing buildings, ICP slashes transaction costs, accelerates project timelines, and shows a clear path to profitability for the finance and performance contracting sectors.”
Customers participating in PG&E’s On-Bill Financing program, which provides interest-free loans for energy efficiency projects, can now make upgrades based on measured energy savings via SmartMeter™ technology. For this new pilot, customers will work with energy performance contractors who use ICP’s Investor Ready Energy Efficiency™ (IREE) certification. This certification brings rigorous measurement and verification metrics to energy efficiency retrofit projects, standardizing the way such projects are developed and brought to market — and making them more attractive to investors and building owners alike.
PG&E’s On-Bill Financing program offers qualifying businesses interest-free loans ranging from $5,000 to $100,000, or up to $250,000 for government agencies. Supporting the energy efficiency provisions of recent California state legislation Assembly Bill 802, this new On-Bill Financing pilot could increase investment in energy efficiency retrofits across California, and provide a model for similar efforts in other states.
“Standardization is key to attracting the capital necessary to meet energy efficiency’s true potential, achieve climate targets, and generate financial returns,” said Andy Darrell, chief of strategy for global energy and finance at EDF. “PG&E’s new pilot with EDF’s Investor Confidence Project is a step toward making the vision of bringing energy efficiency to market a reality.”
EDF’s Investor Confidence Project, which came to fruition in 2014, is also running a pilot through the New Jersey Board of Public Utilities (NJBPU), and is the standard for property-assessed clean energy loans (PACE) in the state of Texas. Additional ICP programs for building owners, investors, and performance contractors exist in a half-dozen other states in the U.S. and across the European Union.
For more information on the Investor Confidence Project, visit www.EEperformance.org.
On August 11th, ICP will team up with PG&E and Joule Assets to host an exciting live event: Opportunities in California’s Emerging Energy Efficiency and Building Automation Markets
California's energy efficiency market is evolving with the integration of programs and mechanisms that are enabling a shift towards pay-for-performance models and incentives. The event's seminar and networking lunch will provide powerful tools and information for successfully navigating the state's changing approach to generating and funding energy efficiency. The event will feature panel discussions with industry leaders including Rich Chien (SF Environment / BayRENaffiliated), Al Gaspari (PG&E), Matt Golden (ICP), Todd Quayle (CA Electric Supply), Dennis Quinn (Joule Assets), Brian Renehan (ARUP), and others.
The first panel will examine upcoming changes in the California regulatory landscape and implications for stakeholders. The following panel consists of program sponsors and service providers who are on the front lines of meeting sustainability and efficiency goals and will discuss the impact of shifting incentive programs and additional code requirements, barriers to project completion, emerging partnership models including readily available and accessible financing alternatives and case studies of demonstrated success.
The event is already filling up, so please REGISTER soon for the event which will take place on Thursday August 11th (please register by August 9th) at 8:30am and will include lunch and a lunchtime networking session. The location will be in San Francisco at DPR Construction, 945 Front Street. More information is available here.
The Investor Confidence Project (ICP) is pleased to release a new and enhanced second version of the ICP Targeted Commercial and Targeted Multifamily Protocols. Once again, we would like to thank our vast network of stakeholders in both the United States and European Union for the thoughtful feedback through this process.
This 2.0 version of the Targeted Protocols incorporates a number of key improvements including:
The Targeted Protocols strike a balance between engineering rigor and efficiency to allow ICP standardization of very simple projects with limited measures and interactivity. This version of the protocol incorporates suggestions that focus on making the protocol even easier to utilize and implement. Relevant changes from this protocol will be applied to the ICP Standard and Large protocols in the near future as ICP’s Technical Forum turns its attention to revising other protocols. If you are already a member of the ICP Technical Forums - stay tuned.
If you would like to be involved in the on-going development of the ICP Protocols and ICP System, please sign up!
Help us develop the dictionary for financing energy efficiency
Institutional investors, rating agencies, and markets for secondary transactions will demand volumes of normalized data to become confident that the industry can deliver results.
The EDF Investor Confidence Project, working with LBNL, is creating a specification for a standard XML dataset based on the DOE Building Energy Data Exchange Specification (BEDES) for the full-lifecycle of an energy efficiency retrofit project.
This important advance will allow for a diverse and efficiency marketplace where data can easily be exchanged from project developers to a wide range of investors, and a standard data specification can lead to reliable actuarial data on energy efficiency performance.
While this may sound a bit "wonky," the result will be a standard dictionary of terms that will allow for a much more streamlined approach to communicating important project level information to investors and other stakeholders who can analyze this data to understand energy efficiency results and make better decisions.
ICP would like to invite all interested stakeholders to help develop the ICP Data Specification. This effort is already underway, and a DRAFT data spec will be provided to working group members.
If you would like to be involved in this effort, please register to become a member of the new ICP Data Technical Forum. The first Technical Forum meeting will occur on May 3rd at 11am PDT / 2pm EDT.
Feel free to contact us with any questions about the program or ICP.
