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.
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
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.