Release date: 31 July 2023
Promoter – Financial Intermediary
EVN NATURKRAFT ERZEUGUNGSGESELLSCHAFT MBHLocation
Description
The project will finance the promoter's investments in onshore wind farms in Austria. Completion of the selected projects is planned for the beginning of 2025.
Additionality and Impact
This operation concerns the development and operation of a portfolio of onshore wind farms in Austria. They will support the 2030 targets set out in the National Energy and Climate Plan of Austria and the REPowerEU action plan.
The financing of this project also contributes to Bank's lending priority objectives on Renewable Energy, Climate Action as well as on Economic and Social Cohesion.
As the projects will produce electricity from low carbon sources, they 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).
The project will rely on revenues from (i) market premiums obtained through a competitive auction, and (ii) the wholesale market, thereby the project improves market efficiency and competition.
In terms of project results, the projects are expected to have a positive economic return, considering the economic value of the electricity generated. Therefore, the projects will generate a positive social benefit by generating clean and renewable power at a cost (LCOE) reasonably below the cost of fossil-fuel based alternatives in Austria. On project quality, the projects are supported by adequate capabilities / governance of the promoter.
Overall, the financing through the EIB will strengthen the promoter's capability to increase its capacity of renewable energy, complement other financing sources. EIB's customised terms are highly appreciated by the company. Therefore, the loan is expected to provide a positive signalling effect in the market and crowd in complementary financing sources.
Objectives
The aim is to primarily reduce carbon and air pollution emissions. Moreover, the onshore wind farms will foster the integration of new, variable renewable generation technologies in the market. Ultimately, the purpose is to support the development of new renewable capacities with more market-exposed structures.
Sector(s)
- Energy - Electricity, gas, steam and air conditioning supply
Proposed EIB finance (Approximate amount)
EUR 110 million
Total cost (Approximate amount)
EUR 147 million
Environmental aspects
Wind farms fall under Annex II of the Environmental Impact Assessment (EIA) Directive 2014/52/EU amending 2011/92/EU, requiring the competent authorities to determine whether an EIA is required. Overhead transmission lines for the interconnection of the schemes to the grid falling under the Annex I due to their technical characteristics will be expected to be subject in all cases to an EIA process. The EIB will assess compliance with applicable EU Directives during appraisal, in particular concerning cumulative impacts and potential impacts on nature conservation sites.
Procurement
The European Commission has exempted all contracts which are being awarded to implement electricity generation projects in Austria from the scope of the Utilities Directive. No public procurement is therefore required.
Status
Signed - 2/06/2023
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).