The EIB has initiated an €8 billion program to support wind energy.

The European Investment Bank (EIB) and Societe Generale have launched a new initiative that could facilitate investments up to €8 billion aimed at assisting wind energy manufacturers in Europe.

The EIB will offer a €500 million counter-guarantee to Societe Generale, which the bank will utilize to establish a portfolio of bank guarantees totaling up to €1 billion.

These guarantees will support upcoming wind farm projects within the European Union, along with their supply chain and grid interconnections.

The leverage effect from the EIB's counter-guarantee is anticipated to attract further funding from other investors, thus supporting increased production and boosting the development of wind energy, ultimately stimulating investments in the real economy.

This agreement is part of the EIB's €5 billion wind power initiative, an investment strategy unveiled by the EIB at COP28 in 2023, set to be initiated in July and October 2024 in Germany and Italy, respectively.

The EIB's wind-focused program aims to facilitate the production of 32GW of the 117GW of wind capacity required for the European Union to achieve its target of generating at least 45% of its energy from renewable sources by 2030.

This initiative is central to the European Wind Power Package, particularly its Action Plan, which was presented by the European Commission in October 2023.

EIB Vice-President Ambroise Fayolle stated, "Wind energy is crucial for achieving Europe's energy independence.

"Nevertheless, producers are presently facing substantial challenges, such as high costs, variable demand, protracted permitting processes, supply chain disruptions, and fierce global competition.

"This agreement highlights the effectiveness of the EIB’s risk-sharing mechanisms in overcoming these challenges, facilitating the funding of vital projects that promote a green transition, assist in the decarbonization of the European economy, and enhance industrial competitiveness."

Anne-Christine Champion, co-head of global banking & investor solutions at Societe Generale, remarked, "The scale and urgency of investment required to adapt our economies is unprecedented.

"Although the wind power sector has been a remarkable success story in Europe so far, supply chain challenges persist.

"Societe Generale is committed to the future by developing innovative solutions and partnerships, and this agreement with the EIB illustrates how public and private entities can work together to foster a positive and sustainable energy transition."