Release date: 14 April 2023
Promoter – Financial Intermediary
EDP RENOVAVEIS SALocation
Description
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.
Additionality and Impact
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.
Objectives
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.
Sector(s)
- Energy - Electricity, gas, steam and air conditioning supply
Proposed EIB finance (Approximate amount)
PLN 304 million (EUR 66 million)
Total cost (Approximate amount)
PLN 2341 million (EUR 512 million)
Environmental aspects
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.
Procurement
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.
Status
Signed - 13/01/2022
Disclaimer
Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).