Back to top
Reported by NTR on 6 December 2018

EIB backs €1.2 billion in renewable investment through Irish NTR Fund

EIB to back €1.2 billion pan-European renewable investment through Irish NTR Fund
  • EIB to provide EUR 84 million to support long-term investment in European renewables
  • Ireland designated core market for the fund
  • EUR 500 million equity fund, together with EUR 700 million debt expected to be deployed
  • First EIB backing for Irish ICAV fund to attract institutional investors and pension funds

(Courtesy of NTR plc)

The world’s largest international financier for renewable energy, the European Investment Bank, will today confirm its intention to back renewable energy investment across Europe in cooperation with Dublin-based NTR plc.

The EIB’s EUR 84 million backing for the NTR Renewable Energy Income Fund II is to be announced at an EIB investment conference at the Central Bank of Ireland attended by leading Irish ministers, EIB President Werner Hoyer and more than 200 business, finance and government representatives.

“We want to make Ireland a leader in responding to climate change. Being a leader means acting now, stretching ourselves and seizing the enterprise opportunities in a low carbon economy. Being a follower means the final costs of adjustment are much higher and opportunities much lower or completely lost. Harnessing clean energy is essential to this ambition and stimulating private sector funding of renewable energy projects can help drive down consumer costs and increase the pace and scale of transition to low carbon technologies.” said Richard Bruton TD, Ireland’s Minister for Communications, Climate Action and the Environment.

“I welcome the EIB’s EUR 84 million support for Irish fund NTR’s ambitious goal of backing renewable energy projects across Ireland and elsewhere in Europe in the years ahead. This new commitment reflects the European Investment Bank’s strengthened engagement to support transformational investment in cooperation with Irish partners.” added Minister Bruton.

“As world climate leaders meeting in Poland to discuss implementation of the Paris Agreement, the new EUR 84 million support for renewable energy projects across Europe by NTR demonstrates the EU Bank’s firm commitment to accelerating investment crucial for tackling climate change. Scaling up investment by harnessing support of institutional investment is crucial for global ambitions to accelerate climate action.” said Andrew McDowell, Vice President of the European Investment Bank.

“NTR’s new cooperation with the European Investment Bank reflects our shared goal of ensuring long-term investment in renewable energy projects essential for achieving Europe’s climate commitments. We welcome the EUR 84 million backing from the EIB and look forward to working together in the years ahead.” said Dr. Rosheen McGuckian, Chief Executive Officer of NTR plc.

Broad scope reflecting renewable energy investment gap

The NTR Renewable Energy Income Fund II will support greenfield onshore wind and solar projects, as well as energy storage schemes associated with wind and solar projects.

Energy storage remains an emerging technology and enabling renewable energy to be more effectively reflect peak demand is essential to achieve climate targets.

Crucial long-term financing for renewables

The new fund will provide long-term equity financing of over 25 years to accelerate development of small and medium sized renewable energy projects. Expansion of these projects is currently hindered by limited availability of long-term financing.

Following detailed analysis of European renewable energy investment trends, the NTR Renewable Energy Income Fund II expects to support 15-20 different renewable energy projects, representing approximately 700 MW of clean energy power generation.

Unlocking new support for renewable energy under Investment Plan for Europe

Reflecting the long-term financing of greenfield projects, EIB support for the NTR Renewable Energy Income Fund II is guaranteed by the European Fund for Strategic Investments or Juncker Plan.

First time EIB support for ICAV fund model

The EUR 84 million EIB support represents their first ever backing for investment through an Irish Collective Asset-management Vehicle or ICAV. This is a new fund structure recently developed in Ireland intended more effective and efficient and which provides a model for future long-term European focused infrastructure investment funds.

Additional commitment to the NTR Renewable Energy Income Fund II is expected from institutional investors including pension funds and insurance companies.

EIB subscription to the fund is expected in the coming weeks and financial close of the fund will take place once technical preparations with investors are complete.

Last year the European Investment Bank provided EUR 4.4 billion for investment in renewable energy projects worldwide and in May confirmed EUR 79.5 million backing for the Oweninny windfarm in Country Mayo.

References

[1]

NTR plc. Press release - EIB backs €1.2 billion in renewable investment through Irish NTR Fund. URL: http://www.ntrplc.com/news/article/eib-backs-1.2-billion-in-renewable-investment.... [Date Accessed: 06/12/2018].

Business & Finance

28 Jan | R W S | Corporate clean energy buying surged to new record in 2018

Corporations purchased 13.4 gigawatts of clean power through long-term contracts, more than doubling 2017’s total, helped by demand from new industries and previously untrodden markets

Business & Finance

24 Jan | W | Parkwind and ESB to develop two offshore wind farms at Oriel and Clogherhead

  • Potential generation capacity at Oriel Wind Farm to meet the needs of most of the population in Louth and Meath - 280,000 families
  • Highly complementary partnership between Parkwind, an experienced offshore operator, and ESB, which has significant experience in the delivery of major engineering projects in Ireland

Business & Finance

24 Jan | W | EBRD supports largest windfarm in Ukraine

  • EBRD arranging syndicated loan of €150 million to SyvashEnergoProm
  • Project to be co-financed by Green for Growth Fund, FMO and NEFCO
  • EBRD’s latest investment under USELF III achieves significant CO2 reductions

Business & Finance

18 Jan | W | TEPCO and Ørsted sign MoU to work jointly on offshore wind projects

Tokyo Electric Power Company Holdings, Inc. (TEPCO), the largest power company in Japan, and Ørsted A/S (Ørsted), the world’s leading offshore wind developer, announced today that they have signed a memorandum of understanding to work jointly on offshore wind projects.

Business & Finance

15 Jan | W | NTR acquires 200MW wind portfolio in Sweden and Finland, total capital investment of over €180 million

A portfolio of just over 200MW of operational and pre-construction onshore wind projects in Sweden and Finland has been added by NTR to its NTR Renewable Energy Income Fund II, for which a fundraising first close was recently announced.

Business & Finance

03 Jan | W S E | Commitments of €229 million secured by NTR for its second renewable energy income fund

NTR plc today announces that it has attracted commitments of €229 million for the NTR Renewable Energy Income Fund II, of which €145 million has been secured for the fund’s first close.

Business & Finance

19 Dec | W | NTR enters French renewables market with acquisition of two wind projects

NTR has entered the French renewables market with the acquisition of two wind projects together comprising just under 20MW and with a total capital investment of over €35 million.

Business & Finance

01 Nov | S | NTR acquires nine UK solar assets totalling 38.4MW

NTR’s second sustainable infrastructure fund, NTR Renewable Energy Income Fund II (the “Fund”) has acquired nine operational UK ground mount solar assets totalling 38.4MW for an enterprise value of €61.3 million (GBP £54.6 million), including a deferred consideration amount of €2.6 million, (GBP £2.