Why Energy Efficiency is an opportunity for Businesses

Reduction of greenhouse gases, environmental protection and energy efficiency are among the main topics of debate in recent years. Climate change has prompted the most industrialized nations in the world to intervene to safeguard the Earth and improve environmental conditions. The European Union is at the forefront of this fight and has long since launched a policy to combat climate change characterized by ambitious objectives, first with the 20/20/20 package and more recently with the Energy and Climate Package which defines the targets to be respected by 2030. The objectives to which the various countries of the Union will have to contribute for 2030 are: reduce greenhouse gas emissions by 40%, reach a share of 32% of renewable sources in final energy consumption and reduce energy use by 32.5% compared to a trend scenario. To achieve the
last objective energy efficiency plays a fundamental role.

What is energy efficiency

The concept of energy efficiency is becoming increasingly central to the economic and industrial policies of nations. To increase industrial production and at the same time reduce the environmental impact, it is necessary to adopt very specific rules. Rules that fall within the concept of energy efficiency, which is not simply a synonym for "energy saving", but something more complex.

Energy efficiency is a series of programming, design and implementation actions that allow the same services to be offered using less energy. One solution, for example, is the purchase of new "less energy-intensive" machinery, or the renovation of buildings using innovative materials that require less energy.

To carry out projects that concern energy efficiency structural investments by businesses and governments are necessary. For this reason, the Italian Ministry of Economic Development has recently launched the National Fund for Energy Efficiency aimed at all businesses, ESCOs and public administration bodies that want to make investments in this area. 310 million euros have been allocated for the purchase of new machinery with low environmental impact and building renovation interventions. For small and medium-sized businesses, this is an opportunity not to be missed: there are many advantages brought by energy efficiency, starting with greater competitiveness on the market.
 

Energy efficiency: advantages for businesses

Investing in energy efficiency brings many advantages to businesses, especially economic ones. The first major advantage concerns competitiveness. In an increasingly globalized market, remaining competitive with companies that have lower fixed costs is complicated. For this reason, Italian businesses, especially medium-small ones, must invest in energy efficiency. Consuming less and more intelligently energy allows for a lower cost for the energy bill and more resources to invest in development and research.

The other great advantage of energy efficiency is the possibility of investing in connected machinery and making your company more modern. Industry 4.0 is the new concept that companies must assimilate to make their production systems more efficient. With connected machinery it is possible to check the status of the production plant at any time and make changes remotely. Even in the event of a breakdown or maintenance of the machine, the company is notified immediately without wasting energy and money.

Investing in energy efficiency also means improving the well-being of your employees. New buildings with low environmental impact, smarter machinery that makes work easier, are all benefits that improve the lives of your workers. Advocating for energy efficiency also allows your employees to work in a healthier environment that guarantees high safety standards.

The advantage of investing in energy efficiency, however, does not concern the life of the company (at least not fully), but the environment. Energy efficiency allows to reduce CO2 emissions, reduces air pollution and the use of fossil fuels.

Energy efficiency will be the field on which the challenge of the future will be fought and Italian companies (small, medium and large) must be able to take advantage of the opportunities offered by the market, such as the National Fund for Energy Efficiency.
 

What is the National Energy Efficiency Fund and how does it work

The National Energy Efficiency Fund is atool created by the Ministry of Economic Development to relaunch investments by SMEs and large companies in the energy efficiency sector. In a historical period in which energy consumption by companies is growing, the MiSE wanted to allocate funds to promote the purchase of new machinery with low environmental impact and building renovations.

For the two-year period 2019-2020, the Ministry for Economic Development and the Ministry for the Environment and for the protection of land and sea have allocated approximately 310 million euros, of which 185 million have already been committed. According to an estimate by the MiSE, the National Fund for Energy Efficiency will be able to mobilize investments of up to 1.7 billion euros. The fund is intended for businesses, Esco (Energy service company) and Public Administration. Micro, small, medium and large businesses, including in association, can submit their request. Companies can submit investment projects that aim to improve the energy efficiency of production machinery, buildings and the installation of district heating and district cooling systems.
 

What are the eligible expenses

The National Energy Efficiency Fund is revolving: the instrument is financed by public resources and by the return of the sums returned by the companies that have benefited from it. The fund has a dual nature: 30% of the resources are used to grant guarantees, while the remaining 70% is used to provide financing at a subsidized rate (0.25%). The loans will be allocated by financial institutions and private investors.

Businesses will be able to request resources to:

• pay for consultancy related to the energy efficiency project (up to a maximum of 10% of the total);
• purchase of new machinery and systems;
• work on buildings including masonry work;
• specific infrastructures.

The maximum amount that businesses can request is 4 million euros, repayable in 10 years. For the Public Administration, the maximum spending limit is 2 million euros, repayable in 15 years.
 

How to submit the application for the National Energy Efficiency Fund

The call was opened on May 20, 2019 on the Invitalia (National Agency for Investment Attraction and Business Development) website. To submit the application, you must register on the Invitalia portal and have a digital signature with a valid and active certified email address (PEC). The investment project must be completed directly online with the modules attached as required by Invitalia. The application is evaluated within 60 days of submission.