Eligible Investments

The European Energy Efficiency Fund (eeef) targets investments in the member states of the European Union.

The final beneficiaries of eeef are municipal, local and regional authorities as well as public and private entities acting on behalf of those authorities such as utilities, public transportation providers, social housing associations, energy service companies etc. Investments can be made in Euro, or local currencies, however the latter is restricted to a certain percentage.

To reach its final beneficiaries, eeef can pursue two types of investments:

Direct Investments

These comprise projects from project developers, energy service companies (ESCOs), small scale renewable energy and energy efficiency service and supply companies that serve energy efficiency and renewable energy markets in the target countries.

  • Investments in energy efficiency and renewable energy projects in the range of €5m to €25m
  • Investment instruments include senior debt, mezzanine instruments, leasing structures and forfeiting loans (in cooperation with industry partners)
  • Also possible are equity (co-)investments for renewable energy over the lifetime of projects or equity participation in special purpose vehicles, both in cooperation directly with municipalities, or with public and private entities acting on behalf of those authorities.
  • Debt investments can have a maturity of up to 15 years, equity investments can be adapted to the needs of various project phases
  • The Fund can (co-)invest as part of a consortium and participate through risk sharing with a local bank

Investments into Financial Institutions

These include investments in local commercial banks, leasing companies and other selected financial institutions that either finance or are committed to financing projects of the Final Beneficiaries meeting the eligibility criteria of eeef.

  • Selected partner financial institutions will receive debt instruments with a maturity of up to 15 years
  • These instruments include:
    • senior debt
    • subordinated debt
    • guarantees
  • No equity investments in financial institutions
  • Financial institutions onlend to the beneficiaries of the Fund meeting the eligibility criteria to finance energy efficiency and/or renewable energy projects
Investment Categories


The European Energy Efficiency Fund can invest in three categories of projects:

Energy Saving and Energy Efficiency investments include:

  • Public and private buildings incorporating renewable energy and/or energy efficiency solutions including those based on the usage of Information and Communication Technologies (ICT),
  • Investments in high energy efficient combined heat and power (CHP), including micro-cogeneration, and district heating/cooling networks, in particular from renewable energy sources,
  • Local infrastructure, including efficient lighting of outdoor public infrastructure such as street and traffic lighting, electricity storage solutions, smart metering, and smart grids, that make full usage of ICT
  • Energy efficiency and renewable energy technologies with innovation and economic potential using the best available procedures

Investments in Renewable Energy sources include:

  • Distributed generation from local renewable energy sources, to medium and low voltage (110kV and lower) distribution networks,
  • Smart-grids enabling higher renewable energy sources uptake,
  • Energy storage to allow storing part of the energy produced from intermittent sources during low-consumption hours and feeding this energy back at times of peak-demand
  • Decentralised energy sources can also be the injecting of locally produced biogas into the natural gas network
  • Microgeneration from renewable energy sources meaning distributed energy from renewable energy, typically providing below 50kW output that is concerned with heat and/or power production technology aimed at the individual domestic households, houses of multiple occupancy, multiple dwellings, and light commercial sectors. The technologies include but are not limited to photovoltaic, micro-wind power, micro-hydro power, ground-, water- and air source heat pumps, solar heating, solid biomass/biogas heating, and micro CHP using renewable energy sources

Investments in Clean Urban Transport include:

  • Clean urban transport to support increased energy efficiency and integration of renewable energy sources, with an emphasis on public transport, electric and hydrogen vehicles and reduced greenhouse gas emissions. The projects will support a progressive substitution of oil by alternative fuels and the development of vehicles which consume less energy and generate fewer pollutant emissions
Investment process

Direct Investments

Chart Direct Investments
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Module 1 - Initial screening

Direct investments embrace projects in energy efficiency, renewable energy and clean urban transport sectors. The Investment Manager will source projects actively from various sources, e.g. global and local ESCOs, manufacturers of equipment or project developers. At the same time potential project partners can also contact the Investment Manager, to suggest their project for funding.

The Investment Manager will conduct a first assessment about the eligibility of the project, and the overall portfolio fit.

If the outcome of the first screening is positive the Investment Manager will start the due diligence process.

Module 2 - Due Diligence

For the due diligence process further project information, such as a financial model, comprehensive project description and technical details are required. Project evaluation will first focus on the portfolio fit with regards to applicable risk ratios and risk-return considerations. The Investment Manager will also analyze whether the Fund’s environmental and developmental objectives are met prior to assessing the project’s legal, financial and technical specifications. If necessary, the Investment Manager might collaborate with the counterparty to identify more feasible financing structures.

Module 3 - Preparation of Financial close

Subject to a successful outcome of this analysis, the Investment Manager will prepare an Investment Proposal and the project will be presented to the Investment Committee.

Upon approval by the Investment Committee, the Investment Manager will prepare the financial closing.

Module 4 - Monitoring and reporting

The Investment Manager will ensure that all projects comply with the terms and conditions agreed upon prior to the investment. This includes regular (quarterly and annual) review of financial, social and environmental performance. Potential work-out scenarios, restructurings, terminations and any other potential follow-up issues will be performed by the Investment Manager.

Current Investments

Current Investments

The eeef has achieved financial closing for following investments:

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