Standardisation of energy efficiency projects the key to unlocking private finance.
Local authorities and consultancies planning heat network and street lighting projects are being urged to partner with the Investor Confidence Project in order to stand a better change of securing funding at lowest cost.
The Investor Confidence Project (ICP) has developed protocols that enable standardisation of documents and processes for energy efficiency projects.
The protocols make projects bankable for investors, which in turn enables aggregation of projects to unlock vast pools of capital to flow into energy efficiency projects.
The ICP protocols initially focused on buildings. Last year, ICP Europe was awarded further EU funding to focus on street lighting and district energy. Now, with draft protocols in place, it seeks early adopter projects.
Steven Fawkes is a senior advisor for ICP Europe. He says local authorities and developers that come forward will receive technical assistance that give the projects a better chance of progressing.
“Using ICP reduces project risk, which ultimately reduces the cost of money. We have worked closely with [insurer] HSB, part of Munich Re, which insures project performance. HSB has stated publicly that any project that is developed via ICP, automatically qualifies for its insurance,” Fawkes told The Energyst. “That translates to a lower premium – any funder will be happier.”
In future the ICP protocols may be developed to encompass wider infrastructure projects. But for now, Fawkes says the group is keen to hear from local authorities and developers within district energy and street lighting sectors.
Find out more about ICP Europe here.
Related stories:
Investor Confidence Project protocols for building renovation launched
Investors with €1bn to spend on energy efficiency seek projects
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