The European Energy Efficiency Fund (eeef) targets investments in the member states of the European Union.
The final beneficiaries of eeef are municipal, local and regional authorities as well as public and private entities acting on behalf of those authorities such as utilities, public transportation providers, social housing associations, energy service companies etc. Investments can be made in Euro, or local currencies, however the latter is restricted to a certain percentage.
To reach its final beneficiaries, eeef can pursue two types of investments:
These comprise projects from project developers, energy service companies (ESCOs), small scale renewable energy and energy efficiency service and supply companies that serve energy efficiency and renewable energy markets in the target countries.
- Investments in energy efficiency and renewable energy projects in the range of €5m to €25m
- Investment instruments include senior debt, mezzanine instruments, leasing structures and forfeiting loans (in cooperation with industry partners)
- Also possible are equity (co-)investments for renewable energy over the lifetime of projects or equity participation in special purpose vehicles, both in cooperation directly with municipalities, or with public and private entities acting on behalf of those authorities.
- Debt investments can have a maturity of up to 15 years, equity investments can be adapted to the needs of various project phases
- The Fund can (co-)invest as part of a consortium and participate through risk sharing with a local bank
Investments into Financial Institutions
These include investments in local commercial banks, leasing companies and other selected financial institutions that either finance or are committed to financing projects of the Final Beneficiaries meeting the eligibility criteria of eeef.
- Selected partner financial institutions will receive debt instruments with a maturity of up to 15 years
- These instruments include:
- senior debt
- subordinated debt
- No equity investments in financial institutions
- Financial institutions onlend to the beneficiaries of the Fund meeting the eligibility criteria to finance energy efficiency and/or renewable energy projects