EBRD commits €300m to boost renewable energy investment in Greece

In a significant move towards bolstering Greece’s green economy, the Board of Directors of the European Bank for Reconstruction and Development (EBRD) has approved a framework allocating up to €300 million to finance renewable energy projects in the country.

The financing facility is aimed at supporting investments in renewable electricity generation and enhancing electricity distribution and transmission capacity to improve efficiency and integrate renewables into the grid.

This initiative comes in the wake of Greece’s adoption in 2016 of a more market-oriented renewable energy support scheme, transitioning from fixed-price feed-in tariffs to competitive auctions. The EBRD’s framework aligns with Greece’s target of adding 2.4 GW of new green energy capacity by 2020.

Focused on mobilizing vital investment and commercial financing, the framework aims to harness Greece’s considerable potential in renewables, including solar, wind, biomass, and geothermal power. By reducing dependence on fossil fuels and imports, the initiative is expected to lead to annual emissions savings of 500,000 tonnes of carbon dioxide equivalent.

One of the initial projects under consideration for financing by the EBRD is a 43 MW wind farm developed by Volterra S.A., a Greek renewable energy developer and electricity operator wholly owned by J&P Avax, a Greek construction company.

Harry Boyd-Carpenter, the EBRD’s newly appointed Director for Power and Energy, highlighted the framework as a milestone in the bank’s engagement in Greece. He emphasized its role in supporting Greece’s energy security and carbon reduction objectives, making the Greek economy greener, more resilient, and competitive.

All sub-projects under the framework must adhere to the EBRD Green Economy Transition approach, aiming to increase annual business investment in green energy to 40% by 2020. The EBRD identifies “green” as one of six key qualities for a successful economy, alongside competitiveness, inclusion, good governance, resilience, and integration.

Having initiated temporary investments in Greece in 2015 to aid economic recovery, the EBRD has already invested approximately €850 million in 17 projects spanning financial, energy, infrastructure, and agribusiness sectors of the Greek economy.