European Investment Bank and Deutsche Bank partner for EU wind industry boost

The European Investment Bank (EIB) has initiated a €5 billion wind package, commencing with a €500 million counter-guarantee agreement with Deutsche Bank. This initiative is part of the European Commission’s European Wind Power Action Plan, unveiled in October 2023, which aims to provide a dedicated guarantee mechanism to support EU wind companies through commercial banks. EIB Vice-President Nicola Beer emphasized that this project is designed to alleviate financial pressures and bolster a competitive manufacturing sector, ultimately safeguarding and creating jobs within the sustainable European industry. The €500 million deal will enable Deutsche Bank to establish a €1 billion guarantee facility aimed at supporting new wind projects. The banking guarantees are intended to back the operations and investments of wind-energy manufacturers. Phil Cole, director of industrial affairs at WindEurope, highlighted the increasing demand for European-made wind turbines, asserting that improved access to finance and de-risking instruments are crucial for manufacturers to meet the EU’s 2030 targets. In a related development, the European Commission announced an investigation into Chinese wind turbine suppliers under the Foreign Subsidies Regulation, amid concerns over unfair subsidies affecting wind parks in several EU countries. Wolfram Axthelm, COO of the German Wind Power Association, noted the importance of the EIB's commitment to renewable energies, particularly in countering market distortions from external subsidies. The EIB anticipates closing more deals under the wind package soon, as negotiations are ongoing with banks and intermediaries across various EU nations.