S.3. Energy Infrastructure

D.3.5. The European Fund for Strategic Investment

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EIB funds German, Spanish and Lithuanian energy efficiency and R&D projects

Tuesday, October 15, 2019

The European Investment Bank (EIB) approved three investment agreements under the European Fund for Strategic Investments (EFSI) for projects in Germany, Spain and Lithuania respectively. The investments are expected to contribute to develop more efficient, less energy-intensive production processes and to cut polluting emissions.

The funding agreement in Germany allocates €300 million to real estate company Vivawest to build approximately 2.300 energy-efficient homes across North Rhine-Westphalia. Almost a fifth of these homes will be dedicated to social and affordable housing. Vivawest will also use the funds to build student housing and nurseries.

The second agreement lends Spanish energy solutions company, Ingeteam, €70 million to invest in research, development and innovation (RDI) for new solutions to meet the needs of the energy transition. The RDI programme will focus on RES generation, energy storage and electric mobility. The EIB financing will enable Ingeteam to become more competitive in RES applications and to internationalise its business, offering state-of-the-art technologies for more sustainable energy generation, transmission, distribution and use.

In Lithuania, the EIB is lending €12,5 million to VIPA – the Lithuanian Public Investment Development Agency – to promote and finance energy efficiency modernisation projects. The funds are a first instalment in an overall €25 million approved funding. The money will be used to support the creation of Lithuania’s first national energy efficiency investment platform to finance a wide range of energy efficiency modernisation projects across the country. The EIB investment will primarily be used to install solar panels on private homes, to renovate multi-apartment buildings and for energy efficiency investments in industrial companies, mainly efficient lighting. This energy efficiency investment platform aligns with the Lithuanian government’s policy priorities in terms of energy efficiency and sustainability.

EFSI is one of the pillars of the Investment Plan for Europe, which focuses on boosting investment to generate jobs and growth by making smarter use of new and existing financial resources, removing obstacles to investment, and providing visibility and technical assistance to investment projects. To that end, the EFSI increases the EIB Group’s capacity to finance investment projects in line with the Juncker Plan criteria, which Plan provides first-loss guarantees, enabling the EIB to finance more projects, often carrying greater risks. So far, the Juncker Plan has mobilised a total of €433,2 billion of additional investment, including €46,7 billion in Spain and €34 billion in Germany. It currently supports 972.000 SMEs across Europe.