PROFITING FROM ENERGY EFFICIENCY!

TABLE OF CONTENTS

A Letter To Municipal Leaders

1.0 Introduction

2.0 Why Invest in Energy Efficiency?

2.1 Job Creation and Energy Efficiency

2.2 The Value of Municipal Leadership

3.0 Where the Money Comes From, and How to Access It:

3.1 Self Financing or Own Source Revenues

3.2 Direct Borrowing: Loans, Bonds and Debentures

3.3 Alternative Financing or Third Party Financing; Performance Contracting and Demand Side Bidding

3.4 Lease Purchase Agreements

4.0 Who the Key Players Are:

4.1 Municipalities: A Strategic Aggregation Approach

4.2 Utilities as Strategic Partners

4.3 Energy Service Companies: Value Added

4.4 Financial Institutions: Banks, Insurance Companies, Leasing Companies, Pension Funds

5.0 What the Key Issues Are:

5.1 Pursuing Optimal Rates of Return

5.2 Cream Skimming vs. a Comprehensive Approach

5.3 Verifying Savings

5.4 Overcoming Bureaucratic Fragmentation

6.0 Looking to the Future:

6.1 Carbon Offsets

7.0 Examples of Municipal Best Practices

7.1 The State of Iowa School Energy Bank

7.2 The City of Leicester

7.3 The City of Oslo

7.4 The City of Phoenix

7.5 Sacramento Municipal Utility District (SMUD)

7.6 The City of Toronto

Appendices

1.0 References

2.0 Acknowledgements

3.0 Glossary of Terms for Energy Efficiency Financing

ICLEI Publication: Profiting from Energy Efficiency!