The European Investment Bank (EIB) will provide €65 million and BPI an additional €47 million to EDP Renováveis (EDPR) to finance the construction and operation of two onshore wind farms with a total nominal capacity of 125 MW in the districts of Coimbra and Guarda, Portugal.
The project is co-funded by Banco BPI and the EIB financing is supported by the European Fund for Strategic Investments (EFSI), the main pillar of the Investment Plan for Europe.
With the support of the EIB, EDPR will design, construct and operate two medium-sized wind farms: Tocha II, with a capacity of 33 MW, and Sincelo, with a capacity of 92 MW. The Tocha II wind farm will be located in the west, near the Atlantic coast, in the municipality of Cantanhede, district of Coimbra, while the Sincelo wind farm will be located along the municipalities of Pinhel and Guarda, district of Guarda, in the north-east of Portugal. The project will also have a direct positive impact on employment, as approximately 560 temporary positions are expected to be created during its construction phase.
Once operational, the two wind farms will contribute to Portugal’s achievement of its Energy and Climate Plan targets, which provide for 47 percent of renewable energy sources in gross final energy consumption by2030, as well as the binding target of the European Commission to have at least 32 percent of final energy consumption coming from renewable sources by 2030.
With this co-funded project, the EIB and the BPI strengthen their commitment to sustainable financing and support initiatives that respect the environment and contribute to the prevention and mitigation of climate change and the transition to a low-carbon economy.
The EU Bank is supporting this operation through a Green Energy Loan, which is fully in line with the requirements set out in its Climate Awareness Bonds program. As a result, this operation is likely to be allocated to its portfolio of lending operations financed through the issuance of such bonds.
“This flagship project strengthens our partnership with EDP Renováveis and reinforces the Bank’s commitment to promoting climate action, economic development and cohesion. Supporting Portugal’s decarbonisation targets, while boosting growth and job creation, is one of the EIB’s main priorities. If we want the post-COVID economic recovery to be green and inclusive, it is key to foster the supply of renewable energy and its broad based utilisation by productive sector and by our citizens.”EIB vice-president Ricardo Mourinho Félix.
“This agreement between the EIB and EDP Renováveis, supported by the Investment Plan for Europe, is a winner for both the climate and the economy. The financing, backed by the European Fund for Strategic Investments will fund new onshore windfarms in the west and north of Portugal, helping the country to reach its ambitious energy and climate plans targets and creating new jobs in the process.”Commissioner for the Economy, Paolo Gentiloni.
“At EDP Renováveis we are pleased to count with the support of the European Investment Bank (EIB) and Banco BPI to the development of new projects that will contribute to Portugal’s achievement of its Energy and Climate Plan targets, the European Commission’s targets and also to the creation of more than half a thousand jobs. This project reinforces our commitment with the Portuguese renewables sector and with the improvement of the quality of life of current and future generations. It also enhances our key role as a world leader in the renewable energy sector.”EDP Renováveis interim CEO Rui Teixeira said:
“BPI has been a partner of EDP Group for many years and this agreement with EDP Renováveis reinforces this collaboration once again. The adoption of environmental, social and governance criteria in investment operations is part of a trend that will be increasingly important in the near future. The participation in this operation together with the EIB makes us proud and places BPI as a benchmark institution in the sustainable financing of Portuguese companies”.Banco BPI Board Member Pedro Barreto.