The new financing will support the construction of a total of three solar parks – The EIB loan is guaranteed by the EU budget under the InvestEU fund
The new solar parks of 230MWp in Kozani, in the region of Western Macedonia which is covered by the Just Development Transition Program, are part of the ambitious Greek National Energy and Climate Plan and will contribute, in combination with other investments, to increasing the use of renewable energy sources, reducing dependence on fossil fuels in the electricity sector, as well as improving the security of energy supply in the long term.
The project, which is one of the largest photovoltaic projects developed and constructed in Greece, is also part of the Group’s strategic transformation plan PPCwhich places particular emphasis on the promotion of energy production from renewable sources.
“To achieve the “green” transition we need significant and sustainable investments. This agreement to finance the construction of new solar parks in Greece is an excellent example of how the InvestEU program is mobilizing financial resources to support the production of “green” energy across Europe. InvestEU supports the investments needed to make vital energy projects a reality” said Paolo Gentiloni, Commissioner of the European Commission responsible for Economic Affairs.
“We are particularly happy that this project promotes renewable and clean forms of energy for the benefit of the Greek people. At the same time, it enhances energy security and sustainability and will help the country meet its ambitious goals in relation to energy from renewable sources. Looking ahead, the EIB is monitoring developments in the electricity sector in Greece and is ready to finance sound projects in line with the EIB’s Climate Bank Roadmap, its commitment to increase levels of support for climate action and environmental sustainability to exceed 50% of its total lending activity,” said Christian Kettel Thomsen, EIB vice-president and responsible for lending in Greece.
“With full awareness and understanding of the importance of the work of PPC Renewables in Greece, we are satisfied but also filled with a great sense of responsibility the trust with which PPC Renewables is surrounded by the European Investment Bank, Eurobank and the National Bank of Greece. PPC Renewables faithfully serves the business strategy of the PPC Group which on the one hand creates conditions for corporate success and on the other hand contributes to changing the energy map of the country. PPC Renewables’ progress to date only creates optimism that this funding will achieve its important national goal but also have a tangible, measurable financial result” said Konstantinos Mavros, CEO of PPC Renewables.
The EIB provides financial support in close cooperation with local financial institutions
The EIB financing is part of a syndicated project finance structure totaling €102.4 million, which includes long-term credit lines of €95.1 million and medium-term construction VAT credit lines of €7.3 million. The EIB cooperated with Eurobank and the National Bank of Greece, which covered, equally, 70% of the long-term credit lines and 100% of the medium-term VAT financing.
Utilization of the support provided by the EIB for 59 years for energy investments throughout the country through PPC
The EIB has been financing long-term investments of the PPC Group since 1964. Over the past decade, the Bank has provided financing of over €4.3 billion for energy investments in Greece through PPC and other Greek public and private energy companies. These investments concern, among other things, the improvement of the electrical interconnections of the Greek islands, the utilization of renewable energy sources and the acceleration of energy efficiency investments.
InvestEU
The InvestEU program provides the European Union with long-term financing by leveraging private and public resources to support a sustainable economy. The program helps to deliver additional investments that are in line with EU policy priorities, such as the European Green Deal, the digital transition and support for small and medium-sized enterprises. The InvestEU program brings together all of the EU’s financing tools under one roof, simplifying the financing of investment projects in Europe and making it more efficient and flexible. The program consists of three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU fund is implemented through partner financial institutions which in turn support projects using the €26.2 billion EU budget guarantee. This guarantee increases risk-taking capacity, mobilizing at least €372 billion of additional investment.
European Investment Bank
The European Investment Bank (EIB) is the European Union’s long-term financing agency owned by the EU Member States. The Bank provides long-term credit for sound investments to help achieve EU policy objectives.
Public Power Corporation
The Public Electricity Company (PPC) is the leading electricity generation and supply company in Greece, with activities in the production, distribution and sale of electricity to consumers. PPC is listed and its shares are traded on the Main Market of the Athens Stock Exchange.
Nikos Andritsos
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