EIB provides €243M million to ERG for EU renewables

These operations will contribute to achieving EU renewable energy targets and help beneficiary countries to meet commitments made in their national energy and climate plans.

The EIB green loan will back the investments included in ERG's 2024-2026 Business Plan, combining growth in its wind and solar renewable energy portfolio with the expansion and optimisation of its funding sources. Specifically, this financing promotes a portfolio of three greenfield onshore wind farms in France, the repowering of two existing wind farms in Italy and another in Germany, and the repowering and revamping of seven existing solar power plants in Italy. 

The agreement concerns a total installed capacity of around 270 MW, enough to meet the annual energy needs of over 200 000 families. Almost all (97%) of the installed capacity in the portfolio will be located in cohesion regions (less developed or transition regions under EU cohesion policy), helping to deliver significant local economic benefits.

The EIB loan will cover more than the standard 50% of the total project cost because it supports the REPowerEU goals, which the Bank has committed to backing by providing €45 billion in additional financing by 2027. For projects such as these, the EIB can offer higher initial disbursements and longer maturities to make loans even more attractive to the energy sector, and also increase the financing ceiling to 75%.

ERG is a successful example of how an oil operator can transform its business model to focus entirely on wind and solar energy. The EIB is helping the company to meet its target of achieving net-zero emissions throughout the value chain by 2040. Following its exit from the thermoelectric sector in 2023, 100% of the electricity generated by ERG Group comes from renewable sources.