ENGELHARTSTETTEN

The project concerns the implementation and operation of 44,85 MW wind farm in Engelhartstetten / Lower Austria.

The wind farm will primarily reduce carbon and air pollution emissions, which are externalities the market fails to address. It will also foster the integration of new, variable renewable generation technologies in the market. Ultimately, it will support the development of new renewable capacities with more market-exposed structures.

The implementation of the project increases renewable energy generation capacity in Austria and contributes to 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 Renewable Energy as well as on Climate Action. 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 is expected to rely on revenues from (i) market premiums and (ii) commercial power purchase agreements as well as (iii) access to the spot market, thereby the project improves market efficiency and competition.

In terms of project results, the project is expected to have a positive economic return, considering the economic value of the electricity generated. Therefore, the project will generate a positive broader social benefit by generating clean and renewable power at a cost reasonably below the cost of alternatives in Austria. On project quality, the project is supported by fair capabilities / governance of the promoter.

In addition to the quantitative financial advantage to be provided to the promoter and a sizeable loan amount from one single source, the Bank's long-term funding will enable the promoter to enhance its financing structure in line with the long economic lifetime of the assets to be financed.

The Bank's participation and structuring efforts are expected to accelerate the development of the project and closing its financing. The Bank provides expertise in structuring and lending to renewable energy projects, applying standard and well tested project finance principles.

Wind farms 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 project was screened-in und underwent full EIA process including public consultation. The EIB will assess compliance with applicable EU Directives during appraisal, in particular concerning cumulative impacts and potential impacts on nature conservation sites.

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.