The Mayor of London's Energy Efficiency Fund

A minimum of 70% of investments must be to the public sector. Up to 30% of investments can be in the private sector.

MEEF can invest in projects in both the public and private sectors. See the associated fact sheets below:

MEEF can fund up to 100% of the capital cost of a £0.5 million+ project but could also part fund large scale regeneration projects which will have low carbon credentials:

• Energy Efficiency
• Decentralised Energy
• Small Scale Renewables
• Energy Storage
• Regeneration Projects
• Electric Vehicle
• Charging Infrastructure

MEEF predominantly provides senior debt but will consider mezzanine and equity opportunities.

MEEF seeks to address market failure by providing competitive and flexible state aid compliant finance to projects, including funding for c.15 years.

MEEF is funded with over £500m of commitments from the GLA, Amber and commercial funders. This provides MEEF with a breadth of funding appetite, allowing MEEF to deliver an appropriate suite of funders for each project.

MEEF is actively welcoming financing enquiries from prospective project sponsors.

The fund provides repayable construction finance, predominantly in the form of senior loans, but also with the potential for mezzanine and equity.

Eligible borrowers and projects

The fund can lend to public sector, private sector or joint venture entities, including Energy Service Companies (ESCOs).

Eligible technologies

MEEF will finance a broad range of Energy Conservation Measures (ECMs) to provide energy or carbon saving benefits. This includes, for example, boiler replacement, Combined Heat and Power (CHP), insulation and ground source heat pumps.

The below is a list of ECMs but please contact the team if your ECM saves energy but is not listed.

The fund targets investments of between £3 million – £20 million but can consider larger or small investments. Smaller projects will be considered on a case-by-case basis, but it may be appropriate to group buildings or parts of a project together for financing. Draw-down of funds can be upfront or on a phased basis during construction

Performance targets

MEEF is a sustainable investor, targeting socio-economic and financial returns on investment. Projects supported by MEEF should aim to deliver Energy Savings (kWh) from the Energy Conservation Measures (ECMs) of at least 20% and/or CO2 reduction of £7,000 of investment per tonne of CO2 saved.

MEEF provides many advantages over other potential sources of finance including:

• There is no set payback period required with maximum loan terms of up to 15 years
• MEEF’s flexibility allows it to invest across a number of structures such as project or corporate finance. MEEF seeks to structure the transaction so that a highly-competitive rate can be offered on state aid compliant terms
• MEEF reviews applications from projects on an ongoing, rolling basis, with no deadline for applications or ‘funding rounds’
• MEEF seeks to address market failure and hence can provide flexible terms, for example, the potential to roll-up interest during construction, to allow early repayment at no cost, to sculpt interest payments to energy savings for innovative technologies

Potential project sponsors should contact the MEEF team for an informal discussion on progressing an application. An overview of the process is set out below, please fill out the MEEF Project Outline Application Form and submit to the MEEF team.