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The higher the amount of energy conserved, the better the chances of funding

The third round of the STEP up! competition has been launched. Applications can be made by companies who are seeking to raise their electricity efficiency or that of their clients. An online tool enables firms to check whether their project is eligible for funding in just a few steps.

Last week, the STEP up! competition run by the Federal Ministry for Economic Affairs and Energy entered into its third round of auctions. Bids for funding are accepted from all companies across different branches of industry that are looking to invest either in their own electricity efficiency or that of their clients. The current round of auctions also includes a special category under which companies can apply for funding for efficiency measures in data centres.

STEP up! will be piloting until the end of 2018. Experience from previous rounds of auctions will be used to optimise the programme further. The most important changes in the third round are as follows:

• Website redesigned: The STEP up! website has undergone a process of redesign to make it easier to navigate, helping users to find all of the relevant programme information they need more quickly. Online checking tool: Companies interested in bidding can use the website’s online checking tool to gain an initial overview of whether and in what way their project can be funded).
• Improved range of advisory services: STEP-up! is providing a selection of one-hour online tutorials for anyone wishing to find out more about the competition or to ask questions directly. Companies can obtain more detailed advice by booking a free STEP-up! advisory session where the competition's project management team can offer information tailored to the individual company.
• Lower minimum bid limits: The value of minimum funding amounts has been reduced so that smaller projects can also take part in the STEP up! competition. The minimum bid that can be placed by individual companies has now been reduced to €20,000, while collective projects can now enter bids from €100,000. More funding for efficient lighting: The proportion of the costs of lighting that can be funded has now been raised to 40% in order to foster efficiency measures in an important area that cuts across all different sectors.

How does the programme work?

The ‘step’ in STEP up! stands for Stromeffizienzpotenziale – the potential for [raising] electricity efficiency. The programme generally works in the same way as a traditional funding programme, but also incorporates a competition-based element. Two rounds of auctions are held per year (one in spring, one in autumn) during which companies submit their electricity-efficiency projects and enter into competition with other companies for the funding on offer. The projects that save the highest amount of electricity for each euro of investment are the ones that receive the funding. The STEP up! programme does not offer fixed amounts of funding. Each company decides itself, within a given framework, how much funding it needs in order to undertake a particular electricity-efficiency project. This approach not only enables energy conservation, but it also helps gets the most out of funding.

STEP up! has been devised as a mid to long-term project. Funding is provided for projects that use high-efficiency technologies and that only pay off after a period of three years or longer.

Who can take part?

STEP-up! is divided into two different parts. There is an ‘open’ competition, which companies of all sizes from across all different sectors can take part in – from family-run businesses, to public utilities, to energy service companies, through to industrial firms. The efficiency projects to be funded can either be carried out at the company or on behalf of a client.

The other part consists of a ‘closed’ competition which is dedicated to a specific, individual topic or sector that differs each time. The closed competition currently underway focuses on electricity-efficiency measures in data centres (in German only). It is open to all companies planning an investment in this area.

One open and one closed auction run simultaneously during each round of auctions.

Who might STEP up! be an attractive option for?

Based on what has been seen over first two rounds of auction, the STEP-up! concept works well for many different sectors: projects have been received from areas such as the chemicals industry, and the construction materials, food, oil and plastics industries. The size of the projects has also been very varied, with small projects close to the minimum funding amount, and big projects bidding for large six-figure funding amounts.

Why take part?

Companies that take action to improve efficiency not only reduce their electricity consumption but also improve their competitiveness at the same time. STEP up! is designed to help you to make investments that pay off in the medium to long term. A total of around 300 million euros is available up to the end of the pilot phase. The chances of being awarded funding are very good.