In brief
The European Investment Bank (EIB) has launched a €5 billion initiative to support Europe’s wind-energy equipment manufacturers, including a €500 million counter-guarantee for Deutsche Bank AG. This partnership aims to provide up to €1 billion in banking guarantees, facilitating private investments up to €8 billion for new wind farm projects.
The initiative is crucial for accelerating the EU’s green energy transition, targeting a 45% renewable-energy share by 2030. It also aims to address supply chain challenges and ensure the growth and competitiveness of the European wind sector. This effort aligns with the EU’s broader goals of achieving a robust clean energy transition and maintaining a strong clean tech manufacturing base.
Background
The European Investment Bank (EIB) has launched a €5 billion initiative to support Europe’s wind-energy equipment manufacturers, including a €500 million counter-guarantee for Deutsche Bank AG. This initiative aims to provide up to €1 billion in banking guarantees, facilitating significant private investments of up to €8 billion in new wind farm projects. The EIB’s counter-guarantees will share credit risks with commercial banks, making it easier for manufacturers to access advance payments and performance guarantees necessary for acquiring essential components like turbines.
Wind energy is pivotal in achieving the EU’s renewable energy goals. To reach a 45% renewable-energy share by the end of the decade, the EU needs to expand wind capacity by 117 gigawatts (GW), with the EIB’s €5 billion initiative enabling 32 GW of this growth.
Alexander von zur Muehlen, CEO of Asia Pacific, EMEA and Germany at Deutsche Bank, highlighted the significance of this partnership:
The acceleration as well as the overall magnitude of the energy transition require massive investments but also collateral and guarantee requirements. Our accord with the EIB provides tangible additional guarantee volumes for wind manufacturers to win and perform the substantial amount projects.
EIB Vice-President Nicola Beer highlighted the initiative’s role in promoting renewable energy expansion, lowering the cost of sustainable energy, and creating jobs. The program addresses challenges in the wind sector, such as uncertain demand and supply chain bottlenecks, by providing necessary financial support. The initiative aligns with the EU’s goal of achieving a 45% renewable energy share by 2030, contributing to an expected increase of 32 gigawatts (GW) in wind capacity.
A quick build-up of wind power is crucial for decarbonising the economy. Together with Deutsche Bank, we are promoting the expansion of renewable energy in Europe and in that way bringing the price of sustainable energy down. The respective project will also help to safeguard and create jobs in a sustainable and competitive European industry.
EIB Vice-President Nicola Beer
Maroš Šefčovič, Executive Vice-President for the European Green Deal, and Commissioner for Energy Kadri Simson emphasized the importance of a strong clean tech manufacturing sector in Europe. They noted that supporting wind equipment manufacturers is crucial for advancing the green transition, maintaining competitiveness, and securing green jobs. This EIB and Deutsche Bank collaboration is a significant step towards Europe’s sustainable energy future.
Commissioner for Energy, Kadri Simson, reinforced this sentiment:
Wind energy is key for Europe to achieve its ambitious renewable energy target. For that to happen, we need to keep supporting our equipment manufacturers so that Europe can advance the green transition while remaining competitive and ensuring green jobs. This timely initiative with the EIB is an important deliverable under the European Wind Power Package to unlock investments and give a boost to the wind sector.