Finance for Resilience (FiRe), a platform designed to crowdsource and champion new ideas to accelerate finance for clean energy, low-carbon infrastructure, and sustainable cities, recently hosted over 1000 energy-sector and finance leaders at the Bloomberg New Energy Finance (BNEF) Future of Energy Summit. At this summit, eight vetted finalists were featured in a competitive pitch process that resulted in the selection of four 2016 FiRe winners including EDF's Investor Confidence Project.
Andy Darrell, Chief of Strategy for the EDF Climate and Energy Program, representing the Investor Confidence Project and gave this clear, concise, and winning explanation of why ICP is transformative to cities and energy efficiency:
ICP to Help Open Up €100 Billion Energy Renovation Market in Europe
Environmental Defense Fund’s Investor Confidence Project Europe (ICP Europe), supported by the European Commission’s Horizon 2020 programme, today released a robust set of project guidelines to facilitate investment in the building energy renovation market. Building owners, project developers, finance and energy service providers, insurers, local authorities, and utilities all stand to gain from the ICP system, which offers transparency and accountability to the energy efficiency market by standardising how projects are developed, maintained, and measured.
Only half of the estimated €60 – 100 billion investment needed annually to achieve Europe’s 2020 building energy efficiency targets is being met, according to the United Nations Environment Programme. ICP Europe’s new protocols aim at narrowing this gap significantly by enabling investment for building energy renovation.
In collaboration with industry stakeholders and with support from philanthropic donors, the Investor Confidence Project developed its ICP Europe Protocols to define European best practices for predicting energy savings, optimising performance, and monitoring the results of energy efficiency investments. These protocols enable the acceleration of energy efficiency investments and the emergence of a robust and thriving commercial renovation sector by increasing confidence in the engineering fundamentals and financial returns of projects.
“We are happy to fund Investor Confidence Project through the Horizon 2020 programme. It has the potential to transform the market by making building energy retrofits a standardised product for the finance industry,” said Vincent Berrutto, Head of the Energy Unit at the European Commission’s Executive Agency for Small and Medium-sized Enterprises. “This will contribute to reducing transaction costs and make finance more affordable.”
“We are involved in the Investor Confidence Project Europe for purely business reasons: we believe it is a necessary step to unlock the capital our sector requires to meet Europe’s energy goals,” said Stephen Barker, Head of Energy Efficiency and Environmental Care at Siemens in the United Kingdom.
“The ICP Europe project is key to put in place the right framework in order to unlock the financial stream needed to achieve the cost-effective potential of energy savings which exists in the buildings sector, therefore unleashing the multiple benefits linked to building renovation,” added Adrian Joyce, Secretary General of EuroACE.
“For all stakeholders, a clear positioning of the values and benefits of Energy Performance Contracting, together with project financing represent the most crucial issues. The ICP Europe Protocols structure the necessary data, which in turn enables the underwriting and facilitates the management of energy performance risks. This is a welcome support for the development of the European Energy Performance Contracting market with the longer term goal of reaching maturity”, said Volker Dragon, Chairman of eu.esco.
“We are honored to partner with public and private sector leaders in Europe to help accelerate a global asset class for energy efficiency,” said Andy Darrell, Chief of Strategy Global Energy and Finance, Environmental Defense Fund. “Wasting less energy is an essential step to prosperity with less pollution: the Investor Confidence Project can help bring that future within reach for families, businesses, communities and cities across Europe.”
ICP Europe has forged strategic alliances with the financial, real estate, and efficiency sectors to develop project origination and underwriting standardisation through its protocols, which help to reduce transaction costs and accelerate deal flow for building renovation projects. ICP has attracted interest from the Energy Efficiency Financial Institutions Group, (including Siemens Financial Services, Deutsche Bank, ING, Allianz, and BNP Paribas) which cited investor confidence as the top priority for transforming the energy efficiency market.
“Governments and NGOs have for years been talking about how energy efficiency is the low hanging fruit that can bring a healthy return on investment. But, despite the actions of a few market leaders, investing in it is not as easy as it’s made out to be – or everybody would be doing it,” said Dr. Steven Fawkes, Senior Advisor for ICP Europe and a member of the Investment Committee of the London Energy Efficiency Fund with 30 years of experience in the energy efficiency sector. “With the release of the first six renovation protocols, ICP Europe is helping energy efficiency become a standardised product and, thus, an indispensable part of every institutional investor’s portfolio.”
Interested parties are invited to contribute to ICP Europe’s efforts through the Technical Forum and help make energy efficiency a global asset class by joining the ICP Europe Ally Network.
New Jersey’s Clean Energy Program (NJCEP) is launched and will incorporate the Environmental Defense Fund (EDF)’s Investor Confidence Project (ICP) energy efficiency protocols into the state’s Pay for Performance (P4P) program as an alternative compliance path.
The Pilot is designed to assess the benefits of adopting ICP protocols for NJCEP’s commercial and industrial projects with a goal of:
The program is currently accepting projects into the P4P/ICP Pilot.
Program Offerings and Incentives
The ICP Pilot will offer up to $35,000 of additional incentives to qualifying Investor Ready Energy Efficiency™ certified projects and conducting measurement and verification.
If you are a credentialed project developer or part of the ICP Investor Network, we would love to help you get involved in this exciting new opportunity. Please contact us and we would be happy to discuss next steps, and facilitate introductions.