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EIB and Deutsche Bank collaborate to support EU wind power market

The European Investment Bank (EIB) will offer a 500 million euros ($ 540 million). assurance to Deutsche Bank to assist the lender assistance. Europe's wind power industry, the 2 organisations and the. European Commission stated on Wednesday.

The so-called counter warranty is the first in a 5 billion. euros effort mapped out by the European Union's advancement. bank in December to improve wind power capability in the bloc.

That came after the Commission provided a plan targeted at. employing industrial banks' assistance for increasing the roll-out. of renewable resource to assist satisfy environment policies and enhance. energy security in the wake of Russia's intrusion of Ukraine.

Counter-guarantees are pledges to cover losses if a. borrower defaults on a loan.

The EIB's move is developed to allow Deutsche Bank to set up. a portfolio of up to 1 billion euros of assurances for. investments in wind generation and grid connections.

The 1 billion euros portfolio is anticipated to stimulate up to 8. billion euros of investments by business or people, the. three organisations said in a joint statement.

Wind devices makers face challenges consisting of unsure. need, sluggish project-permitting, and supply-chain bottlenecks,. in addition to high inflation and commodity costs.

Chinese rivals are also expanding in the EU with low cost. products.

The EIB's 5 billion euro effort might support the. structure of 32 gigawatts (GW) of brand-new wind capacity, contributing. towards an EU target for 117 GW of brand-new capability by 2030.

(source: Reuters)