The EIB has signed a EUR 180m financing agreement with a project company sponsored by GE and Green Investment Group Limited. The agreement supports the construction and operation of the largest onshore wind farm on European territory so far. 179 wind turbines will be built near the Northern Swedish city of Piteå, close to the Arctic Circle.
Of the EIB financing EUR 100m are backed by the European Fund for Strategic Investments (EFSI). EFSI is the central pillar of the Investment Plan for Europe, which was launched by the EIB Group and the European Commission to boost the competitiveness of the European economy. EUR 80m of the EIB financing is covered by a guarantee provided by the German Export Credit Agency, Euler Hermes.
GE Renewable Energy will supply 179 of its 3.6 MW turbines with 137 meter rotors, a turbine ideally suited for the project site’s wind speeds and climate. Additionally the turbines will be equipped with de-icing technology.
“This fascinating project supported by the EIB is taking the use of wind energy to a new level,” said Alexander Stubb, EIB Vice-President responsible for EIB operations in Northern European countries. “It will help Sweden to expand its renewable energy sector even beyond the objective set by the EU and makes the continent more sustainable and greener.”
The Project is part of the first phase of “Markbygden 1101”, the largest single site onshore wind farm in Europe, which is expected to be completed by 2020.
European Commission Vice-President Jyrki Katainen, responsible for Jobs, Growth, Investment and Competitiveness, said: “Investing in renewable energy by building wind farms helps to access affordable, clean and secure energy. However these large, innovative projects involve a higher level of risk for investors, which is where the Investment Plan comes in, providing its guarantee to enable other investors to come on board. The construction of this ground-breaking wind farm will confirm Sweden’s position as one of the most forward-looking, sustainable countries in the EU.”
Brian Ward, Head of Global Markets, GE Energy Financial Services, said, “Markbygden ETT represents GE’s and Macquarie’s unique abilities to bring together technology and investing expertise to structure integrated off-take and financing solutions. EIB’s support and flexibility was instrumental to the financing package, which enabled the project to reach financial close in the competitive Nordic onshore wind market and achieve many market firsts.”
Edward Northam, Head of the Green Investment Group in Europe, said, “This project is a landmark transaction on many fronts and represents the new frontier in European onshore wind. It demonstrates that in the right market, with the right location, the right technology and the right partners, it is possible to develop and attract private capital into new onshore wind farms.”
About EIB
The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals. In 2016 alone, the Bank made available nearly EUR 1.7billion in loans for Swedish projects.
About The Investment Plan for Europe
The Investment Plan for Europe focuses on strengthening European investments to create jobs and growth. It does so by making smarter use of new and existing financial resources, removing obstacles to investment, providing visibility and technical assistance to investment projects. The Investment Plan is already showing results.
The projects and agreements approved for financing under the EFSI so far are expected to mobilise EUR 241 billion in investments and support around 460,000 SMEs across all 28 Member States. On 13 September, the European Parliament and Member States came to an agreement in principle on the extension and strengthening of the EFSI. This agreement extends the EFSI’s duration as well as increases its financial capacity.
About GE Renewable Energy
GE Renewable Energy is a $10 billion start-up that brings together one of the broadest product and service portfolios of the renewable energy industry. Combining onshore and offshore wind, hydro and innovative technologies such as concentrated solar power and more recently turbine blades, GE Renewable Energy has installed more than 400+ gigawatts capacity globally to make the world work better and cleaner. With more than 22,000 employees present in more than 55 countries, GE Renewable Energy is backed by the resources of the world’s first digital industrial company. Our goal is to demonstrate to the rest of the world that nobody should ever have to choose between affordable, reliable, and sustainable energy.
About Green Investment Group
Green Investment Group is a specialist in green infrastructure principal investment, project delivery and the management of portfolio assets, and related services. Its track record, expertise and capability make it a global leader in green investment, dedicated to supporting the growth of the global green economy.
The business was launched initially by the UK Government in 2012 as the first institution of its type in the world. The organisation was acquired by the diversified financial group Macquarie Group Limited in 2017, creating one of Europe’s largest teams of dedicated green infrastructure investors, and now operates under the name Green Investment Group. For more information, visit www.greeninvestmentgroup.com.