EIB And Societe Generale Launch €8B Wind Energy Initiative

A new clean energy financing initiative by the European Investment Bank (EIB) and Paris-based financial services group Societe Generale, is expected to unlock €8 billion in investments to boost the European wind energy sector. This ambitious collaboration targets critical challenges within the wind energy supply chain, while accelerating the transition to renewable energy across the European Union.

A significant element of the package is a €500 million counter-guarantee the EIB provides. This counter-guarantee will allow Societe Generale to create a €1 billion portfolio of bank guarantees that should finance new projects of wind farms across the EU. Investments in the related supply chain activities and power grid connections will be covered as well. With the leverage effect of these guarantees, the project is expected to attract significant additional funding from other investors, amplifying its impact on the wind energy industry and expediting the development of new projects.

EIB Vice-President Ambroise Fayolle highlighted the pivotal role of wind energy in achieving Europe’s energy independence. He said the sector currently faces challenges in high production costs, volatile demand, long permitting times, supply chain disruptions, and fierce global competition. Fayolle added, "This agreement underlines the efficiency of the EIB's risk-sharing instruments in tackling these challenges, which makes it possible to finance key projects that spur the green transition, help the decarbonization of the European economy, and enhance industrial competitiveness.

The initiative is part of the EU program InvestEU, which seeks to mobilize over €372 billion in investments by 2027. InvestEU supports innovation, jobs, and sustainable development throughout Europe. By joining forces with Societe Generale, the group collaborates with the public and private sectors in driving forward the ambition of clean energy in Europe.

Co-head of Global Banking & Investor Solutions at Societe Generale Anne-Christine Champion said challenges in the supply chain of wind energy need to be addressed to be able to keep up with European progress in developing renewable energy sources. "We are witnessing the level and pace of investment required for our economies' transformation. Despite the success the wind-power industry has been having in Europe thus far, work remains to be done in the supply chain.". This investment in the future with the development of innovative solutions and partnerships, this agreement with the EIB, demonstrates how public and private stakeholders can collaborate to support a positive and sustainable energy transition," Societe Generale's Managing Director, Group's Renewable Energies Division said.

The partnership is part of the EIB's broader €5 billion wind power investment package, a strategic initiative unveiled at COP28 in 2023. The package is aimed at supporting the production of 32 GW of wind energy capacity, which will significantly contribute to the EU's target of producing at least 45% of its energy from renewable sources by 2030. The European Union estimates that 117 GW of wind energy capacity will be required to achieve this goal, and the EIB's investment is a cornerstone of the region's renewable energy strategy.

The new initiative represents a critical step in addressing the growing demand for clean energy in Europe, enhancing industrial competitiveness, and achieving the EU’s climate targets. By mobilizing both public and private capital, the EIB and Societe Generale are providing a blueprint for the collaborative effort required to meet the unprecedented challenges of the green transition.

This agreement also highlights the potential of risk-sharing instruments to catalyze investment and stimulate innovation in renewable energy. Through InvestEU and other partners, the initiative aims to make the wind energy sector resilient and scalable, address bottlenecks in supply chains, and speed up the deployment of wind power projects.

As Europe takes a lead in the global shift toward renewable energy, the partnership between the EIB and Societe Generale signals a renewed commitment to sustainability and climate action. In addressing the critical challenges within the wind energy sector, this partnership is well-positioned to play a transformative role in shaping the future of clean energy in Europe.