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New Energy World magazine logo
New Energy World magazine logo
ISSN 2753-7757 (Online)

Bridging the financing gap for ESCOs

31/5/2023

8 min read

Feature

Aerial view of warehouse with solar panels on roof Photo: Solas Capital AG
Astatine’s CMLS cold storage facility in Ireland fitted an 850 kW solar PV system using financing through SSEF

Photo: Solas Capital AG

Energy Service Companies (ESCOs) will play a key role in driving the energy transition in Europe and reaching the EU’s ambitious climate targets, but there remains an investment gap, especially for financing smaller SME and residential projects. Louisa Troitzsch, COO of Solas Capital AG presents her thoughts.

The European regulatory environment is driving the rapid rise in demand for energy efficiency and small-scale renewable projects. For instance, the REPowerEU plan, which was launched in May 2022 to facilitate energy independence from Russian energy supplies in response to the invasion of Ukraine, set aggressive targets for the European energy transition.

 

In addition, the cost of phasing out Russian fossil fuel imports has been estimated at €210bn, leading to rapidly increasing demand for investment in clean energy technology projects in the EU.

 

These ambitious targets coupled with rising energy prices across the European Union (EU) (peaking at a 163% increase in September 2022), have driven the need for governments and businesses to find fast and effective ways to reduce energy consumption.

 

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