Eligibility of Projects for eeef Financing

eeef will invest in energy efficiency, renewable energy projects and clean urban transport, particularly in urban settings. Sustainable energy investments promoted by local, regional and (where justified) national public authorities, could include but are not limited to energy saving measures in public buildings; investments in high efficient combined heat and power (CHP), including micro-cogeneration and district heating/cooling networks; investments in decentralized renewable energy sources, including micro-generation; clean urban transport; the modernization of infrastructure, such as street lighting and smart grids, as well as investments in sustainable energies with a potential for innovation and growth.

Investments must achieve at least 20% primary energy savings for EE projects, except for the building sector where a higher percentage is required. Investments in the transport sector will also target a 20% reduction of CO2 emissions. A calculation of actual CO2 savings and of primary energy savings needs to be provided. Details that need to be included are the assumptions and the method of calculation. Public authorities requesting financing for eligible projects should have concrete objectives in place to mitigate climate change (i.e. increasing energy efficiency or use of energy from renewable energy through e.g. the Covenant of Mayors Initiative[1]) as well as multi-annual strategies in doing that. The fund only invests in proven technologies. Further criteria apply for specific technologies. To check whether the project meets the eligibility criteria, please refer to the eligibility check available on the eeef website.

The level of the authority should preferably be regional or local, but the Fund can also consider projects on a national level.

The focus of the Fund is on energy efficiency, and in the medium term the portfolio share of energy efficiency is expected to be 70%. Nevertheless no project type is preferred, but the eeef will consider each project that is in line with its investment guidelines.

The minimum project size is EUR 5mn (range of EUR 5-25mn); however especially in the sector of energy efficiency the eeef also considers investments with a volume of lower single digit millions. To achieve a higher amount it is also possible to pool several smaller projects.

No, the EUR 25mn refer to the volume invested by eeef. The Fund can also co-invest in projects with a total size of more than EUR 25mn.

Yes, a pooling of projects perfectly fits into eeef’s investment strategy.

From the eeef’s perspective there is no problem to combine national or local incentive schemes with eeef financing. However, an eeef investment is not possible, if the project receives subsidies from other EU programs (Structural Funds, Cohesion Funds etc.).

The public authorities requesting financing for eligible projects should have concrete objectives in place to mitigate climate change (i.e. increasing energy efficiency or use of energy from renewable energy through e.g. the Covenant of Mayors Initiative) as well as multi-annual strategies in doing that. However, with its Technical Assistance (TA) Facility the Fund could also support local authorities in formulating a low carbon strategy and outline a plan for its implementation.

In the medium term the Fund targets a geographical balance across the EU member states. However, currently and also in the near future this will not constitute a limiting factor for projects and their financing via eeef.

No, eeef’s activities are limited to the territory of the EU member states.

No, eeef can only provide financing for proven technologies. This means the suggested technology has been successfully implemented on a commercial scale in some projects.

Social housing projects are eligible for eeef.