ERG RENEWABLE ENERGY GREEN LOAN

Promoteur – Intermédiaire Financier

ERG SPA

Lieu

• Italie
• France
• Allemagne

Description

The operation will finance a portfolio of 269 MW of onshore wind and solar photovoltaic (PV) plants.

Additionality and Impact

The Project produces electricity from sustainable low carbon sources (solar PV and onshore wind) and addresses the market failure of negative climate and environmental externalities, through the reduction of carbon emissions and air pollution. The Project supports EU Renewable Energy objectives and supports Italy, France, and Germany in meeting their commitments with respect to renewable energy targets and greenhouse gas emission reductions set out in their Integrated National Energy and Climate Plan. Around 97% of total installed capacity of the onshore wind and PV portfolio will be built in Cohesion regions.

 

The Project's portfolio will rely on renewable energy supporting schemes and on Power Purchase Agreements for ca. 95% of its generation. Only marginally, the plants' portfolio will be exposed to merchant risks. The Project thereby contributes to the policy objective of supporting market integration of renewable energy projects. 

 

The financing of this Project also contributes to Bank's lending priority objectives on Energy (Renewable Energy) as well as on Climate Action and Environmental Sustainability (transversal), and economic and social Cohesion (transversal).

EIB's financial contribution is deemed valuable to the Promoter due to its crowding in effect and more favourable financial terms than the alternative sources of financing. Furthermore, the EIB's involvement is expected to send a positive signal to the market and strengthen other potential lenders and investors in ERG's business plan as a pure wind and solar power provider.

Objectifs

The project concerns 3 greenfield onshore wind farms in France, the repowering of three existing onshore wind farms in Italy (2) and in Germany (1), as well as the repowering of 7 solar PV plants in southern Italy.

Secteur(s)

• Énergie - Production et distribution d'électricité, de gaz, de vapeur et d'air conditionné

Montant BEI envisagé (montant approximatif)

EUR 243 million

Coût total (montant approximatif)

EUR 366 million

Aspects environnementaux

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. New overhead transmission lines for the interconnection of the schemes to the grid, if part of the Project and if falling under the Annex I due to their technical characteristics, will be expected to be subject in all cases to an EIA process. Five wind power plants and associated infrastructure underwent an EIA process with all main permits issued to date. One wind power plant (comprising only one turbine) was screened out from an EIA by the relevant authorities. The permit is in force at the time of appraisal and there is no appeal pending. The repowering of the existing solar PV plants was not subject to EIAs, corresponding major consents have already been issued. None of the plants are located inside Natura 2000 sites, but some of them have protected sites in the vicinity, including but not limited to: SAC Montagna Grande di Salemi (ITA010023), SAC Complesso Monti di Santa Ninfa - Gibellina e Grotta di Santa Ninfa (ITA010022), SAC Muldetal bei Aue (DE5341303), and SAC Kalkbrüche im Wildenfelser Zwischengebirge (DE5341302). The authoristion procedures and compliance with the relevant EU directives, specifically Habitats and Birds Directives (92/43/EEC and 2009/147/EC respectively), will be assessed at appraisal, in particular the potential cumulative impacts assessment and the impacts on protected flora and fauna, including Natura 2000 sites. Given that China largely dominates the market of photovoltaic solar panels, and media reports that supply chain of these products would involve forced labour, the Bank will apply an enhanced due diligence on the topic, in line with the EIB's Environmental & Social Standards.

Passation des marchés

The promoter has been assessed by the EIB as being a private company not being subject to EU rules on public procurement or concessions. However, if at the project appraisal, the EIB were to conclude that the Promoter is subject to the EU public procurement legislation then the Bank would duly inform the Commission Services and would require the Promoter to apply those rules.

Statut

Signé - 16/12/2024