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Signature(s)

Amount
€ 108,034,338
Countries
Sector(s)
Austria : € 108,034,338
Energy : € 108,034,338
Signature date(s)
23/10/2024 : € 28,449,042
23/10/2024 : € 79,585,296
Link to source

Summary sheet

Release date
28 October 2024
Status
Reference
Signed | 23/10/2024
20230290
Project name
Promoter - financial intermediary
PANNONIA SOLAR ENERGY
PUSPOK ERNEUERBARE ENERGIE GMBH
Proposed EIB finance (Approximate amount)
Total cost (Approximate amount)
EUR 115 million
EUR 154 million
Location
Sector(s)
  • Energy - Electricity, gas, steam and air conditioning supply
Description
Objectives

The project will finance the implementation and operation of 6 ground-based solar photovoltaic (PV) plants (total capacity of ca. 257 MWp) and a battery energy storage system in Burgenland.

The aim is to primarily reduce carbon and air pollution emissions, which are externalities the market fails to address. Moreover, the PV plants will foster the integration of new, variable renewable generation technologies in the market. Hence, the project will fill a market gap in developing new renewable capacity, including the financing gap for projects trying to develop new capacity with more market-exposed structures and instruments.

Additionality and Impact

This operation concerns the development and operation of six utility-scale solar PV plants in Austria, as well as a directly connected battery energy storage system. They will support the 2030 targets set out in the National Energy and Climate Plan of Austria and the REPowerEU Action Plan. 

The financing of this project also contributes to Bank's lending priority objectives on Energy (100%), Economic and Social Cohesion (100%) as well as on Climate Action (100%).

As the project will produce electricity from low carbon sources, it will address the market failure of negative climate and environmental externalities, through the reduction of carbon emissions and air pollution (compared to fossil-fuel generation).

The project's revenues will be supported through the new market premium support scheme. 

On project quality, the project is supported by adequate capabilities / governance of the promoter. 

In terms of project results, the projects are expected to have a positive economic rate of return, considering the economic value of the electricity generated. Therefore, the project is expected to generate a positive broader social benefit by generating clean and renewable power at a cost (LCOE) reasonably below the cost alternatives in Austria.

The Bank's long-term funding will enable the promoter to enhance the financing structure in line with the economic life of the assets to be financed. The Bank's involvement provides a qualitative value added to the borrower in terms of flexibility of terms. EIB's advice ensures the technical and economic quality of the investment through project-specific loan conditions (beyond standard requirements) and annual progress reporting.

Environmental aspects
Procurement

Solar PV plants fall under Annex II of the Environmental Impact Assessment (EIA) Directive 2014/52/EU amending 2011/92/EU, requiring the competent authorities to determine whether an EIA is required. The promoter expects that none of the solar PV plants is subject to an EIA. During appraisal, the project's authorization procedures will be further assessed. This includes a verification of compliance of authorisation processes with relevant EU Directives.

The European Commission has exempted all contracts which are being awarded to implement electricity generation projects in Austria from the scope of the Utilities Directive. No public procurement is required.

Milestone
Under appraisal
Approved
Signed
25 June 2024
23 October 2024
Link to source
Summary sheet
Other links

Disclaimer

Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).

Documents

Environmental and Social Data Sheet (ESDS) - PANNONIA SOLAR ENERGY
Publication Date
20 Nov 2024
Document language
Main Topic
Lending
Document Number
174851798
Document Focus
Environmental Information
Project Number
20230290
Sector(s)
Regions
Countries
Publicly available
Download now
Other links

General enquiries and comments

The EIB is committed to open communication and encourages constructive stakeholder input regarding its activities.
Enquiries and comments concerning the EIB’s involvement in a project or the financing facilities, activities, organisation and objectives of the EIB, can be sent to the EIB Infodesk.
Alternatively, the EIB can be contacted through its external offices.
Queries regarding details of a specific project, in particular when it is under appraisal by the EIB, should preferably be addressed directly to project promoters.

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The EIB has a zero tolerance policy on fraud or corruption. To report allegations of fraud and corruption relating to EIB-financed projects, please contact the Fraud and Investigation division. All complaints will be treated as strictly confidential and handled in line with the EIB investigation procedures and the Anti-Fraud Policy.

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