Summary sheet
The project relates to the construction and operation of a number of renewable energy projects (onshore wind and solar photovoltaic (PV)) in Croatia.
The development of renewable energy supports EU and national targets for renewable energy generation and contributes to the Bank's renewable energy objectives. The project further contributes to the Bank's priority objectives for climate action.
The EIB's investment in the project will
support the deployment of new renewable energy capacity in Croatia, crucial for
the achievement of the 2030 targets set out in the final National Energy and
Climate Plan. The financing of this project also contributes to Bank's lending priority objectives on Energy (Renewable Energy) as well as on climate action (transversal) and economic and social cohesion (transversal).
In terms of addressing
market failures, this portfolio of wind and solar PV projects produces
electricity from low carbon sources and thereby addresses the market failure of
negative environmental externalities, through the reduction of carbon and air
pollution. Moreover, the projects provide new generation capacity in a sector
characterised by incomplete markets (illiquid intra-day markets, limited
forward markets / hedging), relying solely on wholesale market revenues without
public support. The promoter stated that the projects will not participate in
or benefit from any public support scheme in Croatia. They thereby contribute
to the policy objective of supporting the market integration of renewable
energy projects. The operation is expected to yield good quality and results, due
to avoided GHG emissions, fair employment creation and adequate governance systems. The EIB's financial contribution stems from
the Bank's capacity to provide long-term financing at favourable conditions which
is substantially aligned with the long economic life of the assets to be
financed.
Permits are in place for all sites, following full environmental impact assessment (EIA) processes or have been screened out by the competent authorities, in line with relevant national legislation. Compliance with relevant EU Directives and EIB environmental and social (E&S) standards need to be confirmed during appraisal.
The Promoter has to ensure that any procurement procedures have been done in accordance with the relevant applicable EU public procurement rules as transposed into the national legislation. In particular, the Bank will require that calls for international tenders be published in the Official Journal of the EU, as necessary.