May 8 (Bloomberg) -- Ireland is teaming up with Sustainable Development Capital LLP to set up a fund that seeks to invest 70 million euros ($97 million) in energy-saving projects.
SDCL will manage the fund, which has raised an initial 35 million euros, the London-based company said today in an e-mailed statement. The Irish government contributed 17.2 million euros and London & Regional Properties Ltd. and Glen Dimplex Group the rest, it said. The fund generates returns based on cost savings.
“There is pent up demand in the market for investment in energy-efficiency projects but this has been inhibited by a lack of funding from conventional sources,” said Jonathan Maxwell, founding partner and chief executive officer of SDCL.
The fund’s first investment was 2 million euros for Tesco Ireland, a unit of Tesco Plc, to replace lights in seven stores with low-energy alternatives. It’s expected to save the company 540,000 euros a year on its energy bills, according to the statement. The investor is expected to leverage its cash to raise available funds to as high as 300 million euros in three years, SDCL said.
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