Energy efficiency project financing mechanisms

EXPERTISE : , Financing Mechanisms and Fund Management
SECTOR : , Utilities


Union Fenosa Group


project description

In 2008 and 2009, Econoler provided long-term support and capacity building to Union Fenosa in order to help it develop its Energy Performance Contracting (EPC) activities, which included the preparation of a detailed business plan, draft contracts and related risk mitigating tools.

At the end of 2009, Union Fenosa merged with Gas Natural to form Gas Natural Fenosa (GNF), a gas and electric utility. The use of EPC remained an important focus of the new organization and increasing its project capacity became of strategic importance. In such a context, GNF hired Econoler to identify new project financing mechanisms for the implementation of energy efficiency projects that could possibly enhance growth and reduce risks for GNF service business units, mainly through leasing and forfeiting.


Throughout the mandate, Econoler carried out the following activities:

  • Analyzed GNF service offerings in relation with its EE services and the gas supply business.
  • Submitted recommendations on project-based financing through the development of a special purpose project company and special purpose entities to be dedicated to the management of project-based financing for all of the end-use energy efficiency and supply-side projects implemented by GNF.
  • Delivered formal presentations for the benefit of stakeholders and decision makers at GNF to present recommendations on the development of energy efficiency project financing mechanisms.
  • Provided additional technical assistance focusing on the development of the recommended innovative financial mechanisms to implement energy efficiency projects and reduce risks for EPC and other performance-based business offerings.

The assignment enabled GNF to structure its own project financing mechanism and offer tailored financing for its EPC activities in Spain.

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