Via EUREC Members, AEE Intec, Copyright: TrustEE
The pace of implementation of CO2 reducing measures in industry is far too slow to achieve ambitious climate targets, despite the great technical and economic potential of energy efficiency and renewable energy based heating systems. Project proposals are often denied due to a lack of affordable financing, or the lack of confidence among industrial customers with regard to innovative energy efficiency measures and regenerative system solutions.
Within the framework of an EU-supported project, TrustEE partners developed an assessment platform for renewable energy and energy efficiency projects that simplifies and streamlines project financing/re-financing for industrial customers, technology suppliers and planners. It also standardizes project documentation and streamlines project evaluation for banks and investors. The tool offers security for financial investors and the business model assigns risk to the party best able to address the risk: e.g., the technical risk remains with the supplier or company installing the measures. This new model improves liquidity for industrial customers and technology providers.
How it works
Technology suppliers and service providers first register and conclude a framework agreement that defines the portfolio, and also includes terms of delivery, payment plans and conditions. Then the registered partners receive a login for the project check platform: http://www.i-match.at
When registered, they can enter project information for example about a planned solar thermal system, a biomass or heat recovery plant for one of their customers. First, the TrustEE platform uses algorithms to expedite the technical and economic assessment and ensure that the systems achieve certain benchmarks. The platform then facilitates credit checks for the industrial customer, designs a tailored payment plan, and outlines the terms of delivery. If the assessment is successful, the technology provider receives a financing commitment, contingent upon the commitment of the industrial customer.
The business model is based on factoring: buying the receivables from the technology supplier. This is made possible via bundling the receivables and offering them to a securitisation special purpose vehicle, which refinances the purchase of the receivables with tradable securities (bonds).
The EU supported project finished in January 2020 and the TrustEE assessment tool now is commercially deployed in Austria with the ambition to expand to other countries in the future.
