Attraction of financing for energy efficiency programs
- Financial Consulting
- Investment banking
- Investor relations (IR)
Pro Capital Investment offers a range of services to attract financing for implementation of energy efficiency programs, executed by two main schemes:
- with a fixed schedule of return of borrowed funds
- with a return of borrowed funds according to the achieved effect from implementation of project activities.
Each of these types of schemes involves certain types of funding. In the first case it is raising funds through various lines of credit, in particular from the sort code and special funds, as well as financial leasing, factoring, and forfeiting. The second scheme which has recently been increasingly practiced in many countries, types of financing involve project, energy performance contracting (EPC), as well as a number of other approaches which are based, for example, on the use of public-private partnership.
As part of implementation of energy efficiency measures, our specialists will select a financing scheme optimal for energy efficiency project for your company and a reliable energy service company (ESCO), will analyze the financing program, will determine amount of required financing and will help to attract them by searching for sponsoring organization and preparing all necessary investment documents. At the same time, we provide support for the project at all stages (if necessary, after obtaining required financing as well).
At the moment we can talk about establishment of energy services market in Ukraine. This is largely due to a dynamic growth of price of fuel resources in conditions of lack of appropriate Ukrainian stocks to meet the needs of the domestic economy. Another very serious problem is an ultra-high energy intensity of GDP in Ukraine which, despite a significant reduction of this indicator in 2000-2010, continues to be about twice higher than the global average and is 3-4 times higher than in developed countries. Exacerbation of this problem has brought it to the state level. To solve it, the government declares state support, especially in terms of funding programs (projects) aimed at modernizing heating system in the cities.
Energy efficiency projects organized on the basis of EPA financing have been widely used in the last two decades. The idea of this scheme is that the payments to the contractor (Energy Service Company) shall be covered by the difference in the cost of energy resulting from implementation of project. Therefore, ESCO is interested in maximizing this difference, and hence in an increase in efficiency of its processes and equipment, etc. Working with one contractor is also one of the factors reducing the overall cost of the project. Thus, the project is paying back, as the monetary value of saved resources greatly exceeds the sum of costs for implementation of a set of project activities.