The EBRD is committed to developing more efficient uses of energy within its
countries of operations. The Bank screens both existing and potential projects
to identify possible energy savings. Typical areas where these savings can be
achieved include the upgrade or introduction of:
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measurement and control systems
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process heat recovery
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electrical motors and transformers
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space heating and lighting
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onsite energy generation facilities, particularly those that combine heat and
power generation.
Advantages of energy efficiency investments
If assessed and implemented properly, the returns from energy efficiency
investments can be high and the technical risks relatively low. Energy
efficiency investments can help to reduce energy consumption and may also
improve production. Benefits can also be gained through environmental
improvements and from the demonstration effect on the business community.
More than ever, companies are facing increased competitive pressures to
produce high quality products at comparable or lower cost. In many of the
Bank's countries of operations, energy prices are now close to international
levels. Hence, where energy is a significant cost component, companies will
need to bring energy costs in line with best practice standards. This is where
the EBRD can assist.
How the EBRD can help realise energy saving potential
The EBRD’s Energy Efficiency Team includes a specialist engineer dealing
exclusively with industrial energy efficiency. (This position is funded with
support from the government of Italy.) The EBRD's specialists work with
project teams and with clients to identify energy saving opportunities. These
opportunities are then developed for inclusion in the client’s investment
programme. All Bank clients are eligible for this service. The only
requirements are that there are potential energy savings and that the client
is committed to realising this potential.
There are several steps involved in developing an energy efficiency project as
part of a general loan or investment with the EBRD:
Step 1: Initial assessment
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The Energy Efficiency Team screens all EBRD projects at an early stage of the
project cycle and assesses the potential for energy savings.
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The screening process enables projects with good energy saving potential to be
identified. For each of these projects, the client is then asked to complete a
simple questionnaire.
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The questionnaire requests basic information on energy consumption and usage
patterns. This information enables the Bank to make a more informed assessment
of the potential for energy savings. The Bank uses a general questionnaire for
most projects, but also has tailored questionnaires for the food industry and
property.
Step 2: Initial site visit
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Projects which have good energy saving potential are usually visited by the
Bank’s specialist energy efficiency engineer.
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The Bank’s engineer reviews energy usage and the technologies employed at the
client’s facilities. The Bank’s engineer also meets with management to discuss
how energy is managed and plans for future developments.
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The objective of the site visit is to obtain a detailed picture of how energy
is used throughout the
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clients operations, what potential there is for savings and how management
approaches energy efficiency issues
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In some cases, the site visit provides enough information for the Bank and the
client to agree on the measures required, if any, and the level of support
required by the Bank. In cases where there is broad scope for energy savings,
a more detailed energy audit may be proposed.
Step 3: Energy audit
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The EBRD assists clients to address energy efficiency needs by arranging an
energy audit. This audit is carried out by consultants contracted to the EBRD
and paid for through technical cooperation funds. These funds have been
provided by the Dutch government, the Greek government and through the Central
European Initiative (CEI).
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These services are provided at no cost to the client.
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The scope of the energy audit varies depending on the needs of the client, but
involves a detailed assessment of energy usage, the identification of specific
projects to reduce energy consumption and an assessment of the costs and
benefits of implementing the proposed investments. The client receives a
detailed report of the audit which can be discussed with the Bank and the
consultant.
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The Bank will encourage clients to act on the recommendations of the energy
audit report and will be ready to consider financing the proposed investments
as part of the overall project it is supporting.
Step 4: Project implementation
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The Bank assists clients to help them implement all aspects of energy
efficiency projects.
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The Bank is also able to assist clients to arrange and fund training
programmes for energy managers and other senior management involved in energy
decisions. These training programmes are also supported by funds from the
Greek government and CEI.
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If further assistance is required from the energy audit consultants (for
example with detailed design specification or equipment tendering), the client
will need to pay for this from its own funds. The EBRD will, however, assist
in arranging the appropriate advisory services.
Examples of projects where the Bank has arranged an energy audit and financed
energy efficiency investments can be found in the energy
efficiency showcase pages.
Carbon finance
All energy efficiency projects result in reductions in greenhouse gas
emissions. Where possible, the EBRD facilitates the sale of carbon credits
from its projects. Further details are available on the Carbon
finance page.
Other approaches to implementing and financing energy efficiency
improvements
As well as financing the client to invest directly in energy saving measures,
there are other approaches to financing energy efficiency projects.
ESCOs
ESCOs are described in the energy
efficiency showcase pages and in Financing
ESCOs
(0.1Mb).
Outsourcing
Another approach is energy out-sourcing, where the
client contracts a third party to operate all its energy services and often
takes responsibility for financing and building new energy generation
facilities.
The Bank has recently commissioned a study of the potential for energy
out-sourcing
(0.3Mb) in its countries of operation.
