European Investment Bank Provides €243 Million Green Loan to ERG Group for Renewable Energy Expansion in Europe
(IN BRIEF) The European Investment Bank (EIB) has provided a €243 million green loan to ERG Group to support renewable energy projects in Italy, France, and Germany as part of ERG’s 2024-2026 Business Plan. The financing will fund three greenfield onshore wind farms in France, repowering projects for wind farms in Italy and Germany, and upgrades to seven solar plants in Italy, creating 270 MW of clean energy capacity—enough to power over 200,000 households. The projects, mostly located in EU cohesion regions, aim to enhance sustainability and support the EU’s REPowerEU goals. ERG, now entirely focused on wind and solar energy, is targeting net-zero emissions by 2040.
(PRESS RELEASE) LUXEMBOURG, 17-Dec-2024 — /EuropaWire/ — The European Investment Bank (EIB) has granted a €243 million green loan to ERG Group, a leading independent operator of wind and solar energy, to accelerate the development of renewable energy projects in Italy, France, and Germany. The financing supports ERG’s 2024-2026 Business Plan and contributes to EU renewable energy targets, aligning with commitments in national energy and climate plans.
The investment encompasses three greenfield onshore wind farms in France, the repowering of two wind farms in Italy and one in Germany, and the modernization of seven solar power plants in southern Italy. Together, these projects will provide a total installed capacity of 270 MW, generating enough clean energy to meet the annual needs of over 200,000 households. A significant majority of the projects (97%) are located in EU cohesion regions, ensuring local economic benefits for less developed or transitioning areas.
This financing exceeds the standard EIB loan coverage, supporting up to 75% of total project costs under the REPowerEU initiative, which aims to reduce reliance on fossil fuels and enhance European energy autonomy. As part of this commitment, the EIB has pledged €45 billion in additional financing for renewable energy projects by 2027, offering longer loan maturities and higher initial disbursements to attract more investment in the energy sector.
ERG’s transformation from a traditional oil operator to a renewable energy-focused business underscores its commitment to sustainability. Having exited the thermoelectric sector in 2023, 100% of ERG’s electricity generation now comes from wind and solar sources. The company has also set an ambitious goal to achieve net-zero emissions across its value chain by 2040.
EIB Vice-President Gelsomina Vigliotti emphasized the importance of the partnership: “This project highlights the EIB’s dedication to advancing sustainability and reducing greenhouse gas emissions in line with the European Green Deal and REPowerEU. Expanding renewable energy capacity is essential for achieving strategic energy autonomy and cutting fossil fuel imports.”
ERG CEO Paolo Merli welcomed the collaboration, stating: “We are pleased with this agreement, which marks the beginning of a promising partnership between ERG and the EIB. This loan provides greater financial flexibility on competitive terms, reinforcing ERG’s position as a leading renewable energy operator and supporting our growth objectives.”
This initiative showcases the combined efforts of ERG and the EIB to drive Europe’s transition to clean energy while delivering economic and environmental benefits to communities across the region.
Background information
The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances investments that contribute to EU policy objectives. EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality. The EIB Group, which also includes the European Investment Fund (EIF), signed a total of €88 billion in new financing for over 900 projects in 2023. These commitments are expected to mobilise around €320 billion in investment, supporting 400 000 companies and 5.4 million jobs. In the last five years, the EIB Group has provided more than €58 billion in financing for projects in Italy. All projects financed by the EIB Group are in line with the Paris Climate Agreement. The EIB Group does not fund investments in fossil fuels. We are on track to deliver on our commitment to support €1 trillion in climate and environmental sustainability investment in the decade to 2030 as pledged in our Climate Bank Roadmap. Over half of the EIB Group’s annual financing supports projects directly contributing to climate change mitigation, adaptation, and a healthier environment. Approximately half of the EIB’s financing within the European Union is directed towards cohesion regions, where per capita income is lower. This underscores the Bank’s commitment to fostering inclusive growth and the convergence of living standards.
ERG
ERG Group is a leading independent operator of clean energy from renewable sources, operating in nine European countries and the United States. As the foremost onshore wind operator in Italy and among the top ten in Europe, the group is also active in solar energy production (ranking among the top ten operators in Italy) and in the battery storage sector. In just over a decade, ERG has significantly transformed its business portfolio, anticipating long-term energy scenarios and successfully transitioning from an oil operator to a pure wind and solar business model.
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SOURCE: European Investment Bank
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