The SUSI Energy Efficiency Fund (SEEF) finances an energy optimization project of existing infrastructure through a sale of receivables from ENGIE Deutschland GmbH in Germany. The energy savings from the first project solely amount to 2,500 MWh per year which significantly decreases the CO2 footprint of the end customer.
With the first transaction signed on 13 July 2016, the fund engages as the financier for an energy savings contract between ENGIE Deutschland as the energy service company and a German end customer. The contract involves the retrofit of heating, cooling, air conditioning facilities with energy efficient systems and the customer is provided with an annual percental energy savings guarantee. In case the defined saving level is not reached, ENGIE Deutschland as energy contractor will make a compensation payment to the customer. ENGIE Deutschland is one of the specialists for energy savings contracting and has a substantial amount of references in Germany.
The SEEF is the largest private investment vehicle financing energy efficiency projects in Europe. The SUSI Energy Efficiency AG, a subsidiary of SUSI Partners AG, advises the fund on investments.
The transaction was supported by law firm Watson Farley Williams.
Sebastian Carneiro, Director at SUSI Energy Efficiency AG mentioned:
“We are pleased to have created a win-win situation for all parties. The end customers will save energy costs and decrease their CO2 footprint whereas ENGIE Deutschland can use the liquidity for new projects. The transaction shows that the business model of conducting an energy retrofit and optimization of existing infrastructure also leads to stable long-term returns and therefore is an attractive investment opportunity.”
Manfred Schmitz, CEO of ENGIE Deutschland comments on the transaction
“We have executed almost 100 projects in energy savings contracting in the last twenty years. We are pleased to have found in SUSI a cooperating partner which makes the contracting model accessible as an attractive investment for the capital market.”
Christopher Tschamler, Vice President at SUSI Energy Efficiency AG and responsible transaction manager adds:
“We are confident that SUSI’s financing solution without requirement for waiver of objection of the end customers and an off-balance sheet structure for ENGIE Deutschland are a promising basis for the realization of further energy efficiency projects in the future.”