The "Valuation of energy related investments" is now a standard supporting the energy transition

CEN-CLC/JTC 14 ‘Energy management and energy efficiency in the framework of energy transition’ (JTC 14) just published new EN 17463 ‘Valuation of Energy related investments (VALERI)’. The standard is an important breakthrough in the developing field of “green finance”, and it was the result of the efforts of many European experts invested in this work during the difficult time of the pandemic.


Its unique achievement is that it lays down a clear and comprehensive path towards the economic evaluation of actions to improve energy performance, including multiple benefits and renewable sources, by proposing the use of “Net Present Value” (NPV) calculations.


The methodology is expected to increase the confidence of financial institutions and investors in energy performance improvement projects because of the material integration of the technical and financial risk assessment.


The new standard, representing a basis for decision-making on energy related investments, complies with the requirements of the Energy Efficiency Directive (2018/2002/UE) and with the performance assessment of the financial institutions completing the framework for a material reporting and monitoring of the value generated by “green” investments. It includes references on risk assessment aligning the economic evaluation with the analysis required by the Non-Financial Reporting Directive (2014/95/EU) and the framework of EU Taxonomy. Moreover, it complements the other ongoing activities in JTC 14, which include the revision of the Energy Audits standards (Series EN 16247) and a new standard dealing with minimum requirements for Energy Performance Contracting, expected to be published in spring 2022.


EN 17463 allows a user-friendly application by non-financial experts in any kind of organisation, public and private, irrespective of the company size. It includes a reference spreadsheet to guide the users in the economic assessment of the project. Product and service suppliers, the beneficiaries of the project, and financial institution can use a common standard to communicate and report the economics of an energy related project throughout the project lifetime including the end-of-life disposal and the inclusion in a circular supply chain.


Since 2009, JTC 14 has been leading standardization work that applies the EU "Energy Efficiency First" approach and not only mobilises the potential of energy efficiency and energy management to respond to market needs, but also aligns these with the requirements of policy makers and financial institutions over time, enabling them to deliver transparency and best practice at all levels.


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