Summary sheet
The project consists of the construction and operation of onshore wind farms in Austria.
The operation contributes to the national renewable energy targets as set out in the final National Climate and Energy Plan, published in December 2019. Austria aims to provide 100% of electricity consumption from renewable energy sources by 2030. The financing of this project also contributes to Bank's lending priority objectives on energy (Renewable Energy) as well as on climate action (transversal).
This operation is concerned with the development and operation of wind projects that will be crucial for the achievement of the targets set out in the National Energy and Climate Plan (NECP) of Austria.
The financing of these projects will also contribute to Bank's lending priority objectives on renewable energy as well as on climate action and environmental sustainability. Individual projects may be located in the Burgenland, a transition region.
As the projects will produce electricity from low carbon sources (onshore wind), 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).
To implement the Renewable Energy Directive II and support the NECP, the Austrian Government is expected to pass the new Austrian Renewable Expansion Act ('Erneuerbaren Ausbau Gesetz'), in 2021. This will include a transition from the current feed-in tariff scheme to a premium allocated through auctions. However, auctions are widely expected not to commence until 2024.
Therefore, we expect projects to be support through the current FiT or new premium scheme. They are expected to yield good quality and results, thanks to avoided carbon emissions and employment creation.
Overall, the financing through the EIB will strengthen the promoters' capabilities to increase its capacity of renewable energy, complement other financing sources and improve their credit risk profile by extending the debt maturity profile. Therefore, the projects re expected to provide a positive signalling effect in the market and crowd in complementary financing sources.
The environmental and social risks associated with such exposed locations can be higher than for other onshore wind farms.
The EC has exempted all contracts, which are being awarded to implement electricity generation projects in Austria from the scope of the Utilities Directive 2004/17/EC (EC decision 2008/585/EG). No public procurement is therefore required.