Launch of the European Energy Efficiency Fund

The European Commission, the European Investment Bank (EIB), the Cassa Depositi e Prestiti (CDP) and Deutsche Bank launched the European Energy Efficiency Fund (EEEF) on 1 July.

The EEEF aims to provide market-based financing to support commercially viable projects that can contribute to energy efficiency and renewable energy, in particular in urban settings. The fund targets small scale investments by local or regional authorities (or even national) or by public or private compagnies acting on behalf of public authorities, such as energy services companies (ESCOs), public transport providers, or district heating combined heat and power companies. It aims to support projects which do not have a sufficient return on investment in the short term to attract investors.

The fund is designed to help the EU Member States to meet their 20-20-20 targets by 2020 (reduction of greenhouse gas emissions by 20%, increase of renewable energy to 20% and reduction of energy consumption through a 20% improvement in energy efficiency).

The facility shall be used for projects concerning : public and private buildings incorporating energy efficiency and/or renewable energy solutions including those based on the usage of ICT ; investments in high energy efficient combined heat and power (CHP), including micro-cogeneration, and district heating/cooling networks, in particular from renewable energy sources; decentralised renewable energy sources embedded in local settings and their integration in electricity grids; microgeneration from renewable energy sources; clean urban transport; local infrastructure, including efficient lighting of outdoor public infrastructure such as street lighting, electricity storage solutions, smart metering, and smart grids; energy efficiency and renewable energy technologies with innovation and economic potential.

€265 million –coming partly from unspent funds from the European Energy Programme for Recovery of 2008- will be allocated initially and distributed as follows:

  • €125 million will be invested by the European Commission in the fund’s junior tranche;
  • €75 million will be invested by the EIB in the mezzanine tranche;
  • €60 million will be invested by the CDP in the mezzanine tranche;
  • €5 million will be invested by Deutsche Bank in the mezzanine tranche; Deutsche Bank will also act as investment manager for the fund.

The fund intends to raise its total volume to €800 million by attracting further public and private investors.

Bookmark and Share

About admin