Why PERMANENT?

 

There is a large potential for energy efficiency in the industry as well as other sectors that remains untouched up to today. One of the largest barriers is related to financing of these projects.

The key barrier to Energy Efficiency (EE) is distrust in projected savings and payback from the site of financial institutions. As a result, EE projects:

  • Must generate inappropriate rates of return;
  • Get low priority in the competition for internal capital;
  • Need owners to pledge other assets to external financiers who do not recognize the collateral value in demonstrated energy savings; and
  • Are perceived too risky by external financiers and hence they attach unreasonable loan terms.

Basically these perceived risks inhibit the increase of EE projects. The solution would be to make investors and financiers recognize:

  • The risk-adjusted return of EE projects;
  • That savings can be confidently ‘measured  and verified’ (M&V); and
  • The inherent collateral in a measured savings stream.

 

PERMANENT's main objective is to educate financiers, project developers and energy users about:  

  • How energy efficiency projects can be demonstrated to have PERMANENT results; and
  • How that PERMANENCE breaks the distrust barrier.

 

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