Revolving funds renewables, energy saving and innovation

Realized in The Netherlands

Revolving funds, common today, have been initiated by Rebels since 2012. In regions (Ovijerssel, Drenthe, Friesland, Utrecht, Limburg, large cities (Amsterdam, Utrecht, Rotterdam), and national (national heating fund). Our involvement differs from turn-key development to evaluation, business case assessment, restructuring, and attraction of new funds either public or private).

The Challenge

The challenge is to develop financial instruments that push private sector developments in the right direction, towards energy saving, project development, and innovations in an earea where sole private funding is no solution.

A (revolving) fund is not a goal in itself. A revolving fund is a financial instrument as part of a total of options for governments to incentivise the realisation of impact projects on amongst others energy transition and related innovation. Typically this question should be addressed first: is a fund a solution for the problem experienced? What are the alternatives? If the answer is positive the actual work starts: structuring the fund, the funding (public or public/private), investment regulation, investment committee, institutional structure (on hands distance or not), position in the market (vis vis subsidies, private equity, bank funding).

Although important learnings from existing funds can nowadays be used, this requires specific know-how and tailor-made solutions. Governance of small local funds requires a different approach compared to +100 million regional or +1 billion national-wide funds. Business cases, legal aspects, risk appetite, professional organisation, and readiness for implementation should be arranged. Naturally, processes must be transparent, and continuous monitoring and evaluation delivers constant improvements and adaptation to market developments.

Impact

Setting up funds that have reached a multi billion investments in energy saving and renewables in the Netherlands.

Financing the energy transition

"Revolving funds are no holy grail but can be an efficient mechanism to push private sector investments in the right direction of energy transition without the disadvantages of "stop & go" or "solution-driven" subsidy mechanisms. Revolving funds -if structured well - generate a significant positive impact on taxpayers' money."

Jan-Coen van Elburg