Using the private finance initiative for energy efficiency projects at the urban scale

International Journal of Energy Sector Management

Volumn 10, Issue 1, 2016, Pages 99-117

  De Marco, Alberto ^a   Mangano, Giulio ^a   Michelucci, Fania Valeria ^a   Zenezini, Giovanni ^a  

^a POLITECNICO DI TORINO   (Italy)

Author keywords

Cash flow; Energy efficiency; Italy; Project finance; Public private partnership; Sensitivity analysis; Street lightning system

Indexed keywords

FINANCE; INVESTMENTS; LIGHT EMITTING DIODES; LIGHTING; PRIVATIZATION; SENSITIVITY ANALYSIS;

CASH FLOW; ITALY; LIGHTNING SYSTEMS; PRIVATE PARTNERSHIPS; PROJECT FINANCE;

ENERGY EFFICIENCY;

EID: 84962621779     PISSN: 17506220     EISSN: None     Source Type: Journal    
DOI: 10.1108/IJESM-12-2014-0005     Document Type: Article

References (73)

1. Ahn, B.L., Jang, C.Y., Leigh, S.B., Yoo, S. and Jeong, H. (2014), “Effect of LED lighting on the cooling and heating loads in office buildings”, Applied Energy, Vol. 113, pp. 1484-1489.
2. Akintoye, A. and Chinyio, E. (2005), “Private finance initiative in the healthcare sector: trends and risk assessment”, Engineering, Construction and Architectural Management, Vol. 12 No. 6, pp. 601-616.
3. Algarni, A.M., Arditi, D. and Polat, G. (2007), “Build-operate-transfer in infrastructure projects in the United States”, Journal of Construction Engineering and Management, Vol. 133 No. 10, pp. 728-735.
4. Alonso-Conde, A.B., Brown, C. and Rojo-Suarez, J. (2007), “Public private partnerships: incentives, risk transfer and real options”, Review of Financial Economics, Vol. 16 No. 4, pp. 335-349.
5. Arnold, M. and Barth, V. (2012), “Open innovation in urban energy systems”, Energy Efficiency, Vol. 5 No. 3, pp. 351-364.
6. Asenova, D. and Hood, J. (2006), “PFI and the implications of introducing new long-term actors into public service delivery”, Public Policy and Administration, Vol. 21 No. 4, pp. 23-41.
7. Benito, B., Montesinos, V. and Bastida, F. (2012), “An example of creative accounting in public sector: the private financing of infrastructure in Spain”, Critical Perspective in Accounting, Vol. 19 No. 7, pp. 963-986.
8. Berger, S. (2011), “Energy saving partnership Berlin – supporting ESCO markets on a regional basis”, Financing Retrofit in public sector, Dublin, available at: www.seai.ie/News_Events/Previous_SEAI_events/Financing_Retrofit_in_Public_Sector_conference/ (accessed 7 May 2015).
9. Berliner Energieagentur (2013), “Energy saving partnerships in Berlin”, available at: www.berliner-e-agentur.de/en/consulting-information/energy-saving-partnerships-Berlin (accessed 7 May 2015).
10. Bertoldi, P., Rezessy, S. and Vine, E. (2006), “Energy service companies in European countries: current status and a strategy to foster their development”, Energy Policy, Vol. 34 No. 14, pp. 1818-1832.
11. Bing, L., Akintoye, A., Edwards, P.J. and Hardcastle, C. (2005), “The allocation of risk in PPP/PFI417 construction projects in the UK”, International Journal of Project Management, Vol. 23 No. 1, pp. 25-35.
12. Bobinaite, V. and Tarvydas, D. (2014), “Financing instruments and channels for the increasing production and consumption of renewable energy: Lithuanian case”, Renewable and Sustainable Energy, Vol. 38, pp. 259-276.
13. Bonetti, V., Caselli, S. and Gatti, S. (2010), “Offtaking agreements and how they impact the cost funding for project finance deals: a clinical case study of the Quezon Power Ltd Co.”, Review of Financial Economics, Vol. 19 No. 2, pp. 60-71.
14. Cassa Depositi e Prestiti (2013), “Smart city: progetti di sviluppo e strumenti di finanziamento”, available at: www.cassaddpp.it (accessed 11 October 2013).
