New Jersey’s Board of Public Utilities will be the first regulatory agency in the nation to participate in an energy-focused Investor Confidence Program. The program, according to New Jersey Spotlight, focuses on “increasing investor confidence that projected energy savings will be achieved.”
The program was developed by the Environmental Defense Fund with the idea of convincing private investors that returns energy efficiency projects are reliable. It is a one-year pilot aimed at midsize aimed at midsize commercial buildings and multifamily projects, the story said, and helps pay for extra documentation and verification that projects are financially successful.
The standardization of engineering, documentation and implementation that is at the heart of the project could be exported to other industry sectors such as home mortgages and car loans, the story said. Applications for participating will be accepted beginning in December.
At a EDF blog post announcing the project, New Jersey Clean Energy Director Mary Barber wrote that the Pay-for-Performance program seeks to collect data over three years of participation tracking performance. This will prove out the actual energy and environmental benefits and lead to an Investor Ready Energy Efficiency asset class.
