The European Investment Bank (EIB) has committed €243m ($255m) to finance renewable energy projects by wind and solar sector operator ERG Group.
The funding will bolster renewable energy development across Italy, France and Germany, aligning with EU energy targets and national climate plans.
The EIB's green loan will support the investments outlined in ERG's 2024 to 2026 Business Plan.
The strategy aims to expand the company's renewable energy portfolio and enhance funding sources.
The financing will aid the development of three new onshore wind farms in France, the modernisation of two wind farms in Italy and one in Germany, and the upgrade of seven solar power plants in Italy.
The projects will have a total installed capacity of 270MW - enough to meet the yearly energy requirements of 200,000 families.
97% of the capacity will be situated in cohesion regions, which are less developed or in transition under EU policy.
The EIB loan will exceed the typical 50% coverage of total project costs due to its alignment with the REPowerEU objectives. The bank has pledged to provide an additional €45bn by 2027 to support these goals.
For such projects, the EIB can offer increased initial disbursements and extended loan maturities, enhancing the appeal to the energy sector and potentially raising the financing ceiling to 75%.
ERG has transitioned from an oil operator to focusing solely on renewable energy, with the EIB's support playing a crucial role in this transformation.
The company aims to achieve net zero emissions across its value chain by 2040.
Following its departure from the thermoelectric sector in 2023, ERG Group now produces 100% of its electricity from renewable sources.
Operating in nine European countries and the US, ERG Group is a prominent onshore wind operator in Italy and also engages in solar energy production and battery storage.
In July 2024, Italian power and telecom cables manufacturer Prysmian signed a €450m finance agreement with EIB to create new production lines for extra-high-voltage submarine cables.
