- Extending the existing business line of surety transactions between private sector actors to the energy field, where this product is not frequently used.
- Strengthen the relationships with existing technology providers
- Contributing to sustainability and the promotion of climate change solutions.
The ESI model
and it's elements
The ESI model includes financial and non-financial elements designed to work together to reduce the risk for firms to invest in energy efficiency and create trust and credibility among key actors.
The model consists of
5 main components:
#01
STANDARISED CONTRACT
A standardised, simplified contract, sets a clear and transparent framework for negotiations between technology providers offering their efficient solution, and their final clients,. It defines the energy savings commitment of the technology provider and how these savings are measured, validated, guaranteed and insured.
#02
VALIDATION
An independent technical validation process is put in place to overcome the perceived high- risk regarding the performance of energy efficiency projects. A credible validation entity evaluates the capacity of the project to deliver the promised energy savings, verifies the installation, and acts as an arbitrator if required.
#03
ENERGY SAVINGS
INSURANCE
With a risk coverage product (typically a surety bond), companies investing in energy efficiency are insured against their technology provider failing to fulfil the contractual obligations regarding energy savings. The insurance creates trust in energy efficiency and also reduces the credit risk of the loan.
#04
FINANCING
Existing financial instruments, such as green loans, or new financing products can be linked to energy efficiency projects using the ESI model. This can result in competitive credit conditions, suitable tenors and support to access collateral, which can help smaller customers in particular, to access financing for energy-efficient technology solutions.
#05
ONLINE PLATFORM
To facilitate the exchange of information and documents between stakeholders, an online platform has been developed using blockchain technology. It is a web-based portal, accessible via a secure password, which records each step of the process, providing perfect transparency on every operation while guaranteeing users’ privacy and control over data.
Step-by-step guide
Step 6
Insurance
Coverage:
Coverage:
If the savings are not achieved, and the technology provider is not able to respond to their contractual commitment, the insurance steps in to cover the promised savings.
Step 1
Preparation
phase:
phase:
An energy-efficient technology provider offers a project, with the promised energy savings guaranteed. The ESI elements and each party's responsibilities are described in the simple, standardised contract.
Step 2
Contract
activation:
activation:
A third-party validation entity evaluates the project’s energy savings. The insurance company covers the validated energy savings and the contract is activated.
Step 3
Implementation
phase:
phase:
The technology provider instals the new energy-efficient system and the validation entity verifies and validates that the installation is in accordance with the contract.
Step 4
Operation
phase:
phase:
The operation of the new equipment results in reduced energy costs, improved performance, higher productivity, and sustainability. Maintenance services by the technology provider ensure that the equipment is operating optimally.
Step 5
Savings
Monitoring:
Monitoring:
The energy savings are measured and annually reported by the technology provider via a simple online system, where they are checked and can be approved by their clients. In the case that there are disagreements on the savings achieved, the validation entity steps in and acts as an arbiter.
Step 6
Insurance
Coverage:
Coverage:
If the savings are not achieved, and the technology provider is not able to respond to their contractual commitment, the insurance steps in to cover the promised savings.
Step 1
Preparation
phase:
phase:
An energy-efficient technology provider offers a project, with the promised energy savings guaranteed. The ESI elements and each party's responsibilities are described in the simple, standardised contract.
Step 2
Contract
activation:
activation:
A third-party validation entity evaluates the project’s energy savings. The insurance company covers the validated energy savings and the contract is activated.
Step 3
Implementation
phase:
phase:
The technology provider instals the new energy-efficient system and the validation entity verifies and validates that the installation is in accordance with the contract.
Step 4
Operation
phase:
phase:
The operation of the new equipment results in reduced energy costs, improved performance, higher productivity, and sustainability. Maintenance services by the technology provider ensure that the equipment is operating optimally.
Step 5
Savings
Monitoring:
Monitoring:
The energy savings are measured and annually reported by the technology provider via a simple online system, where they are checked and can be approved by their clients. In the case that there are disagreements on the savings achieved, the validation entity steps in and acts as an arbiter.
Step 6
Insurance
Coverage:
Coverage:
If the savings are not achieved, and the technology provider is not able to respond to their contractual commitment, the insurance steps in to cover the promised savings.
Benefits
- Improved business efficiency, productivity and competitiveness.
- Reduced energy bill, downtime and maintenance costs.
- Trust in future energy saving with independent validation and insurance coverage.
- Facilitated access to green loans with a positive impact on the credit conditions.
- Contribution to environmental sustainability with the reduction of energy use and greenhouse gas emissions.
- Increased credibility through validation of independent technical entity.
- Increased sales of energy-efficient equipment with future energy savings covered by insurance.
- Differentiation from competitors by offering insured guarantee savings.
- Simplified negotiations with the use of standardised contracts.
- Increased trust and awareness of the attractiveness of energy efficiency investments.
- De-risking of companies investing in energy efficiency
requesting credit for investment with insured savings - Mobilisation of green credit lines (or new products) to support energy efficiency projects.
- Direct and measurable contribution of green loans towards sustainability and emission reductions.
- Extending the existing business line of surety transactions between private sector actors to the energy field, where this product is not frequently used.
- Strengthen the relationships with existing technology providers
- Contributing to sustainability and the promotion of climate change solutions.
- Improved business efficiency, productivity and competitiveness.
- Reduced energy bill, downtime and maintenance costs.
- Trust in future energy saving with independent validation and insurance coverage.
- Facilitated access to green loans with a positive impact on the credit conditions.
- Contribution to environmental sustainability with the reduction of energy use and greenhouse gas emissions.
- Increased credibility through validation of independent technical entity.
- Increased sales of energy-efficient equipment with future energy savings covered by insurance.
- Differentiation from competitors by offering insured guarantee savings.
- Simplified negotiations with the use of standardised contracts.
- Increased trust and awareness of the attractiveness of energy efficiency investments.
- De-risking of companies investing in energy efficiency
requesting credit for investment with insured savings - Mobilisation of green credit lines (or new products) to support energy efficiency projects.
- Direct and measurable contribution of green loans towards sustainability and emission reductions.
- Extending the existing business line of surety transactions between private sector actors to the energy field, where this product is not frequently used.
- Strengthen the relationships with existing technology providers
- Contributing to sustainability and the promotion of climate change solutions.
- Improved business efficiency, productivity and competitiveness.
- Reduced energy bill, downtime and maintenance costs.
- Trust in future energy saving with independent validation and insurance coverage.
- Facilitated access to green loans with a positive impact on the credit conditions.
- Contribution to environmental sustainability with the reduction of energy use and greenhouse gas emissions.
- Increased credibility through validation of independent technical entity.
- Increased sales of energy-efficient equipment with future energy savings covered by insurance.
- Differentiation from competitors by offering insured guarantee savings.
- Simplified negotiations with the use of standardised contracts.
- Increased trust and awareness of the attractiveness of energy efficiency investments.
- De-risking of companies investing in energy efficiency
requesting credit for investment with insured savings - Mobilisation of green credit lines (or new products) to support energy efficiency projects.
- Direct and measurable contribution of green loans towards sustainability and emission reductions.
- Extending the existing business line of surety transactions between private sector actors to the energy field, where this product is not frequently used.
- Strengthen the relationships with existing technology providers
- Contributing to sustainability and the promotion of climate change solutions.
Implement the
model with GoSafe
with ESI
In 2020, the GoSafe with ESI brand was launched and aimed at bringing the ESI model to the market, with the specific purpose of communicating directly to potential users and technology providers interested in offering the solution
Let's go!