BancoEstado is Chile's largest bank and aims to support Chile's transition to net zero emissions by 2050. It has signed an agreement to be the first public bank committed to Race to Zero. Chile's Energy Savings Insurance (ESI) model, in which BancoEstado participates, aims to improve business productivity and competitiveness through financing energy efficiency and renewable energy projects. The ESI model provides discounted loans, project validation, and insurance to compensate clients if energy savings are lower than projected. Key stakeholders include BancoEstado for financing, Sura and Cesce for providing insurance, and AgenciaSE for project execution and validation. Technologies prioritized include boilers, HVAC, lighting, and solar PV. The process

1. Del 6 al 10 de marzo de 2023
Energy Savings Insurance (ESI)
Programme
Collaboration Agreement
2019-2022

2. ❑ BancoEstado context
❑ ESI Model (Chile –BancoEstado)
❑ BancoEstado financial products
❑ Key lessons
Outline

3. BancoEstado is the only bank in Chile that
has both a commerical business and a social
mission.
We are the bank with the most impact in
Chile, in terms of the number of clients for
retail and commerical banking and also in
terms of the volumen of transactions and our
impact.
80% of Chilean residents are our customers.
Our commerical customers represent all
segments of the economy, from micro
enterprises to the largest companies and
corporations.
A bank serving Chile

4. Sustainable Bank
BancoEstado is the first public bank in
the world to sign the Race to Zero
agreement.
According to the United Nations, we must meet the
objective of net zero emissions by 2050
We aim to accompany our clients in a transition that is socio-ecological and just, where
everyone can build capacities and adopt the necessary means to achieve the shared goal
of a carbon neutral country by 2050.

5. What does Chile’s ESI model aim for?
The ESI model contains
both financial and non-
financial aspects designed
to reduce risks for
companies investing in
energy efficiency and Non
Conventional Renewable
Energies. It helps to build
confidence and credibility
between key stakeholders.
The key points are:
To improve productivity and competiveness of
businesses
To mitigate investment risks
To promote the use of efficient technologies
To reduce energy intensity and Green House
Gas Emissions
To promote private investment
To overcome financial barriers
To promote an energy savings culture

6. Key stakeholders of the ESI model in Chile
Financing
Banco Estado
Insurance
Contract
Validation
Sura y Cesce
Programme ESI
Execution
Sustainable Energy
Agency (AgenciaSE)
Allows clients to finance
assets at a discounted
interest rate
The project is validated by a
third party using standardised
and consistent methodologies
to verify energy savings
Standardised format for ease of
completion, defining criterias to
measure, guarantee and ensure
projected energy savings
A commercial tool for developers, that
provides security to clients that they
will be compensated in the event in
which final energy savings are less
than projected savings

7. Technologies prioritised in Chile’s ESI model
Permitted technologies for the ESI programme Renewable
Energy
Energy
Efficiency
Boilers X
HVAC X
Compressors X
Taxi fleets X
Biogas power generators X
Fossil fuel fired power generators X
Solar PV X
Ovens and drying systems X
Lighting X
Efficiency motors / variable speed drives X
Refrigeration X
Solar thermal systems X

8. Process of the ESI model
*TSP: Technological Solution of the Provider
*Insurance from clients
Approve project
proposal
Installation of the
equipment and
verification of energy
savings
[TSP – COMPANY - VALIDATOR] [TSP –COMPANY-VALIDATOR]
[TSP – COMPANY]
Technical validation
Approval of the energy
savings insurance
[TSP – INSURANCE
COMPANY]
Credit analysis
[BANK - COMPANY]
Credit disbursement
Loan request
[BANK - COMPANY] [BANK - BANCOLDEX - COMPANY]

9. Incentive from IDB for the ESI programme
Incentives
IDB supported benefits Details
Verification and validation Contract between ASE - IDB
Payment of insurance premium Up to USD 500 per project
Incentive for early retirment of
assets
Up to USD 500 per project
Free advisory service for
verification and validation
with support from Aenor
Videsos of success cases Up to 3 videos

10. Financing Clean Energy and Energy Efficiency
Objetive: Financing provided to change and convert to clean energy technologies.
Key characteristics :
• Financing up to 100% of the net value of the investment
• Price:
- Companies smaller than < 60.000 UF receive a 20% discount of the interest rate.
- Companies greater than > 60.000 UF interest rates are determined on a case by case basis.
• Sovereign and State guarantees
Note: Conditions are defined depending on the type of project and financial considerations of the client.
Credit lines for clean energy and energy
efficiency
Credit lines for e-mobility
Credit lines for irrigation
Credit lines for circular economy
Credit lines for Companies B
Credit lines for enabling or transition technologies
Current products – Types of financing

11. Internal 2021 - 2022
• Training sessions
• Commerical teams
• Training on the contents of the ESI programme
• Training on demand
• Support to commerial areas
• Publications and emphasis in internal platforms to disseminate the contents of the programme
• Workshop with the insurance company Seguros Cesce 2022
ESI: Communication Strategy for dissemination
For companies 2021 -2022
• Dissemnation Webinar – BancoEstado/Aenor / IDB 2021
• (Potential clients and develoeprs)
• Incorporación de contenidos en Pulsos Economía
• Talks and consultations with clients
• Publication on BancoEstado website
• Included in corporate video
• Technical Certification by Incontec (verification and validation firm) OMT y EMT

12. Areas to improve and key lessons learned
• Counterguarantee contract is not valued as the developer already guarantees the project
implementation.
The developer disagrees with covering 100% of all costs covered by the company.
• Re-evaluate and be transparent with companies on the commission of 1.5% a 2.0%.
• Ensure commercial value of Technical Certification Energy Sustainability Agency when the IDB
budget is exhausted
• Increase presence of insurance company Sura and Cesce
• Identify portfolio of Certified Suppliers (developers) that include Energy Savings Insurance in
their products
• Engage with a specialised consultant to attract potential clients that need to invest in green
projects, provide technical support to companies and developers. Outreach via calls and
meeting

13. GRACIAS - THANK YOU