SUSI Partners to invest €30 million in UrbanVolt

UrbanVolt, the award-winning Irish energy services company, has agreed a funding line of an initial €30 million with leading Swiss investment advisor, SUSI Partners. In the first agreement of its kind in Ireland, it will see the SUSI Energy Efficiency Fund co-invest with UrbanVolt in energy efficiency projects being installed in SMEs across the country. It will accelerate the adoption of sustainable energy solutions by Irish businesses and result in annual emission savings of 205,000 tonnes of CO2 and annual energy savings of over 1 TWh (Terrawatt or equivalent of 36,000 Irish households).

UrbanVolt was established in 2015 by former Merrill Lynch corporate financier, Kevin Maughan together with Graham Deane and Declan Barrett. Maughan and Deane co-founded and ran Novaerus. Barrett formerly owned and ran a facilities management business in Ireland (Complete Property Management Ltd.). UrbanVolt is the preferred lighting supplier for Bord Gais Energy’s 30,000+ commercial customers and was named Bank of Ireland Startup of the Year earlier this year.

UrbanVolt provides “Light as a Service” for no capital investment from its client companies. It has created a way to monetize energy savings which it secures for businesses. UrbanVolt funds, fits and maintains LED lighting solutions for large commercial properties (such as manufacturing plants, warehouses, car parks or large offices) and shares the money saved by the business as a result. It delivers net cash savings of an average of 50% of the current energy spend for the property owners after UrbanVolt has taken its payment, calculated as a percentage of the savings, allowing the owners to reinvest in their core businesses.

The SUSI Energy Efficiency Fund is the largest private investment fund specialised in financing energy efficiency projects in Europe. Its key objective for all investments is to measurably reduce CO2 emissions and provide a stable long term source of funding for dedicated energy efficiency projects. The fund focuses on energy efficiency retrofits of public and industrial infrastructure including financing energy performance contracts and public street lighting upgrades.

Kevin Maughan, CEO of UrbanVolt, said that the deal would give UrbanVolt the firepower to rapidly grow its customer base across Ireland; “SUSI has funds available of up to €250 million and they have been very clear to us that they are keen to co-invest with us on all suitable projects so we see this as an exciting long term relationship. Because we fund solutions for our customers up front, the business requires significant finance in its early years. This deal will ensure that we have more than sufficient funding to support our roll-out across Ireland over the coming years. And the work we’re doing will have an immediate and permanent impact on the environment and Ireland’s bottom line.”

Sebastian Carneiro, Director at SUSI Energy Efficiency AG (SUSI) the advisor to the fund, said in relation to the investment’s significance for the Irish energy market: “UrbanVolt’s business model is transformative for the energy efficiency market. Our ability to customise a bespoke funding facility was key and the model is a great example for Europe in how scalable energy efficiency can be achieved”.

Paul Kearney, Investment Manager at the SUSI Energy Efficiency Fund adds: UrbanVolt has shown real vision with this model and has done an incredible job in bringing this innovative service to the market. The result is the first energy efficiency service model that can really deliver on carbon footprint reduction while remaining highly business friendly, something that has been lacking in the market so far. The financing agreement we’ve put in place is almost unique for the energy services industry in Europe and we are delighted to be partnering with UrbanVolt in rolling it out. The service will make a very significant impact in reducing Ireland’s carbon footprint and bring much needed energy cost savings to the public and commercial sectors.”

Commenting on the announcement, Majella Kelleher, Head of Energy Demand Management at the Sustainable Energy Authority of Ireland (SEAI) said: “Some of the common barriers to energy efficiency investment, such as technology awareness, organisational engagement and availability of funds, are often more deeply felt by SMEs. We welcome this initiative by UrbanVolt and SUSI which should successfully mobilise investment in energy efficient lighting, a significant component of energy use for virtually all businesses.”

About UrbanVolt

UrbanVolt provides “Light as a Service” for no capital investment from its client companies. It has created a way to monetize energy savings which it secures for businesses. UrbanVolt funds, fits and maintains LED lighting solutions for large commercial properties (such as manufacturing plants, warehouses, car parks or large offices) and shares the money saved by the business as a result. It delivers net cash savings of an average of 50% of the current energy spend for the property owners after UrbanVolt has taken its payment, calculated as a percentage of the savings, allowing the owners to reinvest in their core businesses.

 

Source: SUSI Press Release

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