August 11 (Renewables Now) - The European Investment Bank (EIB) said on Thursday it will provide up to EUR 92 million (USD 95.1m) in debt to finance renewable energy and energy efficiency projects in Austria as part of the country’s 2030 goal for 100% renewable electricity.

The framework loan will be extended to UniCredit Bank Austria, the local arm of Itay’s UniCredit SpA (BIT:UCG), and will be available for small and medium-sized renewable energy schemes. With the fresh funds, the bank will create a credit portfolio of up to EUR 200 million to finance clean energy projects to meet rising demand, it said separately.

In the summer of 2021, the Austrian Parliament voted in favour of the country’s new Renewable Expansion Law (EAG) that lifted the renewable electricity consumption goal from the previous 75%. The upgraded target has boosted the need for climate-friendly projects but has led to a lack of “competitively priced” long-term financing for smaller and medium-sized renewable energy and energy efficiency projects, the EIB noted, adding that it intends to fill that gap together with partner banks and other financial intermediaries.

“Austria already benefits from one of Europe’s most developed and efficient green energy markets with a strong record of successful climate action investments as well as an important pipeline of new projects expected in the coming years,” said EIB’s vice-president Thomas Ostros.

(EUR 1.0 = USD 1.033)

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