Matthew Ulterino, Property Working Group Coordinator，
United Nations Environment Programme Finance Initiative
Integrating distributed energy systems within large master planned property projects can take advantage of remarkable technology innovation and cost changes in renewable energy,storage, and demand management and provide myriad benefits to owners and occupiers. Yet uptake of such integrated localised energy systems has been low. This is partly due to the property finance and delivery sectors’ tendency to be risk-averse toward new technologies and changes to tested design, financing, and construction pathways. One strategy to overcome this is for the property and the energy assets to be separated for finance and delivery while remaining linked via power purchase and lease agreements between the building owners and users and local energy providers. Housing projects targeting lower-income buyers/residents may find tangible development cost saving and affordability benefits from this approach. This presentation will discuss this project finance and delivery model and its benefits - particularly in fast growing urban areas. The challenges to scaling this model will also be discussed. It will draw on a review of the building and distributed energy finance market in East Africa but hold lessons for regions throughout the world.
