The EIB has signed a €24 million financing agreement with the Greek Terna Energy Group to help fund the development, construction and operation of two windfarms on Mount Vermio in northern Greece. Alpha Bank acted as co-lender providing an equivalent amount of long-term debt next to a medium term VAT facility. The EIB’s loan is backed under the EU budget guarantee of the European Fund for Strategic Investments (EFSI), the financial instrument of the Investment Plan for Europe. This is the second such agreement with Terna following one last July to finance windfarms in the Viotia region.
Pierre Moscovici, Commissioner for Economic and Financial Affairs, Taxation and Customs, said: "After Greece exits its stability support programme on 20 August, the country will stand on its own two feet - but the European Commission will continue to stand by its side, including financially. Today's announcement is a concrete example of how the Juncker Plan is helping to modernise Greece's energy infrastructure, supporting growth and job creation along the way."
“As promised last year, we have followed developments in the Greek energy sector and remain ready to step in to finance sound projects that meet our criteria and respond to EU energy policies,” commented Jonathan Taylor, EIB Vice-President responsible for lending in Greece. “The Bank is particularly committed to financing green energy projects across the Union and the EFSI has enabled us to do even more. This project is precisely the kind of operation the Investment Plan for Europe was designed to support.“
The two windfarms will have a combined operating capacity of 44.4 MW, divided between Eressou Ipsoma-Fourka (operating capacity 36MW) and Lefkes-Kerasia (operating capacity of 8.4MW). Combined, they will host 22 wind turbines installed on complex high altitude terrain (exceeding 1.400m), and will be connected to the transmission grid via a new MV/HV Substation and respectively 8.5 km and 16km of MV underground cable. This is the second EFSI operation where the bank is undertaking direct project risk via a limited recourse, project finance structure. Next to other transactions, it is a testament to the continued EIB support to the Greek electricity sector in general and the promotion of the renewable energy sources, in line with EU policies, in particular.
The European Investment Bank (EIB) is the European Union's bank. The EIB is the long-term lending institution of the EU and is the only bank owned by and representing the interests of the European Union Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals. The EIB works closely with other EU institutions to implement EU policy. In 2017, the Bank made available in excess of EUR 2.1 billion in loans for Greek projects. Since 2010, the EIB has provided more than EUR 11bn to ensure continued investment in crucial infrastructure including education, energy, transport, waste and water, and in companies across Greece.
The Investment Plan for Europe, the Juncker Plan, focuses on strengthening European investments to create jobs and growth. It does so by making smarter use of new and existing financial resources, removing obstacles to investment, providing visibility and technical assistance to investment projects. The European Fund for Strategic Investments (EFSI) is the central pillar of the Juncker Plan. It provides a first loss guarantee, allowing the EIB to invest in more, often riskier, projects. So far, the projects and agreements approved for financing under the EFSI are expected to mobilise €335 billion in investments and support around 700,000 SMEs across all 28 Member States. Find the latest EFSI figures by sector and by country here, or see the FAQs.
Renewable Energy in Greece
The Greek Renewable Energy Regulatory Framework (and the electricity market in general) is being reformed to improve efficiency, further integrate Greece in the European electricity market and assist fulfilment of renewable energy targets in line with EU policies. EIB presence in the market supported by EFSI where appropriate, aims to contribute to increased investment activity and to enhance confidence in what remains a challenging but steadily improving environment.