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Making eastern Europe more energy efficient
EBRD invests €100 million to support Dalkia's investments across the region
The European Bank for Reconstruction and Development will invest €100 million to raise energy efficiency in central and eastern Europe through an investment with Dalkia, the energy services arm of Vivendi Environment that has built a business of energy services and energy saving.
With the EBRD investment, Dalkia will intensify its work in Hungary, Lithuania, Poland, Romania and the Slovak Republic, and expand to other countries such as Bulgaria, Croatia, Bosnia and Herzegovina, and Russia.
Dalkia is the leading energy services provider in Europe. In eastern Europe, Dalkia International has created energy service companies (ESCOs) that operate district heating networks for municipalities and reduce energy consumption in buildings or facilities. Under long-term contracts, the ESCO introduces efficiency measures - typically by replacing coal-fired boilers with modern light-oil or natural-gas fired boilers - to reduce energy costs. The savings are shared between the ESCO and the client.
The EBRD has already invested €50 million in projects developed by Dalkia over the past five years, producing results such as at Hospital MSW in Krakow in Poland that was able to cut its energy bill by 38 per cent through an ESCO.
EBRD President Jean Lemierre, who signed the agreement with Dalkia, said the investment reflects the EBRD's strong commitment to reversing the legacy of energy waste in the planned economies of the Soviet era. The kind of efficiencies that Dalkia introduces are good for consumers, good for the environment and - as Dalkia has proven over and over again - good for business, he said.
"There is potential for energy efficiency in these countries," said Jean-Pierre Denis, President and CEO of Dalkia. "The liberalisation of energy markets as well as privatisations increase the opportunities. The partnership with the EBRD will boost our activity - and energy efficiency - in the region."
The EBRD investment is in the form of a multi-project facility that can be used to channel loans, equity or bank guarantees to small and medium-sized projects carried out by Dalkia-owned companies. The EBRD can provide financing under standardised terms and conditions to "fast-track" approval of projects based on the sponsor's own due diligence and expertise.
Dalkia services include a range of capabilities covering district heating and cooling systems, heat systems management, industrial services (production and optimisation of energy and industrial fluids an utilities) and facilities management (management of technical and general support services for industrial or commercial sites). With operations in 30 countries, Dalkia reported revenue of €3.2 billion in 2000.
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