| Project Detail |
The project will finance the implementation and operation of 6 ground-based solar photovoltaic (PV) plants (total capacity of ca. 257 MWp) and a battery energy storage system in Burgenland.
Additionality and Impact
This operation concerns the development and operation of six utility-scale solar PV plants in Austria, as well as a directly connected battery energy storage system. They will support the 2030 targets set out in the National Energy and Climate Plan of Austria and the REPowerEU Action Plan.
The financing of this project also contributes to Banks lending priority objectives on Energy (100%), Economic and Social Cohesion (100%) as well as on Climate Action (100%).
As the project will produce electricity from low carbon sources, it will address the market failure of negative climate and environmental externalities, through the reduction of carbon emissions and air pollution (compared to fossil-fuel generation).
The projects revenues will be supported through the new market premium support scheme.
On project quality, the project is supported by adequate capabilities / governance of the promoter.
In terms of project results, the projects are expected to have a positive economic rate of return, considering the economic value of the electricity generated. Therefore, the project is expected to generate a positive broader social benefit by generating clean and renewable power at a cost (LCOE) reasonably below the cost alternatives in Austria.
The Banks long-term funding will enable the promoter to enhance the financing structure in line with the economic life of the assets to be financed. The Banks involvement provides a qualitative value added to the borrower in terms of flexibility of terms. EIBs advice ensures the technical and economic quality of the investment through project-specific loan conditions (beyond standard requirements) and annual progress reporting.
Objectives
The aim is to primarily reduce carbon and air pollution emissions, which are externalities the market fails to address. Moreover, the PV plants will foster the integration of new, variable renewable generation technologies in the market. Hence, the project will fill a market gap in developing new renewable capacity, including the financing gap for projects trying to develop new capacity with more market-exposed structures and instruments.
Sector(s)
Energy - Electricity, gas, steam and air conditioning supply
Proposed EIB finance (Approximate amount)
EUR 115 million
Total cost (Approximate amount)
EUR 154 million |
