EU approves €500m renewable energy loan

The European Investment Bank (EIB) is to lend up to €500m to help Ireland develop its renewable energy sector.

Two loan contracts were signed today in Dublin by EIB vice president Plutarchos Sakellaris and the chief executives of EirGrid Plc and Electricity Supply Board (ESB) in the presence of Irish Energy Minister Eamon Ryan.

EIB will lend EirGrid up to €300m towards construction of a 256km cable between Ireland and Wales.

The East-West Interconnector (EWIC) will enable the import and export of excess wind power, improving security of supply and facilitating competition through connecting the Irish electricity market with the rest of Europe.

ESB will also receive up to €200m in loans to develop its renewable energy business by installing 248MW of wind power capacity by 2012 in various locations. The total cost of the investment programme is estimated at €475m.

The loans bring total EIB support for Ireland in 2009 to € 760m, almost double 2008’s total of €450m.

“Ireland is very dependent on imported fossil fuels but has huge potential for wind power,” said EIB Vice President Plutarchos Sakellaris.

“Both these projects help Ireland in its ambition to go green and secure future energy supplies, helping Europe as a whole meet its climate change goals.

“The EIB is particularly happy to be able to support EirGrid and the interconnector, which was identified as key project in the European Economic Recovery Plan endorsed by EU leaders last year.

“The ESB loan is also our first to the renewables sector in Ireland, where we hope there will be many more opportunities for cooperation in the future.”

Minister for Communications, Energy and Natural Resources Eamon Ryan said: “I warmly welcome this investment by the EIB in Ireland’s energy future. We are transforming energy policy in Ireland and today’s investment will propel this transformation.

“I congratulate both EirGrid and ESB and know they are ambitious semi-state companies who deliver on their commitments. I look forward to the completion of these projects. We are well on the road to Ireland becoming world leader in green energy and the fight against climate change.”