EUR 165 Million Deal to Boost Renewable Energy in Europe

In a move aimed at stepping up the use of renewable energy in Europe, NORD/LB Norddeutsche Landesbank and the European Investment Bank (EIB) have agreed on a EUR 165 million financing partnership. The deal, signed at the Hannover Messe, seeks to finance small and medium-sized renewable energy schemes, with major emphasis on photovoltaics, onshore wind, and battery storage solutions.

EIB Vice President Nicola Beer and NORD/LB CEO Jörg Frischholz inked the finance agreement, hosted by Bernhard Kluttig, State Secretary at Germany's Federal Ministry for Economic Affairs and Climate Action. The collaboration attests to the determination of Europe to become self-sufficient on clean energy as it promotes economic development through sound investments.

Addressing the gathering, Kluttig emphasized the twofold advantages of reinvesting in renewable energy, saying, "Accelerating investment in renewable energy is not only an essential step in addressing climate change, it's also a fantastic opportunity for German and European companies.". This cooperation between NORD/LB and the EIB, backing important projects such as photovoltaics, onshore wind, and battery storage, will enhance our energy independence and support innovation and growth in the clean tech industry. Such initiatives are crucial to achieving our climate objectives while at the same time promoting a competitive and sustainable economy."

According to the agreement terms, the EIB will make EUR 125 million, with the balance of the financing being supplied by NORD/LB. The money will go towards photovoltaic systems, onshore wind farms, and battery storage facilities in EU nations, furthering Europe's push to increase its renewable energy capacity.

Jörg Frischholz, NORD/LB's CEO, added that the project has strategic relevance for the institution, saying: "As one of the oldest partners of the EIB, NORD/LB is proud to deepen the cooperation to favor the green transformation and allow our clients to finance a variety of new renewable power plants. Our cooperation agreement, signed today, reflects the excellence of our mutual engagement and will favor clean energy investment and development."

The alliance is in line with Europe's overall energy transition objectives, especially as the continent aims to decrease its dependence on fossil fuels and improve energy security. As energy prices and supply chain risks become more of a concern, investments in renewables are viewed as a long-term solution to stabilize the market and bring economic benefits.

EIB Vice President Nicola Beer highlighted the wider effect of the financing, saying that "Supporting investment to tap renewable energy throughout the EU is key to making the energy transition, enhancing energy security, and, as we see here at the Hannover Messe, leveraging Europe's clean tech capabilities. Together, the EIB and NORD/LB are making sure that renewable energy can be developed on a large scale throughout Europe so that energy prices can decrease."

This new agreement follows on from successful past collaborations between NORD/LB and the EIB. Over the past year, their combined efforts have financed significant wind and solar projects, especially in Germany and France. The renewed partnership between the two financial institutions is a demonstration of a long-term commitment to speeding up the green transition and making clean and affordable energy solutions available to businesses and communities.

As Europe presses forward with its climate agenda, projects such as this financing collaboration are critical to the growth of renewable energy infrastructure. By concentrating on small and medium-sized projects, the collaboration is able to bring the benefits of clean energy investment to a broader spectrum of businesses and communities and further cement Europe's position at the forefront of the world's renewable energy market.