EIB backs EUR 4.3bn of energy investments
The European Investment Bank (EIB) board has approved €4.3 billion (~US$5 billlion) in financing for the development of energy projects, including renewables, in Europe and India.
These projects include onshore wind, hydropower and smart meter projects in Italy, energy efficiency, solar, wind and district heating projects in France. Additionally, funds will cover reinforcement and extension of natural gas distribution in Ireland and Spain, and financing of renewable energy and energy efficiency in India.
At the same time, the EIB and Banco Santander, have announced, the sign of a risk-sharing agreement to help the latter finance new renewable energy projects with an investment cost of at least €400 million (US$460 million). In addition, as part of this operation, the EIB will take on a €200 million (US$230 million) participation in a Banco Santander loan portfolio covering renewable energy and infrastructure.
The EIB has given green light for a total of more than €1 billion (US$1.15 billion) financing projects in Portugal, Italy, Spain, Egypt and Morocco.
We recently informed that the European Investment Bank was mulling to provide funds for the up to 740 MW Borssele 3&4 offshore wind farm in the Netherlands. The consortium Blauwwind II C.V., comprising Shell, Eneco, Van Oord, and Diamond Generating Europe, a wholly-owned subsidiary of Mitsubishi Corporation, applied for a loan with the EIB to support the development of the wind farms. The EIB has confirmed that it is considering the application but it has not diclosed the amount it may lend.
The EIB is also active in Africa with plans finance Gambia’s National Water and Electricity Company for a solar power-plus-storage and grid upgrade project in the country. The total project cost is €85 million (US$97 million), while the proposed EIB's finance amounts to €35 million (US$40 million).
In March, the EIB and the Arab Republic of Egypt signed a loan agreementof €115 million (US$124 million) or financing a windfarm in the Gulf of Suez to further expand energy generation from renewable resources. EIB’s lending activities in the Mediterranean region in general and Egypt in particular are based on a Mandate from the European Union – the External Lending Mandate (ELM) currently covering the period 2014/2020 – through which the Bank works together with the EU and the government of Egypt to support socio-economic development in the country.
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