Promoting energy efficiency by enabling transformative invest-ments in industries in Brazil (PotencializEE)

Project description

Title: Transformative Investments for Energy Efficiency in Industries (TI4E)
Commissioned byNAMA Facility
Country: Brazil
Partner: Ministry of Mines and Energy (MME - political partner); Ministry of Economy; Energy Research Company (EPE); National Industrial Learning Service (SENAI); National Bank for Economic and Social Development (BNDES); São Paulo State Development Bank (Desenvolve SP); Brazilian Association of Energy Conservation Service Companies (ABESCO)
Overall term: 2020 to 2024

Context

Brazilian industry accounts for about 33 per cent of the country's total energy consumption and nine per cent of greenhouse gas (GHGs) emissions. An immense potential for industrial energy efficiency (EE) remains untapped. Commercially available EE technologies offer an attractive financial return for industries and investors. As such, realising EE investments in industries contributes to the country’s low-carbon energy transition and a sustainable development while increasing the competitiveness of the sector, reducing operating costs and generating new jobs.

Objective

EE measures are being prepared and implemented in small and medium-sized industrial enterprises (SMEs) in Brazil that reduce the use of fossil fuels. This is being facilitated by promoting increased public and private finance for investments in EE technologies.

Approach

The programme supports partners at national level through public policy recommendations and instruments to scale up industrial EE investments. The following three components provide direct support measures for industrial SMEs via partners involved in the State of São Paulo:

  1. Developing EE projects
    Awareness-raising and communication, training consultants, energy services companies (ESCOs) and SMEs; carrying out subsidised energy audits and supporting project implementation.
  2. Mitigation of technical and financial risks
    Establishing a Guarantee Fund for eligible investments; developing an energy technology list (ETL) for efficient equipment and suppliers; prior expert assessment of EE projects.
  3. Public and private financing
    Establishing a pre-financing mechanism; portfolio structuring and refinancing process alongside private investors; capacity building of banks.
  4. Framework conditions and upscaling
    Providing recommendations for improved framework conditions and incentives for industrial EE; supporting new financial mechanisms to leverage the potential of EE investments at the national level.

* PotencializEE was adopted as the programme’s short name in Portuguese.

Last update: August 2021

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