Financial Mechanisms for Sustainable Energy

Projects that successfully complete the validation and are backed by and energy savings insurance will have access to the financial Institutions loans, designed with special conditions to finance the proposed investments. They include preferential rates, grace periods and longer terms. Specific characteristics and conditions of the credit lines are defined by each bank.

The Financial Institutions and the IDB provide incentives for investors and technology providers that develop projects utilizing the ESI Model, including:

• Validation of the projects at the expense of the ESI Program.
• Free access for technology providers to the ESI Accelerator Initiative aimed to build their capacity on how to use an Energy Savings Insurance in energy projects.
• Specialized technical advice at no cost to the supplier and investor for the preparation of technical documents required by the validating entity.
• Support in the interaction with the financial intermediary and insurance company for an expedite evaluation of the credit and energy savings insurance applications.
• Preparation and dissemination of success cases in events and electronic platforms.

Incentives are subject to the availability of resources.

The annual savings commitment is set by the supplier based on its experience and assessment. The project baseline is established with standardized methodologies developed by the ESI Program based on ISO 50001 protocols.

Project validation is performed by an independent technical entity. At the beginning of the project, the validator evaluates the supplier's technical proposal to the customer and indicates whether the project has the potential to achieve the promised savings. Later, verifies on site that the project has been delivered according to specifications. The validator acts as an arbitrator in case of any disagreement between customer and supplier in terms of savings generated by the project. The validator's roles are defined in the contract and his decisions are binding on the parties.

The Brazilian Association of Technical Standards (ABNT) provides its services as a validator in Brazil:ESI - ABNT Brazil.

Projects that successfully complete the validation and are backed by and energy savings insurance will have access to BancoEstado’s loans, designed with special conditions to finance the proposed investments. They include preferential rates, grace periods and longer terms. Specific characteristics and conditions of the credit lines are available at: ESI - BancoEstado.

BancoEstado and the IDB provide incentives for investors and technology providers that develop projects utilizing the ESI Model, including:

• Validation of the projects at the expense of the ESI Program.
• Free access for technology providers to the ESI Accelerator Initiative aimed to build their capacity on how to use an Energy Savings Insurance in energy projects.
• Specialized technical advice at no cost to the supplier and investor for the preparation of technical documents required by the validating entity.
• Support in the interaction with the financial intermediary and insurance company for an expedite evaluation of the credit and energy savings insurance applications.
• Preparation and dissemination of success cases in events and electronic platforms.

Incentives are subject to the availability of resources.

The annual savings commitment is set by the supplier based on its experience and assessment. The project baseline is established with standardized methodologies developed by the ESI Program based on ISO 50001 protocols.

Project validation is performed by an independent technical entity. At the beginning of the project, the validator evaluates the supplier's technical proposal to the customer and indicates whether the project has the potential to achieve the promised savings. Later, verifies on site that the project has been delivered according to specifications. The validator acts as an arbitrator in case of any disagreement between customer and supplier in terms of savings generated by the project. The validator's roles are defined in the contract and his decisions are binding on the parties.

The Agencia de Sostenibilidad Energética provides its services as a validator in Chile: ESI - ASE Chile.

Projects that successfully complete the validation and are backed by and energy savings insurance will have access to Bancóldex's loans, designed with special conditions to finance the proposed investments. They include preferential rates, grace periods and longer terms. Specific characteristics and conditions of the credit lines are available at: ESI - Bancóldex.

Bancóldex and the IDB provide incentives for investors and technology providers that develop projects utilizing the ESI Model, including:

• Validation of the projects at the expense of the ESI Program.
• Free access for technology providers to the ESI Accelerator Initiative aimed to build their capacity on how to use an Energy Savings Insurance in energy projects.
• Specialized technical advice at no cost to the supplier and investor for the preparation of technical documents required by the validating entity.
• Support in the interaction with the financial intermediary and insurance company for an expedite evaluation of the credit and energy savings insurance applications.
• Preparation and dissemination of success cases in events and electronic platforms.

Incentives are subject to the availability of resources.

The annual savings commitment is set by the supplier based on its experience and assessment. The project baseline is established with standardized methodologies developed by the ESI Program based on ISO 50001 protocols.

Project validation is performed by an independent technical entity. At the beginning of the project, the validator evaluates the supplier's technical proposal to the customer and indicates whether the project has the potential to achieve the promised savings. Later, verifies on site that the project has been delivered according to specifications. The validator acts as an arbitrator in case of any disagreement between customer and supplier in terms of savings generated by the project. The validator's roles are defined in the contract and his decisions are binding on the parties.

Icontec provides its services as a validator in Colombia: ESI - Icontec Colombia.

In the ESI Model, insurance is a coverage instrument, granted by the supplier for the benefit of the client, which guarantees the client the committed savings or energy generation during the contract's term. If at any time the project does not achieve the pledged savings, the insurance will respond to the client. The insurance is purchased and paid to the insurance company by the supplier for the benefit of the customer and is initiated once the project has been validated as operational. It becomes a contract performance guarantee issued by the supplier to the client on the performance of the project.
SURA was the pioneer in the development of Energy Saving Insurance in Colombia.
Product details are available at: ESI - SURA Colombia.

The contract establishes the responsibilities of the supplier in terms of supply and installation of equipment and its corresponding guarantees, in addition to the promised energy savings or generation. The customer's commitments include timely payment, access to facilities and commitment to maintain the equipment. Some of the most relevant characteristics of the contract are: promised savings, energy reference prices, periodicity of measurements and contract duration (usually annual and up to 5 years), validation protocols, insurance activation criteria, compensation mechanisms for unrealized savings and dispute resolution.

