ALLIES – Activating and Learning from Local Investment in Energy Savings

Project

ALLIES plans to activate investments in cost-effective energy efficiency projects by means of local approaches involving citizens and local businesses as investors, facilitators and beneficiaries. By acting on regional level projects and benefits are made more tangible. Investments can generate steady returns for reinvestment and actually provide citizens with tools to contribute to local economic and environmental sustainability.

The ALLIES concept brings three pillars together with explicit regional focus:

1. B.A.U.M. future fund model (national and regional funds transferable to international level)
2. Energy saving contracting and
3. Cooperative as a social business and means to foster regional development

Our concept builds on the REEG model of regional energy efficiency cooperatives as it has been developed by B.A.U.M. e.V. with governmental support. There are more than a thousand energy cooperatives in Germany to operate renewable energy installations, but they rarely focus on energy savings. Applying the REEG concept, their scope can easily be widened to include energy efficiency. Good guidance is available: www.reeg-info.de

In ALLIES, partners in the implementing countries are about to transfer the German experiences and find appropriate means and financing structures for their respective countries.

Background

ALLIES represents a funding niche for energy efficiency beyond self-financing, bank credit and public finance. The advantages of this financing includes that investments in energy efficiency can be implemented on a balance sheet-neutral basis. This means that no equity is needed. Borrowing is not necessary, which does not worsen the rating. The saved investment funds can be used elsewhere, and energy cost savings can be used right from the start. In addition, the image improves as an energy and climate-conscious organization.

Despite several funding mechanisms in place, e.g. BAFA in Germany, energy efficiency is still lacking. Enterprises are trapped between lowering energy costs and limitations of investments and balances.

Further obstacles are the lack of sensitivity towards energy efficiency issues, poor knowledge on state-of-the-art efficiency technology, bottlenecks in staff and time as well as high demands on cash recovery.

In the implementing countries, Poland and Hungary, the potential of energy efficiency remains largely untapped.