2002 ACEEE Summer Study on Energy Efficiency in Buildings

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2002 ACEEE Summer Study on Energy Efficiency in Buildings

2002 ACEEE Informal Sessions Descriptions

Additional Informal Sessions may be organized on-site during the Summer Study. Visit the office in Surf and Sand to sign up for an Informal Session.

Session Synopsis - "Financial Risk Management in Energy Efficiency Investments: Can we recreate Enron without recreating Enron? "

Paul Mathew, LBNL
Evan Mills, LBNL
Satish Kumar, LBNL

Monday, August 19
4:00 PM - 6:00 PM

Risk management products and strategies are routinely used to mitigate the risks inherent in financial instruments ranging from home mortgages to commodity trades. Similar risk management products and strategies can also be used to mitigate the risks associated with energy efficiency investments, thereby potentially attracting more investment capital. Such products are also essential to the development of a mature financial market in energy efficiency. There has been limited development and application of such risk management analysis or products to date, with the result that sophisticated financial managers are ill-equipped to regard efficiency improvements as legitimate elements in a diverse investment portfolio.

This session will explore the following issues:

Strengths and limitations of current approaches to financial risk analysis and management in energy efficiency investments, especially in the ESCO industry.
Drivers and barriers to the development of financial risk management products (e.g. Energy Savings Insurance) for energy efficiency investments.
Resources needed to develop risk management products - risk management framework and models, actuarial databases, project standardization.
Evolution of a mature financial market for energy efficiency investments - What are the roles of various private and public sector stakeholders?
Lessons learned from Enron Energy Services.

For more information, contact:

Paul Mathew
LBNL
e-mail: PAMathew@lbl.gov

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