EDP Renováveis (EDPR) has agreed financing for two onshore wind farms in Portugal with a combined capacity of 125MW.
The European Investment Bank (EIB) and BPI have agreed to finance construction and operation of the project. The EIB will provide a $79m (€65m) loan, while BPI will offer an additional $57m (€47m).
The EIB financing is backed by the European Fund for Strategic Investments (EFSI). The two projects are co-financed by Banco BPI.
EDPR will use the financing for the design, construction, and operations of two medium-scale wind farms. The Tocha II wind farm in the western district of Coimbra will generate 33MW when fully operational. In the north of the country, the Sincelo wind project will generate 92MW for the Guarda region.
Tocha II wind farm will be built near the Atlantic coast, in the municipality of Cantanhede. The Sincelo wind farm will be developed in the Pinhel and Guarda municipalities.
During construction, the projects will create nearly 560 temporary jobs. The two wind facilities will help Portugal meet its Energy and Climate Plan targets, which aim for 47% of renewable sources in gross final energy consumption by 2030.
The developments will also support the European Commission’s binding target of having at least 32% of final energy consumption from renewable sources by 2030.
EIB Portugal vice-president Ricardo Mourinho Félix said: “This flagship project strengthens our partnership with EDP Renováveis and reinforces the Bank’s commitment to promoting climate action, economic development, and cohesion.
“Supporting Portugal’s decarbonisation targets, while boosting growth and job creation, is one of the EIB’s main priorities.
“If we want the post-Covid-19 economic recovery to be green and inclusive, it is key to foster the supply of renewable energy and its broad-based utilisation by the productive sector and by our citizens.”