The European Investment Bank (BEI) and Santander have signed a counterattack agreement of 500 million euros that will allow Santander to create a bank guarantee portfolio of up to 1,000 million euros. It is expected that 8,000 million euros of investment will mobilize to support European companies manufacturers of wind energy equipment.
The guarantees will support the investments of the manufacturing companies of wind energy equipment, interconnection to the network and fundamental components for the wind sector. This will allow manufacturers to receive early payments, as well as provide performance guarantees, by assuming new wind projects. This mechanism will also allow manufacturers to pay their suppliers in advance by the supply of components related to the wind value chain, that is, wind turbines, network connection infrastructures, cables and transforming stations.
It is expected that the multiplier effect of the counterattack of the BEI mobilizes additional financing of other investors to support the increase in production and accelerate the development of wind energy, which will help stimulate investment in the real economy.
The agreement is part of the Boi Energy Package of 5,000 million euros, launched in 2023, a specific package to improve access to financing for the wind energy sector and support the increase in the generation capacity of generating New plant wind energy in 32 GW.
The Bei financing mechanism is being activated through agreements with the main fund providers in the sector, as is the case of Santander. It is a key element of the European Wind Energy Package presented by the European Commission and is designed to accelerate a fair and rapid transition to the wind energy of zero net emissions, promoting at the same time national industrial innovation.
“Wind energy will play a fundamental role in achieving the EU objectives in renewable energy. To materialize its entire potential, the BEI, together with Santander and other banks, is implementing risk reduction instruments that will allow To manufacturers to overcome some of the challenges facing the sector, such as supply chain interruptions, high costs or intense international competition, “he said Gemma Feliciani, Director of Financial Institutions of the BEI. “This agreement is framed in the actions of the BEI’s wind package and will accelerate the energy transition in Europe, reinforcing, at the same time, its industrial competitiveness and its strategic autonomy.”
Ricardo Gamazo, member of the Santander Global Trade Finance team, added: “The program has been very well received by our clients in the wind sector, who face a great delay in orders to meet the demand for energy transition. In turn, a greater issuance of guarantees is required, and this additional capacity involves A great advance when ensuring more credit lines in the market.
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