European Investment Bank (EIB) and Piraeus Bank are partnering in order to trim energy costs for companies in Greece by EUR 100 million through new energy efficiency investments in the country.
This initiative is the first in Greece under the Private Finance for Energy Efficiency program and represents the largest energy efficiency financing initiative to date in any European country.
According to the EIB statement, under this initiative, new investments to reduce energy consumption by small-scale energy users will be financed across the country through the dedicated energy efficiency lending scheme.
The EUR 100 million loan will be used by Piraeus Bank for the financing of new investment improving the energy efficiency in existing buildings, outdoor lighting and water pumping stations.
According to the statement, the risk protection will cover 80 percent of Piraeus Bank’s potential losses under these loans up to a maximum agreed amount. Piraeus Bank will also benefit from the technical and financial expertise of the EIB during the start of the operation for assistance in the identification and appraisal of energy efficiency investments and capacity building support.
The goal of the new investment is to improve energy efficiency reduces energy bills, cuts carbon emissions and creates jobs, said Jonathan Taylor, European Investment Bank Vice President. He added that the initiative will be strengthened by the local knowledge and Piraeus Bank’s professional expertise.
Christos Megalou, Chief Executive Officer of Piraeus Bank, said that the EUR 100 million agreement, the only one in Greece and the largest provided by European Investment Bank under Private Finance for Energy Efficiency (PF4EE) in Europe, strengthen support for green entrepreneurship and focus on sustainable development.
This new cooperation with Piraeus Bank in Greece represents the eighth partnership with a European bank to support energy efficiency investments under the Private Finance for Energy Efficiency financial instrument. The European Investment Bank engagement is supported by the European Commission, under the LIFE program.
The Private Finance for Energy Efficiency initiative is a pilot intended to increase the availability of debt financing to eligible energy efficiency investment in Europe.