Together with Austria"s largest banks (UniCredit Bank Austria, Raiffeisen Bank International, Erste Bank and Wiener Städtische) and European financing institutions (Landesbank Baden-Württemberg and Talanx Group), the European Investment Bank (EIB) is helping fund the largest-ever portfolio for the construction of solar and wind power plants in Austria with a loan of 250 million.
Erste Bank and Landesbank Baden-Württemberg will provide a further 100 million in loans supported by the EIB.
This is the biggest financing project for green energy from solar and wind in Austria that the EIB has ever participated in.
Burgenland Energie is Austria"s largest wind power and photovoltaics company.
In the last two years, it has developed the country"s largest wind and solar project pipeline, encompassing capacity of around 2 000 MW.
Some of these projects are already in operation or under construction.
Project sites are spread across all of Burgenland, from north to south, to make the entire region energy-independent and ensure a secure energy supply in the long term.
Burgenland is one of the windiest and sunniest Austrian states.
With this wind and sun as energy resources, Burgenland should be among the first regions in the world to become climate-neutral and energy-independent by 2030.
The first tranche of financing for the wind and solar project portfolio presented today calls for an equity investment of around 200 million and some 500 million in loans by 2026.
The chosen form is a classic, state-of-the-art project financing model, specially structured as portfolio financing.
It is a leading example in Europe of how the expansion of renewable energies can be successfully financed.
The structure does not rely on liability of the owner firm, and the borrowed funds will be repaid solely out of future project cash flows.
The basis for this financing is a strategic partnership with the Burgenland government, which will become a majority shareholder of a subsidiary of Burgenland Energie as part of Project Tomorrow.
The project benefits from risk sharing under the InvestEU programme.
It also supports the REPowerEU plan, which aims to reduce European dependence on fossil fuels as quickly as possible.
The EIB Group will provide an additional 45 billion for REPowerEU by 2027.
By the end of 2023, it had already granted financing of 21 billion under the plan.
"Solar and wind energy are cornerstones of the energy transition," said EIB Vice-President Thomas stros.
"Large-scale projects like this one lead by example, proving that we can improve the energy supply of regions, countries, and even a whole continent in a remarkably brief period.
They bring us closer to a future in which we can be more independent and sustainable in how we live, work and do business.
"Burgenland will become a strategic partner, as a shareholder of a subsidiary of Burgenland Energie, Burgenland Governor Hans Peter Doskozil said.
"This project-based firm will implement Austria"s largest expansion of wind and solar energy, encompassing around 2 000 MW.
The proceeds from this expansion will be used to finance the Gols hospital clinic.
Above all, Project Tomorrow is an important step in the direction of net-zero emissions, energy independence and the ability to reliably plan in service of Burgenland"s residents and local companies.
At the same time, the expansion will reduce the risk of blackouts and disruptions to heat supply.
That is why it is so important that energy security in Burgenland not be left in the hands of private companies, but be maintained as a public service. CEO of Burgenland Energie Stephan Sharma explained, "International energy dependence in Europe is still at over 70%.
Energy dependence in Austria is at 60%.
But in Burgenland, thanks to the renewable energy expansions that have already been implemented, it is below 40%.
At the same time, the high level of energy dependence on international and unpredictable actors makes energy prices extremely uncertain.
For electricity and gas, these prices are many times higher than in the US and China.
This is causing long-term weakness for our businesses.
That is why we are investing in the ability to use our local energy resources, the wind and the sun, to increase energy independence and security of supply in Burgenland and Austria.
Across our region, from north to south, we will complete some 40 wind and solar projects in a unique and innovative form: as hybrid wind and solar parks that allow agriculture and involve public participation.
In this way, we will also lend important economic stimulus, adding around 3.6 billion in value, creating or maintaining the equivalent of around 12 000 full-time jobs, and saving around 7 million tonnes of CO2.
Via the energy communities, we will thus be enabling consistently secure, affordable energy prices from wind and solar power for an entire region.
Burgenland Energie CFO Reinhard Czerny stressed, "Big challenges like climate transition also mean big opportunities they motivate us to move in new directions.
This is the largest-scale project in the history of Burgenland Energie.
It is a true milestone.
Thanks to excellent cooperation with our project partners and a well-designed financing solution, we have been able to build an exemplary model for the future financing of major climate transition projects, in Austria and across Europe.
Robert Zadrazil, Country Manager for Austria at UniCredit Bank Austria, said, "This groundbreaking project in Burgenland shows just how the energy transition can be successful, and provide economic stimulus for Austria.
Making these major investments sends a strong signal that runs counter to the weakening economic dynamics in Austria, and sustainably strengthens the local economy.
This flagship project fits perfectly into UniCredit Bank Austria"s sustainability strategy.
Johann Strobl, CEO of Raiffeisen Bank International, said, "As a pioneer in sustainable finance solutions, we are proud to be a part of this forward-looking financing consortium.
Project Tomorrow is not just a milestone for the Burgenland Energie Group and the state of Burgenland, but it is also of paramount importance for Austria as a whole in its green transformation.
This flagship project is an impressive demonstration of how sustainable investments in renewable energy sources can accelerate the energy transition in Austria, and provide significant economic impetus at the same time.
Through our participation, we are strengthening Austria"s national energy security and its economy, and are making a significant joint contribution to achieving our climate targets.
Hans Unterdorfer, Chief Corporates Officer at Erste Bank Austria, said, "Our economy"s green transition is both a historic challenge and an enormous opportunity.
And energy security will play a decisive role in it.
A reliable, cost-efficient energy supply is an important prerequisite for the growth of our local commerce.
Project Tomorrow is a pioneering initiative for a sustainable future, and will contribute to Austria"s future economic success.
Ralph Müller, General Director at Wiener Städtische, said, "Through our renewable energy investments, we are actively contributing to a successful energy transition.
We are also further diversifying our assets, in the interests of our customers.
I am delighted that Wiener Städtische is participating in this project for Burgenland and that, after investing in wind and solar parks in the rest of Europe, we are now taking action in Austria.
CFO of Talanx Group Jan Wicke said, "With this investment, we are pleased to be playing an active role in shaping the energy transition.
Thanks to the diversified project portfolio and the cooperation with the country"s largest and most experienced renewable energy supplier, it is also an attractive investment for us as an insurance investor from both a sustainability and risk perspective.