15. Chen, A.H. (2002), “A new perspective on infrastructure financing in Asia”, Pacific-Basin Finance Journal, Vol. 10 No. 3, pp. 227-242.
16. Corielli, F., Gatti, S. and Steffanoni, A. (2010), “Risk shifting through nonfinancial contracts. Effects on loan spreads and capital structure of project finance deals”, Journal of Money Credit and Banking, Vol. 42 No. 7, pp. 1295-1320.
17. Coureaux, I.O.M. and Manzano, E. (2013), “The energy impact of Luminaire depreciation on urban lighting”, Energy for Sustainable Development, Vol. 17 No. 4, pp. 357-362.
18. Curtis, A. (2000), “Airport privatisation – smooth flying or crash landing?”, Journal of Project Finance, Vol. 5 No. 4, pp. 41-47.
19. De Marco, A., Mangano, G., Cagliano, A.C. and Grimaldi, S. (2012a), “Public financing into build-operate-transfer hospital projects in Italy”, Journal of Construction Engineering and Management, Vol. 138 No. 11, pp. 1294-1302.
20. De Marco, A., Mangano, G. and Zou, X.Y. (2012b), “Factors influencing the equity share of built- operate-transfer projects”, Built Environment and Asset Management, Vol. 2 No. 1, pp. 70-85.
21. Dilip, R. and Limay, E.S. (2011), “Scaling up energy efficiency: the case of super ESCO”, Energy Effciency, Vol. 34 No. 2, pp. 133-144.
22. Dubois, M.C. (2011), “Energy saving potential and strategies for electric lighting in future North European office buildings: a literature review”, Energy Buildings, Vol. 43 No. 10, pp. 2572-2582.
23. Easton, P., Taylor, G., Shroff, P. and Sougiannis, T. (2002), “Using forecasts of earnings to simultaneously estimate growth and rate of return on equity investment”, Journal of Accounting Research, Vol. 48 No. 3, pp. 657-676.
24. Esty, B. and Sesia, A. (2010), “An overview of project finance and infrastructure finance-2009 update”, Harvard Business Review Background Note210-061.
25. European Commission (2014), “Financial instruments in ESIF programmes 2014-2020 a short reference guide for managing authorities”, available at: http://ec.europa.eu/regional_policy/thefunds/
26. European Investment Bank (2012), “Financing in the EU from 2000 to 2011: how did the bank respond to the EE challenge in the context of a reinforced EU EE policy?”, available at: www.eib.org
27. European Parliament and Council (2013), “Regulation (EU) no 1301/2013 on the European regional development fund and on specific provisions concerning the investment for growth and jobs goal and repealing regulation (EC) no 1080/2006”, available at: http://eur-lex.europa.eu
28. European PPP Expertise Center (EPEC) (2013), “Energy efficiency lighting”, available at: www.eib.org (accessed 08 May 2015).
29. Finnerty, J. (2007), Project Financing – Asset-Based Financial Engineering, John Wiley & Sons, Hoboken, NJ.
30. Garbuzova-Schlifter, M. and Madlener, R. (2013), “Prospects and barriers for Russia’s emerging ESCO market”, International Journal of Energy Sector Management, Vol. 7 No. 1, pp. 113-150.
31. Gatti, S. (2008), Project Finance in Theory and Practice: Designing, Structuring, and Financing Private and Public Projects, Academic Press, Elsevier.
32. Grell, A. and Lang, T. (2008), Photovoltaik: Leitfaden für Kreditinstitute: Handbuch zur Prüfung und Finanzierung von Photovoltaikprojekten, Forseo GmbH, Freiburg, DE.
33. Grimsey, D. and Lewis, M. (2004), Public Private Partnerships: The Worldwide Revolution in Infrastructure Provision and Project Finance, Edward Elgar Publishing, Northampton, MA.
34. Gynther, L., Mikkonen, I. and Smits, A. (2012), “Evaluation of European energy behavioural change programs”, Energy Efficiency, Vol. 5 No. 1, pp. 67-82.
