The European Investment Bank (EIB), the EU's long term financial institution, is lending GBP 10 million (EUR 15 million) to United Utilities Green Energy Limited for renewable energy Projects at various locations in England and Wales.
These Projects, for a total capital investment of GBP 20 million, comprise wind, small-scale hydro-electric and biomass landfill gas power generation schemes. Being alternative generating plant schemes involving the use of sustainable local sources of energy, the investments will contribute to the development of sustainable generation in the UK, in line with the objectives of UK and EU policy as well as the Kyoto Protocol that aim to reduce the consumption of fossil fuels and emissions of greenhouse gases.
EIB Vice-President, Peter Sedgwick, said: "Environmental protection and improvement - and in particular support for renewable energy - is a priority target for EIB lending, and promotion of renewable energy is a major feature of the European Climate Change Programme. The funding is linked to the satisfactory conclusion of required environmental studies and measures; EIB financial assistance for these investments at an early stage aims to boost the confidence of both operators and the market in implementing renewable energy investments."
United Utilities Electricity Chief Executive Officer, John Roberts, said: "We are already one of the country's leading players in the renewables market and this will strengthen our position further. It is a step forward in helping to deliver the rapid growth we anticipate for our business over the next few years. Britain is the windiest country in Europe and we can use this natural asset to encourage investment."
The EIB (European Investment Bank) is owned by the EU Member States. Set up in 1958, its mission is to contribute to the EU's policy objectives by financing sound investment. Though a not-for-profit organisation, it is self-financing, raising its funds by borrowing on capital markets.
EIB's key operational objectives are to finance: regional development and economic and social cohesion of the EU, including integration of Candidate countries; knowledge and R&D intensive industries; environmental protection and improvement; improved international competitiveness of industry; SMEs; trans-European networks in transport, telecom and energy; human capital: education and health. EIB also supports the EU's development and co-operation policies in Partner Countries outside the EU by providing finance under mandate.
In support of EU policy of boosting renewable energy production, EIB aims to at least double the share of renewable energy in its total energy sector financing over the next five years. Further information on EIB's support to renewable energies is available in policy brochure "Renewable Energy" (July 2002) and the recent "Environmental Report 2002-2002". Both documents are posted on the Bank's website.