Global Energy Efficiency and Renewable Energy Fund

Summary

The Global Energy Efficiency and Renewable Energy Fund (GEEREF) is a Public-Private Partnership (PPP) designed to maximise the private finance leveraged through public funds funded by the European Commission and managed by the European Investment Bank. GEEREF is structured as a fund of funds, and invests in private equity sub-funds that specialise in financing small and medium-sized project developers and enterprises (SMEs) to implement energy efficiency and renewable energy projects in developing countries and economies in transition.

Details on our Data  Latest confirmation received from Fund Managers: 05-09-2012.

Basic Description

Name of Fund The Global Energy Efficiency and Renewable Energy Fund (GEEREF)
Official Fund Website
www.geeref.com
Date Created Date fund proposed2006

Date fund made operational: 2008

 Proposed Life of Fund
15 years after the initial closing date: 6 November 2008.
Administrating Organisation European Investment Bank (EIB) through a fund management team from the European Investment Fund (EIF).
Objectives The GEEREF aims to:

  • Obtain benefits from accelerated deployment of energy efficiency and renewable energy technologies.
  • Achieve high leverage of public finance by offering preferential returns to private funds.
  • Achieve high degree of financial sustainability.
Activities Supported The GEEREF is invested through private equity funds, that must be approved by the Investment Committee and Board of the Fund. GEEREF finance will support a broad mix of projects promoting energy efficiency and renewable energy technologies. It emphasises deployment of proven technologies including

  • Small hydro,biomass, and on-shore wind Cofiring solutions (e.g. co-firing coal and bagasse)
  • Manufacturing, energy service, trading and micro finance ventures
  • Photovoltaic.

Sub-funds are invested in:

  • 30% of the portfolio will take on High-Risk: targeting projects and SMEs in Least Developed Countries and/or small scale projects and SMEs.
  • 50% of the Portfolio will take on Medium-Risk: focusing on medium and large renewable energy and energy efficiency projects in middle-income countries.
  • 20% of the portfolio will have Low-Risk: targeting medium and large scale renewable energy and energy efficiency projects in emerging economies, economies in transition and economies with limited availability of risk capital.
Conditions and Eligibility Requirements Focus on project funding in countries that have private sector engagement in their national policies. Prioritises small projects (less than EUR 10 million) as they are often neglected.Recipient countries must be eligible for Official Development Assistance.
Accessing the Fund Fund management companies, financial institutions, project developers or individuals that intend to develop a clean energy investment fund or expand an existing fund into clean energy can propose seek finance. Developers of clean energy projects can also submit proposals for investment funds.

Proposals are expected to:

  • Present a financially sustainable business plan generating a fair return for investors and a realistic pipeline
  • Specify environmental and socio-economic impacts.
  • Focus on small and medium sized clean energy projects (< 30MW) and companies.
  • Require long-term patient investment capital.
  • Locally grounded, professional fund management team, preferable with a track record in the clean, energy sector, or at least the capacity to become qualified or to liaise with other parties for that purpose.

Fund Governance

Decision-Making Structure
Dedicated advisors from the EIB and the EIF provide support functions such as legal, tax, accountancy or risk management. An Investment Committee representing GEEREF’s investors and advisors make the investment decisions.
Non-Government Stakeholder Participation Unknown.
Information Disclosure

Donor contributions are partially disclosed on the GEEREF website. The GEEREF website reports investments.

Issues Raised
The Commission has raised concerns that it has been hard to find bankable projects that promote energy efficiency and renewable energy, and a need for venture capital. European NGOs have raised concerns about the need for more transparency about the operations of the fund and the need for more technical assistance support to benefit organisations absent in recipient countries.

Relationship with Official Development Assistance

Inclusion as Official Development Assistance Yes.
Financial Instrument/ Delivery Mechanism Used (e.g. grant, loan) Private equity and grants including for technical assistance.
Nature of Recipient Country Involvement Limited information on the scope of recipient country involvement is available.