Several times, EiD has had posts on the EU-funded Investor Confidence Project (ICP). Clare Taylor writes on the Energy Collective website about a new investor network that is being hosted by the ICP. These are important steps forward to encourage more building renovations.
New Investor Network Aims to Close the Gap on Energy Efficiency Financing
Financiers of energy efficiency projects are joining forces with the launch of a new Investor Network to drive demand in the marketplace. Funded by the European Commission’s Horizon 2020 programme, the Investor Confidence Project (ICP) Europe hosts the Investor Network – a critical link in ICP’s plan to connect real estate developers and energy efficiency providers with the private capital necessary to manage and complete building retrofits that deliver financial and environmental results. While increasing deal flow is the near-term goal, the Investor Network is expected to play a pivotal role in a long-term strategy to create a standardised asset-class of energy efficiency projects to enable market transformation.
“The potential market for building retrofits in Europe is worth upward 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.”
Investor Network members have invested and committed more than €1 billion to energy efficiency in total. These companies see the value ICP provides to their investments in energy efficiency projects and to the evolution of the industry as a whole. By providing a set of standardised tools to better assess performance risk and reduce the time and costs involved in funding these projects, ICP builds trust in return on investments. By joining the network, these investors are recommending the use of ICP’s protocols and Investor Ready Energy EfficiencyTM (IREE) certification, a credentialing system that follows best practices for energy efficiency projects.
“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, one of the founder members of ICP Europe’s Investor Network.
“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 (eeef). Deutsche Bank manages the eeef, which has €260 million committed to, and €115 million invested in, energy efficiency projects.
Members of the Investor Network are comprised of a wide range of financial services firms including lenders, equity providers, project insurance providers, and energy services, including: Amber Infrastructure, Banco BPI, CleanTech Leasing, CutPower, Energy Efficiency and Renewable Sources Fund, European Energy Efficiency Fund, Joule Assets, Menhaden Capital, PIB Insurance, Royal Bank of Scotland, Suma Capital, SUSI Partners, The Carbon and Energy Fund and Triodos Bank
Interested investors can find more details on ICP Europe’s website here. To get in touch with any of the Investor Confidence Project’s Investor Network members about funding for energy efficiency projects, email firstname.lastname@example.org.