$4.5bn in debt financings: EIB’s dominance in Europe’s solar and wind sectors, YTD 2023

The European Investment Bank (EIB) has emerged as the top lender in Europe’s solar and wind markets, accounting for over 15% of all loans provided in these spaces. Investments were primarily targeted towards Western Europe, with Spain, Germany, and Italy alone accounting for ~50% of EIB’s loans, or ~$2.7bn. While Europe’s financing environment was strained by the recent hikes in interest rates, the InvestEU-EIB agreement under the RePowerEU signed in Mar’22 has brought relief to major project developers on the continent. The deal provides a budgetary guarantee of ~$21bn, granting additional power to the EIB and other European financial institutions to extend loans. The agreement’s objective is to mobilize at least $406bn in additional public and private financing by 2027.

The growing engagement of the EIB in Europe’s debt market has been underscored by its recent $1.5bn financing for the Baltica 2 and 3 offshore wind farm in Poland. With a combined capacity of 2.5 GW, this project is a collaborative effort between the PGE Group and Orsted. The commercial operations of these projects are set to begin between 2027 and 2030. Once operational, the projects will sell power under Poland’s contracts for difference (CfD) program, with pricing capped at the maximum allowable level of $79.3 per MWh.