Solas Sustainable Energy Fund provides a new debt facility of up to €30 million to UrbanVolt for energy efficiency and self-consumption PV in Ireland
Zurich, 11.10.22
- The Solas Sustainable Energy Fund ICAV (SSEF), a fund advised by Solas Capital AG has committed to a €15 million project debt facility with Dublin-headquartered clean energy company UrbanVolt, with the option of a further €15 million.
- The investment will be used to finance self-consumption solar PV and LED Lighting-as-a Service projects within the EU.
- The investment demonstrates SSEF’s strong commitment to collaboration with Irish ESCOs, to support Irish and EU climate goals, and help tackle the European energy crisis.
SSEF, an EU-focused fund targeting energy efficiency and behind-the-meter renewables investments, has committed to a €15 million debt facility with UrbanVolt, with the option to increase the size of the facility by an additional €15 million bringing the total potential investment to €30 million.
The funding will support UrbanVolt’s business model, which allows their customers to install energy efficient technology for zero up-front cost. Customer only pay for the power that they use. UrbanVolt’s Lighting-as-a-Service (LaaS) and PV self-consumption solutions provide financial and environmental benefits for their SME and corporate commercial and industrial customers.
Against a background of both the climate crisis and the European energy crisis, it is increasingly urgent that the EU’s ambitious energy savings goals are met. The EU’s 2030 energy targets include a 45% renewable share in final energy consumption and a reduction of 40% in final energy consumption in comparison to 2007. Buildings are responsible for around 40% of total energy consumption within the EU and improvements in energy efficiency provide fast and effective reductions in both energy usage and carbon emissions.
Solas Capital works in partnership with ESCOs. Their team of energy finance experts provide tailored off-balance sheet debt financing solutions, thereby bridging the gap between the institutional investors and the energy projects that require structured financing solutions.
Paul Kearney co-founder and Director of Solas Capital AG, which advises the Solas Sustainable Energy Fund, said: “This is an important partnership for Solas, and we are pleased to be working with one of Ireland’s pioneering lighting and PV service providers. UrbanVolt already has a strong track record in the market and is delivering innovative energy solutions to small and medium sized companies and corporates at a critical time of energy uncertainty.
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The collaboration demonstrates Solas’s commitment to supporting Ireland’s transition to a low carbon economy.”
Kevin Maughan, co-founder and CEO of UrbanVolt, said: “It is painfully obvious that fossil fuels are no longer a realistic source of energy for commercial operators – the financial and environmental impacts are too negative in today’s volatile market. We are increasingly seeing demand to deliver ‘as a Service’ clean energy business models, where customers only pay for the energy they use without a standing charge, and the cost of our equipment and its maintenance is kept off their balance sheet.
Solas Capital is uniquely placed to support us in scaling this business model in our core Irish market and across the rest of the EU. They have a great team of energy experts who truly understand our needs and our business model, and are able to rapidly deliver flexible investment solutions”
Sebastian Carneiro co-founder and Managing Director of Solas Capital AG added, “The self consumption solar PV market is rapidly expanding in Europe and external financing through Power Purchase Agreements is at the core of SSEF’s investment strategy.
The EU’s ambitious 2030 renewables goal requires rapid and flexible investment solutions for ESCOs to deliver projects in a way that is attractive to their customers, without the burden of high up-front capital costs.”
About Solas Capital AG
Solas Capital is a specialist investment advisory firm based out of Zurich and Dublin, whose mission is to support the transition to a carbon neutral society by developing innovative financing solutions. Solas Capital advises the Solas Sustainable Energy Fund ICAV, a €140 million fund backed by the Ireland Strategic Investment Fund and the European Investment Bank that is dedicated to providing long-term funding for energy efficiency projects in buildings and industry both in Ireland and the EU. The fund has also received support from the European Union through the LIFE-Programme.
About UrbanVolt
Urbanvolt was established in 2015 by Kevin Maughan, Graham Deane and Declan Barrett. In addition to solar energy, the company also finances, installs and maintains energy efficient LED lighting systems in large commercial and industrial sites such as car parks and warehouses.
In 2020, UrbanVolt raised €7 million from investors including the Ireland Strategic Investment Fund (ISIF) and businessman Stephen Vernon who is Chairman of the company.
For further information
Email: media@solas.capital
Website: www.solas.capital