Environmental Engineering Reference
In-Depth Information
initiatives, the public bodies shall use the model of energy performance
contracts for the increase of the energy performance which must guarantee
the results of energy savings and the latter must be identified and measured;
• must opt for equipment and devices having reduced energy consumption,
when the public bodies buy devices.
As indicated in the SEN the Italian legislator has taken three different ways in
order to achieve the goal of energy efficiency increase:
• the tax deduction;
• the conto termico incentive;
• the white certificates.
7.1.1
The Difficulties for Investments in Energy Efficiency
and the Pending Questions
Finding the resources not to consume more but incentivize and finance the
reduction of the consumption seems to be inconsistent with the way our society
works.
The sponsor of an energy efficiency initiative may encounter difficulties in
finding the resources to finance the energy efficiency initiative and to persuade a
bank to finance its initiative. Firstly, in point of fact, the use of funds for an energy
efficiency initiative may divert resources from the client's core business. Secondly,
converting savings into cash flow in order to enhance the bankability of energy
efficient initiatives is not a simple procedure.
The banks, on the other hand, may question (1) if the prospective client is
reliable, (2) how long the client will carry on its business in a way which is similar
to the current one, (3) to what extent this client will benefit from the energy
efficiency initiative, (4) if during the amortization period of the energy efficiency
initiative the client will have enough cash flow to pay the energy efficiency ser-
vices and (5) if the client has a track record in the energy sector. Furthermore, if
the prospective client is not an ''energy professional'', the bank may also question
the ability of the client to manage an investment in a profitable way, as it may not
conform to the client's core business. In broad terms, the bank may question the
bankability of the prospective client.
Moreover, which kind of security interests may be offered? Obviously there
could be limitation on the creation of security interests over client's movable and
immovable assets since it is likely that the client's assets are already mortgaged
and/or already utilized as a guarantee for other loans granted to the same client.
If the energy efficiency investments benefit from incentives, unfortunately it is
not possible to create a security interest over the mechanism of the conto termico
and over the white certificates (so called TEE) (please see below).
It is not less complicated for the public entities, which may encounter diffi-
culties to invest, to manage complex tenders, to structure complex contracts also
considering that, after structuring the tender, after awarding the tender and after