35. Halawa, W.S., Abdelalim, A.M.K. and Elrashed, I.A. (2013), “Financial evaluation program for construction projects at the pre-investment phase in developing countries: a case study”, International Journal of Project Management, Vol. 31 No. 6, pp. 912-923.
36. Hellowell, M. and Pollock, A.M. (2009), “The private financing of NHS hospital: politics, policy and practice”, Journal of the Institute of Economic Affairs, Vol. 9 No. 1, pp. 13-19.
37. Henjewele, C., Sun, M. and Fewings, P. (2014), “Comparative performance of healthcare and transport PFI projects: empirical study on the influence of key factors”, International Journal of Project Management, Vol. 32 No. 1, pp. 77-87.
38. HM Treasury (2013), “Pfi current projects list, March 2013”, available at: www.gov.uk/government/publications/pfi-projects-data-march-2013 (accessed 18 July 2014).
39. Iossa, E. and Martimort, D. (2009), “The simple micro-economics of public-private partnerships”, Working Paper No. 09-03, Economics and Finance Working Paper Series, Brunel University, Brunel.
40. Iossa, E., Spagnolo, G. and Vellez, M. (2007), “Contract design in public-private partnerships”, Report for the World Bank.
41. Jefferies, M., Gameson, R. and Rowlinson, S. (2002), “Critical success factors of the BOOT procurement system: reflection from the stadium case study”, Engineering Construction and Architectural Management, Vol. 9 No. 4, pp. 352-361.
42. Keirstad, J., Samsatli, N., Shah, N. and Weber, C. (2012), “The impact of CHP (combined head and power) planning restrictions on the efficiency of urban energy systems”, Energy, Vol. 41 No. 1, pp. 93-103.
43. Komninos, N., Schaffers, H. and Pallot, M. (2011), “Developing a policy roadmap for smart cities and the future internet”, EChallenges e-2011 Conference Proceedings, IIMC International Information Management Corporation.
44. Lattemann, C., Stieglitz, S., Kupke, S. and Schneider, A. (2009), “Impact of PPPs to broadband 476 diffusion in Europe”, Transforming Government People: Process and Policy, Vol. 3 No. 4, pp. 355-374.
45. Link, H. (2012), “Unbundling, public infrastructure financing and access charge regulation in the German rail sector”, Journal of Rail Transport Planning and Management, Vol. 2 No. 3, pp. 25-36.
46. Mallaburn, P.S. and Eyre, N. (2014), “Lessons from energy efficiency policy and programs in the UK from 1973 to 2013”, Energy Efficiency, Vol. 7 No. 1, pp. 23-41.
47. Manchester City Council (2012), “Report for resolution”, Report to Finance Scrutiny Committee.
48. Marino, A., Bertoldi, P., Rezessy, S. and Boza-Kiss, B. (2011), “A snapshot of the European energy service market in 2010 and policy recommendations to foster a further market development”, Energy Policy, Vol. 39 No. 10, pp. 6190-6198.
49. Mendoza, E., Gold, M., Carter, P. and Parmar, J. (1999), “The sale of highways 407 express toll route: a case study”, Journal of Project Finance (now Journal of Structured Finance), Vol. 5 No. 3, pp. 5-14.
50. Mostavi, A., Abraham, D. and Vives, A. (2014), “Exploratory analysis of public perceptions of innovative financing for infrastructure systems in the US”, Transportation Research Part A. Policy and Practice, Vol. 70, pp. 10-23.
51. National Association of Energy Service Companies (NAESCO) (2012), Esco Projects Case Studies, City of Henderson, NV, available at: www.naesco.org/member-projects (accessed 8 May 2015).
52. Neirotti, P., De Marco, A., Cagliano, A.C., Mangano, G. and Scorrano, F. (2014), “Current trends in smart city initiatives: some stylised facts”, Cities, Vol. 38 No. 5, pp. 25-36.
53. Noor, K.B. (2008), “Case study: a strategic research methodology”, American Journal of Applied Sciences, Vol. 5 No. 11, pp. 1602-1604.
