Project Development Assistance for sustainable energy investments

Scope A:

Proposals should result in the launch of an energy efficiency and/or renewable investment programmes as well as the delivery of scalable financing solutions for sustainable energy investment projects with a particular emphasis on private sector funds, and, hence, ensure a significant leverage effect.

Every million EUR of EU support should trigger at least EUR 15 million of investments in sustainable energy in form of work or investment contracts signed. In case projects address exclusively investments in residential buildings, the triggered investments should be at least EUR 10 million for every million EUR of EU support.

Proposals should quantify their impacts using the indicators listed below, where relevant, as well as other project-specific performance indicators:

• Investments in sustainable energy triggered by the project (cumulative, in million Euro of investments).
• Primary energy savings/renewable energy generation triggered by the project (in GWh/year)
• Reduction of GHG emissions triggered by the project (in t CO2eq/year).
• Increased skills and capacity in project aggregators to deliver further sustainable energy investment (For example number of staff with increased skills, number of organisations that increased capacity to deliver investments and/or organisational structures, which are put in place.
• Jobs created through the sustainable energy investments.
• Where relevant, improved health-related indicators such as improved indoor air quality or physical activity.

The impacts of the proposals should be demonstrated during the project and within 5 years after the project lifetime.

Scope B:

Proposals should deliver a community of practitioners of one-stop-shops for public assets, which enhances the practices of existing one-stop-shops, builds large-scale capacity for public authorities to design and implement one-stop-shops, and support the evolution of legal, policy and funding frameworks to enable the roll-out of one-stop-shops.

Proposals should quantify their impacts using the indicators listed below, where relevant, as well as other project-specific performance indicators:

• Number of stakeholders actively involved in the community (split by category, e.g. one-stop-shops, public authorities, consultants, architects associations, construction sector federations, financial institutions, etc.).
• Number of planned collective outputs (split by topics and nature).
• Number and nature of planned contributions to legislative and regulatory processes at local, national and European levels.
• Number of national capacity building programmes put in place.
• Number of public authorities with increased capacity to deliver one-stop-shops.
• Investments in sustainable energy triggered by the project (cumulative, in million Euro).
• Primary energy savings triggered by the project (in GWh/year).
• Renewable energy generation triggered by the project (in GWh/year).

The impacts of the proposals should be demonstrated during the project and within 5 years after the project lifetime.

Project Development Assistance (PDA) offers technical assistance to public and private project developers to deliver energy efficiency and renewable energy investments of ambition and scale.

The topic aims to support project developers across Europe to develop replicable solutions that are mobilising private capital, blending public with private financing, setting up long-term and scalable financial instruments and at the same time overcoming legal and structural barriers whilst delivering a highly ambitious sustainable energy project pipeline. Projects are expected to demonstrate an innovative approach, for example in aggregating and structuring investment projects, advancing market boundaries or changing organisational and regulatory structures.

PDA projects contribute significantly to the European Green Deal’s Renovation Wave^[1] and will help pave the way for a decarbonised and clean energy system. In the next years, PDA projects are expected also to significantly contribute to accelerating the clean energy transition, as pointed out in the REPowerEU plan^[2] to phase out EU dependence on fossil fuels imports. A range of very innovative solutions with regard to the financing and mobilisation of investments were demonstrated in past Horizon 2020 PDA projects, which helped to shift market boundaries and demonstrate practical application of inspiring solutions. For example, a forfaiting fund using private investments which is scalable across Europe has been set up to foster deep retrofitting of hard-to-treat multi-family buildings^[3]. Another example is the development of a revolving loan fund combining European Regional Development Fund (ERDF) funding, low interest-loans and Third Party Financing through Energy Service Companies (ESCOs) to deeply refurbish hospitals in the region^[4]. Many of these projects also implemented one-stop-shops to support public authorities in the preparation of investments on public buildings, street lighting, and other public assets. The Renovation Wave strategy highlights the importance of replicating this approach across Europe in order to accelerate investments in public buildings.

Proposals are expected to address only one of the two scopes below. The scope addressed should be clearly specified in the proposal's introduction.

Scope A: Project Development Assistance

Project Development Assistance (PDA) will be provided to public and private project promoters such as public authorities or their groupings, public/private infrastructure operators and bodies, energy agencies, energy service companies, retail chains, large property owners and services/industry. The action will support project promoters in building technical, economic and legal expertise needed for successful project development and implementation. Projects should lead to the launch of tangible sustainable energy investments within the project duration, and adequate proof of such investments has to be provided, e.g. signed Energy Performance Contracts (EPC) or construction contracts.

