The tables below, shows the detailed analysis of the financial performance of various PPP contracts on the basis of the risk adjusted extra returns for the relevant stakeholders and considering the energy efficiency interventions described in the technical section.
Italian Pilot (Montasio) : Detailed comparison financial performance Public Private Partnership (PPP) contracts
Considering the risk adjusted extra returns, the Shared Savings PPP contract is the most remunerative PPP contract to fund energy efficiency intervention for all the involved parties (social housing company, ESCO, tenants, private owners, financial institutions and civil society).
Below we present the financial evaluation of all possible PPP contracts: Shared savings, Guaranteed savings, Direct credit line, Energy supply contract.
| PPP | Social housing company | ESCO | Tenants | Private owners (36%) | Civil Society | |
|---|---|---|---|---|---|---|
|
Shared Savings |
||||||
|
Cost
|
No cost involved |
Is responsible for covering the investment costs using funding provided by financial institutions (debt financing) or by the government (grants). |
No cost involved |
No cost involved |
64% of the refurbishment cost is covered by Government grants |
|
|
Benefit
|
If energy savings are higher than the minimum guaranteed savings, the social housing company gets 35% of the extra energy savings (energy savings – minimum guaranteed savings).
If energy savings are lower than the minimum guaranteed savings, the social housing company gets 0 The energy savings are then directly transferred to the tenants but the social housing company benefits from the increased value of the building after the energy efficiency intervention. |
If the energy savings are higher than the minimum guaranteed savings, the ESCO gets the minimum guaranteed savings + 65% (energy savings – minimum guaranteed savings)
If the energy savings are lower than the minimum guaranteed savings, the ESCO gets all the energy savings
|
Energy savings |
If energy savings are higher than the minimum guaranteed savings, the private owners get 35% (energy savings – minimum guaranteed savings).
If energy savings are lower than the minimum guaranteed savings, the private owners get 0 The private owners benefit from the increased value of the building after the energy efficiency intervention. |
Environmental benefits measured in terms of lower CO2 emissions. |
|
|
Risk adjust extra return
|
Good |
Excellent |
Good |
Excellent |
Excellent |
|
|
Rank |
7 |
9 |
7 |
9 |
9 |
| PPP | Social housing company | ESCO | Tenants | Private owners (36% of the building stock) | Civil Society | |
|---|---|---|---|---|---|---|
|
Guaranteed Savings |
||||||
|
Cost |
Is responsible for covering the investment costs using private savings, crowdfunding, and government grants. |
Is responsible for covering the maintenance and operating costs of the energy efficiency technologies. |
No cost involved |
No cost involved |
64% of the refurbishment cost is covered by Government grants |
|
|
Benefit
|
If the energy savings are higher than the minimum guaranteed savings, the social housing company gets the minimum guaranteed savings + 20% (energy savings – minimum guaranteed savings)
If the energy savings lower than the minimum guaranteed savings, the social housing company gets the minimum guaranteed savings
The energy savings are then directly transferred to the tenants but the social housing company benefits from the increased value of the building after the energy efficiency intervention. |
If the energy savings are higher than the minimum guaranteed savings, the ESCO gets 80% (energy savings – minimum guaranteed savings)
If the energy savings are lower than the minimum guaranteed savings, the ESCO repays the difference between the energy savings and the minimum guaranteed savings. |
Energy savings |
If the energy savings are higher than the minimum guaranteed savings, the private owners get the minimum guaranteed savings + 20% (energy savings – minimum guaranteed savings)
If the energy savings are lower than the minimum guaranteed savings, the private owners get the minimum guaranteed savings
The private owners benefit from the increased value of the building after the energy efficiency intervention. |
Environmental benefits measured in terms of lower CO2 emissions. |
|
|
Risk adjust extra return
|
Very good |
Very good |
Good |
Excellent |
Excellent |
|
|
Rank |
8 |
8 |
7 |
9 |
9 |
| PPP | Social housing company | ESCO | Tenants | Private owners (36% of the building stock) | Civil Society | |
|---|---|---|---|---|---|---|
|
Direct Credit Line
|
||||||
|
Cost
|
Is responsible for covering the investment costs using private savings, crowdfunding, and government grants.
