EFSI loans and guarantees for the low carbon plans of three French regions
By on 31 May 2016
The European Fund for Strategic Investments (EFSI) has already supported some 60 projects, but very few regions and no cities have so far benefitted from the Juncker Plan. Nevertheless, three French regions that managed to obtain EIB loans backed by the guarantee from the European Commission have used the money to finance their low-carbon economy projects.
The third-party financing operator - SEM Energie Posit’IF – a public-private company set up by the Ile-de-France region – will use the EUR 100mio loan for financing the energy refurbishment of residential buildings (condominiums) and the use of renewable energy in the region. The target performance level is the "BBC Éffinergie Rénovation" (Low Energy Renovation) accreditation requirements which would result in a 50-70% reduction in the overall energy consumption of the buildings.
The Nord-Pas-de-Calais Region received a loan of EUR 20mio to implement a project contributing to its vision and strategy of the so-called ‘3rd industrial revolution’. The loan was awarded to an investment company set up by public and private investors to invest in low-carbon economy projects.
Finally, the Picardie Region received a loan of EUR 25mio for its public energy efficiency service and the project ‘Picardie Pass Rénovation’ (Picardie Renovation Passport) to implement energy renovation projects in the private housing sector.
The target performance level will result in a reduction of up to 75% (modulated) of the overall energy consumption of the buildings, depending on the financial performance of the planned measures. The measures mainly consist of improving the insulation of the buildings, as well as renovation of the buildings’ heat generation and distribution systems, including ventilation systems. The use of renewable energy (e.g. small scale wood-fired boilers or solar thermal collectors) may also be included in the measures.
The Greater London Authority (UK) also received a loan of EUR 13,7mio allocated to the London energy efficiency co-financing facility. The project involves lending to a new fund, blended with European structural & investment funds, focused on investing in energy efficiency schemes in the London area.
Hopefully, more local and regional energy transition projects will receive support from the EFSI and the EIB in the future.
© photos : Atelier Spalletti-Dayot