EN 17463:2021

SLOVENSKI STANDARD
01-december-2021
Vrednotenje investicij v zvezi z energijo (VALERI)
Valuation of Energy Related Investments (VALERI)
Bewertung von energiebezogenen Investitionen (VALERI)
Évaluation des investissements liés à l'énergie (VALERI)
Ta slovenski standard je istoveten z: EN 17463:2021
ICS:
03.100.01 Organizacija in vodenje Company organization and
podjetja na splošno management in general
27.015 Energijska učinkovitost. Energy efficiency. Energy
Ohranjanje energije na conservation in general
splošno
2003-01.Slovenski inštitut za standardizacijo. Razmnoževanje celote ali delov tega standarda ni dovoljeno.

EUROPEAN STANDARD
EN 17463
NORME EUROPÉENNE
EUROPÄISCHE NORM
October 2021
ICS 03.100.01; 27.015
English version
Valuation of Energy Related Investments (VALERI)
Évaluation des investissements liés à l'énergie Bewertung von energiebezogenen Investitionen
(VALERI) (VALERI)
This European Standard was approved by CEN on 2 August 2021.

CEN and CENELEC members are bound to comply with the CEN/CENELEC Internal Regulations which stipulate the conditions for
giving this European Standard the status of a national standard without any alteration. Up-to-date lists and bibliographical
references concerning such national standards may be obtained on application to the CEN-CENELEC Management Centre or to
any CEN and CENELEC member.
This European Standard exists in three official versions (English, French, German). A version in any other language made by
translation under the responsibility of a CEN and CENELEC member into its own language and notified to the CEN-CENELEC
Management Centre has the same status as the official versions.

CEN and CENELEC members are the national standards bodies and national electrotechnical committees of Austria, Belgium,
Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy,
Latvia, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Republic of North Macedonia, Romania, Serbia,
Slovakia, Slovenia, Spain, Sweden, Switzerland, Turkey and United Kingdom.

CEN-CENELEC Management Centre:
Rue de la Science 23, B-1040 Brussels
© 2021 CEN/CENELEC All rights of exploitation in any form and by any means Ref. No. EN 17463:2021 E
reserved worldwide for CEN national Members and for
CENELEC Members.
Contents Page
European foreword . 4
Introduction . 5
1 Scope . 7
2 Normative references . 7
3 Terms and definitions . 7
4 Symbols, abbreviations and subscripts . 10
5 Valuation procedure . 11
6 Setting up a model (phase A) . 13
6.1 Determination and qualitative description of benefits and efforts . 13
6.2 Quantification of the benefits and efforts . 14
6.3 Monetisation, determination of the relevant points in time, consideration of price
variations and of degradation . 15
6.3.1 General. 15
6.3.2 Consideration of price variation effects . 16
6.3.3 Consideration of degradation . 16
6.4 Number of periods to be considered . 18
6.5 Consideration of risk . 18
6.6 Determination of the appropriate discount rate. 18
7 Calculation (phase B). 19
7.1 Determination of the NPV of the ERI (most-likely-case scenario) . 19
7.1.1 General. 19
7.1.2 Consideration of tax . 21
7.2 Performing a sensitivity analysis under variation of all parameters containing
considerable uncertainty . 21
7.3 Performing a scenario analysis (best-case, worst-case, and most-likely-case
scenario) . 23
8 Assessment (phase C) . 24
8.1 Interpretation of the results . 24
8.1.1 General. 24
8.1.2 Net Present Value (NPV) . 24
8.1.3 Scenario and sensitivity analyses . 25
8.2 Valuation of non-monetisable qualitative and quantitative effects on the decision . 25
9 Reporting (phase D) . 25
Annex A (informative) The NPV calculation table (basic version) with visible formulas . 28
Annex B (informative) Comprehensive version of the NPV calculation table. 29
Annex C (informative) Selection of the appropriate valuation method . 33
Annex D (informative) Case study: Application of the valuation procedure to the integration
of a cogeneration unit within an industrial organization . 41
Annex E (informative) Checklist for the Valuation Report . 51
Annex F (informative) Consideration of risk . 53
Annex G (informative) Consideration of price variation . 56
Bibliography . 57

