Market Assessment for Sustainable Energy Finance, ECONOLER/EBRD

Project description

EcoBusiness For Project Management involvement in this mandate consisted in providing support for activities executions and completion of the following scope of work:

1.        Market opportunities and segmentation:

         Energy and water efficiency opportunities in industrial, agriculture, commercial and residential sectors

         Current status and trends of energy and water consumption in these sectors, benchmarking against Middle East and North Africa ("MENA") region and/or other regions if possible;

         Sources of energy & water supplies to these sectors;

         Energy and water tariff status and trends;

         Overall status of energy/water equipment & technology in use by these sectors;

         Opportunities for energy and water efficiency improvements in these sectors: % of possible improvements, typical investments with typical payback periods and internal rate of return ("IRR") ranges in each sector;

         Market size estimation: Technical potential market, economically viable potential market, ready-to invest market (over the next 3 years);

         Ranking of sectors/sub-sectors (from Low to High) based on:

           economic viability of EE and water efficiency options;

           technology availability; and

           end-user readiness (willingness to borrow).

2.       Technical capabilities in the market for energy and water efficiency

         Leading auditors/engineering consulting firms that can serve the identified sectors (brief profiles with contacts and their project examples if available);

         Leading ESCOs operating in the country/region (brief profiles with contacts and their project examples if available);

         Leading vendors operating in the country/region (brief profiles with contacts and their equipment supplies);

         Technical capacity and financial capacity of these auditors, ESCOs, vendors.

3.       Suitability of framework conditions

         A general description of components required for a systematic approach to create demand for EE and

         RE projects in accordance to policy, regulatory, legal and institutional framework;

         A review of international best practices to become reference for suitable local application or local market adaptation.

4.       Identification of major market barriers.

         Major reasons, perceived or real, that prevent, or may prevent, implementation or financing of EE and/or RE projects (i.e., identify which components in market development are missing and for what reasons);

         Appropriate actions will be recommended to bridge the gap and overcome identified bottlenecks

         Suitable criteria will be defined which will be pre-conditions for engaging financing of EE and RE projects within the FI markets (including commercial banks, leasing companies and MFIs) in Egypt.

5.       Other programs in the markets

         Any current government/donor T A programs supporting EE and/or water efficiency in the market (Brief description, Contacts, Lessons learnt from them if available);

         Any financing schemes for EE and water efficiency in the market (either from commercial banks, donors, or government) - (Brief description, Contacts, Lessons learnt from them if available).

6.      Financial sector's readiness

         FIs' attitude toward sustainable energy financing/climate financing, and their willingness to test various segments of SEF market;

         Leading lenders (commercial banks, leasing companies, microfinance institutions) in the market that could be interested in SEF business, and should be targeted by IFC SEF program;

         Prioritized support needed for these FIs to enter SEF business.