An innovative facility shall provide the business environment for energy service companies (ESCOs) to capitalise on energy saving gains in industrial installations.
South Pole Group
Econoler Inc. and Attijari Invest S.A.
Morocco
Industrial and tertiary sectors
2021 – 2030, 200’000 t CO2
The activity entails the establishment of the African Energy Efficiency Fund (FAEE) in Morocco. The objective is to capitalise the FAEE with private investments of up to 350 million MAD (35.25 million CHF) to invest in energy efficiency measures tackling electric equipment and appliances in the industrial and tertiary sectors.
Potential technologies to be employed include indoor lighting retrofit; chiller retrofit and distribution system improvement; electric motor retrofit in manufacturing plants; PV, electric and solar water heater installations, etc.
The FAEE will provide investments for energy service companies (ESCOs) to implement energy efficiency measures through energy performance contracts (ECPs). The fund will be coordinating with the Moroccan authorities and will operate as one element within the Moroccan energy strategy aiming to leverage emission reductions not yet addressed by domestic policies under the climate change agenda.
Energy efficiency projects in the industrial and tertiary sectors face several barriers, making them unattractive investment opportunities for the potential beneficiaries of the FAEE.
Although Morocco’s NDC includes energy efficiency targets, there are few specific mitigation actions targeting the sectors involved in the proposed activity. This leaves much room for the FAEE to pilot a new and innovative service and finance offering, in which carbon finance could unlock Morocco’s energy efficiency potential in the tertiary and industrial sectors.
The FAEE, a joint venture between Econoler Inc. and Attijari Invest, will manage the funds. The proposed mitigation activity is that of an innovative business model, combining the strengths of ESCOs and the de-risking role of carbon-related results-based financing.
The investments by the FAEE have the potential to create jobs by supporting its clients in becoming more competitive in their respective markets, as well as by promoting the development of energy efficiency solution providers. By taking on the financial risk and mobilising capital, the fund has the potential to unlock the ESCOs market in Morocco and its energy efficiency potential.
South Pole is a leading provider of global sustainability financing solutions with +45 verified and certified emission reduction projects in the field of energy efficiency.
Econoler is an internationally renowned consulting firm supporting financial institutions and governments worldwide in the design, implementation, financing, and evaluation of energy efficiency projects and programmes.
Attijari Invest is the Attijariwafa banking group’s private equity arm, with almost 4.5 billion MAD of commitments under management and a dozen investment vehicles under direct or indirect management.