Fund Overview

On January 12, 2021, the Romanian Energy Efficiency Fundconcluded the 46^th funding contract. The beneficiary is Alfa Energetic ESCO S.R.L. Brănești, Ilfov County, which obtained a second loan of US $ 115,255, to finance investments in the public and private sector in the total amount of US $ 153,000. The investments aim at realizarea the realization, in ESCO regime, of several projects aiming at the realization of solar power plants with photovoltaic panels and the installation of air-water heat pumps to cover the necessary thermal energy and hot water consumption. Both buildings of public institutions (schools and town halls) and of private economic operators are targeted. Following the achievement of these projects, energy savings estimated at about 195 TEP/year shall be obtained, implicitly representing annual reductions in carbon dioxide emissions, amounting to 685 tons/year. With this 46^th funding agreement, the total volume of loans contracted by the Romanian Energy Efficiency Fund exceeded the value of US $ 28 million, for investments of up to US $ 85 million.

On August 24^th, 2020, the Romanian Energy Efficiency Fund concluded the 45^th funding contract. The beneficiary is Energo ESCO S.A. Cluj – Napoca, Cluj County, which obtained a second loan worth US $ 1,200,000, to finance investments in the public and private sector totalling US $ 1,500,000. The investments aim at the realization, in ESCO regime, of 22 projects aiming at modernizations of the lighting systems, the realization of a solar power plant with photovoltaic panels and the efficiency of the electricity consumptions accompanied by the transition from low voltage to medium voltage distribution. Following the realization of these projects, energy savings estimated at about 1,701 TEP/year shall be obtained, implicitly representing annual reductions in carbon dioxide emissions, amounting to 5,981 tons/year. With this 45^th financing contract, the total volume of loans contracted by the Romanian Energy Efficiency Fund exceeded the value of US $ 28 million, for investments of over US $ 84 million.

On April 8^th, 2020, the Romanian Energy Efficiency Fund concluded the 44^th funding contract. The beneficiary is Alfa Energetic ESCO S.R.L. Branesti, Ilfov County, which obtained a loan amounting to US $ 47,944, to finance an investment totalling US $ 59,930. The investment aims to build, in ESCO mode, two solar power plants with photovoltaic panels for the production of electricity and an installation with air-to-water heat pumps for the production of thermal energy for heating and hot water for consumption. Solar power plants with photovoltaic panels will be installed, in full compliance with the relevant primary and secondary legislation, in consumption points of the administrative and territorial units (a gymnasium school and a building where the mayor’s office is located), so that the communes will be able to initiate the transition from the status of electricity consumer to that of prosumer. The installation with heat pumps shall allow the abandonment of the use of solid wood fuel for heating, simultaneously with the increase of thermal comfort in the building of the gymnasium school. The investment shall lead to energy savings, estimated at about 15 TEP/year, implicitly representing annual reductions in carbon dioxide emissions, amounting to 53 tons/year.

On November 28^th, 2019, the Romanian Energy Efficiency Fundconcluded the 43^rd financing contract. The beneficiary is Bălileşti Commune, Argeş County, which obtained a loan amounting to US $ 120,717, to finance an investment totalling US $ 150,897. The investment aims to build 60 kWp photovoltaic power plants connected to the public electricity network, by using solar energy as an energy resource and modernizing public lighting in Bălilești commune. Two of the solar power plants with photovoltaic panels shall be installed, in full compliance with the related primary and secondary legislation, in consumption points of the administrative and territorial unit (two gymnasium schools), in such a way that Bălileşti Commune shall be able to initiate the transition from the status of electricity consumer to that of prosumer. The investment shall lead to energy savings, estimated at about 43 TEP/year, implicitly representing annual reductions in carbon dioxide emissions, amounting to 150 tons / year.

On May 9, 2019, the Romanian Energy Efficiency Fundconcluded the 42^nd funding contract. The beneficiary is the energy services company S.C. Energy ESCO S.A. Cluj – Napoca, Cluj County, which obtained a commercial loan worth US $ 800,000, to finance investment projects in energy efficiency in the public and private sector, totalling at least US $ 1,000,000. The investments are intended to modernize public and private lighting systems and to move from consumer to prosumer status by installing and operating solar power plants with photovoltaic panels.

