£100 million fund to make offices and public buildings more energy efficient
BIS investment will be matched by private sector capital
The government has allocated £100 million for energy efficiency upgrading of non-domestic buildings in a move that paves the way for the UK Green Investment Bank.
Department for Business, Innovation and Skills (BIS) has committed funding to specialist fund managers Sustainable Development Capital (SDCL) and Equitix, and charged them with the task of making and managing investments in energy efficiency projects in public and private sector non-domestic buildings. Projects receiving backing could range from energy performance contracts to physical interventions to reduce energy consumption.
Government expects the bank to be fully operational later this year, as it has to receive state aid approval from the European Union prior to going ahead. In the meantime, it is gearing up by making investments, on commercial terms, in green infrastructure. It has already appointed fund managers to provide up to £80 million of support for small scale waste projects. The bank’s first priorities for investment are expected to be offshore wind power generation, waste processing and recycling, energy from waste generation, non-domestic energy efficiency and support for the green deal. All government investments made by the fund managers are match-funded with private sector capital.
Business secretary Vince Cable said: “The appointment of two fund managers with £100 million to invest in the non-domestic energy efficiency infrastructure sector shows that we are making good progress.