PROLOGIS ROOFTOP SOLAR PV AND BATTERY STORAGE

The project will finance an investment programme in rooftop solar photovoltaic (PV) and battery storage projects across Europe by a logistics company.

The rooftop installations will produce electricity from low carbon sources (solar PV), contributing to the reduction of carbon emissions and air pollution compared to fossil-fuel generation. The project increases the renewable energy generation capacity across various EU countries and thus supports the EIB's priority objectives for energy sector lending related to renewable energy sources, as well as national and EU 2030 climate objectives.

The project helps to produce electricity from low carbon sources through the roll-out of solar panels on the roofs of logistic centres, managed by subsidiaries of the Promoter, and co-located small battery storage, both located primarily in Central and Western EU as well as in other EU regions. The project addresses market failures related to climate and environmental externalities, by contributing to the reduction in CO2 emissions and other air pollution. This operation supports national targets related to renewable energy (RE) generation and it will hence contribute to EU energy objectives, notably security of energy supply and tackling climate change. It also supports the Bank's priority lending objectives concerning renewable energy and it will contribute 100% to climate action. The operation is therefore eligible under Article 309 (c) common interest in energy (RE) and environment (tackling climate change). The operation is expected to yield a very good economic rate of return and a positive broader social benefit. The Promoter is deemed capable of implementing the project considering its overall experience. The EIB's financial contribution to the project is high, as it provides longer term finance on competitive terms, not readily available in the market.

Some of the project schemes may fall under Annex II of the environmental impact assessment (EIA) Directive 2014/52/EU (amending EIA Directive 2011/92/EU), thus requiring a review by the competent authorities at the planning/consent stage with due regard to the necessity for environmental and biodiversity assessments. The impacts that can typically be expected from some schemes relate to visual impact, electromagnetic fields, noise nuisance, and disturbance during construction. The appraisal will focus on impacts of the project and the related mitigants, as well as on the promoter's capacity to implement the programme in line with EIB environmental and social standards and requirements.

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 and this would require the promoter to apply those rules.