European Investment Bank and Piraeus Bank on Monday announced an initiative aimed to reduce energy costs for companies in Greece by 100 million euros through new energy-efficiency investments in the country.
Under the scheme, dedicated financing for new investment to reduce energy consumption by small-scale energy users will be provided across the country. Technical and financial expertise gained from energy efficiency investment programmes elsewhere will be used to strengthen new projects in Greece. This operation is the first initiative in Greece under the Private Finance for Energy Efficiency programme and represents the largest engagement in any European country so far.
“New investment to improve energy efficiency reduces energy bills, cuts carbon emissions and creates jobs. The European Investment Bank is committed to supporting transformational investment in Greece and pleased to launch the largest energy efficiency financing initiative to date in any European country under the Private Finance for Energy Efficiency programme. The scale of this new scheme clearly demonstrates the impressive potential for cutting energy bills in the country. This initiative will be strengthened by the local knowledge and professional expertise of colleagues at Piraeus Bank,” said Jonathan Taylor, European Investment Bank Vice President.
“This agreement underlines the longstanding commitment of Piraeus Bank, the largest bank in Greece, to the financing of investments with a positive environmental and social impact, and a focus on sustainable development and financial viability. Expanding our long-standing cooperation with the European Investment Bank Group, we have signed a new 100-million-euro agreement to finance energy efficiency projects in Greece, through the dedicated energy efficiency lending scheme, Private Finance for Energy Efficiency (PF4EE). This agreement, the only one in Greece and the largest provided by European Investment Bank under PF4EE in Europe, re-enforces our support for green entrepreneurship and expands our considerable know-how. Piraeus Bank is ideally positioned in the Greek market to take advantage of this particular innovative financing instrument,” said Christos Megalou, Chief Executive Officer of Piraeus Bank.
The European Investment Bank and Piraeus Bank have signed an agreement worth 100 million euros under the Private Finance for Energy Efficiency initiative. This is a pilot scheme currently being rolled out across Europe intended to increase the availability of debt financing to eligible energy efficiency investment. The 100-million-euro EIB loan will be used by Piraeus Bank for the financing of new investment improving the energy efficiency in existing buildings, outdoor lighting and water pumping stations across Greece. The risk protection will cover 80 pct of Piraeus Bank’s potential losses under these loans up to a maximum agreed amount. Piraeus Bank will also benefit from the technical and financial expertise of the EIB during the start of the operation for assistance in the identification and appraisal of energy efficiency investments and capacity building support.
The new cooperation with Piraeus Bank in Greece represents the eighth partnership with a European bank to support energy efficiency investments under the Private Finance for Energy Efficiency financial instrument. The European Investment Bank engagement is supported by the European Commission, under the LIFE programme.
In 2017, the European Investment Bank provided more than 4.1 billion euros for new energy efficiency investment worldwide.