Summary sheet
The project will finance the implementation and operation of 6 ground-based solar photovoltaic (PV) plants (total capacity of ca. 257 MWp) and a battery energy storage system in Burgenland.
The aim is to primarily reduce carbon and air pollution emissions, which are externalities the market fails to address. Moreover, the PV plants will foster the integration of new, variable renewable generation technologies in the market. Hence, the project will fill a market gap in developing new renewable capacity, including the financing gap for projects trying to develop new capacity with more market-exposed structures and instruments.
This operation concerns the development and operation of six utility-scale solar PV plants in Austria, as well as a directly connected battery energy storage system. They will support the 2030 targets set out in the National Energy and Climate Plan of Austria and the REPowerEU Action Plan.
The financing of this project also contributes to Bank's lending priority objectives on Energy (100%), Economic and Social Cohesion (100%) as well as on Climate Action (100%).
As the project will produce electricity from low carbon sources, it will address the market failure of negative climate and environmental externalities, through the reduction of carbon emissions and air pollution (compared to fossil-fuel generation).
The project's revenues will be supported through the new market premium support scheme.
On project quality, the project is supported by adequate capabilities / governance of the promoter.
In terms of project results, the projects are expected to have a positive economic rate of return, considering the economic value of the electricity generated. Therefore, the project is expected to generate a positive broader social benefit by generating clean and renewable power at a cost (LCOE) reasonably below the cost alternatives in Austria.
The Bank's long-term funding will enable the promoter to enhance the financing structure in line with the economic life of the assets to be financed. The Bank's involvement provides a qualitative value added to the borrower in terms of flexibility of terms. EIB's advice ensures the technical and economic quality of the investment through project-specific loan conditions (beyond standard requirements) and annual progress reporting.
Solar PV plants fall under Annex II of the Environmental Impact Assessment (EIA) Directive 2014/52/EU amending 2011/92/EU, requiring the competent authorities to determine whether an EIA is required. The promoter expects that none of the solar PV plants is subject to an EIA. During appraisal, the project's authorization procedures will be further assessed. This includes a verification of compliance of authorisation processes with relevant EU Directives.
The European Commission has exempted all contracts which are being awarded to implement electricity generation projects in Austria from the scope of the Utilities Directive. No public procurement is required.