Project Development, Solar

EIB To Fund €500M of EDFEN Solar Projects

EDF Energies Nouvelles (EDFEN) and the European Investment Bank (EIB) have signed a memorandum of understanding to set up an innovative financing structure for a solar photovoltaic projects portfolio that EDFEN is developing in France and Italy. The total amount allocated by the EIB stands at €500 million.

The investment program covers EDFEN’s development of sola projects located in France and Italy over the 2010-2012 period. These projects, which are currently under development or under construction, will all be equipped with the thin-film photovoltaic technology produced by First Solar.

The financing framework agreement states that each project will be implemented jointly with several commercial banks, each financing allocation being independent of the others. The EIB’s contribution will represent up to 50% of the total financing of each project.

Two pilot projects, the Gabardan ground-based solar farm in France, which includes three 12-megawatt (MW) stages and the Loreo ground-based solar farm in Italy, which will include one 12.5-MW phase will be financed in early 2010 under this agreement.

The financing structure to be implemented will then be replicated for each of the subsequent investments carried out under this program. This mechanism will help to simplify the implementation of all the other projects as and when their construction starts.

“Perfectly suited to photovoltaic projects, which have a smaller average unit size than in wind energy, this financing structure will help EDFEN to step up the pace of completion of its numerous projects under development in France and Italy and will facilitate achievement of our ambitious objectives”, said Pâris Mouratoglou, chairman of the board of directors of EDF Energies Nouvelles.