In 2015, the Commission set up the European Fund for Strategic Investments (EFSI) to kick-start investments in the EU through private finance, primarily in the energy sector.
It said: “So far, EFSI has supported energy infrastructure projects and those focusing on energy efficiency, renewable energy and smart meters. For example, in France the fund financed a project to promote energy efficiency in French housing which will cut energy bills in more than 40,000 homes.”
The fund has also offered a long-term loan to a gas grid project in Spain, apart from providing finance to research and development (R&D) activities of a renewables-orientated technology firm.
The new extended fund, which will be named as EFSI 2, will continue to fund energy infrastructure projects, as well as those that encourage renewable energy technologies and energy efficiency.
The Commission said that the investment fund, which is implemented and co-funded by the European Investment Bank (EIB), will be able to raise at least €315bn in additional investment by mid-2018.
The region’s energy sector is estimated to need over €1 trillion investments by 2020.
The strategic fund will also facilitate funding for projects in Eastern and Southern EU countries in order to achieve a good geographical balance.
EFSI is aimed at helping the Energy Union to reach its goals of security of energy supply and cutting carbon emissions from the energy sector.
