May 27, 2015
Energy Efficiency Fund (IEEF) has secured an €8.5m investment from the Representative Church Body (RCB), the investment manager and trustee of the Church of Ireland Pension Fund.
RCB joins Glen Dimplex and London & Regional Properties as investors in the €70m Fund which invests in energy efficiency projects on commercial terms, providing stable returns for investors in this exciting new asset class. IEEF is also backed by a €35m investment from the Irish government and expects to be fully invested by the end of 2016 based on a strong pipeline of projects.
IEEF’s model is to provide the upfront capital required for energy efficiency investment and generate a return through sharing in energy savings over the life of the project. Host companies avoid the need to fund the upfront capital costs of the equipment upgrade, benefit from guaranteed energy savings over the project term and better environmental performance of equipment, and transfer the performance, technical and financing risk of the project to the Fund.
Sustainable Development Capital LLP (SDCL) was appointed to manage the IEEF in March 2014 following a competitive procurement process run by the NTMA and Department of Communications, Energy and Natural Resources.
Commenting on the investment, David Hourihane, Managing Director of Sustainable Development Capital LLP, the IEEF’s investment advisor, said:
“This investment is welcome evidence of the increasing interest that we are generating from domestic and international pension funds in energy efficiency as a new investment asset class, producing stable risk-adjusted returns, whilst delivering value for money to the end client, along with substantial environmental returns through funding infrastructure that reduces energy consumption. We are putting this capital to work across public and private sector infrastructure in Ireland, building on successes we have already had with Tesco Ireland and Louth County Council. We anticipate further funding commitments in the coming months.”
Roy Asher, Head of Investments at the Representative Church Body said:
“Part of our investment mandate is to seek out opportunities that provide risk-adjusted commercial returns for our funds under management, whilst being consistent with the ethical and environmental sustainability values we hold. The IEEF provides just such an opportunity and is developing a market and new asset class that is only in its infancy in Ireland and represents a fantastic example of impact investment for the Irish market.”
Examples of projects the IEEF has invested in to date include:
- A €2m investment to install 5,000 low energy usage LED panels across 7 Tesco sites, helping deliver a 60% reduction in energy usage
- A €5m commitment to improving energy efficiency in social housing, of which the first investment was Europe’s largest social housing regeneration scheme, involving the installation of 2,000 Climote smart heating control units in social housing units for Louth County Council
About Sustainable Development Capital LLP
SDCL is a leading global energy efficiency investment fund manager, managing government backed investment funds in Ireland, UK (Green Investment Bank), US (New York Green Bank) and Singapore (Economic Development Board). SDCL has proven expertise in structuring, financing and managing energy efficiency projects that deliver ongoing operational cost savings and carbon emission reductions as well as facilitating equipment upgrade and improvements to productivity for the host.
About Representative Church Body
The Representative Church Body (RCB) is the investment manager and trustee for investment and pension funds run by the Church of Ireland. The RCB has approximately €650m in assets under management, which it invests across equity, fixed income and alternative investment opportunities.