How IEEF Operates

IEEF not only finances energy efficiency projects, we seek to partner with Clients to deliver the project. IEEF develops, contracts and funds projects, with the added advantage of facilitating optimal risk transfer for Clients which provides a compelling value for money proposition.

Investment Process

1. Project Identification

  • IEEF work alongside Clients (public and private buildings owners and occupiers) and Energy Services Companies (ESCOs) to identify, and evaluate energy efficiency projects. This includes providing additional technical expertise and advice through the IEEF’s team of technical advisors across various jurisdictions, many of whom are leaders in their field in terms of Energy Performance Contract (EPC) assessment and evaluation. With the key technical building blocks including an appropriate risk assessment, provided in conjunction with IEEF, a project is more likely to reach successful financial close.

2. Financial Solutions

  • We provide and structure the optimal financial solution for the project, ensuring risks are identified and mitigated.

  • IEEF provides equity funding and can finance up to 100% of the capital requirement for the project.

  • IEEF’s return is fully performance based and only generated if the guaranteed savings are delivered and verified by all parties.

  • The Client participates in the savings from day one.

  • Off-Balance Sheet delivery for private sector clients - structured as a contract for services, facilitating allocation of capital to core business, service fee contingent upon delivery of energy savings, EBIDTA enhancing day one.

  • Public Sector Risk Transfer: The risk transfer for a public sector client delivered through Energy Performance Contracting is of most value when undertaking deep retrofit projects that combine multiple energy efficiency technologies, including end of life asset upgrade, such as CHP, boilers, lighting, HVAC, insulation, window replacement. Given the complexity of these projects in terms of technology selection, installation, and ongoing operation and maintenance, there is a compelling value for money proposition for transferring specific project risks to IEEF, such as technology, installation, ongoing operational risks, all of which are fully funded and wrapped by IEEF by virtue of the energy savings guarantee.

3. Contracting

  • Structure appropriate contractual arrangements to encompass construction, operations & maintenance (O&M), project management and risk allocation.

  • Energy Performance Contracting is one of the core contractual structures that IEEF uses and is based on the premise that energy savings realised during the operational life of energy efficient equipment will pay for the upfront cost of that equipment.

  • EPC is a unique model to support energy efficiency that will drive cost efficiencies and facilitate equipment upgrade for Clients. Project savings agreed upfront and guaranteed for the Client.

4. Delivery

  • Focus on project management and performance throughout, including measurement and verification (M&V) of savings achieved under international protocols.