Written By: Emma Websdale
The European Investment Bank (EIB) has made its single largest equity venture in clean energy this year, investing €50 million (US$68.6 million) directly into Glennmont Partners’ second clean energy infrastructure fund.
The company’s second clean energy infrastructure fund, which has so far secured €200 million ($274.5 million) from a combination of both new and existing investors from its first fund, has supported 165 megawatts (MW) of solar projects since the beginning of 2013.
Overall, the 10-year fund aims to expand to €450 million ($617.5 million) and will target clean energy technologies including biomass, wind, solar and small scale-hydro to provide predictable returns over 10 years or more.
“We are delighted that the EIB has chosen to invest in our second fund. It has developed a first class reputation for its work in clean energy and this investment further demonstrates that our independent, specialist approach is attractive to top-level investors”, says Joost Bergsma, Gennmont’s chief executive.
Clean energy investment has become a key focus for the EIB in an effort to support the European Union’s target of a 20% reduction in greenhouse gas emissions across Europe by 2020. In 2012, the EIB’s annual lending to the clean energy sector surpassed €3.3 billion ($4.5 billion).
Other applications for EIB funding include Santander’s UK Framework Loan for solar photovoltaic projects, a121MW solar thermal project in the Negev desert in Israel and a 30MW solar plant in West Africa.