Lithuanian banks could lend USD 2bn to renewable projects
(ADPnews) - Nov 26, 2010 - Lithuanian banks could ultimately lend up to LTL 5 billion (USD 2bn/EUR 1.4bn) for the development of green power if a proper legal framework for reducing the risk of such projects was in place, the head of Swedbank Markets Lithuania Tomas Andrejauskas said.
Speaking at a conference, held by Lithuanian wind energy association (LWEA), Andrejauskas estimated that the country, committed to derive 23% of its electricity from renewable sources by 2020, has to invest about LTL 3.5 billion in order to achieve the goal. He pointed out that local banks could lend even more if the risk management of such projects is included in the Renewable Energy Law, which has been under negotiations for the past two years.
The draft on the law provides for 12-year contracts for purchasing the output of clean power projects under fixed price, set by the State Prices and Energy Control Commission (VKEKK).
Lithuanian banks have so far injected about LTL 800 million in the renewable power industry, Andrejauskas noted.