EDPR POLAND GREEN ENERGY LOAN

The project concerns the construction and operation of 11 small to medium-scale wind farms (for a total nominal capacity of 380 MW) to be located throughout the west and the north of Poland.

The development of onshore wind energy supports the EU and national targets for renewable energy generation and contributes to the EIB's renewable energy and energy efficiency objectives. The project is located in a cohesion priority region. The financing of this project contributes to the EIB's lending priority objectives on renewable energy, as well as on climate action and social cohesion.

The Bank's investment in the project will support the deployment of new renewable energy capacity in Poland, crucial for the achievement of the 2030 decarbonisation targets set out in the National Energy and Climate Plan. As the individual wind farms are located in less developed regions, the overall investment will also contribute to the cohesion objective. The financing of this project also contributes to Bank's renewable energy and climate action (transversal) lending objectives.
In terms of addressing market failures, these onshore wind projects primarily reduce carbon and air pollution externalities. Moreover, the projects provide new generation capacity in a sector characterised by incomplete markets, relying on public Contracts for Difference (CfD) with exposure to residual market risks. It thereby contributes to the policy objective of supporting market integration of renewable energy projects.
The operation is expected to yield good quality and results, thanks to avoided GHG emissions, fair employment creation and governance arrangements.
The Bank's contribution will be most visible on the financial contribution side by accelerating the fundraising process and crowding in other financiers. The Bank provides expertise in structuring and lending to renewable energy projects, applying standard and well tested project finance principles. This will improve the structuring of the operation through close co-operation with the promoter and the commercial lenders.

Windfarms fall under Annex II of the Environmental Impact Assessment (EIA) Directive 2011/92/EU (as amended by Directive 2014/52/EU) according to which it is up to the competent authorities in the EU Member States to determine that the project is subject to an EIA. According to the national legislation, windfarms exceeding certain criteria are subject to a mandatory EIA. This was the case for all windfarms. The environmental studies for the EIA process were undertaken and the competent authorities have granted approval containing requirements to mitigate environmental impacts accordingly. Residual impacts were classified of small magnitude and low significance.

The project will be operating without exclusive or special rights within the meaning of the EU Utilities Directive 2004/17/EC c.q. 2014/25/EU hence private sector procurement procedures are applied. Equipment and works were purchased through multi contracts such as one for supply and installation of turbines, others for infrastructure works (Balance of Plant), electrical works, etc.