54. Painuly, J.O. (2009), “Financing energy efficiency: lessons from experience in India and China”, International Journal of Energy Sector Management, Vol. 3 No. 3, pp. 293-307.
55. Painuly, J.O., Park, H., Lee, M.K. and Noh, J. (2003), “Promoting energy efficiency financing and ESCOs in developing countries: mechanisms and barriers”, Journal of Cleaner Production, Vol. 11 No. 6, pp. 659-665.
56. Pandharipande, A. (2011), “A daylight integrated illumination control of LED systems based on enhanced presence sensing”, Energy Sensing, Vol. 43 No. 4, pp. 944-955.
57. Potluri, S.S. and Rajian, A.T. (2010), “Merchant power plants in India: risk analysis using simulation”, International Journal of Energy Sector Management, Vol. 4 No. 1, pp. 87-112.
58. REN 21 (2011), “Renewable energy policy network for the 21st century”, Renewables 2011 Global Status Report.
59. Rezessy, S., Bertoldi, P., Adnot, J. and Dupont, M. (2005), “Energy service companies in Europe: assembling the puzzle. Preliminary analysis of the results to date from the first European ESCO database”, ECEE Summer Study, available at: http://iet.jrc.ec.europa.eu/energyefficiency/ (accessed 8 May 2015).
60. Sekyere, C.K.K., Forson, F.K. and Akuffo, F.O. (2012), “Technical and economic studies on lighting systems: a case for LED lanterns and CFLs in rural Ghana”, Renewable Energy, Vol. 46, pp. 282-288.
61. Siggelkow, N. (2007), “Persuasion with case studies”, Academy of Management Journal, Vol. 50 No. 1, pp. 20-24.
62. Stuart, E., Larsen, P.H., Goldman, C.A. and Gilligan, D. (2014), “A method to estimate the size and remaining market potential of the US ESCO (energy service company) industry”, Energy, Vol. 77, pp. 362-371.
63. Sun, Z., Xuhong, L. and Xie, Y. (2014), “A comparison of innovative financing and general fiscal investment strategies for second-class highways: perspective for building a sustainable financing strategy”, Transport Policy, Vol. 35, pp. 193-201.
64. Sunderland City Council (2012), “Project update: street lighting and highway signs PFI contract”, Joint Report of the Executive Director of City Services and Aurora to the Environment and Attractive City Scrutiny Committee.
65. Tanaka, K. (2011), “Review of policies and measures for energy efficiency in industry sector”, Energy Policy, Vol. 39 No. 10, pp. 6532-6550.
66. Thomson and Reuters Report (2012), “Project finance review-full year 2012”, available at: http://dmi.thomsonreuters.com/Content/Files/Q42012_Project_Finance_Review.pdf (accessed 10 November 2013).
67. Urban Vision (2013), “Salford street lighting-retrofit program”, available at: www.urbanvision.org.uk/projects/highways-and-infrastructure/salford-street-lighting-retrofit-program/ (accessed 18 July 2014).
68. Vecchi, V. (2010), “Il project finance per il finanziamento degli investimenti pubblici: un approccio di public management e la centralità delle valutazioni economico e finanziarie”, available at: www.finanzadiprogetto.filse.it/pdf/Vecchi_nota_PF.pdf (accessed 10 November 2013).
69. Vine, E. (2005), “An international survey of the energy service company (ESCO) industry”, Energy Policy, Vol. 33 No. 5, pp. 691-704.
70. Yildiz, O. (2014), “Financing renewable energy infrastructure via financial citizen participation – the case of Germany”, Renewable Energy, Vol. 68, pp. 677-685.
71. Yin, R.K. (1981), “The case study crisis: some answers”, Administrative Science Quarterly, Vol. 26 No. 1, pp. 58-65.
72. Yin, R.K. (2003), Case Study Research, Design And Methods, Sage Publications, CA.
73. Zanon, B. and Verones, S. (2013), “Climate change, urban energy and planning practices: Italian experiences of innovation in land management tools”, Land Use Policy, Vol. 32 No. 3, pp. 343-355.