The European Investment Bank (EIB) will provide USD 150 million to Enel Green Power Perú, a local subsidiary of the Enel Group, to build and operate a wind farm and photovoltaic solar power plant. Together, the two facilities will have an installed capacity of 312 MW. The financing is in line with the Bank's priority action to support environmental policies helping to combat climate change. This operation is the fifth project in Peru financed by the EIB.

The wind farm will be located in the Nazca region and the solar power plant is being built in the Moquegua region, close to the Chilean border. Both of the facilities are expected to enter service in the first half of 2018.

According to the International Renewable Energy Agency (IRENA), Peru has significant renewable energy resources (especially solar and wind), although very little has been used. The project will therefore contribute to the increased production and use of clean energy. Moreover, the project responds to substantial rise in energy demand driven by high economic growth.[1]

 EIB Vice-President Román Escolano said:

“This agreement is a clear example of the EIB's support for projects helping to combat climate change, both inside and outside the EU. In fact, we are dedicating more resources to this goal than any other multilateral financial institution in the world. This project is covered by our priorities for Latin America. It will make it possible to expand clean energy production in Peru, facilitating the development of new infrastructure to benefit its people.”

The European Investment bank (EIB) is the world’s largest multilateral borrower and lender. It provides finance and expertise for sustainable investment projects and closely cooperates with the EU institutions in the implementation of the EU policy inside and outside the EU. Climate change is one of the top priorities of the EIB and the bank presents itself as a key player in mobilising finance needed to achieve the Paris Agreement commitment, to keep global warming well below 2˚C.[2]

The EIB started providing financial support for projects in Latin America in 1993. The bank facilitates long-term investments with favourable financing conditions and provides technical support needed to ensure that these projects deliver positive social, economic and environmental results. The EIB has to date provided financing for over 100 projects in 14 Latin American countries, with total investment of EUR 7 billion.

The gLAWcal Team

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[1] IRENA 2014. Renewables Readiness Assessment: Peru. Available at: <http://www.irena.org/DocumentDownloads/Publications/RRA_Peru.pdf>

[2] Climate in everything we do. EIB. Available at: <http://www.eib.org/projects/priorities/climate-and-environment/climate-action/index.htm>.