Ireland and SDCL launch €70m energy fund

The Irish government and the leading investment manager Sustainable Development Capital (SDCL) will launch a new €70 million (£57.2 million) fund for energy efficiency projects.

The National Energy Efficiency Fund will be channeled towards energy saving initiatives in the Irish market that will help to slash carbon emissions in the energy generation sector while creating thousands of jobs.

SDCL will act as an investment adviser to the fund, which has already raised an initial €35m (£28.6m).

The Irish government has provided €17.2m (£14m) and the remainder has been sourced from the private sector, including a €12.8m (£10.5m) investment from London & Regional Properties and €5m (£4m).from Glen Dimplex Group.

According to SDCL, up to €300m (£245m) of leveraged funding will be delivered over the next three years, based on a fund size of €70m.

Co-founder and CEO of SDCL, Jonathan Maxwell, said: “There is pent up demand in the market for investment in energy efficiency projects but this has been inhibited by a lack of funding from conventional sources. The fund is taking an innovative approach by basing its investment return on the energy cost savings expected to be achieved by projects. Improving energy efficiency not only delivers cost savings but frees up capital for other operational activities, allows for future-proofing against possible energy price increases, increases resilience and can improve asset values.”

Tesco Ireland is expected to be the first company to benefit from the fund as a €2m (£1.6m) injection will retrofit seven of its stores to reduce energy consumption.

Tesco Ireland finance director Adrian Lewissaid: “Working with Irish technology companies, promoting local employment in energy efficiency and, unlocking energy saving will help us better support the communities we operate in”.

There is also a follow-on funding commitment for a further 40 stores and the company said the initiative will save it €540,000 (£441,000) annually on energy bills.