Energy efficiency Europe: How can ESCOs best finance EPC projects?

Energy efficiency Europe: How can ESCOs best finance EPC projects?

Recorded: 19 Oct 2017

Webinar Overview

Securing upfront capital to financing energy performance contracting (EPC) projects remains a major barrier to the growth of the energy efficiency market in Europe, and specifically to the growth of small and medium-sized energy services companies (ESCOs).

Performance risk, financial risk, and the small size of most energy efficiency projects (less than €1 million) restrict access to finance, limiting project rollout and ESCO growth.

Crucially, most ESCOs do not know what finance is available and how to make their project attractive to funds.

This webinar will address the basics to overcoming the biggest burden ESCOs face – securing finance – and discuss available financing structures and best practices.

Off-balance sheet financing

While most ESCOs rely on on-balance sheet debt via bank loan to cover upfront costs, the process is administratively heavy and does not guarantee a stable flow of capital for ESCOs that are looking to expand their pipeline.

What most ESCOs require to successfully rollout their projects and grow their business is a trusted financial partner that will tailor bespoke deals according to the project, and/or bundle several projects in one loan.

To develop this sort of partnership, it is essential to first understand the different financing options available as well as the basic requirements of financial funds in order to immediately engage the fund in the project, leading to a favourable deal.

In this context, Joule Assets will present eQuad as a solution to matching projects to appropriate project finance and facilitating deal closure between ESCOs and investors.

eQuad is an online platform that facilitates investment in European energy efficiency products by providing third-party valuation, project performance insurance, project certification, due diligence, and introductions to pre-qualified capital sources.

In this webinar you’ll learn:

  • What are the benefits of off-balance sheet financing as opposed to bank loans, and how are these deals structured?
  • What are the basic requirements of most investors for these types of deals, for both public and private projects?   
  • What are the most common pitfalls ESCOs experience when first engaging with investors, and how can they be avoided?