Proposals should set-up innovative financing schemes leveraging private finance for sustainable energy investments, with a dedicated and clear focus on energy efficiency, in at least 1 eligible country with a clear ambition and effort towards expansion in additional eligible countries. The financing scheme should be operational by the end of the project, whereas the related investments may be implemented after project completion.

The financing schemes can involve, for example, but are not limited to:

• Equity, debt, mezzanine financing, potentially combined with non-reimbursable grants (“blending”).
• Local or regional investment funds, including blended financing. Guarantees, risk-sharing, insurances or other de-risking instruments.
• Energy services such as energy performance contracting, efficiency as a service, and variants thereof, if used to finance the investments.
• On-bill, on-tax and building-based financing, where the debt is attached to the energy meter or the building rather than the household or company.
• Schemes complementing, with a dedicated financing component, already existing local and regional technical assistance facilities, in particular integrated home renovation services.
• Schemes targeting the secondary market, including refinancing mechanisms, specialised securitisation vehicles and green bond schemes.
• Local investment structures, including citizen financing (e.g. crowdfunding) for energy efficiency.
• Market-based instruments relevant for sustainable energy (e.g. carbon finance instruments, energy efficiency obligations, etc.).
• Brokering, aggregation or clearing houses, which facilitate matching of demand and supply of sustainable energy finance.

Proposals should take into account all the following elements:

• Establish an innovative, operational financing scheme for energy efficiency and/or integrated renewables in at least 1 eligible country. Proposals can build on and/or upscale innovative financing schemes successfully tested previously.
• Address the provision of finance as well as the structuring of demand, in particular at regional and national level.
• Define the target region(s) and sector(s) and justify how the proposed scheme is innovative and complements available funding schemes.
• Clearly demonstrate the business case and financial viability of the proposed scheme (including e.g. market analysis, investment sizes targeted, transaction and management costs, expected energy/cost savings and other returns, etc.).
• Plan replication and/or rollout of the scheme envisaged beyond the region(s) targeted for the establishment, including the analysis of legal and market conditions for replication.

The Commission considers that proposals requesting a contribution from the EU of up to €1.75 million would allow the specific objectives to be addressed appropriately. Nonetheless, this does not preclude submission and selection of proposals requesting other amounts.