Can energy efficiency investments become more transparent, predictable and attractive for investors, financiers and project developers? News from the Triple A project

What is the project about? To borrow the project words, energy efficiency projects could play a crucial role in transitioning to the future economy post-COVID19, where sustainable growth will be the centre of attention. But to secure and therefore boost energy efficiency investments, attractive project ideas should be identified properly: Triple A’s standardised methodology allows assessing the risks involved from the first stages of investments generation and pre-selection/ pre-evaluation.

In particular, the Triple-A tools, now available, aim at standardising and increasing the EE financing chain, while offering:

  • Identification of financially-attractive EE project ideas for bankers, funds and other financial institutions.
  • Benchmarking of the EE projects and selection the “Triple-A” EE investments, which merit attention by funding organizations.
  • Linking Triple-A investments ideas with possible financing schemes.

Among the available tools, the Triple A interactive database is a visual representation of the most important risks in energy efficiency financing, with interactive maps and graphs displaying the results of the Triple-A risks assessment on EE investments. The associated report is also available, detailing the design and content of the database and providing descriptions on how to navigate the database.

Next to it, three other tools (2 already available), linked to the three “A”:

✔ How to assess the financing instruments and risks at an early stage? The ASSESS tool is the first step: screens projects towards the requirements from the EU Taxonomy they should comply with, defining if they can GO to a comprehensive Risk Assessment (next stage) or not.
✔ How to agree on the Triple-A investments, based on selected key performance indicators? The next step is the AGREE tool, benchmarking the predicted performance of the EE projects which passed the Assess step. The tool takes advantage of various existing or new Key Performance Indicators to identify the potential Triple-A investments. The benchmarking method is based on a multicriteria classification method, taking into account major Economic, Risk and Environmental, Social and Governance criteria. The candidate project will be classified into one of the following categories: “Triple-A”, “Reserved”, or “Rejected”, according to its performance on the evaluation criteria. If the project results are not as expected, additional tips and suggestions will be provided on how to improve the project idea.
✔ How to assign the identified investment ideas with possible financing schemes? The ASSIGN tool, not yet available, will be a multidimensional platform consisting of different interfaces according to the types of beneficiaries: project developers will be notified if their project has been selected for financing through a specific financing scheme. Financing institutions will get a pool of Triple-A projects. Banks could filter and select projects according to several characteristics such as benchmarking rating, country, sector or other criteria, in order to examine their financing.

A report describes the methodology and process flow for each tool.

Now the project needs you: provide feedback on the tools to further improve them and make them the best fit to your needs!

In the other news coming from the project, read the recent EUSEW event summary: Energy transition: new business models to de-risk investments and kick-start the EU building renovation wave (recording available), read in Dutch about the project and the latest project press release: Post-COVID-19: New Era for Energy Efficiency Investments & Economy Recovery Plans.

Interested and willing to meet partners to find out more? Triple-A will be at the event Sustainable Places 2020, in the “De-risking EE investments” workshop, October 27-30 (digital event).

Finally, a short video showcases in 3 minutes the project scope, methodology and expected results.

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