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.