The social housing company is also responsible for the maintenance and operating costs of the energy efficiency technologies.
|
Not involved |
No cost involved |
Are responsible for covering part of the investment costs using funding provided by financial institutions (debt financing) or by the government (grants).
The private owners are also responsible for the maintenance and operating costs of the energy efficiency technologies.
|
64% of the refurbishment cost is covered by Government grants |
|
|
Benefit
|
Gets 100% of energy savings.
The energy savings are then directly transferred to the tenants but the social housing company benefits from the increased value of the building after the energy efficiency intervention. |
Not involved |
Energy savings |
If the energy savings are higher than the minimum guaranteed savings, the private owners get the minimum guaranteed savings + 20% (energy savings – minimum guaranteed savings)
If the energy savings are lower than the minimum guaranteed savings, the privat owners get minimum guaranteed savings
They also benefits from the increased value of the building after the energy efficiency intervention. |
Environmental benefits measured in terms of lower CO2 emissions. |
|
|
Risk adjust extra return
|
Very good |
|
Good |
Very good |
Excellent |
|
|
Rank |
8 |
|
7 |
8 |
9 |
| PPP | Social housing company | ESCO | Tenants | Private owners (36% of the building stock) | Civil Society | |
|---|---|---|---|---|---|---|
|
Energy Supply Contract |
||||||
|
Cost
|
Is responsible for covering a fraction (somewhere between 10% and 50%) of the investment costs using private savings, crowdfunding, and government grants.
The social housing company is also responsible for covering a fraction (somewhere between 10% and 50%) of the maintenance and operating costs of the energy efficiency technologies. |
Is responsible for covering a fraction (somewhere between 50% and 90%) of the investment costs using private savings, crowdfunding, and government grants.
The ESCO is also responsible for covering a fraction (somewhere between 50% and 90%) of the maintenance and operating costs of the energy efficiency technologies. |
No cost involved |
Are responsible for covering part of the fraction (somewhere between 10% and 50%) of the investment costs using funding provided by financial institutions (debt financing) or by the government (grants).
The private owners are also responsible for covering part of the fraction (somewhere between 10% and 50%) of the maintenance and operating costs of the energy efficiency technologies. |
64% of the refurbishment cost is covered by Government grants |
|
|
Benefit
|
Receives a fraction (somewhere between 10% and 50%) of the energy savings.
The energy savings are then directly transferred to the tenants but the social housing company benefits from the increased value of the building after the energy efficiency intervention. |
Receives a fraction (somewhere between 50% and 90%) of the energy savings. |
Energy savings |
Receives part of the fraction (somewhere between 10% and 50%) of the energy savings.
The private owners benefit from the increased value of the building after the energy efficiency intervention. |
Environmental benefits measured in terms of lower CO2 emissions. |
|
|
Risk adjust extra return
|
Good |
Very good |
Good |
Good |
Excellent |
|
|
Rank |
7 |
8 |
7 |
7 |
9 |
Italian Pilot (Boito) : Detailed comparison financial performance Public Private Partnership (PPP) contracts
Considering the risk adjusted extra returns, the Guaranteed Savings PPP contract is the most remunerative PPP contract to fund energy efficiency intervention for all the involved parties (social housing company, ESCO, tenants, private owners, financial institutions and civil society).
Below we present the financial evaluation of all possible PPP contracts: Shared savings, Guaranteed savings, Direct credit line, Energy supply contract.
| PPP | Social housing company | ESCO | Tenants | Civil Society | |
|---|---|---|---|---|---|
|
Shared Savings |
|||||
|
Cost
|
No cost involved |
Is responsible for covering the investment costs using funding provided by financial institutions (debt financing) or by the government (grants). |
No cost involved |
Part of the refurbishment cost is covered by Government grants |
|
|
Benefit
|
If energy savings are higher than the minimum guaranteed savings, the social housing company gets 35% of the extra energy savings (energy savings – minimum guaranteed savings).
