The UK’s Department for Business, Innovation and Skills has awarded £100m to two fund managers specialising in energy efficiency.
The capital has been provided through the UK Green Investments (UKGI) scheme and is aimed at supporting non-domestic energy saving and carbon reduction initiatives.
Spending will be match funded with co-investments from institutional and other investors, increasing the pool of capital available to efficiency-focused projects.
London-based Equitix, which specialises in long-term partnerships to develop and invest in UK government infrastructure projects, will manage a £50m of the fund.
Geoff Jackson, CEO of Equitix, said, “Equitix are very pleased to be chosen to source, invest in and manage these investments on behalf of UKGI and there is a dedicated team in place to support UKGI’s non-domestic energy efficiency investment strategy.
“This area of investment is a good fit with our wider long-term fund management philosophy; we see this appointment as a sign of confidence in the track record of our team and our ability to deliver for both our investors and the public sector as a whole.”
Sustainable Development Capital (SDCL) will manage the other £50m, and works with a range of institutions, developers, corporates and governments, on large-scale cleantech projects.
Jonathan Maxwell, CEO of SDCL, said, “‘Energy efficiency makes strong business sense while at the same time delivering very high environmental impact.
“This new fund will enable us to address the UK market with the much needed capital and know-how required to unlock compelling energy efficiency opportunities that are not otherwise being taken.”
Nick Clegg, Deputy Prime Minister of the UK, added, “The UK is the sixth-largest market in low carbon goods and environmental services and this coalition government is unreservedly committed to helping our low carbon sector thrive. We seek nothing less than a clean, green, low carbon economy.
“There is a global energy revolution underway and the UK is not going to be left behind. Together we find ourselves at the vanguard of one of the most dynamic, most innovative, most important industries of our time; an industry whose breakthroughs and endeavours will shape our societies for years to come; an industry that will help us build a more stable, more sustainable, more prosperous world.”
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