GLENNMONT RENEWABLE ENERGY GREEN LOAN

The project will finance the construction and operation of a portfolio of up to ca. 1.54 GWp of solar photovoltaic power plants across Italy, Portugal and Spain.

Renewable power plants contribute to progress on the national and EU energy and climate goals, namely decarbonise electricity production in the EU and decrease the reliance on fossil fuels. The project is therefore eligible under Article 309 point (c) common interest. Certain regions where the portfolio of plants will be developed are classified as EIB Cohesion Priority Regions. Should plants in the project be located in such regions, then parts of the project would also be eligible under Article 309 point (a) projects for developing less-developed regions. The investment programme is expected to be economically justified, as it will generate economic benefits, notably in terms of climate action by stepping up investments in renewable energy, creation of economic activity, as well as CO2 emission reductions.

The investment programme is line with the InvestEU objective of the development of the energy sector in accordance with the Energy Union priorities. The investment programme increases the production of electricity from low carbon sources (solar PV) and addresses negative climate and environmental externalities. It contributes to progressing towards the EU and national renewable energy targets of Portugal, Spain and Italy.

The financing of this programme is in line with the Bank's lending priority objectives on Energy (Renewable Energy) as well as the transversal objectives on Climate Action, Environmental Sustainability and Social and Economic Cohesion.

The schemes are expected to rely on wholesale market revenues (spot markets and/or PPAs). They thereby contribute to the EIB's Energy Lending Policy objective to support the market integration of RE projects.

The schemes are expected to result in a positive economic return, considering the economic value of the clean and renewable electricity generated and a broader positive social benefit by generating power at a cost (LCOE) reasonably below cost alternatives in the Member States. The project is supported by adequate governance and capabilities of the promoter.

A majority of schemes are expected to be located in EIB Cohesion Priority Regions (about 90% of the pipeline), supporting the strengthening of the EU's economic, social and territorial cohesion.

EIB intervention will allow the Borrower to lengthen the tenor of its debt, contain the cost of funding and attract other potential lenders.

The project would not have been carried out (to the same extent) by the EIB without the InvestEU support.

The individual plants and most of the ancillary infrastructure fall under Annex II of the Environmental Impact Assessment (EIA) Directive 2011/92/EU (amended by the Directive 2014/52/EU). Overhead transmission lines for the interconnection of the schemes to the grid, if falling under the Annex I due to their technical characteristics, will be expected to be subject in all cases to an EIA process. The individual projects are at various stages of permitting at this stage. The EIB will assess the capacity and capability of the promoter to implement the programme, in line with the EIB's environmental and social standards (E&S) and requirements. Moreover, given that China largely dominates the PV market and that media report that supply chain of these products would involve forced labour, an enhanced due diligence on the topic will be carried out.

The promoter is a private company and the schemes envisaged for this operation are market-based renewable energy projects, which do not enjoy any special or exclusive rights. Therefore, private sector procurement procedures should apply. This will be further reviewed during appraisal.