3FOOD

Third Industrial Revolution Consulting Group
Unlocks deep retrofits: Energy conservation measures with short paybacks (‘low hanging
fruit’) can be used to unlock ‘deep’ retrofit options. ‘Deep’ retrofit options (i.e., measures
with long payback periods) provide significant savings potential – case study analysis by
Rocky Mountain Institute of ‘deep’ retrofit success stories found an average 58% energy use
reduction. 244
Technology portfolio approach: The program can include a wide array of energy, water,
and material conservation measures (electrical and thermal), combined heat and power
(CHP), distributed generation (e.g., solar PV), microgrids, smart energy management, and
transportation infrastructure;
Trains the market for transformative change: Finally, the structured approach outlined in
the SEF strategy primes the market, including ESCOs, issuers, bondholders, and program
participants, for future deployment of follow-up bond issuances. In other words, the
approach trains ESCOs to operate at a scale previously inaccessible to their project-toproject
business model, educates bondholders about the benefits and potential of the
program, and brings in future program participants. In effect, the program creates and
nurtures an energy conservation and on-site renewable energy market that positions these
energy resources as infrastructure-scale options and trains all involved to reconsider these
energy choices in this manner.
1.2.2 How it could Work in Luxembourg: Application of LuxSEF
A LuxSEF deployment strategy needs to properly integrate within existing legal frameworks and
leverage the strengths of the local setting, actors and financial ecoystems. In addition, as
visualized in Figure 7 below, LuxSEF application fully considers the parallel deployment of the
LSDFP. As described above, the LSDFP fulfils the communication function between project
promoters and capital providers. In addition, drawing from lessons learned with community
choice aggregation (CCA) models, the LSDFP could fulfil a resource aggregation function
(Expansion Building Block, described in the next section). 245 Importantly, flexible application
allows for LuxSEF integration into the overall mold presented in Figure 7 and operates under
the explicit recognition that there is no one-size-fits-all SEF-model applicable to all jurisdictions,
regional.
A LuxSEF application needs to, at least, consider the following:
244 Rocky Mountain Institute (RMI) (2015). Deep energy retrofits using energy savings performance contracts:
success stories. Rocky Mountain Institute, Boulder, CO.
245 It is also possible that a separate authority could be established specifically tasked with this function or that an
alternative existing authority is tasked with this aggregation function.
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