The Ireland Strategic Investment Fund has committed €20m to a new fund that will improve the energy efficiency of existing infrastructure including commercial buildings and homes.
ISIF will become a cornerstone investor in the Solas Sustainable Energy Fund ICAV (SSEF), alongside the European Investment Bank, MEAG, the asset manager of the Munich Re group and IDEAL insurance.
The SSEF will focus on providing funding to energy service companies in connection with energy efficiency projects.
This will allow these companies to offer financing solutions and deferred payment plans to households and businesses that undertake energy enhancement projects using technologies including better heating/cooling, rooftop solar, insulation and LED lighting.
The ISIF said the investment supports the objectives of the Irish Climate Action Plan to reduce the emissions from different infrastructures and make Irish homes and businesses more energy efficient.
Paul Saunders, Head of Climate at ISIF, said the investment is further demonstration of its commitment to supporting climate action projects as it works towards the aim of investing €1 billion in climate action over a five-year period.
"Our society and our economy need major public and private investment in climate action and ISIF can play a key role by acting as a catalyst for significant additional private sector investment in Ireland," he said.
"Our investment in the Solas fund will help address the gap between Ireland's energy efficiency funding needs and the requirements of institutional investors. We are pleased to play a leadership role in promoting additional capital and innovative financing solutions that will increase the take-up of energy efficient technology in Irish homes and businesses," he added.
Paul Kearney, co-founder and director of Solas Capital, said that energy efficiency in buildings is a crucial sector which will enable Ireland to reach its climate goals.
"SSEF is committed to supporting Irish project partners to scale their business models through tailored funding solutions," Mr Kearney said.
"SSEF will fund projects across both public and private sectors and each energy efficiency project supported will reduce Irish CO2 emissions and energy costs, while creating local high-quality jobs," he added.
ISIF is part of the National Treasury Management Agency.
