GEEREF pumps €12.5 million into renewable energy in Asia

LUXEMBOURG: 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.