Summary sheet
The project will finance an offshore wind farm in the German Baltic Sea with an installed capacity of 315 MW.
By increasing renewable energy generation capacity, the operation contributes to EU-wide targets for renewable energy, including those set out in the Renewable Energy Directive (RED II) and RePowerEU. It also supports national targets outlined in the German National Energy and Climate Plan (NECP). The project aligns with the EIB's lending priority objectives on renewable energy, climate action and environmental sustainability. It adds new generation capacity in a sector characterised by incomplete markets, relying on contracts that carry residual market risks. It is therefore also expected to support the policy goal of integrating renewable energy projects into the market.
The Project concerns the development and operation of a new, large-scale, fixed-bottom offshore wind farm that will contribute to the achievement of the 2030 decarbonisation targets set out in the National Energy and Climate Plan (NECP) of Germany as well as the REPowerEU Action Plan.
The Project is located in the German EEZ off the coast of Mecklenburg-Vorpommern, an EU Transition Region. The financing of this Project would contribute to the Bank's lending priority objectives of Renewable Energy, on Climate Action, Environmental Sustainability as well as Economic and Social Cohesion.
The offshore wind farm will primarily reduce carbon and air pollution emissions, which are externalities the market fails to address. Moreover, the Project provides new generation capacity in a sector characterised by incomplete markets, relying on commercial power purchase agreements and sales from the wholesale market. It thereby contributes to the policy objective of supporting market integration of renewable energy projects.
The offshore wind farm is expected to generate a positive broader social benefit due to (i) generating clean and renewable power at a cost below the cost of fossil-fuel based alternatives in Germany and (ii) knowledge externalities. Overall, the operation is expected to yield good quality and results, thanks to avoided GHG emissions, and employment creation. The Project is expected to be supported through adequate governance arrangements by the Promoter.
The EIB's financing provides an additional source of funding to the Promoter. The Bank's financial contribution is considered very good and valuable to the client, as the EIB's offering is more favourable than market alternatives and the "EIB Green Loan" label is deemed as a stamp of quality on the Promoter's investments.
Offshore wind farms fall under Annex II of the Environmental Impact Assessment (EIA) Directive 2011/92/EU, as amended by Directive 2014/52/EU. This requires the competent authorities to determine whether an environmental impact assessment is necessary. Given its size, the project has undergone an EIA. Compliance with the requirements of Directive 2011/92/EU, as amended by Directive 2014/52/EU, as well as the Birds Directive 2009/147/EC and the Habitats Directive 92/43/EEC, will be verified during appraisal.
Given that the concession for the offshore wind farms in the pipeline of the promoter are awarded following a due public procurement process in line with Directives 2014/23/EU and 2014/25/EU, 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, requiring the promoter to apply the relevant EU rules.