European foreword
This document (EN 17463:2021) has been prepared by Technical Committee CEN/CLC/JTC 14 “Energy
efficiency and energy management in the framework of energy transition”, the secretariat of which is
held by UNI.
This European Standard shall be given the status of a national standard, either by publication of an
identical text or by endorsement, at the latest by April 2022, and conflicting national standards shall be
withdrawn at the latest by April 2022.
Attention is drawn to the possibility that some of the elements of this document may be the subject of
patent rights. CEN-CENELEC shall not be held responsible for identifying any or all such patent rights.
Any feedback and questions on this document should be directed to the users’ national standards
body/national committee. A complete listing of these bodies can be found on the CEN and CENELEC
websites.
According to the CEN-CENELEC Internal Regulations, the national standards organisations of the
following countries are bound to implement this European Standard: Austria, Belgium, Bulgaria,
Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland,
Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Republic of
North Macedonia, Romania, Serbia, Slovakia, Slovenia, Spain, Sweden, Switzerland, Turkey and the
United Kingdom.
Introduction
In order to reach the energy related targets of the EU and its member states, energy related investments
(ERIs) have to increase. A possible lack of investments could not only result from a lack of the available
capital, but also from a lack of reliable financial evaluations of the benefits of ERIs.
Different investment ideas often compete for the available money within organisations. Therefore,
enhancement of the financeability of ERIs can be achieved by showing the full economical value that
they are able to generate. When this is done properly, priorities for budgets of ERIs should rise
automatically and thus more investments will be undertaken.
The state of the art of today’s energy related project valuation in practise reveals that in order to help
the user to undertake a firm and correct valuation it is necessary to avoid:
— incorrect results which are caused by neglecting relevant parameters and cash flows;
— unclear calculation models which are difficult to understand;
— models containing errors or models that are incomplete;
— use of calculated costs instead of cash flows;
— time value of money not being considered;
— discount rate being used in an unreflected manner;
— risks not being properly considered;
— missing sensitivity and scenario analyses;
— missing traceability;
— missing interpretation of results;
— price variation rates (very important for energy project valuation) not being appropriately
considered.
The objectives of this document are:
— to help proposers of energy related investments (ERIs) to evaluate their ideas economically and
qualitatively in a uniform, transparent and understandable way by generating all material
information that is relevant for a decision,
— to generate comparable results (for this it is important to ensure that the estimation of the cash
flows is done in a comparable way by using correct price variations, the use of marginal prices for
all cash flows etc.),
— to help the valuator to generate valuation results that can be easily understood by those who decide
upon them,
— to help the decision maker and possible financial institutions who decide on the basis of the
valuation results and expect the results to be correct and complete but also easy to understand,
retraceable and explicit (material),
— to complement other standards or protocols that focus on the technical determination of energy
savings and
— to help those persons that decide upon ERIs.
In order to accomplish these objectives this document offers a valuation procedure, a calculation
methodology (just one), and a documentation structure that covers the following features:
— application of one calculation method only;
— correct and complete results (Net Present Value considering among other things also, all relevant
cash flows and their price variation rates over the whole project lifetime);
— unequivocal (one indicator at the end which can be directly used for decision-making);
— uniform (a standard);
— easy to use (table based, one uniform calculation table);
— retraceable and easy to reproduce (calculations are transparent and the assumptions made are
explained);
— as simple as possible;
— flexible (the user can adjust parameters and can customise the calculation table);
— undertaking of sensitivity and scenario analyses;
— the standard contains templates for reporting the calculation results and all additional qualitative
effects.
Transparent calculations including retraceable assumptions that show the full value of ERIs will help
organisations as well as households to identify the added value resulting from such ERIs. The proposed
methodology could also be used in energy reviews or audits (using EN 16247-1), when prioritising
energy performance improvement potentials.
An easy to use and standardized procedure would be helpful as energy management teams might not
always include personnel that are equipped to translate technical ideas into conclusive economical
results in order to ensure a solid basis for decision-making.
This document relates to standards regarding energy management and energy savings in general. It
proposes the use of “Net Present Value” (NPV) calculations and its result as a basis for decision-making
(see Annex C).
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