FUNDING

FUNDING

The Energy Investment Funding tool deals with broadening the knowledge of the target group on existing energy-investment–related funding sources and mechanisms, other than public funding sources. The tool helps also share the knowledge and experience among project partners on the existing funding mechanisms in their countries, which can help them promote and adapt similar solutions in their countries. It can also facilitate finding sources to finance energy efficiency investments, both public and private ones, in the project partner countries.

HOW TO USE FUNDING IN THE MOST COST-EFFECTIVE WAY

Author: Barbara Wos, Association of Communities and Cities of Malopolska Region, Poland

Conclusions resulting from financing in energy efficiency in relation to local governments and investors:

Verification of grant applications is carried out by the COC - Competition Organizing Institution.

There are a number of substantive criteria that determine the award of points - the more points scored, the greater the chance of funding.

In order for the project to undergo substantive assessment, it must achieve a certain percentage level of points that can be obtained in total (often 30% of the maximum number of points). So it is necessary to analyze the material ranges and adjust the material scope to maximize the use of scoring.

The condition of co-financing is to ensure a reduction of CO2 emissions by at least 30%. The key to the positive effects of both the assessment of applications as well as economic and functional aspects is therefore a properly selected material scope, carefully refined investment implementation details: specialists, audits, equipment, services).

A number of formal conditions must be met, including: Submission of the application on time (with the proviso that the application submitted after the deadline indicated in the competition notice is not considered) Preparation of the application on the applicable form Completeness of application documentation: application and attachments

The scope of the undertaking of comprehensive energy modernization of the building must result from an energy audit and lead to a reduction of final energy consumption by at least 25% by meeting the technical conditions for building partitions.

The design should comply with the so-called a lowcarbon economy plan and an Integrated Territorial Investment strategy.

The maximum level of EU funding in eligible expenditure at project level is 85%, subject to the methodology for calculating the maximum amount of funding - here you can see how much investment in energy efficiency is supported and how much the EU focuses on such modern technologies.

Often projects implemented in public buildings are not eligible for support, in which over 15% of the building's total area is used for business or housing.

Projects are positively assessed only if they meet all the required formal criteria - care for deadlines and appropriate documentation is very important.

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FUNDING SITUATION IN DENMARK

Author: Louise Ellegaard Fich, Gate 21, Denmark

Funding by KommuneKredit in Denmark

KommuneKredit is an association with the purpose to provide funding for municipalities and regions in Denmark

The purpose and possibilities for Kommunkredit is bind by law

KommuneKredit offers loans with low interest rates for municpalities and regions

KommuneKredit can only finance loans for municipal purpose not on an open and competitative market

The terms of the loans are equal for all and do not differ depending on purpose

The loans are funded by issuing bonds on the Danish and international bond market

Green investments can get financed through green bonds within KommuneKredits Green Bond Framework.

Funding obstacles in Denmark

In Denmark there is a construction limit, which sets an upper amount per year, for the municipalities’ investments in construction work

The total amount for the construction limit is decided each year by the state and intends to prevent the public investments from overheating

The public institution Association of Municipalities (KL), decides the construction limit for each municipality, so they alltogether do not exceed the total construction limit

Depositing rules in Denmark supplement the construction limit by ensuring that a municipality set aside funds equally to the amount of a private suppliers running costs when it replaces a municipal construction cost

The depositing rules entails that an EPC project cannot be used as an expense neutral funding model, even though the municipality does not pay off the EPC supplier up-front they must deposit the running costs

It is possible to get an exemption from the depositing rules but that will be assessed based on the individual project

The construction limit and depositing rules means that the municipalities can experience prioritisations between constructing 10 new buildings or completing energy renovation of existing buildings even though loans/funding for projects are available.

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