Improving energy efficiency not only delivers cost savings to Clients but frees up capital for other operational activities, allows for future-proofing against possible energy price increases, improves resilience and can improve asset values. There is significant untapped market demand for investment in energy efficiency projects but historically this has been inhibited by a lack of funding from conventional sources. IEEF is taking an innovative performance based approach by structuring its investment return on the energy cost savings expected to be achieved by projects, thus delivering energy demand reduction and value for money for Clients.
IEEF can finance projects that fall outside a Client’s internal hurdle rates (be it return on investment or simple payback in years).
Client’s capex budget remains untouched and can therefore be used to fund other necessary or core business projects.
Equity funding not debt, therefore does not impact existing financial covenants.
Substantial risk transfer for the contract term.
Operational cost savings day one.
Facilitates asset / infrastructure upgrades, including end-of-life assets.
Future-proofs against energy price increases.
IEEF and the Client are fully aligned to deliver successful projects as IEEF service fee is contingent on the energy savings being delivered and verified.
Potential off-balance sheet treatment.
Savings generated cover the upfront and ongoing maintenance costs throughout the contract term.