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EIB green loan to fund wind and solar projects across Europe

Economy Materials 16 December 2024 19:05 (UTC +04:00)
EIB green loan to fund wind and solar projects across Europe
Maryana Ahmadova
Maryana Ahmadova
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BAKU, Azerbaijan, December 16. The European Investment Bank (EIB) has announced a 243 million euro financing deal with ERG Group, a leading clean wind and solar energy operator, Trend reports.

The funds will support renewable energy projects in Italy, France, and Germany, contributing to the EU’s renewable energy targets and helping the countries meet their energy and climate commitments.

The loan will finance investments outlined in ERG’s 2024-2026 Business Plan, including the development of three new wind farms in France, the repowering of two wind farms in Italy and one in Germany, and the upgrade of seven solar power plants in Italy. These projects will have a total capacity of around 270 MW, enough to power over 200,000 homes. A significant portion (97%) of the projects will be located in EU cohesion regions, fostering local economic benefits.

The EIB loan exceeds 50% of the total project cost, aligning with the REPowerEU goals. This is part of the Bank’s commitment to providing 45 billion euros in additional financing by 2027. The financing package includes more favorable terms, such as higher disbursements and longer repayment periods.

ERG, which transitioned from oil to focus entirely on renewable energy, aims to achieve net-zero emissions by 2040. The company’s electricity generation now comes 100% from renewable sources after its exit from the thermoelectric sector in 2023.

EIB Vice-President Gelsomina Vigliotti emphasized the Bank’s role in supporting sustainable energy projects, while ERG CEO Paolo Merli highlighted the loan’s importance for the company’s growth and financial flexibility.

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