Market environment
The energy sector is currently in transition to replace greenhouse-gas-intensive business models with more future-oriented alternatives. A cornerstone of this development is decentral energy supply. Combined heat and power plants (CHP) will play an important role here, as they can supply both electricity and heat while at the same time greatly increase energy efficiency. Further, the innovative segment of energy contracting is considered an attractive sub-sector with an estimated annual volume of €7 to €10 billion. Energy cost advantages, environmental and climate protection, and regulatory motives will drive future growth rates. The potential for CHP plants in this transitional phase of the energy revolution is therefore significant and is also supported by German subsidies.
Company
E.M.E. is a fast-growing company that offers solutions for medium-sized companies in particular as an independent engineering and contracting service provider. The company pursues an energy/heating-as-a-service model. Local project companies take over and operate the energy plants and generate revenue by selling the energy generated at the site of demand to the properties through ten-year energy contracting agreements. In a resource-intensive sector, the CHP solution represents a sustainable alternative. According to the company, the modularised approach also allows for high scalability.
Investment strategy
The returns from the financing flows into various projects. The investor's subscription amount is called according to the capital requirements of the projects (capital calls) and invested in the reference fund (German special AIF). This in turn, after deducting primary costs, subscribes to bearer bonds issued by SPVs. Each individual project should not fall below an investment volume of EUR 300.000 ,- and for diversification reasons should not exceed EUR 3.000.000 ,-. In total, 60 to 80 energy projects in the SME, industrial and residential sectors are to be realized with the bond in this structure.
