The Global Energy Efficiency and Renewable Energy Fund (GEEREF), supported by the European Union (EU), Germany and Norway and advised by the European Investment Bank Group (the European Investment Bank and the European Investment Fund) to provide clean energy to emerging countries and economies in transition, has made a €12.5 million commitment to Berkeley Energy’s Renewable Energy Asia Fund (REAF). GEEREF has been joined by 5 other experienced emerging market institutional investors (BIO, CDC, Calvert, DEG and FMO), committing to REAF’s first closing of EUR 50.7 million.
REAF will target Asia (primarily India) where there are tremendous opportunities for renewable energy investment. REAF aims to invest into renewable energy projects in their development stage, transform these investments into operating portfolios and generate superior returns through successful exits. The Fund will specifically focus on operationally and economically mature technologies which are best placed to help Asia bridge its current electricity supply/demand gap (primarily with wind, small hydro and solar energy).
“We are proud of this new partnership between the GEEREF and REAF. The European Investment Bank Group and GEEREF have deep in-house experience in the field of renewable energy and will be valuable contributors to this venture’s success. We look forward to developing a mutually beneficial relationship.” said TC Kundi, Berkeley Energy.
Set up by the European Union, Germany and Norway in 2008, GEEREF primarily invests in renewable energy and sustainable energy infrastructure funds and similar investment structures tailored to suit local needs and conditions. GEEREF will typically invest tickets below €10 million, a market niche usually ignored by private investors and international finance institutions. Geographically, GEEREF targets funds in the African, Caribbean and Pacific (ACP) region, non-EU Eastern Europe, Latin America and Asia. The European Union, Germany and Norway have committed a total of €108 million into GEEREF which will be invested over a period spanning from 2009 to 2012. It is envisaged that further financing from other public and private sources will be forthcoming.
"We are delighted to announce our commitment to REAF while the COP-15 conference is underway. 1.6 billion people worldwide still have no regular access to reliable energy services. GEEREF investments will accelerate the development and deployment of environmentally sound power generation, and thereby help to bring secure and clean energy supplies to people in less privileged regions of the world," said Cyrille Arnould, Head of GEEREF Front Office.
Background information:
Berkeley Energy is a private equity fund manager specialising in renewable energy infrastructure investments in developing markets. The firm balances operational and transaction expertise combining the project development, construction and operations expertise of an industrial firm, with the flexibility, financial rigour and discipline of a financial sponsor. Berkeley Energy has delivered more than 200 power generating assets in developed and emerging markets (over 115 in renewable energy) and its four partners TC Kundi, Robert Renfrew, Jeremy Smith and Alastair Vere Nicoll combine more than 75 years of development, construction and operations and investment expertise. More information is available on its website: www.berkeley-energy.com.
GEEREF is an innovative fund of funds, providing global risk capital through private investment for energy efficiency and renewable energy projects in developing countries and economies in transition. GEEREF aims to accelerate the transfer, development, use and enforcement of environmentally sound technologies for the world's poorer regions, helping to bring secure, clean and affordable energy to local people. GEEREF is both a sustainable development tool and support for global efforts to combat climate change. GEEREF is a European Commission project sponsored by the Directorate General for Environment and Directorate General for Europe Aid Co-operation (AIDCo).