- Wind power expansion: EU bank supports multi-billion programme
The European Investment Bank (EIB) is supporting multi-billion-euro investments in the expansion of wind power in Europe. A first guarantee of 500 million euros has been granted to Deutsche Bank, as announced in a press release. This will enable Deutsche Bank to establish a portfolio of bank guarantees worth up to one billion euros for new investments in wind farms in the EU. The guarantees from the EU's funding bank aim to share credit risks with commercial banks.
This transaction is the first project under the EIB's wind power support plan, approved in December. It will enable Deutsche Bank to provide bank guarantees to wind energy manufacturers. This will allow manufacturers to receive advance payments and provide performance guarantees: "Manufacturers can thus pay their suppliers in advance, for example, for components such as turbines, grid connection infrastructure, cables and voltage converters," it was stated. In total, the EIB plans to make five billion euros available to commercial banks to provide bank guarantees to companies in the European wind industry.
The initiative is part of the EU wind power package presented by the European Commission last year. To drive the expansion of wind power, the Brussels authority presented various measures. The EIB is the EU institution for long-term financing. Its shareholders are the member states. The bank is to finance investments that contribute to achieving the EU's political objectives. Recently, it has been particularly active as a financier for climate protection and support for Ukraine.
The European Commission approved the EIB's wind power support plan, which aims to boost wind power expansion in Europe. The Commission plays a crucial role in driving the expansion of renewable energy sources in the EU.
