Summary sheet
The framework loan (FL) will finance renewable energy and battery energy storage projects in Greece.
The aim is to contribute to the EU-wide target of 42.5% of energy from renewable sources in gross final energy consumption (RES) for 2030, in line with the revised EU Renewable Energy (RE) Directive (EU 2023/2413). The operation will also help to achieve the REPowerEU objectives which aim at increasing the RES 2030 target from 32% to 45%. Additionally, it will further support the national renewable energy targets laid out in the Greek National Energy and Climate Plan (NECP). It is expected that the schemes will be located in the Cohesion Priority Regions (less developed) and in the Just Transition Regions.
The operation aligns with InvestEU's objective to develop the energy sector in accordance with the Energy Union priorities, by expanding clean and sustainable renewable energy. It involves developing solar and Battery Energy Storage System (BESS) schemes in Greece, supporting the 2030 decarbonisation and storage targets of Greece's National Energy and Climate Plan and the REPowerEU action plan. All schemes will be located in Cohesion regions (100% Less Developed Regions).
The financing supports the Bank's lending priority objectives in renewable energy, innovative technologies, environmental sustainability, climate action, and social and economic cohesion. Located in Greece's historic lignite centres, the operation contributes to the Just Transition target of the Bank and of the country.
The project will generate low-carbon electricity, thereby reducing carbon emissions and air pollution. BESS enhances electricity system flexibility, integrating more variable renewable generation. Revenues will primarily come from commercial power purchase agreements (cPPAs) and the wholesale market, improving market efficiency and competition. Some schemes may seek market-based regulatory support.
The Promoter's governance and risk management are deemed good (corresponding to medium risks partially managed). The operation is expected to have a positive economic rate of return and broader social benefits by generating renewable electricity at a lower cost than fossil fuels. The Bank's financial contribution is valuable, offering more favourable terms than market alternatives and attracting investors and co-financiers.
The project would not have been carried out (to the same extent) by the EIB without the InvestEU support.
The schemes are expected to fall under Annex II of the environmental impact assessment (EIA) Directive 2011/92/EU as amended by Directive 2014/52/EU, requiring the competent authorities to determine whether an EIA is required. Overhead transmission lines for the interconnection of the schemes to the grid falling under the Annex I will be expected to be subject in all cases to an EIA process. The schemes of the proposed operation have been screened in and an EIA has been performed. The schemes have been awarded the environmental permit to proceed with implementation. The EIB will assess the capacity and procedures of the promoter to ensure the schemes' compliance with the sector-relevant national and European environmental regulations. The authorisation procedure and compliance of the schemes with the relevant EU directives, specifically Habitats and Birds Directives (92/43/EEC and 2009/147/EC respectively), will be further assessed during the appraisal of the individual schemes, in particular the potential cumulative impacts assessment and the impacts on protected flora and fauna, including Natura 2000 sites.
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 require the promoter to apply those rules.