Projects that successfully complete the validation and are backed by and energy savings insurance will have access to BANDESAL’s loans, designed with special conditions to finance the proposed investments. They include preferential rates, grace periods and longer terms. Specific characteristics and conditions of the credit lines are available at: ESI - BANDESAL.

BANDESAL and the IDB provide incentives for investors and technology providers that develop projects utilizing the ESI Model, including:

• Validation of the projects at the expense of the ESI Program
• Free access for technology providers to the ESI Accelerator Initiative aimed to build their capacity on how to use an Energy Savings Insurance in energy projects.
• Specialized technical advice at no cost to the supplier and investor for the preparation of technical documents required by the validating entity.
• Support in the interaction with the financial intermediary and insurance company for an expedite evaluation of the credit and energy savings insurance applications.
• Preparation and dissemination of success cases in events and electronic platforms.

Incentives are subject to the availability of resources.

The annual savings commitment is set by the supplier based on its experience and assessment. The project baseline is established with standardized methodologies developed by the ESI Program based on ISO 50001 protocols.

Project validation is performed by an independent technical entity. At the beginning of the project, the validator evaluates the supplier's technical proposal to the customer and indicates whether the project has the potential to achieve the promised savings. Later, verifies on site that the project has been delivered according to specifications. The validator acts as an arbitrator in case of any disagreement between customer and supplier in terms of savings generated by the project. The validator's roles are defined in the contract and his decisions are binding on the parties.

Icontec provides its services as a validator El Salvador: ESI - Icontec El Salvador

Projects that successfully complete the validation are eligible to the technological guarantee and have access to the FIRA line of credit, designed with special conditions to finance the proposed investment. Specific characteristics and conditions of the credit line are available at:ESI - Technological Guarantee Mexico.

FIRA and the IDB provide incentives for investors and technology providers that develop projects utilizing the ESI related model, including:

• Validation of the projects at the expense of the Program.
• Specialized technical advice at no cost to the supplier and investor for the preparation of technical documents required by the validating entity.
• Support in the interaction with the financial intermediary for an expedite evaluation of the credit and eligibility for the technological guarantee.
• Preparation and dissemination of success cases in events and electronic platforms.

Incentives are subject to the availability of resources.

The annual savings commitment is set by the supplier based on its experience and assessment. The project baseline is established with standardized methodologies developed by the ESI Program based on ISO 50001 protocols.

Project validation is performed by an independent technical entity. At the beginning of the project, the validator evaluates the supplier's technical proposal to the customer and indicates whether the project has the potential to achieve the promised savings. Later, verifies on site that the project has been delivered according to specifications. The validator acts as an arbitrator in case of any disagreement between customer and supplier in terms of savings generated by the project. The validator's decisions are binding on the parties.

The Asociación de Normalización y Certificación A.C (ANCE) provides its services as a validator in Brazil: ESI - Validation Mexico

The formats and guidance for submitting the information to the validator are available below:

Consult the Provider Registration forms here.

Consult the Project Validation forms here.

The methodology that describes the process for completing the validation forms can be consulted here.

Technical guide can be consulted here.

Consult the Project Verification forms here.

Projects that successfully complete the validation and are backed by and energy savings insurance will have access to COFIDE’s loans, designed with special conditions to finance the proposed investments. They include preferential rates, grace periods and longer terms. Specific characteristics and conditions of the credit lines are available at:ESI - COFIDE.

COFIDE and the IDB provide incentives for investors and technology providers that develop projects utilizing the ESI Model, including:

• Validation of the projects at the expense of the ESI Program.
• Free access for technology providers to the ESI Accelerator Initiative aimed to build their capacity on how to use an Energy Savings Insurance in energy projects.
• Specialized technical advice at no cost to the supplier and investor for the preparation of technical documents required by the validating entity.
• Support in the interaction with the financial intermediary and insurance company for an expedite evaluation of the credit and energy savings insurance applications.
• Preparation and dissemination of success cases in events and electronic platforms.

Incentives are subject to the availability of resources.

The annual savings commitment is set by the supplier based on its experience and assessment. The project baseline is established with standardized methodologies developed by the ESI Program based on ISO 50001 protocols.

Project validation is performed by an independent technical entity. At the beginning of the project, the validator evaluates the supplier's technical proposal to the customer and indicates whether the project has the potential to achieve the promised savings. Later, verifies on site that the project has been delivered according to specifications. The validator acts as an arbitrator in case of any disagreement between customer and supplier in terms of savings generated by the project. The validator's roles are defined in the contract and his decisions are binding on the parties.

The validating entity in Peru is in the process of selection.

The program aims to reduce fossil fuel consumption and GHG emissions through the promotion of low-carbon mobility solutions in Peru. The specific objective is to stimulate and demonstrate the financial viability of private investments in electric vehicles. The program will provide access to long-term financing for private electric vehicle projects, channeled by COFIDE (Banco Nacional de Desarrollo de Perú). COFIDE obtains a concessional loan from the CTF combined with IDB resources to provide long-term financing, including (i) replacement of internal combustion engine vehicles with electric vehicles, with an emphasis on privately operated passenger transportation (mainly buses, taxis, and three-wheeled motor-taxis); and (ii) charging stations for electric vehicles, preferably with renewable energy. The CTC grant will finance technical cooperation to support the overall implementation of the program and address non-financial barriers (institutional, knowledge, regulatory). These include: (i) awareness raising and capacity building for vehicle producers, operators, utilities and regulators, financial institutions and other market actors; (ii) improvements in the regulatory and policy framework related to electric vehicle and charging technology and tariffs; (iii) development of financial, commercial and risk-sharing models for the incorporation of electric vehicle fleets in specific areas; and (iv) enhancing capacities related to implementation, monitoring and reporting within COFIDE.