Launch of European Energy Efficiency Fund

The European Commission, the European Investment Bank (EIB), the Cassa Depositi e Prestiti (CDP) and Deutsche Bank announced the launch of the European Energy Efficiency Fund (EEEF) in Brussels on 1 July 2011. The EEEF aims to provide market-based financing for commercially viable public energy efficiency and renewable energy projects within the European Union (such as energy savings in public or private buildings, micro-generation and district heating).

Earlier this year, the EU decided to use unspent funds from the European Energy Programme for Recovery (EEPR) in green energy projects.

The European Commission is investing EUR 125 million, the European Investment Bank is committing EUR 75 million, Cassa Depositi e Prestiti (CDP) - EUR 60 million and EUR 5 million will come from Deutsche Bank, who will also act as Investment Manager of the fund. The Fund targets to raise the total volume from currently EUR 265 million to approximately EUR 800 million by attracting further investors.

The EEEF will invest in energy saving, energy efficiency and renewable energy projects, particularly in urban settings, achieving at least 20% energy saving or emission reduction. Sustainable energy investments promoted by local, regional and (where justified) national public authorities, could include: energy saving measures in public and private buildings; investments in high efficient combined heat and power (CHP), including micro-cogeneration and district heating/cooling networks; investment in decentralised renewable energy sources, including micro-generation; clean urban transport; the modernisation of infrastructure, such as street lighting and smart grids, as well as investment in sustainable energies with a potential for innovation and growth.

Potential beneficiaries are public authorities (e.g. municipalities), preferably at local and regional level, and public or private companies, which are acting on behalf of those public authorities, such as local energy utilities, Energy Service Companies (ESCOs), district heating combined heat and power (CHP) companies or public transport providers. Projects and technical assistance (TA) requests are eligible as from 1st January 2011 and may thus be financed on a retroactive basis from that date.