The European Investment Bank (EIB) has committed €400 million (US$437 million) to bolster the solar and battery storage development initiatives of Greek renewables developer Mytilineos. The investment is a key component of Mytilineos' broader scheme, targeting the development of 2.6GW of solar PV and storage assets across the European Union by 2027, with an estimated total investment of €2.5 billion (US$2.7 billion).
The agreement, inked on December 21, 2023, aligns with the EIB's support for the EU's REPowerEU scheme, introduced in 2022 to reduce the bloc's reliance on fossil fuels, notably Russian gas in the aftermath of the Ukraine invasion. In July 2023, the EIB expanded its support for REPowerEU with a €15 billion commitment, aiming to facilitate renewable energy capacity deployments and asset manufacturing.
The EIB's financial backing will specifically target “less developed” areas in the EU with below-average income per capita, focusing on Greece, Mytilineos' home country, and various other European nations. Additionally, the funds will contribute to upgrading existing electricity grids to enhance the management and integration of renewable energy sources.
This move follows the EIB's September 2023 financing framework agreement of €1.7 billion with Spanish solar developer Solaria for the development of 120 solar PV sites across Spain, Portugal, and Italy under the REPowerEU financing initiative.
Jean-Christophe Laloux, Director General at the EIB, emphasized the significance of scaling up renewable energy investments to unlock Greece's solar and energy storage potential, contributing to Europe's broader energy transition goals. Mytilineos' Chief Treasury & IR Officer, Christos Gavalas, expressed gratitude for the EIB's support, highlighting the agreement's role in strengthening Mytilineos' financial capacity to expedite investments in solar PV parks and battery energy storage systems.
Mytilineos' energy sector business experienced substantial growth in the first half of 2023, reporting €1.99 billion in turnover and a remarkable 92% increase in EBITDA compared to the same period in 2022. The company recently completed the sale of 211MW of PV assets to Greek fossil fuels company HELLENiQ in Romania.