Day: 19 January 2018

For many years, SMEG, Monaco’s electric and gas utility company, has sponsored various sustainable initiatives. These programs are sometimes financed by SMEG or supported by the association Energy Assistance Monaco (EAM).

“Few people realise,” says Christian Philipon, SMEG Project Manager and EAM Vice-President, “that SMEG has hosted EAM – who looks to sponsor international humanitarian projects aimed at providing assistance, logistics and equipment to populations without access to electricity – since its creation in 2011.”

Members of EAM are volunteers, employees of SMEG and Cometh Somoclim – trade professionals in air-conditioning, heating, ventilation and energy services in the Principality – who are committed to benevolent and ecological projects.

EAM follows the ethos of its founding branch, Energy Assistance (EA), created in Belgium in 2001 by employees of Tractebel, Electrabel and Fabricom to bring together volunteers – a combination of retirees and employees of the energy sector. EA France was founded in 2005, EA Monaco and EA Italy in 2011.

Giving second life to Monaco’s pavilion 
One of SMEG’s most challenging humanitarian projects has been providing photovoltaic equipment for the new Aquatic Rescue and Training Centre in Loumbila, near Burkina Faso, which was inaugurated today in the presence of Prince Albert, the Monaco Red Cross, SMEG and the Burkinabè Red Cross.

SMEG’s involvement in the centre dates back to 2014, when designing the Monaco pavilion – with the theme “Feeding the planet, energy for life” – for the Universal Exhibition in Milan, that could be given a “second life” by recycling the building.

Based on a suggestion from the Monaco Red Cross (CRM), the government validated the “transformation” of the Milan pavilion to become an innovative and sustainable training and rescue centre near Ouagadougou, the capital of Burkina Faso.

Financial and technical support
In 2015, at the request of CRM, SMEG carried out a study which concluded that for a reliable and sustainable electricity supply, a solar hybrid solution with energy storage, conceived on the main part of the isolated site, would offer the best guarantees.

As a result, and with a €250,000 budget financed by SMEG, the centre was equipped with a photovoltaic field with a power of 56 kWp, a stationary battery bank of 4700Ah under 48V, and a set of inverters to supply the pavilion with three-phase power.

A solar generator prioritises energy supply to the roof of the building, and the surplus of energy is stored in a battery bank to ensure continuity of power in case of power loss or a network outage.

In case of high electricity consumption, or a day of bad weather, additional energy is provided by the public network or the generator. A set of inverters/chargers creates a three-phase, 400-volt “microgrid” to which the photovoltaic inverters are connected.

Photo: SMEG

High tech equipment and energy production 
The annual energy produced will be about 100 MWh, which represents the annual electricity consumption of some 30 households of four people in France. This local production will limit use of the public electricity grid.

Control and monitoring equipment with graphical interface has been installed to allow real time visualisation of the different energy flows within the set-up, as well as the precise level of battery charge. Subject to internet connection, remote monitoring will be possible via a data logging system.

SMEG CEO Thomas Battaglione and Christian Philipon were on hand for the opening of the Aquatic Rescue and Training Centre. Mr Battaglione commented, “The significant reduction in the electricity bill, often the largest expense of such a structure, will facilitate the financial start-up of the centre and thus contribute to its long-term training and action activities in the service of the poor.”

Article first published January 12, 2018.

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It’s no secret that the ski industry on Europe has been under threat for some time. The most recent data available, from 2015, showed single-day skier visits down 2.5 percent in France and 5.2 percent in Switzerland, while overnight stays in these two destinations have been on a steady downhill slope since 2004.

Both cost (equipment hire, flight, accommodation and currency fluctuations) and climate change have been blamed for the crisis but developers are trying to find ways to reach new clients and keep them coming back.

Money has been spent on infrastructure and reviving existing resorts, which, according to The Spectator, has “created a more nuanced class of real-estate investment is emerging, capable of generating tidy returns for the careful buyer”.

Enness International, a specialist, high-end lending division of Enness, which caters for clients looking to acquire or refinance overseas property, specifically those located in Monaco, France, The Balearics and Switzerland, has reported an increase in demand for ski chalet finance.

Managing Director Hugh Wade-Jones commented: “With winter firmly upon us, many of our clients are taking to the mountains of Europe to enjoy another season on the slopes. From Courchevel to Klosters, winter resorts remain as popular as ever – but with the best lodges and hotels getting booked up early, we’ve seen an increased demand from clients looking to purchase a place to call their own.”

Mr Wade-Jones, who along with his business partner Islay Robinson opened a Monaco office earlier this year, added, “Typically, our clients want to truly make the properties their own by either refurbishing or securing construction finance in the Alps.”

There are several key considerations for those trying to arrange construction finance in the Alps, Mr Wade-Jones pointed out, starting with ensuring the money you plan to spend is actually adding to the value of the property. “The project cost needs to be in line with the gross development value, or GDV. It’s more challenging to secure a large sum for a purely aesthetic overhaul, for example, if it isn’t going to significantly change the value of the property.”

And while any keen skier knows, location is key, Enness has noted an interesting trend in which valuations have been strong in areas that haven’t been showing a recent history of good snow. “For skiing resorts, this seems worrying. Megève hasn’t seen good snow for several years, but valuations are still coming back as positive. This is a risky game. Spots such as Courchevel 1850 and Meribel are far better bets.”

Timelines should reflect securing the right permits and securing development finance, which in the Alps can be a challenge for clients from a range of nationalities. However, the process of purchasing ski property can move quickly with the right lender, who can, in some cases, arrange finance for 100 percent of both the purchase and construction.

Another potential pitfall, said Mr Wade-Joes, is Assets Under Management (AUM) requirements. “Generally, you’ll need to place at least 25 percent of the global loan amount – the gross loan – as assets under management – for the duration of the facility. The entirety of this amount typically needs to be transferred on day one of the loan.”

This is an expectation Enness feels is important to manage. “Clients from the UK and America are often less accustomed to placing AUM, so this can be a sticking point,” explained Mr Wade-Jones. “However, while we have managed to negotiate lower rates of AUM for clients in the past, this will be a requirement from European lenders most of the time.”

Article first published November 16, 2017.

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