The European Investment Bank (EIB) has approved a €85 million loan that will support the refurbishment of existing small hydropower and wind projects, as well as the construction of new projects across Greece.
The funding will back a new investment programme by PPC Renewables across mainland Greece and the Greek Islands and will finance a pipeline of 18 renewable energy projects. It represents the largest ever support for renewable energy investment in the country by the EIB.
“New investment in renewable energy is essential to cut carbon emissions and support for renewable energy investment is a priority for both the Greek government and the European Investment Bank,” said Jonathan Taylor, European Investment Bank Vice President. “The EIB is pleased to expand our long-standing partnership with PPC to harness clean energy across Greece through this first engagement with PPC Renewables. As the EU Bank, the EIB supports climate related investment worldwide and this scheme is already being examined by others as a model to demonstrate the potential of renewable energy on small islands.”
“This loan will bolster the generation of electricity from renewables in mainland Greece and on the islands. It will also support the change of the energy mix generated at Group level and will make energy supplies in Greece more sustainable and more secure,” added Manolis Panagiotakis, Chairman of PPC Renewables. “The PPC Group has an excellent long standing cooperation with European Investment Bank, since 1963, building a relationship of trust. Today, EIB’s financing to PPCR, under the current challenging financial conditions, underlines EIB’s catalytical role to boost investment in renewables.”
The finance contract for the €85 million EIB loan was signed in Athens earlier today by Nicholas Jennett, Deputy Director General and Head of Investment Team for Greece on behalf of the European Investment Bank and Manolis Panagiotakis, Chairman, and Ilias Monacholias, CEO, on behalf of PPC Renewables.
The new renewable energy programme will support the repowering of two old small hydropower stations – the Louros project in Arta and a project in Vermio northern Greece – as well as two new smallhydro power stations, one located in Smokovo and the other in Makrohori, central Greece.
Once complete the schemes, together with planned wind investments, will increase generation of renewable energy in Greece by 90MW and make a significant contribution to both national and European renewable energy objectives.
Development, construction and operation of the individual renewable energy projects is expected to be completed over the next two years.