Quebec

Financing mechanism design for the implementation of energy efficiency projects in private enterprise

EXPERTISE : , Financing Mechanisms, Policy and Institutional and Regulatory Frameworks
SECTOR : , Commercial, Industrial

client

Bureau de l’efficacité et de l’innovation énergétique (BEIE)

project description

Access to adapted financing for energy efficiency and energy substitution projects is among the most common barriers to implementation. The Bureau de l’efficacité et de l’innovation énergétiques (BEIE) wanted to foster this market through the development of adapted mechanisms.

highlights

The BEIE thus mandated Econoler to analyze the financing needs of energy efficiency projects and develop a concept for a mechanism that would meet said needs.

The energy efficiency projects targeted by the mandate mostly related to:

  • Private sector enterprises of varying sizes with particular sectoral and regional needs;
  • Private sector buildings, plants and ground transportation (excluding rail transport).

Under the mandate, Econoler carried out the following tasks:

  • Identified barriers to financing energy efficiency and energy substitution projects, as well as the mechanisms that would eliminate these;
  • Listed existing financing mechanisms in Quebec (if any) that could be used to grow this market;
  • Implemented a consultation process with the target clientele and actors in the field (financial institutions, energy service companies, etc.) to learn what their needs are and confirm with them whether financing mechanisms to be developed would be pertinent to increase the number of projects carried out;
  • Ascertained the most appropriate interventions to implement the financing mechanisms in accordance with the results of consultations and government objectives;
  • Elaborated various preliminary financing mechanism concepts and specified their expected impacts on the market;
  • Assessed which of these structures and actors would best be used to implement these mechanisms.

To finalize the mandate, Econoler issued recommendations while factoring in:

  • The vision of the Government of Quebec concerning the energy transition;
  • The objectives and budgetary realities of the government, namely targets for balancing the budget, the 2030 Energy Policy, as well as reducing greenhouse gas emissions.

The Econoler recommendations were used for the interdepartmental review of government programs and implementation of the new government structure in charge of the energy transition to decide whether to go forward with the design and implementation of a new adapted institutional financing mechanism that supports the market in implementing energy efficiency and energy substitution projects.

 

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