Under the BEERECL, the EBRD extends loans to participating banks (PB), which on-lend to private sector companies for industrial energy efficiency projects and small renewable energy projects.

An essential component of the BEERECL is the assistance provided by DAI Europe and EnCon Services to help eligible project sponsors and participating banks develop projects. Services include energy auditing, financial analysis, risk assessment, development of bankable business plans (REUPs), formulation of loan applications for presentation to participating banks and deal structuring,

Upon completion of eligible projects, as verified by an Independent Energy Expert (IEE) hired by the EBRD, the project sponsors (borrowers) receive the following incentive grant from the KIDSF:

•		Energy efficiency projects - 15% of the disbursed loan principal
•		Small renewable project s - 20% of the disbursed loan principal.