Investors with €1bn to spend on energy efficiency seek UK projects


money-trolley-resizedA consortium of banks and infrastructure investors that aims to invest over €1 billion in energy efficiency projects launched today.

The Investor Confidence Project Europe has created the consortium in a bid to bring together those with capital and those with good quality energy efficiency projects looking for funding.

ICP Europe has been working to standardise energy efficiency projects for some time. Last year, it created its first set of protocols in a bid to scale the market and make energy efficiency a more investible asset class.

ICP Europe senior advisor, Dr. Steven Fawkes, told The Energyst then that a lack of data and standardisation was preventing otherwise viable projects from being bankable when presented to financiers. More robust data presented in a standardised format would de-risk projects and reduce transaction costs, he said, enabling an energy efficiency market to be created.

With those protocols developed and in market, the Investor Network is ready to start scaling investment. Founder members include: Amber Infrastructure, which runs the London Energy Efficiency Fund as well as other listed Infrastructure Public Partnerships fund; The Carbon and Energy Fund; Cut Power; Cleantech Leasing; The European Energy Efficiency Fund; ​Energy Efficiency and Renewable Sources Fund; Joule Assets; Menhaden Capital; PIB Ltd ; The Royal Bank of Scotland; Suma Capital; SUSI Partners and ​Triodos Bank.

Some of those member firms will offer developers incentives such as accelerated underwriting, reduced transaction fees, and preferable terms for certified projects.

“The potential market for building retrofits in Europe is worth upwards of €100 billion per year, presenting a massive, untapped investment opportunity,” said Panama Bartholomy, Director of ICP Europe. “Offering investors a common language to compare risks and savings makes projects simpler, decisions easier, and project performance more reliable. We invite cities, building owners, and local governments that develop these types of projects to meet with our Investor Network to help finance them.”

“As an alternative, innovative financing instrument for energy efficiency projects in the public sector, we in Europe, believe standardised energy upgrade approaches can accelerate project progress and facilitate a more structured project development approach to get access to financing,” said Lada Strelnikova, Director Deutsche Asset Management and Investment Manager for the European Energy Efficiency Fund.

“The key obstacle that stands in the way of investors allocating capital to energy efficiency projects is the lack of any kind of standardisation. The ICP Europe Investor Network is a key step towards turning such projects into an investible asset class,” said Ben Goldsmith, CEO of Menhaden Capital Management LLP.

ICP Europe said it has also created strategic alliances with the financial, real estate, and energy efficiency sectors in the form of an Ally Network and Steering Group to continue developing and maintaining its energy performance protocols, and to make energy efficiency projects more market-ready and investor-friendly.

Find out more about ICP Europe here.

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