Jan. 22 (Bloomberg) -- Joule Assets Inc., a provider of financing for power-reduction projects, created a $100 million fund for institutional investors to back projects that generate revenue by reducing electricity consumption.
The Energy Reduction Assets Fund will support projects such as building-control systems, efficient lighting and programmable thermostats, Bedford Hills, New York-based Joule said today in a statement.
The saved energy creates assets that may be monetized, Joule Chief Executive Officer Michael Gordon said in an interview. The global market for so-called energy-reduction assets is worth $900 billion according to a McKinsey & Co. report that Joule cited. The fund will back small and mid-sized projects worth $50,000 to $500,000.
“There has been no energy efficiency financing in the less than $500,000 level,” said Gordon, who has managed 1 gigawatt of energy-reduction assets. The fund may provide investors “a very reasonable rate of very low-risk return.”
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