Summary sheet
The project concerns the construction and operation of two wind farms in northern Portugal, with a total installed capacity of 274 MW.
The wind farms will use 7.2 MW wind turbines and will be connected to the existing substations of the Tâmega hydropower plant (also financed by the EIB) through two dedicated 400 kV transmission lines of approximately 8 km and 3 km, respectively.
The Project concerns the development and operation of a portfolio of wind farms in Portugal. It will support the 2030 targets set out in the National Energy and Climate Plan and the REPowerEU action plan.
The financing of this Project also contributes to the Bank's lending priority objectives on Energy (Renewable Energy), Environmental Sustainability and Climate Action (transversal) as well as Social and Economic Cohesion.
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).
It is expected that the Project will rely on revenues from (i) commercial power purchase agreements ("cPPAs") and (ii) the wholesale market, therefore it is expected to improve market efficiency and competition.
On Project quality, the level of the Promoter's governance and risk management capability after mitigation measures is deemed very good. The Project is expected to have an excellent economic return, considering the economic value of the electricity generated.
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.
Windfarms falls under Annex II of Directive 2011/92/EU (as amended by Directive 2014/52/EU) according to which the Member States shall determine, based on defined criteria, whether the project shall be subject to a mandatory EIA, including public consultation. Due to their technical characteristics (length), the 400kV overhead transmission lines needed for the connection of the projects to the grid, also fall under Annex II of the EIA Directive. The Project consists of two wind farms, north and south of the TAMEGA hydro power plant respectively. The Southern wind farm entails 7 wind turbines in the border and marginally within the Natura 2000 site Alvão Marão (PTCON0003) and IBA Serra do Alvão e Marão. A single EIA process covering both sites/WFs and their ancillary infrastructure has been completed, and the relevant environmental approval was granted. The approval includes several sets of measures to be implemented by the promoter and comprehensive biodiversity monitoring requirements. The requirements of the Environmental Impact Assessment Directive 2011/92/EU as amended by Directive 2014/52/EU, Birds Directive 2009/147/EC and Habitats Directive 92/43/EEC will be verified during appraisal. The project is expected to contribute to climate action and environmental sustainability (CA&ES) objectives, in particular to climate mitigation, pollution prevention and control.
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 duly inform the Commission Services and would require the promoter to apply those rules.