Many states, cities, and counties rightly see clean energy as a key component of 21st-century economic development. Yet very few communities have the internal capacity and the ability to fund and implement a new governmental authority to serve as a green bank.
Eutectics’ Clean Energy Financing Hub is a proven clean energy accelerator for cities, counties, and states – at a moderate cost and with the ability to rapidly mobilize private capital. We have developed the Clean Energy Financing Hub model in response to market demand – as many cities and states aim to build a Green Bank through a pay-for-performance model.
With three Clean Energy Financing Hubs in operation and several more in active development across the United States, Eutectics® has mobilized several hundred million dollars of private capital to help local governments:
1) Spur economic development and reinvestment in their communities, and
2) Achieve substantial environmental progress through more efficiency, more renewable energy and lower emissions.
Though the Clean Energy Financing Hub program is a proprietary platform of Eutectics, the Hub is the primary means through which Eutectics helps local communities achieve our shared mission of making clean energy mainstream. Our capital partners are poised to invest in Hub communities, relying on our expertise to build new and easier paths to invest in clean energy projects on the ground. Each of these capital partners has committed to Eutectics’ core principles of transparency, local partnerships, and high-road standards.
From day one, Eutectics works hand-in-hand with local leaders to maximize the local partnerships of each Clean Energy Financing Hub. This work begins with a comprehensive inventory of existing community initiatives, including financing tools, public policy priorities, and market initiatives. Further, Eutectics works with local capital providers – including community banks, public financing authorities, and Community Development Financial Institutions – to integrate any potential local sources for financing energy efficiency and renewable energy projects. When needed, Eutectics will also issue a Request For Qualifications for energy auditors and other technical assistance. Finally, Eutectics ensures that all Hub activities are proactively engaging those community members and institutions who are most in need of economic development and reinvestment opportunities.
Early wins are critical to long-term success. After a thorough community inventory and identification of key initial market segments for initial Hub-assisted projects, Eutectics works to quickly implement high-profile pilot projects to illustrate the potential of the locally-driven Clean Energy Financing Hub.
The Hub model is structured to minimize upfront consulting fees. Instead, Eutectics relies on a pay-for-performance model that aligns with long-term community success. We work to maximize the impact of existing tools and to extend existing programs with additional outside capital. Eutectics’ goal is to leverage public funds to achieve at least an 8-to-1 impact for each public dollar invested.
Within a Clean Energy Financing Hub, we provide services well beyond general policy consulting or mere project financing. Our team of highly-qualified professionals provide technical assistance and financial modeling services to give project owners a full picture of potential savings, based on multiple financing options and capital sources. Eutectics can also assist owners in procuring the upfront technical assistance required to identify a specific scope of work – and we can work with owners on procuring qualified contractor(s) to implement cost-effective projects, along with the financing required to get to “yes.”
The Clean Energy Financing Hub is a cost-effective and proven option for communities seeking to implement a Green Bank to build a true public-private partnership – and to make the clean energy economy a reality.