Confidence in Efficiency
The availability of capital seeking to invest in energy-efficiency projects around the globe has been increasing at a rapid pace. Deploying these investments achieves a triple bottom line goal of positive economic, social and environmental impact. However, energy-efficiency financing is chronically underutilized and actual investment in cost-effective projects today is only a fraction of its true potential. A critical aspect of closing this investment gap is providing efficiency opportunities with a high degree of standardization, predictability and scale.
In the past, the sector has lacked an industry standard assessment process and projects were developed without an agreed upon methodology, resulting in a loss of investor confidence. This has led to an inability to accurately predict project performance and has hampered energy-efficiency investors of all kinds, from building owners to energy service companies to insurance providers. The fact that in 2013 only 1 percent of all U.S. investments were made in energy-efficiency projects illustrates the unrealized opportunity here.
There are six ICP protocols that can be applied to almost any commercial and multifamily projects of various scopes and scales. Project teams using ICP protocols or seeking IREE certification must follow defined procedural and documentation requirements that address the full life cycle of a project, including energy baseline development; savings calculations; design, construction and verification; operations, monitoring and maintenance; and measurement and verification.
The Maiden Lane project utilized a comprehensive energy audit for heating, cooling, air distribution, water distribution, lighting and the controls systems for the entire building that satisfied the requirements of the ICP large commercial protocol. The IREE certification that Maiden Lane received validated the predicted energy savings and project potential, which provides confidence for all project investors.
Andy Brooks of AEA reaffirms ICP’s mission, stating: “ICP creates a standard approach to implementing energy-efficiency projects across a broad spectrum of building types. The protocols provide the investment community with the confidence that projects will yield actual benefits and results similar to those that were predicted.”
The IREE certification represents the energy-efficiency sector’s first consistent and transparent process to ensure energy performance and investment returns. If the industry is to scale to the level required to truly impact the environmental effects produced by the built environment, it is crucial that building owners and investors have confidence that projects will deliver on both environmental and financial levels. The Investor Confidence Project was initiated to provide this confidence and continues to expand its reach across the industry on a global basis.
Projects interested in pursuing IREE certification can visit online to register.