Summary sheet
The project, an extension of 24 MW wind farm operating since late 2011, concerns the construction and operation of a 45 MW wind farm in Mazara del Vallo (in the province of Trapani, southwestern Sicily, Italy).
The aim is to progress towards the national and EU energy and climate goals, namely decarbonise electricity production in the EU and to decrease the reliance on fossil fuels. Due to its location within an area classified as EIB Cohesion Priority Region, the project also contributes to support less-developed regions.
The project increases the renewable energy generation capacity in Italy and contributes to national and EU 2030 climate objectives. The financing of this project is in line with the Bank's lending priority objectives on Renewable Energy as well as on Climate Action, Environmental Sustainability and Social and Economic Cohesion.
The project produces electricity from low carbon sources (onshore wind plants), addressing the market failure of negative climate and environmental externalities, through the reduction of carbon emissions and other air pollution (compared to fossil-fuel generation).
The project is expected to rely purely on revenues from a contract for difference (a competitive auction organized by the Italian government), in a sector characterised by incomplete markets (limited forward/hedging, lack of scarcity pricing and lack of locational pricing), it improves market efficiency and competition. The plants are located in a EIB Cohesion Priority region. Therefore, the project is expected to yield excellent quality and results due to an excellent rating of the economic rate of return, broader social benefits and fair employment creation.
The Bank will contribute a substantial portion of the total funding required for this Project and significantly contribute to its financial structuring, thereby enhancing the financial sustainability of the project finance debt.
As a principal lender, the Bank will attract additional financing partners into the structure, accelerating the prospects for achieving financial close on schedule.
This project will generate environmental benefits by supporting an onshore wind farm that helps mitigate climate change. The plant and most of the ancillary infrastructure fall under Annex II of the environmental impact assessment (EIA) Directive 2011/92/EU amended by the Directive 2014/52/EU. Overhead transmission lines for the interconnection of the scheme to the grid, if falling under the Annex I due to their technical characteristics, will be expected to be subject in all cases to an EIA process. The Project is at late stage of development. The Bank will carry out an appraisal of the capacity and capability of the promoter to implement it in line with EIB's environmental and social standards and requirements.
The promoter has been assessed by the EIB as being a private company not subject to EU rules on public procurement or concessions. However, in the unlikely event that during project appraisal the EIB were to conclude that the promoter is subject to EU public procurement legislation, then the Bank would require the promoter to apply those rules.