Information financial
institutions often lack a full understanding of energy efficiency technologies
which are almost always investments with long repayment terms;
Commercial Lenders are risk averse
to this type of credit exposure while investment funds have a greater appetite
for risk but focus on large volume transactions, hence
Energy Efficiency projects
that would benefit small towns and rural communities require specific and
unique knowledge, expertise and funding sources.
Solutions
Energy
Audits provide the necessary information on current consumption
patterns and establish baselines for future demand and consumption with
IT-based monitoring and controlling systems whose software gathers and
elaborates data coming from smart meters.
ESCos are energy and water service/savings
companies that provide design, implementation and financing of energy/water
saving projects via retrofits, conservation, infrastructure outsourcing, power
generation and supply, as well as risk management as they share in the risk
borne by the project beneficiary as the funding source buys energy savings
receivables resulting from the project.
Project
Tasks include: identification and evaluation of energy-saving
opportunities; developing engineering designs and specifications; project
management from design to installation to monitoring; energy supply at the best
costs; funding; staff training and ongoing maintenance services; guarantees
that savings cover project costs; understanding and applying of energy
standards, laws and incentives.
Energy
Performance Contracts contain risk allocation, cash flow
segregation, financial instruments and controls with the appropriate management
information systems.
Economies
of Scale and larger volume finance transactions are achieved by
linking with similar size and type projects in other small towns and rural
communities.