Wind power: EU bank supports billion-euro program
Europe's wind power sector is to be significantly expanded. The EU development bank is now providing a three-digit million euro guarantee for Deutsche Bank.
![wind turbine](https://heise.cloudimg.io/width/610/q85.png-lossy-85.webp-lossy-85.foil1/_www-heise-de_/imgs/18/4/6/4/3/6/8/6/wind-bd79b6cca63ebcf3.jpeg)
Wind turbine in the Hemelinger Marsch in Bremen.
(Image: heise online / anw)
The European Investment Bank (EIB) is supporting investments worth billions in the expansion of wind power in Europe. A first counter-guarantee of 500 million euros will be issued to Deutsche Bank, as detailed in a press release from the EIB. This will enable Deutsche Bank to set up a portfolio of bank guarantees of up to one billion euros for new investments in wind farms in the EU, it said.
The counter-guarantees of the EU development bank serve to share the credit risks with the commercial banks. This would allow manufacturers to receive advance payments and provide performance guarantees when they embark on new wind power projects. Manufacturers can thus pay their suppliers in advance, for example for components such as turbines, grid connection infrastructure, cables and voltage transformers.
First project in the support plan
The transaction is the first project under the EIB's wind power support plan, which was approved in December. The aim is for Deutsche Bank to provide bank guarantees for wind energy manufacturers. In total, the EIB wants to provide commercial banks with 5 billion euros so that they can issue bank guarantees to companies in the European wind industry. "Even though the wind energy sector is a European success story, there are still bottlenecks in the supply chain due to uncertain demand, slow project approvals, high inflation and high commodity prices as well as increased international competition", the EIB explains the program.
It is part of the wind power package presented by the European Commission last year. The EIB is the EU institution for long-term financing and is owned by the member states. The bank is intended to finance investments that contribute to achieving the EU's political objectives. Most recently, it has been particularly active as a lender for climate protection and support for Ukraine.
(anw)