EIB’s EUR 5 Billion Wind Initiative Begins with Deutsche Bank Partnership

August 1, 2024, by Adnan Memija

The European Investment Bank (EIB) has initiated a EUR 5 billion programme to support the wind energy sector, starting with a EUR 500 million counter-guarantee to Deutsche Bank.

The transaction is said to enable Deutsche Bank to set up a portfolio of up to EUR 1 billion of banking guarantees for new investment in wind farms in the EU. It is also expected to initiate private investments of up to EUR 8 billion.

In this initial project, Deutsche Bank will use the EIB’s backing to provide banking guarantees to wind energy manufacturers which will enable them to receive advance payments as well as to provide performance guarantees when taking on new wind projects.

The guarantee scheme also enables manufacturers to pay their suppliers in advance for the supply of wind farms and the related wind value chain components, which include turbines, grid connection infrastructure, cables, and transformer stations.

“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,” said Alexander von zur Muehlen, CEO of Asia Pacific, Europe, Middle East & Africa (EMEA) and Germany and Member of the Management Board at Deutsche Bank.

The initiative was announced in December of last year and is part of the EUR Wind Power Package.

The European Investment Bank’s 5 EUR billion initiative could help develop 32 gigawatts (GW) of new wind capacity, advancing the EU’s goal of adding 117 GW of new wind power by 2030.

“Today’s announcement is warmly welcomed. It is an important step in delivering the EU Wind Power Package. There is rapidly growing demand for wind turbines that are “made in Europe”. Improved access to finance and de-risking instruments are central to ensuring Europe’s wind turbine manufacturers can keep up with this demand and ramp up their manufacturing output in line with the EU’s 2030 targets,” said Phil Cole, Director of Industrial Affairs at WindEurope.