EIB to Back €1.2 Billion Pan-European Renewable Investment Through Irish NTR Fund
The world’s largest international financier for renewable energy, the European Investment Bank, will back renewable energy investment across Europe in co-operation with Dublin-based NTR plc. The EIB’s €84 million backing for the NTR Renewable Energy Income Fund II was announced at an EIB investment conference at the Central Bank of Ireland attended by more than 200 business, finance and government representatives.
“The new €84 million support for renewable energy projects across Europe by NTR demonstrates the EU Bank’s firm commitment to accelerating investment crucial for tackling climate change. Scaling up investment by harnessing support of institutional investment is crucial for global ambitions to accelerate climate action,” said Andrew McDowell, Vice President of the European Investment Bank.
“NTR’s new cooperation with the European Investment Bank reflects our shared goal of ensuring long-term investment in renewable energy projects essential for achieving Europe’s climate commitments. We welcome the €84 million backing from the EIB and look forward to working together in the years ahead,” said Dr Rosheen McGuckian, Chief Executive Officer of NTR plc.
Broad scope reflecting renewable energy investment gap
The NTR Renewable Energy Income Fund II will support greenfield onshore wind and solar projects, as well as energy storage schemes associated with wind and solar projects. Energy storage remains an emerging technology and enabling renewable energy to be more effectively reflect peak demand is essential to achieve climate targets.
Crucial long-term financing for renewables
The new fund will provide long-term equity financing of over 25 years to accelerate development of small and medium sized renewable energy projects. Expansion of these projects is currently hindered by limited availability of long-term financing.
Following detailed analysis of European renewable energy investment trends, the NTR Renewable Energy Income Fund II expects to support 15-20 different renewable energy projects, representing approximately 700 MW of clean energy power generation.
Unlocking new support for renewable energy under Investment Plan for Europe
Reflecting the long-term financing of greenfield projects, EIB support for the NTR Renewable Energy Income Fund II is guaranteed by the European Fund for Strategic Investments or Juncker Plan.
First time EIB support for ICAV fund model
The €84 million EIB support represents their first ever backing for investment through an Irish Collective Asset-management Vehicle or ICAV. This is a new fund structure recently developed in Ireland intended more effective and efficient and which provides a model for future long-term European focused infrastructure investment funds.
Additional commitment to the NTR Renewable Energy Income Fund II is expected from institutional investors including pension funds and insurance companies.
EIB subscription to the fund is expected in the coming weeks and financial close of the fund will take place once technical preparations with investors are complete.
Last year the European Investment Bank provided €4.4 billion for investment in renewable energy projects worldwide and in May confirmed €79.5 million backing for the Oweninny windfarm in Country Mayo.
