Table 5.1 Key Characteristics of the Public Sector Energy Efficiency Financing Options in Kosovo Context – Budget Financing Private ESCOs & with Capital EE Revolving Dedicated Public Risk-Sharing Public or Super Performance Characteristics Recovery Fund Sector Credit Line Program ESCO Contracting Type of Financing Loans and TA; may Loans, TA, ESAs TA Guarantees, TA Loans Loans include some grants Public Entities Served* I, II and III I, II and III I only I and III I, II and III I and III Management and Project Implementation of directors IFI, participating IFI, participating Board of directors IFI, participating Governance Unit (PIU) within MOF financial institutions financial institutions financial institutions Fund management team Project Development By PIU Fund management Participating financial Participating financial Management team of Private ESCOs team institutions institutions public or super ESCO Project Implementation By Type I municipalities Type I municipalities; Type I municipalities Type I municipalities and Management team of Private ESCOs and Type III central Type III central Type III central entities public or ESCO entities entities PIU may implement for Fund Mgmt. Team via Type II & some Type III ESA for Type II and some Type III Easy to implement Addresses needs of Can leverage Can leverages Can address needs Can address needs Advantages Analogous to some all three types commercial financing commercial financing of all three types of all three types existing models Multiple windows Existing credit lines Existing guarantee Multiple windows to Can leverage Can address all (including ESA) to provide experience programs provide address financing commercial types address financing some relevant needs and evolving financing needs and evolving experience capacity of capacity of municipalities municipalities Requires capable PIU Needs new Cannot address Cannot address Need the creation of Need a mature Limitations Sustainability not legislation for needs of Type II needs of Type II new organizations ESCO industry assured implementation municipalities municipalities capable ESCOs need to of Type Need a strong and Only serves Only serves management team have borrowing municipalities & some capable Fund municipalities or municipalities or capacity Type III may not be Management Team ESCOs that have that have borrowing easily met borrowing capacity capacity Can be Implemented under Yes No Yes Yes Yes, but requires Yes Current Regulations? creation of a new company Source: Authors * Types of public entities: I Creditworthy public agencies with their own budgets; II Public agencies without their own budgets, having poor credit, and/or little or no – – capacity to implement projects; III Central government Entities. –
Table 5.1 – Key Characteristics of the Public Sector Energy Efficiency Financing Options in Kosovo Context Characteristics Budget Financing with Capital Recovery EE Revolving Fund Dedicated Public Sector Credit Line Risk-Sharing Program Public or Super ESCO Private ESCOs & Performance Contracting Type of Financing Loans and TA; may include some grants Loans, TA, ESAs TA Guarantees, TA Loans Loans Public Entities Served* I, II and III I, II and III I only I and III I, II and III I and III Management and Governance Project Implementation Unit (PIU) within MOF of directors Fund management team IFI, participating financial institutions IFI, participating financial institutions Board of directors IFI, participating financial institutions Project Development By PIU Fund management team Participating financial institutions Participating financial institutions Management team of public or super ESCO Private ESCOs Project Implementation By Type I municipalities and Type III central entities PIU may implement for Type II & some Type III Type I municipalities; Type III central entities Fund Mgmt. Team via ESA for Type II and some Type III Type I municipalities Type I municipalities and Type III central entities Management team of public or ESCO Private ESCOs Advantages Easy to implement Analogous to some existing models Can address all types Addresses needs of all three types Multiple windows (including ESA) to address financing needs and evolving capacity of municipalities Can leverage commercial financing Existing credit lines provide experience Can leverages commercial financing Existing guarantee programs provide some relevant experience Can address needs of all three types Multiple windows to address financing needs and evolving capacity of municipalities Can address needs of all three types Can leverage commercial financing Limitations Requires capable PIU Sustainability not assured of Type municipalities & some Type III may not be easily met Needs new legislation for implementation Need a strong and capable Fund Management Team Cannot address needs of Type II municipalities Only serves municipalities or ESCOs that have borrowing capacity Cannot address needs of Type II municipalities Only serves municipalities or that have borrowing capacity Need the creation of new organizations capable management team Need a mature ESCO industry ESCOs need to have borrowing capacity Can be Implemented under Current Regulations? Yes No Yes Yes Yes, but requires creation of a new company Yes Source: Authors * Types of public entities: I – Creditworthy public agencies with their own budgets; II – Public agencies without their own budgets, having poor credit, and/or little or no capacity to implement projects; III – Central government Entities.
108848-ESM-P157135-PUBLIC-EE-Options-Paper-Kosovo-ENGLISH.docx