SDCL Energy Efficiency Income Trust (SEIT) has announced that it has signed framework agreements with two preferred development partners providing it with the right to invest in a series of energy efficiency assets in the UK and the United States. SEIT says that such framework agreements, with established developers and partners, can generate valuable organic follow-on pipeline investment opportunities, often on pre-agreed terms. SEIT has also provided an update on recent investment activity and Investment Manager Environmental, Social and Governance (ESG) initiatives.
Framework agreement with BasePower Limited
One of the agreements is with BasePower Limited, a developer and operator of on-site energy projects in the UK, which are expected to include solar PV, high efficiency combined heat and power (CHP) and microgrid projects for commercial and industrial clients. Under the framework, BasePower will manage development, construction and operations of the projects. The pipeline is approximately 37 MW and is expected to involve an investment of approximately £10 million per annum over the next 5 years.
Framework agreement with Sparkfund
The second framework agreement is with Sparkfund, an existing developer relationship in the United States. SEIT invested US$22 million in a portfolio of project-backed loans in September 2019. Under this new agreement, SEIT would re-finance a new portfolio of projects at construction completion over the next 12 months, which are expected to include energy efficiency and resiliency measures such as lighting, heating, ventilation and air conditioning, backup generation and building management systems and controls. This new investment is expected to involve projects totalling approximately US$20 million.
Sustainable Development Capital LLP joins the UK Green Building Council
SEIT’s manager, Sustainable Development Capital LLP, has now joined the UK Green Building Council, as it had stated it planned to do in the Company’s ESG report in October 2020. The UK Green Building Council’s mission is to radically improve the sustainability of the built environment, by transforming the way it is planned, designed, constructed, maintained and operated. It promotes improvements to the built environment that help in mitigating and adapting to climate change, eliminating waste and maximising resource efficiency, embracing and restoring nature and promoting biodiversity, optimising the health and wellbeing of people and creating long-term value for society and improving quality of life.
Sustainable Development Capital LLP joins the Green Finance Institute’s Coalition for the Energy Efficiency of Buildings
Sustainable Development Capital LLP has also joined the Green Finance Institute’s Coalition for the Energy Efficiency of Buildings (CEEB). The Green Finance Institute is an independent, commercially focused organisation supported by HM Treasury, the Department for Business, Energy and Industrial Strategy and the City of London Corporation. The Institute seeks to mobilise capital to accelerate the domestic and international transition to a sustainable, net-zero carbon economy that is also climate resilient. The CEEB convenes global experts from finance, property and energy sectors, and across policy, academia and non-profit organisations, to develop the market for financing a net-zero carbon and climate resilient built environment in the UK and internationally.