The world's largest international financier for renewable energy, the European Investment Bank, will today confirm its intention to back renewable energy investment across Europe in cooperation with Dublin-based NTR plc.
The EIB's EUR 84 million backing for the NTR Renewable Energy Income Fund II is to be announced at an EIB investment conference at the Central Bank of Ireland attended by leading Irish ministers, EIB President Werner Hoyer and more than 200 business, finance and government representatives.
"We want to make Ireland a leader in responding to climate change. Being a leader means acting now, stretching ourselves and seizing the enterprise opportunities in a low carbon economy. Being a follower means the final costs of adjustment are much higher and opportunities much lower or completely lost. Harnessing clean energy is essential to this ambition and stimulating private sector funding of renewable energy projects can help drive down consumer costs and increase the pace and scale of transition to low carbon technologies." said Richard Bruton TD, Ireland's Minister for Communications, Climate Action and the Environment.
"I welcome the EIB's EUR 84 million support for Irish fund NTR's ambitious goal of backing renewable energy projects across Ireland and elsewhere in Europe in the years ahead. This new commitment reflects the European Investment Bank's strengthened engagement to support transformational investment in cooperation with Irish partners," added Minister Bruton.
"As world climate leaders meeting in Poland to discuss the implementation of the Paris Agreement, the new EUR 84 million support for renewable energy projects across Europe by NTR demonstrates the EU Bank's firm commitment to accelerating investment crucial for tackling climate change. Scaling up investment by harnessing the support of institutional investment is crucial for global ambitions to accelerate climate action," said Andrew McDowell, Vice President of the European Investment Bank.
"NTR's new cooperation with the European Investment Bank reflects our shared goal of ensuring long-term investment in renewable energy projects essential for achieving Europe's climate commitments. We welcome the EUR 84 million backing from the EIB and look forward to working together in the years ahead," said Dr Rosheen McGuckian, Chief Executive Officer of NTR plc.
Crucial long-term financing for renewables
The new fund will provide long-term equity financing of over 25 years to accelerate the development of small and medium-sized renewable energy projects. Expansion of these projects is currently hindered by the limited availability of long-term financing.
Following detailed analysis of European renewable energy investment trends, the NTR Renewable Energy Income Fund II expects to support 15-20 different renewable energy projects, representing approximately 700 MW of clean energy power generation.
The EUR 84 million EIB support represents their first ever backing for investment through an Irish Collective Asset-management Vehicle or ICAV. This is a new fund structure recently developed in Ireland intended more effective and efficient and which provides a model for future long-term European focused infrastructure investment funds.
Last year the European Investment Bank provided EUR 4.4 billion for investment in renewable energy projects worldwide and in May confirmed EUR 79.5 million backing for the Oweninny windfarm in Country Mayo.