If energy savings are lower than the minimum guaranteed savings, the social housing company gets 0 The energy savings are then directly transferred to the tenants but the social housing company benefits from the increased value of the building after the energy efficiency intervention.
|
If the energy savings are higher than the minimum guaranteed savings, the ESCO gets the minimum guaranteed savings + 65% (energy savings – minimum guaranteed savings)
If the energy savings are lower than the minimum guaranteed savings, the ESCO gets all the energy savings
|
energy savings |
Environmental benefits measured in terms of lower CO2 emissions. |
|
|
Risk adjust extra return
|
Very good |
Excellent |
Excellent |
Excellent |
|
|
Rank |
8 |
9 |
9 |
9 |
| PPP | Social housing company | ESCO | Tenants | Civil Society | |
|---|---|---|---|---|---|
|
Guaranteed Savings |
|||||
|
Cost
|
Is responsible for covering the investment costs using funding provided by financial institutions (debt financing) or by the government (grants). |
Is responsible for covering the investment costs using funding provided by financial institutions (debt financing) or by the government (grants). |
No cost involved . |
Part of the refurbishment cost is covered by Government grants |
|
|
Benefit
|
If the energy savings are higher than the minimum guaranteed savings, the social housing company gets the minimum guaranteed savings + 20% (energy savings – minimum guaranteed savings)
If the energy savings lower than the minimum guaranteed savings, the social housing company gets the minimum guaranteed savings
The energy savings are then directly transferred to the tenants but the social housing company benefits from the increased value of the building after the energy efficiency intervention.
|
If the energy savings are higher than the minimum guaranteed savings, the ESCO gets 80% (energy savings – minimum guaranteed savings)
If the energy savings are lower than the minimum guaranteed savings, the ESCO repays the difference between the energy savings and the minimum guaranteed savings. |
Energy savings |
Environmental benefits measured in terms of lower CO2 emissions. |
|
|
Risk adjust extra return
|
Excellent |
Good |
Very good |
Excellent |
|
|
Rank |
9 |
7 |
8 |
9 |
| PPP | Social housing company | ESCO | Tenants | Civil Society | |
|---|---|---|---|---|---|
|
Direct Credit Line |
|||||
|
Cost
|
Is responsible for covering the investment costs using private savings, crowdfunding, and government grants.
The social housing company is also responsible for the maintenance and operating costs of the energy efficiency technologies. |
Not involved |
No cost involved |
Part of the refurbishment cost is covered by Government grants |
|
|
Benefit
|
Gets 100% of energy savings.
The energy savings are then directly transferred to the tenants but the social housing company benefits from the increased value of the building after the energy efficiency intervention. |
Not involved |
Energy savings |
Environmental benefits measured in terms of lower CO2 emissions. |
|
|
Risk adjust extra return
|
Good |
|
Good |
Excellent |
|
|
Rank |
7 |
|
7 |
9 |
| PPP | Social housing company | ESCO | Tenants | Civil Society | |
|---|---|---|---|---|---|
|
Energy Supply Contract |
|||||
|
Cost
|
.Is responsible for covering a fraction (somewhere between 10% and 50%) of the investment costs using private savings, crowdfunding, and government grants.
The social housing company is also responsible for covering a fraction (somewhere between 10% and 50%) of the maintenance and operating costs of the energy efficiency technologies. |
Is responsible for covering a fraction (somewhere between 50% and 90%) of the investment costs using funding provided by financial institutions (debt financing) or by the government (grants).
The ESCO is also responsible for covering a fraction (somewhere between 50% and 90%) of the maintenance and operating costs of the energy efficiency technologies.
|
No cost involved |
Part of the refurbishment cost is covered by Government grants |
|
|
Benefit
|
Receives a fraction (somewhere between 10% and 50%) of the energy savings.
The energy savings are then directly transferred to the tenants but the social housing company benefits from the increased value of the building after the energy efficiency intervention.
|
Receives a fraction (somewhere between 50% and 90%) of the energy savings. |
Energy savings |
Environmental benefits measured in terms of lower CO2 emissions. |
|
|
Risk adjust extra return
|
Very reasonable |
Very good |
Very reasonable |
Excellent |
|
|
Rank |
6 |
8 |
9 |
6 |
9 |