Proposals should demonstrate a clear showcase dimension in delivering replicable solutions for accelerating sustainable energy investments across Europe, as regards:

• The development of scalable financing schemes with a particular focus on leveraging enhanced levels of private investment such as EPC, blended funds, financial instruments or innovative on-bill and on-tax payment schemes; and/or
• The organisational innovation for the mobilisation of the investment programmes such as setting up project development units, large-scale bundling and pooling of (mixed) assets, with a geographical focus at district, city or a wider level.
• Proposals should aim for high ambition levels of energy savings and decarbonisation, such as deep renovation, NZEB standards, positive energy buildings or districts and/or highly energy efficient infrastructure.

Proposals could target sectors including:

• Existing residential buildings including large social housing operators.
• Existing non-residential buildings of public or commercial owners.
• Building-integrated renewables and other small scale renewables.
• Existing public infrastructure such as district heating/cooling networks, water/wastewater services.
• Clean and energy efficient urban transport infrastructure and low emission mobility solutions including conversion of urban areas for soft mobility or non-motorised transport.
• Industry and services, including SMEs.
• Renewable energy generation led by energy communities and other citizen led initiatives.

Proposals under scope A may be submitted by a single applicant or by applicants from a single eligible country.

The Commission considers that proposals requesting a contribution from the EU of a range of EUR 0.5 million to EUR 1.5 million would allow the specific objectives to be addressed appropriately. Nonetheless, this does not preclude submission and selection of proposals requesting other amounts.

Scope B – Community of practitioners of one-stop-shops for public assets

Proposals should support the development of an EU community for the practitioners actively involved in the local/regional implementation of one-stop-shops for the energy efficient renovation of public assets, in order to pool efforts, generate economies of scale and encourage convergence towards best practices. The target group for this community is primarily the actors involved in public asset renovation projects funded under Horizon 2020 PDA and ELENA, as well as potentially other programmes.

Building on existing initiatives, the community should support collective productions, incremental innovations and joint efforts to promote one-stop-shops, with a focus on promoting ambitious programmes delivering deep energy renovations and other relevant energy efficiency improvements in public assets, and/or involving the use of private finance e.g. through energy performance contracting or public-private partnerships. It should facilitate dialogue and insight sharing, fostering the emergence of a common culture among participants and beyond, both at national and European levels.

Particular efforts and results are expected on, but not limited to:

• Strategic positioning: assessing the needs and identifying the different possible models to deliver support for public authorities, including possible sources of funding, link to national funding programmes, cooperation with private sector, etc.
• Methodologies and tools: how to streamline and optimise the processes to support public asset owners, e.g. procurement processes, aggregation of buildings / building owners? Etc.
• Skills and training needs: which skills or new professionals are needed for the implementation and effective operation of one-stop-shops? Conversely, how to motivate and secure career opportunities for skilled professionals in that field? Etc.
• Partnerships with market actors: what types of partnerships could be developed (e.g. with the construction sector, architects and engineers, ESCOs, banks, investors)? How to secure partners' commitment to deliver quality and competitive services? How to support the development of a strong ESCO sector for energy performance contracting? Etc.

This community of practice should consolidate findings from the various experiences across Europe and propose guidance and support to emerging initiatives. It should support the development of coordinated proposals to policy makers and actively contribute to regulatory and legislative processes at national and European levels, in particular by highlighting concrete situations and difficulties faced when implementing one-stop-shops, as well as best practice solutions.

Furthermore, proposals should deliver a large-scale capacity building programme for regional / national public entities in order to support the replication and roll-out of one-stop-shops for public assets. The capacity building programme should be adapted and rolled out at national level; activities should include a training of trainers at national level and engagement with the relevant national networks to ensure a good coverage and long-term sustainability. Capacity building should target, among others, local and regional authority officials, energy agencies and consultants involved in the development of energy renovation programmes. It should include a mix of classroom training and practical mentoring.

Proposals submitted by a single applicant or proposals covering a single eligible country are not considered appropriate under scope B. The community of practice to be established must be transnational and actively involve a variety of representatives of the most relevant implementations throughout Europe, reflecting the diversity of situations and approaches across Europe. Therefore, the Commission considers relevant that consortia gather a minimum of 3 applicants from 3 different eligible countries.

The Commission intends to select one single proposal under scope B. The Commission considers that a proposal requesting a contribution from the EU of up to EUR 2 million would allow the specific objectives to be addressed appropriately. Nonetheless, this does not preclude submission and selection of a proposal requesting another amount.

Regarding the indicative budget between scope A and B, please refer to the call document section 3 on the Available budget.

[1] Communication from the Commission to the European Parliament, the European Council, the European Economic and Social Committee and the Committee of Regions, A Renovation Wave for Europe - greening our buildings, creating jobs, improving lives, COM(2020) 662 final

[2] Communication from the Commission of 8.3.2022 to the European Parliament, the European Council, the European Economic and Social Committee and the Committee of the Regions, REPowerEU: Joint European Action for more affordable, secure and sustainable energy, COM(2022) 108 final

[3] https://sharex.lv/

[4] https://ec.europa.eu/energy/sites/ener/files/documents/1.2_marte_cinzia_colangelo_final.pdf