Greece’s Terna Energy Group has secured financing for the construction of two 44 MW wind farms on Mt. Vermio in northern Greece. The European Investment Bank (EIB) extended a EUR 24 million loan, while Alpha Bank acted as co-lender providing an equivalent amount of long-term debt next to a medium-term VAT facility.
The EIB’s loan is backed under the EU budget guarantee of the European Fund for Strategic Investments (EFSI), the financial instrument of the Investment Plan for Europe, the European Commission (EC) said in a press release, adding that this is the second such agreement with the Greek renewable energy company following one last July to finance wind farms in the Viotia region.
The Eressou Ipsoma-Fourka wind farm will have a capacity of 36 MW and the Lefkes-Kerasia wind farm 8.4 MW. The two comprise 22 wind turbines installed on complex high altitude terrain (exceeding 1,400 m), and will be connected to the transmission grid via a new MV/HV substation and respectively 8.5 km and 16 km of MV underground cable.
This is the second EFSI operation where the EIB is undertaking direct project risk via a limited recourse, project finance structure.
It is a testament to the continued EIB support to the Greek electricity sector in general and the promotion of renewables, in line with EU policies, in particular, the EC said.
“The Bank is particularly committed to financing green energy projects across the Union and the EFSI has enabled us to do even more. This project is precisely the kind of operation the Investment Plan for Europe was designed to support,” Jonathan Taylor, EIB Vice-President responsible for lending in Greece, said.
We are committed to financing #greenenergy projects across the #EU and #EFSI has enabled us to do even more ➡️ €24m loan to Terna Energy Group to support the construction and operation of two #windfarms in northern Greece ?? https://t.co/RVe1H4fe00 #investEU pic.twitter.com/EPi5xpfLOm
— European Investment Bank (@EIB) July 19, 2018
Terna Energy Group owns and operates wind farms in several regions in Greece since 1997, while since 2011 company has been operating wind farms in Poland, Bulgaria, and the US.
Terna Energy Group is a member of GEK Terna Group.