Energo ESCO S.A. is a professional energy services company offering a wide range of energy solutions (gaseous fuel cogeneration/ trigeneration solutions, indoor, outdoor and street lighting systems with innovative technologies, variable speed drive drives), with the main purpose of obtaining energy savings (http://www.energoesco.ro/ind…/desprenoi/cine-suntem-ce-facem). Energo ESCO ensures the funding and implementation of energy efficiency projects with the recovery of investments from energy savings made in a certain period of time.

By using ”third party funding” [1], the company obtained this commercial loan to finance the achievement, as an ESCO-type energy services company (https://free.org.ro/glosar/), of several energy efficiency investment projects, both in the public domain and in the private sector, totalling at least US $ 1,000,000.

” Third party funding

Financial arrangement that involves, in addition to the energy supplier, other entities that provide energy services and/or finance the investment; the financial value of the energy saving generated by the improvement of energy efficiency, determines the recovery rate of costs, including the profit of the energy service provider.

Contractual arrangement involving a third party, in addition to the energy supplier and the beneficiary of the measure to increase energy efficiency, which ensures the financing of the measure and invoice to the beneficiary a payment equivalent to that part of the energy savings achieved by the measure to increase energy efficiency; that third party may or may not be an energy service company.”

[1] M.-M., Voronca (coordinator), Financing Investments in Energy Efficiency, AGIR Publishing House, Bucharest, 2008.

On January 23^rd, 2019, the Romanian Energy Efficiency Fundconcluded the 41^st funding contract. The beneficiary is S.C. Denisson Energy S.R.L. Șelimbăr, Sibiu County, which obtained a “bridge” type commercial loan [1], amounting to US $ 1,969,724, for financing an investment totalling US $ 5,903,338.

The investment aimed at ”Construction of the first network of Compressed Natural Gas (CNG) filling stations in Romania” is supported by the Beneficiary, from its own sources and from resources allocated under the grant agreement concluded between the Executive Agency for Innovation and Networks (https://ec.europa.eu/inea/en/connecting-europe-facility/cef-transport/2015-ro-tm-0373-m), according to the mandate offered by the European Commission, on the one hand and S.C. Denisson Energy S.R.L. (as coordinator) and the Association of Producers and Users of Compressed Natural Gas in Romania (as beneficiary).

The general objective of the investment is to support the development of a sustainable and efficient transport system and to promote the decarbonization of road transport along the corridors of the central network, by introducing an alternative fuel (CNG) in Romania. To achieve this goal, the action has two specific objectives.

The first specific objective is the initial construction on the market of a network of CNG stations consisting of 9 functional supply points along the Corridors of the Central Network of TEN – T roads in Romania (East-Med & Rhine-Danube corridors). The network of CNG stations shall be developed around the important nodes of the core network to simultaneously cover possible demand for long-distance and urban transport. It shall also provide a reasonable distance to the next station (at most around 150 km, but always less than 300 km) for domestic and cross-border traffic. An indicative list of locations includes Arad, Bucharest, Constanța, Craiova, Deva, Drobeta Turnu-Severin, Pitești, Sibiu and Timișoara.

The implementation of the network of CNG stations is planned in three consecutive phases resulting in the implementation of 3 CNG stations per year between 2019, 2020 and 2021. The stations shall be publicly accessible, in a non-discriminatory way, being open between 8 – 24 hours a day (depending on the situation of the requests from the respective location, being possible the gradual extension of working hours). The filling stations shall be operated by specially trained staff and shall allow customers to pay with cash or card at the point of sale inside the station booth, using a cash register operating system.

The second specific objective is to support, based on the implementation of the Action, market penetration and implementation of CNG in Romania. This objective shall be achieved by increasing the demand and visibility in terms of both CNG and the pilot network of stations, by establishing and optimizing the business-customer relationship and by identifying and removing administrative and legislative barriers.

The investment shall lead to the replacement, in the event of pessimistic assessments of the development of the fleet of vehicles that shall run on compressed natural gas, of an annual consumption of 386 tons/year of standard petrol and of 917 tons/year of standard diesel with an annual consumption of 1,175 tons/year of compressed natural gas, thus obtaining annual energy savings, estimated at about 25 TEP/year and, implicitly, annual reductions in carbon dioxide emissions of 951 tonnes/year.

With this 41^st funding contract, the total volume of loans contracted by the Romanian Energy Efficiency Fund amounts to over US $ 26 million, for investments of almost US $ 82 million.

