ENPAL REPOWEREU RENEWABLE ENERGY

Promoter – Financial Intermediary

ENPAL BV

Location

• Germany

Description

Through a solar energy company, the project will finance small-scale photovoltaic installations including battery storage and electric vehicle charging stations in the residential sector.

Additionality and Impact

The financing of this project contributes for 100% to the Bank's lending priority objectives on Energy (Renewable Energy) as well as 100% on Climate Action and Environmental Sustainability (Climate Action) as transversal objective. It concerns the financing a portfolio of photovoltaic (PV) installations and other energy efficient related equipment for self-consumption in the residential sector through a framework loan operation in Germany.

 

The financing of PV systems contributes to the EU 2030 decarbonisation goals and to EIB's priority of supporting the transition to a low-carbon, environmentally friendly and climate-resilient economy.

 

The project addresses a number of market failures, from contributing to the reduction in carbon and air pollution, to improving energy markets and general market efficiency and integration through participation in the wholesale markets. By using an intermediated approach, the EIB will be able to support smaller projects, that would otherwise not be possible to be reached directly. The EIB is providing adequate financing sources in terms of pricing and longer maturities, whilst contributing to the diversification of the borrower's funding base.

The proposed operation is also a unique opportunity for the EIB to participate in the first European solar ABS transaction, i.e. true sale securitisation of PV systems and related equipment. The majority of the financial advantage should be passed on to Enpal's customers.

In terms of project results, the project is 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. On project quality, the project is supported by good capabilities / governance of the promoter

Objectives

The aim is to support new investments in renewable energy and energy efficiency.

Sector(s)

• Industry - Construction

Proposed EIB finance (Approximate amount)

EUR 100 million

Total cost (Approximate amount)

EUR 200 million

Environmental aspects

This operation will generate environmental benefits by supporting renewable energy projects that help mitigate climate change. The promoter should take all required measures to ensure that the final beneficiaries implementing the sub-projects comply with the applicable EU and national legislation. The project will be appraised and monitored in line with the EIB's policies, including the EIB's Environmental and Social Sustainability Framework.

Procurement

Final beneficiaries are expected to be mostly private individuals. However, in case some projects fall under the EU public procurement legislation, the promoter will have to take all the required measures to ensure that the procurement procedures, carried out by the final beneficiaries implementing the sub-projects, are in line with the relevant applicable EU and national legislation.

Status

Signed - 11/11/2024