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.

Sector Focus

Agri-Food

IEEF understands the energy and water intensity of agri-food processes and the constant pressure on margins in a highly competitive sector. Whilst larger agri-food companies may traditionally self-fund less complex projects, their internal investment hurdle rates tend to be more stringent than IEEF which can result in commercial projects not being completed. For example, a large agri-food company may only fund projects with a simple payback of less than 3-4 years, while IEEF funds projects with up to 7+ year simple payback, comprising a number of short and long term energy conservation measures. Our approach can enable a deeper retrofit to be undertaken to include inefficient or end-of-life equipment (i.e. CHP, refrigeration, cooling, HVAC, boilers, etc) and facilitate essential cap-ex which a Client needs to undertake anyway. Furthermore, within all companies there are multiple projects competing for the same pool of capital, therefore, while an investment may fall within the internal investment hurdle rates, it might not receive that allocation where other projects are deemed more business critical. IEEF assists agri-food companies to develop and deliver projects which might otherwise not receive an internal capital allocation, and can also deliver projects off-balance sheet such that an IEEF project is not capitalised on the Client’s balance sheet.

Hospitality

IEEF has a detailed understanding of the key energy saving initiatives for the hospitality sector and the sensitivities associated with hotel retrofit, including: i) ensuring no degradation to customer experience, comfort or service levels as a result of the equipment installed; and, ii) understanding the importance of minimising disruption to hotel operations and service continuity during the installation phase. Our projects are also designed to substantially bolster the resilience of a hotel’s infrastructure and enhance customer experience through improved heating, lighting, ventilation and building controls. IEEF’s investment model helps smooth out the traditional lumpy capital expenditure that hotel owners can suffer due to their equipment replacement profile and can be delivered off-balance sheet.

Healthcare

IEEF understand the key energy saving initiatives for the healthcare sector. We understand the importance of ensuring that a patient’s care is not negatively impacted at any stage during project installation or ongoing operations. Our projects are designed to substantially bolster the resilience of a hospital’s infrastructure and deliver immediate operational savings through reduced energy consumption and maintenance savings which can be used by the Client to support patient services or other necessary capital expenditure within the hospital. Our projects can also improve patient experience through better air quality, disease control, and regulation of heating.

Retail

IEEF has a detailed understanding of the key energy saving initiatives for the food retail sector and the importance of minimising disruption to operations during the installation phase. We are fully aware of the constant pressure that food retailers are under to improve margin and reduce operating costs in a price competitive market. Our solution positively impacts both the top and bottom line for the food retailers: i) quality lighting and refrigeration improves the look of the produce and drives customer footfall, enhancing customer experience and spend; and ii) delivering immediate operational savings through reduced energy consumption and maintenance savings. IEEF’s investment model can also be delivered off-balance sheet for the retailer and therefore works within existing financial covenants, whilst facilitating capital to be deployed across core areas of the business to drive profitability and competiveness.

Education

There is substantial scope for energy efficiency upgrades, along with fuel switching, heat and power generation and district heating, in educational campuses and building infrastructure across Ireland. The IEEF structures deals based on the typical seasonality of energy use within the education sector and delivers cost savings, equipment upgrades and more efficient delivery of energy, whilst also generating energy savings towards the institution’s public sector energy reduction targets. The risk transfer for a university or Institute of Technology, delivered through an Energy Performance Contract, 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 operation risks, all of which are fully funded and wrapped by IEEF by virtue of the energy savings guarantee.

Industrial Processes and Facilities

The scope for energy efficiency upgrades across industrial facilities is substantial. This may include replacement of inefficient equipment, improvements to building fabric and the improvement of industrial processes through process optimisation. Through energy efficiency improvements and the articulation of key performance indicators for process optimisation within an energy efficiency project, IEEF can facilitate the reduction of per unit cost of production which can in turn have a positive impact on a company’s competitiveness. IEEF’s investment model can also be delivered off-balance sheet for the industrial facility and therefore works within existing financial covenants.

Data Centres

Data centres are one of the most energy intensive sectors globally, second only to aviation. Energy can represent up to 80% of the cost of running a data centre, of which cooling is the largest energy load, which provides an important opportunity for energy efficiency measures. IEEF is fully aware of the business critical nature of cooling to data centres both in terms of security of supply and un-interrupted supply. SDCL has worked with large data centres to reduce their energy consumptions while delivering reliable and un-interrupted cooling load. We have also delivered off-balance sheet projects to the Client.