The European Investment Bank (EIB) will provide EUR5bn in counter guarantees to support the ailing wind farm industry in Europe, as reported by Bloomberg on December 2. The EIB plans to distribute the money in tranches, starting with EUR1.5bn before the end of the year. The counter guarantees will form an equal partnership with about ten of Europe’s largest lenders to the wind industry, supporting the bloc’s five main wind turbine manufacturers and companies in the supply chain. Jean-Christophe Laloux, head of operations at EIB, said banks will be able to offer more money in the form of guarantees, thus helping European turbine makers win more contracts and generate higher revenue.

All of Europe’s largest turbine manufacturers, including Siemens Energy and Vestas Wind Systems , witnessed significant losses in 2022. These companies have grappled with rising prices for raw materials, higher financing costs, and the intensifying competition from Chinese rivals. The EIB’s counter guarantees followed a package of measures aimed at maintaining Europe’s global leadership position in the wind industry. In October, the European Commission announced an action plan to streamline the permitting process for wind energy projects and improve manufacturers’ access to financing. Moreover, it proposed an investigation into potential unfair trade practices, specifically targeting subsidies for imported wind products from foreign sources.

https://www.bloomberg.com/news/articles/2023-12-02/eib-to-support-eu-wind-sector-with-5-billion-in-bank-guarantees

https://www.reuters.com/world/europe/eu-announces-plan-support-struggling-wind-farm-industry-2023-10-24/

https://www.bloomberg.com/news/articles/2023-09-25/wind-power-package-for-europe-to-be-presented-in-october?leadSource=uverify%20wall