SUSI Partners to finance LED street lighting retrofits in Greece
- SUSI Partners, through its Energy Efficiency Fund II, reaches agreement with Greek energy service company (ESCO) Vashelios for the financing of LED street lighting retrofits in Greek municipalities
- Replacing conventional lighting systems with highly efficient LED technology allows for up to 80% energy cost and CO2 savings
- Transaction builds on SUSI’s unique track record in facilitating street lighting retrofits for public-sector entities through its credit platform
Zug/Zurich, 2 December 2021 – SUSI Partners, through its Energy Efficiency Fund II, is partnering with Greek ESCO Vashelios for the financing, implementation, and operation of LED public street lighting retrofits in Greek municipalities. The transaction builds on SUSI’s longstanding track record in facilitating energy efficiency projects through its structured financing solution, enabling all parties involved to benefit from the energy cost savings achieved.
In a first step, SUSI will provide capital for the replacement of conventional street lighting with highly efficient LEDs combined with a smart control system in three Greek municipalities under multi-annual concession agreements. All projects will be implemented by Vashelios, a full-service provider offering design, installation, maintenance, and operation of LED street lighting systems, with final commissioning expected in the first half of 2022. Following completion of the three initial projects, a sizeable project pipeline currently being developed by Vashelios is expected to be financed under the same framework agreement. Greek law firm Zepos & Yannopoulos advised SUSI on all legal matters regarding the transaction.
Replacing conventional lighting with light-emitting diodes, or LEDs, has a number of advantages. LEDs typically provide energy and cost savings of up to 80%, are less prone to defects and lead to strongly reduced maintenance costs. Particularly in times when energy and power prices are surging, the payback periods for investments in energy efficiency measures are shortened significantly. In addition to the cost benefits, the Greek municipalities switching to LED street lighting will see their climate footprints reduced significantly, with power generation in the country still highly reliant on coal and gas plants.
SUSI Partners has a long track record of financing street lighting retrofits through its credit platform, having launched its first energy efficiency fund in 2015. Since then, SUSI has invested close to EUR 500m in the energy efficiency space, and EUR 130m in street lighting retrofits specifically, making the firm a uniquely experienced and trusted financing partner for ESCOs and technology providers across the globe.