European energy efficiency and renewable energy projects in the industrial sector are primarily driven by cost savings and regulations. While these projects can be economically attractive, the investment potential in Europe remains largely untapped. Why?
Reasons vary, and include:
- Lack of local bank capacity to evaluate technical performance risks,
- Inflated risk premiums,
- Project size (capital requirements) not attractive for traditional lenders, or
- Smaller and medium size suppliers or industrial firms lack sufficient guarantees.
TrustEE bridges these gaps for project developers, industrial owners, and financial investors.
For project development: A web-based platform is used to assess the project and optimise technical design. It includes templates supporting common contract types, and uses risk allocation and risk transfer standards. TrustEE will register suppliers and engineers to speed project development.
For financing performance-based models, like energy performance contracts: Refinance after successful project launch. TrustEE’s refinancing facility/securitisation vehicle is set to purchase long-term receivables.
For the credit status of innovative suppliers and engineers: Reduce capital needs for performance-based contracting schemes, and obtain insurance solutions to structure and reduce project risks.
For financial investors: Gain an attractive climate protection investment opportunity in credit notes and bonds issued by TrustEE’s securitisation vehicle.