Renewables to Benefit from EU Investment Plan
The European Commission today announced a € 315 billion Investment Plan to get Europe growing again and get more people back to work.
The EC will create new European Fund for Strategic Investments (EFSI) to mobilise these funds over the course of three years.
The Fund will be set up in partnership with the European Investment Bank (EIB). It will be built on a guarantee of € 16 billion from the EU budget, combined with € 5 billion committed by the EIB. In other words, for every public euro that is mobilised through the Fund, € 15 of total investment is generated.
The focus of the Fund is invest in infrastructure including renewables.
Justin Wilkes, deputy chief executive officer of the European Wind Energy Association, said: “Juncker is extending an olive branch to investors that will spur confidence and reduce the cost of capital for high-stakes projects in southern Europe and breakthrough technologies in the northern seas such as the North Sea grid.”
“By jumping first, the EIB is giving a nod to the markets to toss their money into the ring on renewable energy, particularly in developing wind farms and increasing interconnection.”
Commenting on the Plan, European Commission President Jean-Claude Juncker said: “If Europe invests more, Europe will be more prosperous and create more jobs – it’s as simple as that. The Investment Plan we are putting forward today in close partnership with the European Investment Bank is an ambitious and new way of boosting investment without creating new debt.”
According to European Commission estimates, the proposed measures could add up to € 410 billion to EU GDP over the next three years and create up to 1.3 million new jobs.