RIEEC would be one of the first energy service companies (ESCOs) in Romania to provide financing for energy efficiency investments in creditworthy industrial companies. RIEEC would make standardised investments in on-site co-generation systems, which would enable companies to significantly reduce energy consumption.
RIEEC will provide financing to creditworthy, Romanian industrial companies to create more efficient and reliable sources of energy. Standardised co-generation in industrial plants produce cheaper, reliable and more efficient electricity and heat (up to a 60% improvement in fuel efficiency) with low technological risk. Around 15 such projects will be financed by RIEEC. Significant reductions in greenhouse gas emissions is an additional benefit of these projects.
Currently, most ESCOs target public sector clients. RIEEC creates an entity through which both the technical and credit risks of industrial energy efficiency projects can be contained, and its success could encourage additional private sector financing of such projects. Further, the value of investments in energy savings will be introduced to local plant managers, who will be encouraged to look more closely at their plant’s energy consumption as a way of reducing costs and becoming more competitive.
Romanian Industrial Energy Efficiency Company (RIEEC), a special purpose vehicle to be owned by the Romanian American Enterprise Fund (RAEF) and a Romanian energy services company, EnergyServ. RAEF is a well-known equity fund in Romania, which has invested in a number of industrial and financial entities. The €60 million Fund was established by the US President and Congress in 1994 as a private US corporation with the mission of promoting free enterprise and entrepreneurship in Romania.
€11 million senior loan.
Screened FI. The aim of this project is, in essence, environmental. However, beyond energy management, there may still be other environmental issues associated with sub-projects, which might affect the performance of investee companies. RIEEC will need to adopt and implement environmental procedures to identify potential environment, health and safety risks within investee companies. RIEEC will need to ensure that companies engaged in activities listed on the Bank’s Environmental Exclusion List are not provided with finance. RIEEC will need to require that investee companies comply, at a minimum, with national standards for environment, health and safety; report to the Bank on an annual basis on the monitoring of environment, health and safety issues within investee companies.
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