Since its creation, Energinvest has supported various public and private initiatives to scale up investments in energy transition, from the development of energy efficiency and renewable energy master plans at local level to the set-up (and co-management) of public-private ESCOs at national level. In the long term, the challenges always remain the same, as the success of these initiatives basically depends on:

• The robustness of the business model implemented;
• The ability to secure sustainable and long-term financing solutions capable of generating large-scale investments.

More specifically, studies such as the CITYnvest study, led by Energinvest with the Climate Alliance and the Council of European Municipalities and Regions, show that the underlying success factors enabling a sustainable large scale energy efficiency and renewable energy program include:

1. A specific commitment or energy efficiency target describing the level of future investments and energy savings that the Program Authority (PA) –the accountable driving force- wants to achieve.
2. A program or project delivery unit (PDU) capable of implementing the scheme and co-ordinating the projects.
3. A clear agreement with the Beneficiaries about the settlement of the reduced energy costs.
4. A solid system of funding the continuous implementation of energy efficiency and renewable energy projects.

Tackling these challenges is the purpose of the smartIFP methodology that focuses on operational solutions to be implemented when developing a pipeline of investments. This without neglecting the securing of financing sources by shifting to innovative financing approaches available on the market today, as there are:

• The so called Intracting mechanism linked to an internal revolving fund;
• Local public and semi-public ESCO companies;
• Revolving funds linked to grants and soft-loan schemes;
• Local investment funds.

The smartIFP methodology follows an integrated approach in analysing and modelling the most appropriate business and funding models aiming to provide your organization with efficient business solutions and sustainable funding to implement successfully your energy efficiency and renewable energy program. It also provides your team with an extensive support and guidance on the steps, processes and tools to be considered when implementing the pursued program.

smartIFP offers a comprehensive set of standardized tools and guidance materials to be used for each stage of the scheme development, from the strategic analysis to the elaboration of the business plan of the program, from the funding vehicle settlement to the program delivery unit development. Developed by Energinvest for CITYnvest and other related projects, this set of standardized tools and guidance materials is currently used in several pilot projects in Belgium and abroad. It is also the result of a longstanding experience acquired by our consulting experts in similar positions when they where leading the execution of large scale energy efficiency and renewable energy programs in Belgium and abroad. Top world class consulting experts in the field of corporate and project finance as well as financial structuring and fund management also enhances this experience.

Fig.: smartIFP, an integrated approach to (re)think the financing solutions for the implementation of ambitious sustainable energy actions plans

In the first phase of smartIFP, we assist your team by means of strategic workshops during which we define together the economic, financial and environmental goals of the program to be implemented and, depending on the resources of your organization, as well the operational and financial models most suited to achieve these goals.. These objectives are then modelled in a financial simulation tool to evaluate various scenarios addressable to achieve the objectives. This strategic analysis leads to the drafting of a project plan describing the scope of the program in terms of ambition, size and evolution, the business model and the financial vehicle to be implemented. This "decision making" document serves as a basis for decision making by the management board or any other decision making unit. , The document also includes the assessment of the financial resources needed to implement the program. Usually several scenarios or variations of the same scenario are presented for approval.

The second phase of smartIFP focuses on the development of the business plan of the program, based on the approved scenario. During this phase, our consultants will elaborate the financial simulations to a deeper level of detail to develop the multi-year financial plans. This phase also leads to the drafting of a detailed action plan for implementation of the program, usually over a period of 3 to 5 years. The action plan addresses all phases of the development: implementation of the Programme Delivery Unit, establishment of the Funding Vehicle(s), evaluation of required procedures and processes, identification of required operational management tools, qualification of the required staff and their capabilities.

The third and fourth phases of the smartIFP aim to ensure operational assistance to the effective implementation of the program, in particular the establishment of the Funding Vehicle(s) and the program management unit. A multidisciplinary team of consultants made up of lawyers, financial experts, experts in energy services, in business engineering, in competitive procurement, IT experts, etc. can assist you at all of the program development stages, both in the implementation of processes and management tools in the execution and follow-up of the first projects. During these phases, an evaluation of the business plan is also performed to improve both processes and tools.

• Strategic analysis
• Business Plan
• Finance structuring
• Operational implementation

1. Provides customer-specific strategic analysis and cost models to evaluate the most appropriate operational and funding schemes to support your investment program.
2. Guides senior management decision making for operating budgets and capital planning estimates.
3. Guides the project team in step-by-step implementation.