Straughn: More financing coming for renewable energy projects

The Energy Smart Fund is set to receive an injection of more than $26 million as the demand for financing for renewable energy projects, from that facility, continues to grow.

Word of this has come from Ferdinand Straughn, Investment Manager of the Enterprise Growth Fund Ltd. which manages the Energy Smart Fund.

Straughn said since the establishment of the Energy Smart Fund at the end of November 2012, the demand for grant funding and loans has been high.

“The demand that we saw for that financing was actually greater than the resources of the Energy Smart Fund, and we had to tap into some other windows that we manage,” he said while addressing a session at the recent 7th Caribbean Sustainable Energy Forum (CSEF).

“We are on the cusp of getting the Energy Smart Fund recapitalized – that should be another $26.2 million or so. We are really looking forward to it. The market is eagerly awaiting those funds. The funding is provided at quite attractive rates, so we are ready and raring to continue the work that was started almost a decade ago,” Straughn added.

The Energy Smart Fund was set up to provide finance for energy and energy efficiency projects. It also provides technical assistance for pre-investment studies and energy audits to inform renewable energy and energy efficiency investments.

Grant funding to homeowners and businesses, for LED lighting and energy-efficient appliances, is also provided by the Energy Smart Fund.

“To date, we have approved $38.2 million in funding for renewable energy and energy efficiency projects for about 11.8 megawatts of solar photovoltaic installations,” Straughn reported. “So we have done quite a bit.”

The maximum loan allowed under the Energy Smart Fund is $1.5 million, which attracts an interest rate of 3.75 per cent per annum that is applied on the reducing balance of the loan. (MM)