EIB and Intesa Sanpaolo Unveil €8 Billion Wind Energy Investment Initiative to Boost European Renewable Energy Sector

EIB and Intesa Sanpaolo Unveil €8 Billion Wind Energy Investment Initiative to Boost European Renewable Energy Sector

(IN BRIEF) The EIB and Intesa Sanpaolo have partnered to drive up to €8 billion in investment for Europe’s wind energy sector, leveraging a €500 million EIB counter-guarantee to enable Intesa Sanpaolo to create €1 billion worth of bank guarantees. This collaboration, part of the EIB’s €5 billion wind power package, is designed to accelerate the development of wind farms, supply chains, and grid interconnections across the EU. Backed by InvestEU, the initiative addresses key challenges in the wind industry and contributes to Europe’s 2030 renewable energy targets.

(PRESS RELEASE) LUXEMBOURG, 11-Oct-2024 — /EuropaWire/ — Intesa Sanpaolo and the European Investment Bank (EIB) have launched a groundbreaking initiative aimed at driving up to €8 billion of investment in Europe’s wind energy sector. Supported by the EU’s InvestEU programme, this agreement is part of the EIB’s wider €5 billion wind power investment package, which was announced during COP28 and initiated in July. This collaboration between EIB and Intesa Sanpaolo follows a similar project with Deutsche Bank and aims to address key challenges in the European wind industry, including supply chain issues and high project costs, while boosting the EU’s renewable energy targets.

Through this arrangement, the EIB will provide a €500 million counter-guarantee to Intesa Sanpaolo, which in turn will enable the creation of a portfolio of bank guarantees worth up to €1 billion. These guarantees are expected to mobilize additional investments and significantly support the development of new wind farms across Europe, including the essential power grid interconnections and supply chain elements required for the projects. This financial structure is expected to unlock up to €8 billion in overall investment, supporting the EU’s goal of producing 32 GW of wind power as part of the 117 GW needed to meet its 2030 renewable energy targets.

EIB Vice-President Gelsomina Vigliotti highlighted the importance of wind energy in Europe’s journey towards energy independence, noting that the industry faces numerous challenges such as high costs and international competition. She emphasized that this agreement exemplifies how the EIB’s risk-sharing financial tools can help overcome obstacles and drive forward essential green transition projects.

Mauro Micillo, Chief of Intesa Sanpaolo’s IMI Corporate & Investment Banking Division, expressed that the energy transition necessitates strong public-private collaboration, underscoring the pivotal role of renewable energy in both European and national sustainability strategies. He emphasized that Intesa Sanpaolo, through its longstanding partnership with the EIB, is committed to fostering investments in infrastructure projects, including the development of wind energy, that contribute to sustainability goals.

European Commissioner for the Economy Paolo Gentiloni praised the agreement, noting that it exemplifies how the InvestEU programme is channelling much-needed investments into Europe’s wind manufacturing sector amid global uncertainties. He emphasized that the agreement not only advances climate goals but also promotes economic growth and job creation.

Commissioner for Energy Kadri Simson also voiced support for the initiative, stating that the European wind industry must remain competitive to meet clean energy targets. She noted that this partnership will contribute to the European Wind Power Package, unlocking further investment in the sector and accelerating the green transition.

Background information

The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It provides long-term financing for sound investments that contribute to EU policy. The Bank finances projects in four priority areas: infrastructure, innovation, climate and environment, and small and medium-sized enterprises (SMEs). Between 2019 and 2023, the EIB Group provided €58 billion in financing for projects in Italy.

The InvestEU programme provides the European Union with long-term funding by leveraging substantial private and public funds in support of a sustainable recovery. It also helps to crowd in private investment for the European Union’s strategic priorities such as the European Green Deal and the digital transition. InvestEU brings all EU financial instruments previously available for supporting investments within the European Union together under one roof, making funding for investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub, and the InvestEU Portal. The InvestEU Fund is deployed through implementing partners that will invest in projects using the EU budget guarantee of €26.2 billion. The entire budget guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilise at least €372 billion in additional investment.

The European Commission presented the European Wind Power Package in October 2023 to tackle the unique set of challenges faced by the wind sector, including insufficient and uncertain demand, slow and complex permitting, lack of access to raw materials and high inflation and commodity prices, among others. In a specific Action Plan, the Commission set out a set of initiatives concerning permitting, auction design, skills and access to finance to ensure that the clean energy transition goes hand-in-hand with industrial competitiveness and that wind power continues to be a European success story. As part of this plan, in July 2024, the European Investment Bank (EIB) activated a €5 billion initiative to support manufacturers of wind-energy equipment in Europe.

Intesa Sanpaolo, with over €422 billion in loans and €1.35 trillion in customer financial assets at the end of June 2024, is the largest banking group in Italy, with a significant international presence. It is a European leader in wealth management, with a strong focus on digital and fintech. In the environmental, social and governance domain, it plans to make €115 billion in impact contributions to the community and green transition by 2025. Its programme to support people in need totals €1.5 billion (2023-2027). Intesa Sanpaolo’s Gallerie d’Italia museum network is an exhibition venue for its artistic heritage collection and cultural projects of recognised value. Intesa Sanpaolo’s IMI Corporate and Investment Banking Division will use the EIB funds to provide bank guarantees on advances received and plant performance to wind energy producers. The EIB has signed agreements totalling almost €5 billion with Intesa Sanpaolo over the last five years.

Media Contact:

Lorenzo Squintani
l.squintani@eib.org
+352437982528

Press Office

press@eib.org
+352 43791

SOURCE: European Investment Bank

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