Romanian Industrial Energy Efficiency Fund
Policy measure

According to EBRD (2002), the Romanian Industrial Energy Efficiency Company (RIEEC) “would be one of the first energy service companies (ESCOs) in Romania to provide financing for energy efficiency investments in creditworthy industrial companies. [Via the Romanian Industrial Energy Efficiency Fund,] RIEEC would make standardized investments in on-site co-generation systems, which would enable companies to significantly reduce energy consumption.”


Total project cost was estimated at EUR 15 million, of which EBRD was to provide EUR 11 million as a senior loan (EBRD, 2002).

Implementation

“RIEEC will provide financing to creditworthy, Romanian industrial companies to create more efficient and reliable sources of energy. Standardised co-generation in industrial plants produce cheaper, reliable and more efficient electricity and heat (up to a 60% improvement in fuel efficiency) with low technological risk. Around 15 such projects will be financed by RIEEC.”  (EBRD, 2002)

Challenges
No identified challenges.
Outcomes

According to EBRD (2002), “RIEEC creates an entity through which both the technical and credit risks of industrial energy efficiency projects can be contained, and its success could encourage additional private sector financing of such projects. Further, the value of investments in energy savings will be introduced to local plant managers, who will be encouraged to look more closely at their plant’s energy consumption as a way of reducing costs and becoming more competitive. 


Significant reductions in greenhouse gas emissions is an additional benefit of these projects.”

References

EBRD (European Bank for Reconstruction and Development), 2002. Romanian Industrial Energy Efficiency Fund. Available at: www.ebrd.com/english/pages/project/psd/2002/27888.shtml.