8. Development of Investment Concept

8.1 What is an Investment Concept (IC)?

An Investment Concept is a document which translates an investment project idea into financial language in order to mobilise financing for its realisation.

The purpose of an investment concept is to provide investors and financial institutions with the information necessary to assess an investment project in a simple and fast manner. It converts climate and energy plans or part of its measures into sound investment packages and thus, facilitates the access to funding for municipalities/local authorities.

So far, many municipalities/local authorities have developed ambitious climate and energy action plans but had difficulties to access appropriate funding. In turn, financial institutions are more and more interested in financing sustainable energy projects but have problems in finding investment projects that fulfil their requirements. This document shall help in bridging this gap. 

8.2 What is the structure of an investment concept?

In order to facilitate the development of the investment concept for the EUCF beneficiaries, an [investment concept template] has been developed in close consultation with EUCF key stakeholders, i.e. financial institutions, municipalities and local authorities as well as climate and energy experts. The investment concept template follows the following structure:

  • A one-page summary (“teaser”/”elevator pitch”) with key information on the investment project (such as estimated costs and revenues, financial indicators and expected impacts. This summary shall be developed in English and potentially be made public in the EUCF communication channels.

  • The main body consists of five sections: i) Description of planned investment project, ii) Promoter(s) and (local) stakeholders, iii) Legal analysis, iv) Economic and financial analysis and v) Investment Roadmap. The main body can be developed in national language or in English, according to the preference of the beneficiary.

  • Supporting documents can be attached as Annexes to complement and provide details on the main part.

8.3 Which information has to be provided in an investment concept?

A template for the development of the investment concept is available on the EUCF website. The main part of the IC is based on a 5-point structure:

  • A detailed description of the planned investment project

  • Project promoter(s) and (local) stakeholders

  • Legal analysis

  • Economic and financial analysis

  • Investment roadmap

For detailed information on “Investment Concept”, please refer to “Guidelines for Applicants” which are available on the EUCF website.

8.4 Who can develop an investment concept?

The investment concepts are developed by the beneficiary municipalities/local authorities or groupings of municipalities/local authorities, either completely in-house if enough internal capacities are available or they can engage external experts for support. Country Experts assist beneficiaries in their respective countries in this process, but cannot be sub-contracted to develop investment concepts.

8.5 What support do beneficiaries receive from the EUCF for development of the IC?

The EUCF provides different means of support for beneficiaries throughout the development of the investment concept:

  • Financial support is provided in the form of a EUR 60,000 lump sum for activities necessary for the development of the investment concept, such as feasibility studies, engineering analyses, legal analyses, social studies, market studies, financial analyses, etc.

  • Technical support is provided through the respective country experts, which are assigned for each EU member state & the UK to offer beneficiaries locally-rooted technical and financial expertise. The EUCF team can also be contacted for any sort of queries regarding the investment concept through the EUCF Helpdesk. 

  • Capacity building opportunities are provided through regional events organised by the EUCF on the topic.

  • Standard tools and documents, such as the investment concept template, are provided to facilitate the development of the Investment Concept.

8.6 What is the timetable for the development of the investment concept?

EUCF beneficiaries shall develop the investment concept within twelve months from Grant Agreement signature.

8.7 Can the IC be submitted in the national language?

Yes, the Investment Concept can be submitted in the national language. The only requirement is to make a short summary in English which will be used for the validation of the Investment Concept.

8.8 Does the development of investment concepts include the development of technical documentation as well?

No, detailed technical design is not required, but main technical parameters and detailed calculation of energy savings and CO2 emission reduction resulting from measures drafted in the IC are required.

The IC template (in national languages) is available on the EUCF website (www.eucityfacility.eu), so it can be easily downloaded any time. When the beneficiary has the final version, it has to be uploaded in pdf format.