MYTILINEOS REPOWEREU FRAMEWORK LOAN

The project will finance renewable energy projects across Greece, Italy, Poland, Romania, Spain, Ireland and Bulgaria.

The aim is to finance part of the promoter's renewable energy projects such as solar-photovoltaic power plants and battery energy storage plants.

This operation is in line with the InvestEU objective for the development of the energy sector in accordance with the Energy Union priorities, namely through the expansion of the generation of clean and sustainable renewable energy.

It concerns the development and operation of a portfolio of solar PV and Battery Energy Storage (BESS) plants across various EU countries, including Italy, Greece, Spain, Poland, Romania, Bulgaria and Ireland. It will support the 2030 targets set out in the respective National Energy and Climate Plans and the REPowerEU action plan. A large share of the projects is expected to be located in Cohesion regions.

The financing of this project also contributes to Bank's lending priority objectives on Energy (Renewable Energy), Environmental Sustainability and Climate Action (transversal).

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 is expected to rely on revenues from (i) commercial power purchase agreements (cPPAs) and (ii) the wholesale market, thereby the project improves market efficiency and competition.

The Bank's financial contribution is considered very good and valuable to the Promoter, as the EIB's offering is more favourable than market alternatives under various dimensions. Also, the Promoter deems the EIB financing as a quality stamp on its investments and environment-related procedures, which helps attract investors and co-financiers.

The EIB would not be able to provide such type of financing, or not at the same quantum, without the support of InvestEU.

Solar-photovoltaic power plants and battery energy storage 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. Overhead transmission lines for the interconnection of the schemes to the grid falling under Annex I - due to their technical characteristic - will be subject to an EIA process. The Promoter will be requested to comply with applicable national and EU legislation.

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 European Commission will be duly informed, which would require the promoter to apply those rules.