CITYnvest Barriers Tool
The CITYnvest Barriers tool tackles investment barriers when designing your local energy efficiency programs
The barriers guidance tool helps local authorities to overcome specific barriers when designing and implementing their energy efficiency renovation programmes. Common barriers range from low demand from building owners to limited staff resources in the local authority or a lack of Energy Service Companies on the market. Depending on the barrier a local authority faces, the tool recommends specific actions and helps identifying reference models that have dealt with similar challenges.
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| Scheme Decision Criteria | Barrier | Action, if barrier is present | Reference models |
| Implementation Model | Lack of ESCO players on the market |
You need to consider Separate Contractor Based model
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Fedesco, Eandis EDLB, ESCOLIMURG2020, Energies POSIT’IF, Saerbeck, OxFutures, Brixton Energy Co-op, Warm Up North, SPEE Picardie |
| Lack of trust in EPC/ESC contract models | If lack of trust, choose Separate Contractor Based models |
Fedesco, Eandis EDLB, ESCOLIMURG2020, Energies POSIT’IF, Saerbeck, OxFutures, Brixton Energy Co-op, Warm Up North, SPEE Picardie
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Local ESCO market practices do not meet the program level of ambition (e.g. in case of deep retrofit)
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If local ESCO market practices do not meet the program level of ambition, choose Separate Contractor Based models | Fedesco, Eandis EDLB, ESCOLIMURG2020, Energies POSIT’IF, Saerbeck, OxFutures, Brixton Energy Co-op, Warm Up North, SPEE Picardie | |
| Operating Services | Lack of demand from potential beneficiaries (building owners) |
You need to include marketing services in the PDU’s business model in order to increase awareness
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All, except Rotterdam Green Buildings |
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The size of the projects (in terms of energy consumption, energy savings and/or investment potentials) are too small to be economically viable (e.g. in relation to transaction costs or energy savings levels) or too small to be attractive for the supply market
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You should include aggregation services in the PDU’s business model | BERLIN, RE:FIT, Vlaams Energiebedrijf, Fedesco, Energies POSIT’IF, Rotterdam Green Buildings, Milan, ENSAMB, Brixtion Energy Co-op, PadovaFIT! | |
| Limited financial resources available to fund the PDU | You should envisage facilitation services only |
REDIBA, BERLIN, RE:FIT, Vlaams Energiebedrijf, OSER, Fedesco, Eco’Energies, Energies POSIT’IF, OxFutures, Rotterdam Green Buildings, Milan, ENSAMB, Brixton Energy Co-op, EERFS, SUNShINE, PadovaFIT!
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| The Separate Contractor Based model is the only available implementation model | You should envisage integration services |
OSER, Fedesco, Eandis EDLB, ESCOLIMBURG2020, Energies POSIT’IF, Cambridgeshire MLEI, Warm Up North, SPEE Picardie
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| Lack of financial know-how amongst the beneficiaries of the projects | You should envisage providing financial advice services |
REDIBA, BERLIN, RE:FIT, OSER, Fedesco, Eandis EDLB, ESCOLIMURG2020, Eco’Energies, Energies POSIT’IF, Cambridgeshire MLEI, OxFutures, Milan, ENSAMB, Brixton Energy Co-op, SUNShINE, Warm Up North, SPEE Picardie, PadovaFIT!
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The beneficiaries are unable to ensure financing of their projects or financing terms available on the market are inadequate
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The PDU should include financing services into its business model |
OSER, Fedesco, Eandis EDLB, ESCOLIMURG2020, Energy Fund Den Haag, Energies POSIT’IF, Cambridgeshire MLEI, OxFutures, EERFS, SUNShINE, SPEE Picardie, KredEx
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| Ambition/Targets | Difficulty to overcome low level of ambition |
You should look at models that target 50% and/or 75% reduction of energy consumption
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OSER, Eandis EDLB, ESCOLIMURG2020, Energies POSIT’IF, SUNShINE, SPEE Picardie, KredEx |
| Lack of financial resources to fund the projects |
You should select models that are limited to 35% reduction of energy consumption
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REDIBA, BERLIN, RE:FIT, Vlaams Energiebedrijf, Fedesco, Rotterdam Green Buildings, Milan, ENSAMB, | |
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Legal or policy constraints to achieve carbon neutrality
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You should look at models that achieve carbon neutrality | Saerbeck | |
| Funding Vehicle | Lack of own funds to finance projects |
You should select models that use external funding (Financial Institutions, ESCOs, Utility funds)
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All, except Fedesco and Cambridgheshire MLEI, Brixton Energy Co-op and SUNShINE |
| External financiers are not willing or not interested in financing your projects | You should envisage setting up you own Investment fund |
RE:FIT, ESCOLIMBURG2020, Energy Fund Den Haag, Energies POSIT’IF, Cambridgeshire MLEI, OxFutures, EERFS, SUNShINE, KredEx, PadovaFIT!
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| Customer for EPC/ESC projects require one-stop-shop solutions | You should envisage ESCO financing |
REDIBA, BERLIN, RE:FIT, Vlaams Energiebedrijf, OSER, Eco’Energies, Rotterdam Green Buildings, Milan, EERFS, PadovaFIT!
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| Financial instruments |
There are strong requirements to get off-balance or debt deconsolidating solutions in place
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You should look at Renting/Leasing, EPC/ESC financing or Forfaiting as financial instruments | REDIBA, BERLIN, RE:FIT, Vlaams Energiebedrijf, OSER, Eco’Energies, Cambridgeshire MLEI, Rotterdam Green Buildings, Milan, SUNShINE, PadovaFIT! |
| Projects do not deliver the required return on investment | You should look at additional grants as financial instrument |
REDIBA, BERLIN, RE:FIT, OSER, Eandis EDLB, ESCOLIMURG2020, Eco’Energies, Energies POSIT’IF, Saerbeck, OxFutures, Rotterdam Green Buildings, ENSAMB, Warm Up North, SPEE Picardie, KredEx, PadovaFIT!
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Financial institutions are not interested in financing projects or projects are perceived as being non-bankable
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You should look at alternatives such as Equity/Own funds, Grants,Guarantees or EPC/ESC financing | All | |
| There are no own funds available |
You should look at Loans, Bonds, Grants, Renting/Leasing, EPC/ESC financing or Forfaiting
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All, except Fedesco and Brixton Energy Co-op | |
| Staff requirements |
There is no possibility to hire any significant staff to operate the PDU
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You should look at models that have Low Staff requirements | Eco’Energies, Energy Fund Den Haag, Cambridgeshire MLEI, EERFS, KredEx |
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Equity or funding requirements |
There are only limited means available to fund the PDU
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You should look at models that have Low Equity or funding requirements
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Eco’Energies, Cambridgeshire MLEI, ENSAMB, |
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Scalability of the model |
It seems difficult to grow the size of the energy efficiency program in the current context |
You should look at models that are Highly Scalable |
REDIBA, BERLIN, RE:FIT, Vlaams Energiebedrijf, Saerbeck, Rotterdam Green Buildings, Milan, ENSAMB, SUNShINE, Warm Up North, SPEE Picardie, KredEx
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