• EIB supports Deutsche Bank with €500 million counter-guarantee to boost wind energy projects.
• Initiative aims to create €1 billion in banking guarantees, unlocking up to €8 billion in private investments.
• Part of the EU Wind Power Package to accelerate Europe’s green energy transition.

The European Investment Bank (EIB) has activated a €5 billion initiative to bolster Europe’s wind-energy equipment manufacturers. This includes a €500 million counter-guarantee to Deutsche Bank AG, facilitating up to €1 billion in banking guarantees for new wind farm investments in the EU.

Supporting Renewable Growth

EIB Vice-President Nicola Beer emphasized the importance of this project: “A quick build-up of wind power is crucial for decarbonising the economy. Together with Deutsche Bank, we are promoting the expansion of renewable energy in Europe and in that way bringing the price of sustainable energy down. The respective project will also help to safeguard and create jobs in a sustainable and competitive European industry.”

Mechanics of the Initiative

The EIB’s counter-guarantees will share credit risks with commercial banks, easing access to advance payment and performance guarantee lines for wind-energy manufacturers. This will allow manufacturers to receive advance payments and provide performance guarantees for new projects, enabling them to pay suppliers upfront for essential components like turbines and grid infrastructure.

Unlocking Private Investment

This initial EIB-Deutsche Bank collaboration is expected to initiate private investments up to €8 billion. Alexander von zur Muehlen, CEO of Asia Pacific, EMEA and Germany at Deutsche Bank, highlighted the significance of this partnership: “The acceleration as well as the overall magnitude of the energy transition require massive investments but also collateral and guarantee requirements. Our accord with the EIB provides tangible additional guarantee volumes for wind manufacturers to win and perform the substantial amount projects.“

Addressing Supply Chain Challenges

Despite the EU’s success in the wind-power sector, challenges like uncertain demand, slow project permitting, and supply-chain bottlenecks persist. The EIB-Deutsche Bank contract showcases risk-sharing instruments designed to tackle these issues, ensuring the financing of projects crucial for the green transition.

EU’s Renewable Energy Targets

Wind energy is pivotal in achieving the EU’s renewable energy goals. To reach a 45% renewable-energy share by the end of the decade, the EU needs to expand wind capacity by 117 gigawatts (GW), with the EIB’s €5 billion initiative enabling 32 GW of this growth.

EU Leadership in Clean Energy

Maroš Šefčovič, Executive Vice-President for European Green Deal, stated: “There can be no successful clean energy transition without a strong clean tech manufacturing sector in the EU. This initiative will help the European wind sector to have access to the necessary financial support it needs to keep flourishing at home and on the global stage.”

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Commissioner for Energy, Kadri Simson, reinforced this sentiment: “Wind energy is key for Europe to achieve its ambitious renewable energy target. For that to happen, we need to keep supporting our equipment manufacturers so that Europe can advance the green transition while remaining competitive and ensuring green jobs. This timely initiative with the EIB is an important deliverable under the European Wind Power Package to unlock investments and give a boost to the wind sector.”

This EIB and Deutsche Bank initiative marks a significant step in driving Europe’s green energy transition, fostering innovation, and sustaining competitive edge in the global renewable energy market.