The European Investment Bank is to provide €65m to finance two onshore wind farms in Portugal with a total capacity of 125MW.
BPI will supply an additional €47m to EDP Renováveis (EDPR) for the two projects in the districts of Coimbra and Guarda.
The project is co-financed by Banco BPI and the EIB green energy loan is backed by the European Fund for Strategic Investments, the main pillar of the Investment Plan for Europe.
EDPR will design, construct and operate two medium-scale wind farms: Tocha II, with a capacity of 33MW, and Sincelo, with a capacity of 92MW.
Tocha II wind farm will be located in the west of Portugal, close to the Atlantic coast, in the municipality of Cantanhede, district of Coimbra.
The Sincelo wind farm will be located along the municipalities of Pinhel and Guarda, district of Guarda, in the northeast of the country.
This project is expected to create approximately 560 temporary positions during its construction phase.
Once operational, the two wind farms will contribute to Portugal meeting its Energy and Climate Plan targets, which aim to have 47% of renewable sources in gross final energy consumption by 2030.
They will also play a part in the European Commission’s binding target of having at least 32% of final energy consumption coming from renewable sources by 2030.
EU commissioner for the economy Paolo Gentiloni said: “This agreement between the EIB and EDP Renováveis, supported by the Investment Plan for Europe, is a winner for both the climate and the economy.
“The financing, backed by the European Fund for Strategic Investments, will fund new onshore wind farms in the west and north of Portugal, helping the country to reach its ambitious energy and climate plan targets and creating new jobs in the process.”
EIB vice president Ricardo Mourinho Felix, who is responsible for the Bank’s operations in Portugal said: “This flagship project strengthens our partnership with EDP Renováveis and reinforces the Bank’s commitment to promoting climate action, economic development and cohesion.
Supporting Portugal’s decarbonisation targets, while boosting growth and job creation, is one of the EIB’s main priorities.
“If we want the post-COVID economic recovery to be green and inclusive, it is key to foster the supply of renewable energy and its broad based utilisation by productive sector and by our citizens.”
EDP Renováveis interim chief executive Rui Teixeira added: “At EDP Renováveis we are pleased to count with the support of the European Investment Bank (EIB) and Banco BPI to the development of new projects that will contribute to Portugal’s achievement of its Energy and Climate Plan targets, the European Commission’s targets and also to the creation of more than half a thousand jobs.
“This project reinforces our commitment with the Portuguese renewables sector and with the improvement of the quality of life of current and future generations.
“It also enhances our key role as a world leader in the renewable energy sector.”
Banco BPI Board Member Pedro Barreto said: “BPI has been a partner of EDP Group for many years and this operation of EDP Renováveis reinforces, once again, this partnership.
“The adoption of ESG-Environmental, Social and Governance criteria, when launching investment operations, is part of a new trend that will have an increasing relevance and importance in the near future.
“The participation in this operation together with the EIB – which we are very proud of – places Banco BPI as a reference entity in financing portuguese companies based on sustainability principles.”