Financial Tables

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% of the building stock) Financial Institution 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
Offers a loan for funding the energy efficiency project
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.
The financial institution gets the interest rates on loan plus, at maturity, the repayment of the loan itself
Environmental benefits measured in terms of lower CO2 emissions.
Risk adjust extra return
Excellent
Excellent
Very good
Excellent
Very reasonable, better than investing in S&P500
Excellent
Rank
9
9
8
9
6
9
PPP Social housing company ESCO Tenants Private owners (36% of the building stock) Financial Institution Civil Society
Guaranteed Savings
Content
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 maintenance and operating costs of the energy efficiency technologies.
No cost involved
Is responsible for covering part of the investment costs using funding provided by financial institutions (debt financing) or by the government (grants).
Offers a loan for funding the energy efficiency project
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
f 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.
The financial institution gets the interest rates on loan plus, at maturity, the repayment of the loan itself
Environmental benefits measured in terms of lower CO2 emissions.
Risk adjust extra return
Excellent
Excellent
Excellent
Excellent
Very reasonable, better than investing in S&P500
Excellent
Rank
9
8
9
9
6
9
PPP Social housing company ESCO Tenants Private owners (36% of the building stock) Financial Institution Civil Society
Direct Credit Line
Cost
Is responsible for covering the investment costs using funding provided by financial institutions (debt financing) or by the 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.
Offers a loan for funding the energy efficiency project
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.
The financial institution gets the interest rates on loan plus, at maturity, the repayment of the loan itself
Environmental benefits measured in terms of lower CO2 emissions.
Risk adjust extra return
Excellent
Excellent
Very good
Very reasonable, better than investing in S&P500
Excellent
Rank
8
9
8
6
9
PPP Social housing company ESCO Tenants Private owners (36% of the building stock) Financial Institution Civil Society
Energy Supply Contract
Cost
Is responsible for covering a fraction (somewhere between 10% and 50%) of the investment costs using funding provided by financial institutions (debt financing) or by the 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
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.
Offers a loan for funding the energy efficiency project
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.
The financial institution gets the interest rates on loan plus, at maturity, the repayment of the loan itself
Environmental benefits measured in terms of lower CO2 emissions.
Risk adjust extra return
Excellent
Very good
Excellent
Excellent
Very reasonable, better than investing in S&P500
Excellent
Rank
9
8
9
9
6
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 Financial Institution 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
Offers a loan for funding the energy efficiency project
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
The financial institution gets the interest rates on loan plus, at maturity, the repayment of the loan itself
Environmental benefits measured in terms of lower CO2 emissions.
Risk adjust extra return
Very good
good
Excellent
Very reasonable, better than investing in S&P500
Excellent
Rank
8
7
9
6
9
PPP Social housing company ESCO Tenants Financial Institution 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).
Is responsible for covering the maintenance and operating costs of the energy efficiency technologies.
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
The financial institution gets the interest rates on loan plus, at maturity, the repayment of the loan itself
Environmental benefits measured in terms of lower CO2 emissions.
Risk adjust extra return
Excellent
Very good
Excellent
Very reasonable, better than investing in S&P500
Excellent
Rank
9
8
9
6
9
PPP Social housing company ESCO Tenants Financial Institution Civil Society
Direct Credit Line
Cost
Is responsible for covering the investment costs using funding provided by financial institutions (debt financing) or by the 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
Offers a loan for funding the energy efficiency project
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
The financial institution gets the interest rates on loan plus, at maturity, the repayment of the loan itself
Environmental benefits measured in terms of lower CO2 emissions.
Risk adjust extra return
Very reasonable
Excellent
Very reasonable, better than investing in S&P500
Excellent
Rank
6
9
6
9
PPP Social housing company ESCO Tenants Financial Institution Civil Society
Energy Supply Contract
Cost
Is responsible for covering a fraction (somewhere between 10% and 50%) of the investment costs using funding provided by financial institutions (debt financing) or by the 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
Offers a loan for funding the energy efficiency project
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
The financial institution gets the interest rates on loan plus, at maturity, the repayment of the loan itself
Environmental benefits measured in terms of lower CO2 emissions.
Risk adjust extra return
Very reasonable
Very good
Excellent
Reasonable, better than investing in S&P500
Excellent
Rank
6
8
9
6
9