EBRD invests in Southeast Europe Energy Efficiency Fund

By Ina Coretchi

The EBRD is increasing its commitment to energy efficiency projects with a €25 million investment in the newly established Southeast Europe Energy Efficiency Fund (SE4F).

With total funding of €95 million, SE4F has been set up by the European Investment Bank (EIB), Kreditanstalt für Wiederaufbau (KfW) and the European Commission (EC). The EIB, KfW and the EBRD are each investing €25 million and the EC is providing close to €20 million. The founding intuitions aim to increase the Fund’s size to €400 million, by attracting additional funds from public and private investors.

SE4F will invest in energy efficiency and renewable energy projects especially undertaken by small and medium-sized enterprises (SMEs) and households in Albania, Bosnia-Herzegovina, Croatia, FYR Macedonia, Montenegro, Serbia and Turkey, helping the region to reduce its energy intensity and boosting its energy security.

The Fund’s financing will be provided mainly through loans to financial institutions, which will on-lend to SMEs and residential customers. A part of the SE4F’s funds will be also available for direct investment in specialist energy service companies (ESCOs), energy efficiency service and supply companies, and renewable energy projects.

This initiative aims to expand the availability and access to sustainable energy finance in the Western Balkans and Turkey, boosting the economic and environmental development in the region. This project will help businesses and households in south-eastern Europe to reduce energy wastage, cut costs, and lower their carbon footprint.

The Fund is registered under Luxembourg law as a Variable Capital Investment Company (SICAV). It will be managed by Oppenheim Asset Management Services (Luxembourg).