EIB and BPI provide EDP Renováveis with EUR112mn to construct and operate two wind farms with a total capacity of 125 MW

The European Investment Bank (EIB)  will provide EUR65 million (US$79.41 million) and BPI an additional EUR47 million (US$57.42 million) to EDP Renováveis S.A. (EDPR), one of the main producer of wind energy in the world, to finance the construction and operation of two onshore wind farms with a total nominal capacity of 125 MW in the districts of Coimbra and Guarda, Portugal. The project is co-financed by Banco BPI and the EIB financing is backed by the European Fund for Strategic Investments (EFSI), the main pillar of the Investment Plan for Europe.

With the support of the EIB, EDPR will design, construct and operate two medium-scale wind farms: Tocha II, with a capacity of 33 MW, and Sincelo, with a capacity of 92 MW. Tocha II wind farm will be located in the west, close to the Atlantic coast, in the municipality of Cantanhede, district of Coimbra, whereas the Sincelo wind farm will be located along the municipalities of Pinhel and Guarda, district of Guarda, in the northeast of Portugal. This project will also have a direct positive effect on employment, since it 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 foresee 47% of renewable sources in gross final energy consumption by 2030, as well as the European Commission’s binding target of having at least 32% of final energy consumption coming from renewable sources by 2030.

With this co-financed project, the EIB and the BPI are reinforcing their commitment to sustainable financing and supporting initiatives that are respectful of the environment and that contribute to preventing and mitigating climate change and the transition to a low-carbon economy. 

The EU bank is assisting this operation via a green energy loan, the features of which are fully in line with the requirements set out in its Climate Awareness Bonds programme. As a result, this operation is likely to be allocated to its portfolio of loan operations financed via the issuance of such bonds.