From strategy to execution experience in financing energy

From strategy to execution: experience in financing energy efficiency projects Ieva Tetere, Board member of SEB in Latvia 2011. gada 15. marts 1

Main issues for today • To share longer term experience of financing energy efficiency and related projects • To outline the areas of development in order to increase energy efficiency financing 2

SEB – the trusted partner for financial solutions SEB: • a leading Nordic financial institution and one of largest banks in Europe • serving 4 000 private, 400 000 small and medium size and 2500 corporate and institutional customers worldwide • in Latvia - a financial partner for more then 900 000 private and corporate customers • 90% of all new funding in Latvia for 2010 was corporate related • TOP 3 industries in Latvia regarding new lending in 2010: – Wood processing – Agriculture – Manufacturing • SEB in Latvia is nominated as a reputation leader in banking sector for 2010 3

Achievements shape our future ambitions • First apartment house renovation financed by SEB in 2004 • 2004 -2007: 25 loans in amount less then 1 million lats • 2008 -2009: 21 loan in amount of 1. 6 million lats • 2009: ERAF program with 50% co finance • 2010: 33 loans in amount of 2. 2 million lats More than 100 houses have agreement for EU funding and started renovation process, ~60% financed by SEB 4

Success story – Ventspils, Brīvības Street “House keeper” 33/35 municipality owned company Nr. of apartments - 35 Loan - 50 000 LVL (50% by ERAF) Duration - 12 years Done - heat insulation of buildings, change of warm water regulation, heat insulation of drainpipes, maintenance of heating system 5

Success story – Liepāja, Klaipēdas 84 “House keeper” - apartment union “Klaipēdas 84” Nr. of apartments - 60 Loan - 196 350 EUR (50% by ERAF) Duration - 15 years Done - heat insulation of buildings, maintenance of staircase, change of windows and doors for common use areas, renovation of ventilation systems, maintenance of heating system 6

Success story – Ropaži, Rīgas Street 14 “House keeper” apartment union “Pirmā māja” Nr. of apartments - 12 Loan - 67 000 EUR (50% by ERAF) Duration - 15 years Done - heat insulation of buildings, change of windows, maintenance of heating system. 7

Even more – SEB stands for energy efficiency on a broader scale • In 2010 SEB granted 5, 25 million euro for “Kuldīgas siltumtīkli “ - SIA "Kuldīgas siltumtīkli" is a company owned by Kuldīga district municipality - The loan goes for construction of biomass cogeneration electro station - The aim: to increase the production of heating and increase the usage of energy • In 2009 SEB granted more then 2 million euro for farm "Līgo“ - The loan goes for construction of biogas production unit 8

More renovation projects, more questions The main challenge ahead: • To agree on renovation (as at least 60% of inhabitants should agree on this activity) – I take care only about my apartment! • To diminish potential issues/problems regarding: - lack of renovation quality - lack of energy audits quality - lack of procurement quality Suggestion: Need for public discussions and competence sharing: - awareness, - access to financial tools, - process and end quality, - benefits for renovation and related initiatives. 9

Thank you for your attention! 10