[1] https://www.investopedia.com/terms/b/bridgeloan.asp

On October 16^th, 2018, the Romanian Energy Efficiency Fundconcluded the 40^th funding contract. The Beneficiary is S.C. Margex Equipment S.R.L. Baia Mare, Maramureș County, which obtained a commercial loan amounting to US $ 1,214,588, to finance an investment totaling US $ 1,518,235.

The investment aims to build an installation for the production of electricity for the benefit of a third party, based on a B.O.O.T contract with a fixed duration.

B.O.O.T. structure (Build – Own – Operate – Transfer) is suitable for infrastructure projects such as the construction of motorways, rail transport and energy production [1]. In such projects, a company, usually private, realizes for the benefit of a third party, using its own or attracted financial resources and operates (including the need for maintenance, overhauls and repairs) its own facility, the ownership of which may be transferred to a third party after a period of time and at a precise selling price established by the contract concluded between the parties.

For the third party, the advantages are the lack of involvement in operations that are not specific to its field of activity, the fact that the investment does not encumber its own budget and that it can benefit from quality services at negotiated prices and established by contract. For the service provider, the advantages are related to the conduct of operations specific to the object of activity, the assured sale of its services at negotiated prices, the predictability of revenue and the possibility of continuing to operate the facility and after the transfer of ownership to a third party at a set price, by contract.

The investment will lead to significant energy savings, estimated at about 6,740 TEP/year, implicitly representing annual reductions in carbon dioxide emissions, amounting to 14,693 tons/year.

[1] Gatti, Stafano, Project Finance in Theory and Practice, Academic Press, ISBN 978-0-12-373699-4, 2007, pp. 414.

On May 17^th, 2018, the Romanian Energy Efficiency Fund concluded the 39th financing contract. The beneficiary is S.C. Chimcomplex S.A. Borzești, Bacău County, which obtained a commercial loan worth US $ 2,000,000, to finance an investment totalling US $ 9,985,000. The investment, of a significant scope, aims to streamline energy production and consumption within S.C. Chimcomplex S.A. Borzești, by integrating into the company a plant for the manufacture of calcium chloride granules with a capacity of 30,000 tons/year.

The investment will lead to significant energy savings, estimated at about 14,777 TEP/year, implicitly representing annual reductions in carbon dioxide emissions, amounting to 32,214 tons/year.

On September 19^th, 2017, the Romanian Energy Efficiency Fund concluded the 38^th financing contract. The beneficiary is Bustuchin Commune, Gorj County, which obtained a commercial loan in the amount of US $363,696, to finance an investment in energy efficiency in the total amount of US $ 454,620. The investment is intended for the construction of a solar power plant with photovoltaic panels, with an installed capacity of 360 kWp, electricity production of which shall be intended to cover self-consumption.

On April 3^rd, 2017, the Romanian Energy Efficiency Fund concluded the 37th financing contract. The beneficiary is Cicăneşti Commune, Argeş County, which obtained a commercial loan worth US $ 103,897, to finance an investment in energy efficiency in a total amount of US $ 129,871. The investment is intended for the construction of a solar power plant with photovoltaic panels, with an installed capacity of 85 kWp, the electricity production of which shall be intended to cover self-consumption.

On December 21^st, 2015, the Romanian Energy Efficiency Fundconcluded the 36^th funding contract. The beneficiary is Cocu Commune, Argeș County, which obtained a commercial loan worth US $ 300,000, to finance an investment in energy efficiency in a total amount of US $ 428,571. The investment is intended for the construction of a solar power plant with photovoltaic panels, with an installed capacity of 240 kWp, whose electricity production shall be intended to cover self-consumption.

On November 19^th, 2015, the Romanian Energy Efficiency Fundconcluded the 35^th funding contract. The beneficiary is Paulownia GreenE International S.R.L. Cluj – Napoca, Cluj County, which obtained a commercial loan amounting to US $ 1,933,133, to finance an investment in energy efficiency in a total amount of US $ 2,493,916. The investment is intended for the construction of a 1 MWe cogeneration power plant operating with synthesis gas resulting from biomass gasification and integrated S.A.C.E.T. Huedin, Cluj County.

On October 1^st, 2015, the Romanian Energy Efficiency Fund concluded the 34^th funding contract. The beneficiary is the energy services company Energy Serv S.R.L. Bucharest, which obtained a commercial loan of US $ 619,892, to finance an investment in energy efficiency in a total amount of US $ 782,642. The investment is intended to increase the electrical efficiency of the Rankine organic cycle cogeneration power plant within Sortilemn S.A. Gherla, Cluj County.