NORDLB RENEWABLE ENERGY 2

The operation consists in an intermediated Framework Loan to finance Renewable Energy Projects in Germany and regional EU countries.

The aim is to support the development of renewable energy projects in Germany as well as the wider EU.

The operation consists of a funding line to a financial intermediary, Norddeutsche Landesbank (NordLB), to support the development of Renewable Energy (RE) projects mainly in Germany and other EU countries. NordLB will on-lend the EIB funds at attractive and long-term financing conditions to eligible projects, thereby facilitating their implementation.

By using an intermediated approach, the Bank will be able to support smaller projects that may otherwise not benefit from direct funding. Moreover, the operation supports the financial intermediary's sustainability strategy, by facilitating the lending in the sector and by diversifying its financing sources.

The RE projects are expected, in part, to benefit from market-based instruments and thereby contribute to the policy objective of supporting the market integration of RE projects. The production of electricity from low carbon sources addresses the market failure of negative climate and environmental externalities by reducing carbon emissions and other air pollution compared to fossil-fuel generation. The battery storage related investments will contribute to security of supply of the energy system.

The operation is expected to achieve an excellent economic rate of return considering the economic value of the electricity generated and contribution to CO2 emission reductions. The operation is also expected to achieve an excellent Broader Social Benefit. The financial intermediary has sufficient experience in financing climate related RE projects and has a good track-record in the renewable energy sector.

The financing of this project is in line with the Bank's lending priority objectives on Energy (Renewable Energy and Energy Efficiency) as well as the transversal objectives on Climate Action (mitigation), Environmental Sustainability (Pollution Prevention Control) and Social and Economic Cohesion, also contributing to the EU decarbonisation goals and REPower EU Action Plan.

The operation is eligible under Article 309 (c) common interest in energy (renewable energy) and environment (tackling climate change). In addition, the EIB has provided advice and introduction to the EIB's Green CAES eligibility criteria.

The operation intends to generate environmental benefits by supporting sustainable energy infrastructure that helps to mitigate climate change. The EIB will assess the capacity and procedures of the financial intermediary to ensure compliance with national and European environmental and biodiversity regulations.

Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.