EIB commits €30 billion to REPowerEU clean energy scheme to secure EU’s renewables future

Facebook
Twitter
LinkedIn
Reddit
Email
The RePowerEU scheme will receive €30 billion (US$29.7 billion) in loans and equity financing from the EIB over the next five years. Image: EIB.

The European Investment Bank (EIB) will support the RePowerEU scheme with €30 billion (US$29.7 billion) in loans and equity financing over the next five years, as it looks to secure Europe’s renewable energy future and reduce its dependence on Russian gas.

The funds, to be directed to renewables, energy efficiency, grids and storage, electric vehicle infrastructure and new technologies, are expected to mobilise up to €115 billion (US$113.8 billion) in investment across European renewables industries. The additional €30 billion shores up the already robust investment that the EIB Group has been making in the energy sector over the past decade, approximately €10 billion (US$9.8 billion) a year.

“This horrible war and Russia’s blackmail over gas supplies affirmed that our dependency on fossil fuels is a critical security vulnerability,” Werner Hoyer, president of the EIB Group, said.

In May, responding to the invasion, the EU published the RePowerEU strategy, ramping up its solar deployment target to almost 740GWdc by 2030.

While this additional funding is designed to improve Europe’s medium-term energy security and lessen supply shocks like the recent one with Russian gas, it follows a €5.5 billion (US$5.4 billion) EIB financing package for clean energy and climate action initiatives including new wind power in the Baltics and improved transmission networks in Poland and Spain. This smaller package could see gas demands fall as soon as next year, the EIB has said.

To accelerate and optimise the impacts of the investment, the EIB board has announced a slew of technical and policy measures as well. Included are higher upfront disbursements, longer tenors to make EIB loans more attractive to the energy sector and an increased co-financing ceiling from 50 to 75% for projects contributing to the REPowerEU objectives.

In September the bank also stated its intention to provide US$10 billion to support communities that are most adversely affected by the energy transition, as Europe scrambles to decarbonise and remove itself from beneath the yoke of Russian gas.

In a positive response to the REPowerEU’s goals, Statkraft predicted ‘significant’ increases in European solar PV in Europe following the invasion of Ukraine, forecasting in its Low Emissions Scenario that solar would become the world’s largest source of energy by 2035.

29 November 2022
PV ModuleTech EMEA in Malaga on 29-30 November 2022 will address the factors underpinning the changing PV module landscape, gathering together all the key stakeholders across the value-chain from module production to field testing. Join us for presentations from the leading players in the sector, clearly identifying the opportunities and challenges set to impact module supply to Europe and the Middle-East over the next few years.
28 June 2023
Join us in London for 2 days as we look at the UK’s new landscape for utility & rooftop solar. Understand the new opportunities within this GW-plus annual market!

Read Next

November 25, 2022
IDB Invest and South American financial group Bancolombia will provide developer Solarpack with a COP656 billion (US$133 million) loan to support the development of two solar PV projects in Colombia.
November 25, 2022
Ukrainian energy company DTEK has said it is ready to restart operations at the 10MW Tryfonivska solar power plant in the liberated Kherson region.
November 24, 2022
France-headquartered renewables provider Voltalia has signed a 350MW, 15-year solar power purchase agreement (PPA) with Renault Group.
November 24, 2022
Canadian investor Ontario Teachers’ Pension Plan Board has signed an agreement to invest US$805 million in a convertible equity portfolio financing with NextEra Energy Partners to help it acquire a 2GW portfolio of solar, storage and wind assets across the US.
November 23, 2022
Europe will benefit from a new research and innovation (R&I) project intended to advance the continent’s tandem solar PV cell manufacturing and production capabilities, focusing on tandem silicon-perovskite cells.
November 23, 2022
Prescinto, a renewable energy asset performance management (APM) platform, has entered into a partnership with Greek solar developer SunSolarWind IKE to apply its APM software to 70MW of solar PV projects.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
November 29, 2022
Malaga, Spain
Solar Media Events
February 22, 2023
Leonardo Royal Hotel London Tower Bridge
Solar Media Events
March 14, 2023
Berlin, Germany
Solar Media Events
March 21, 2023
Lisbon, Portugal
Solar Media Events
June 6, 2023
Napa, USA