Onshore wind given 1.4bn UKbank loan
LLOYDS Banking Group, Royal Bank of Scotland and BNP Paribas teamed up with the European Investment Bank yesterday to pour £1.4bn of financing into onshore wind projects in the UK.
Chancellor Alistair Darling and energy minister Ed Miliband threw their weight behind the project that encourages banks to lend to wind power firms a day after the government paved the way for a huge expansion of nuclear power.
“We need greener sources of energy… non-carbon energy is very important. The fact that the EIB is here, and that there are representatives from the banks shows just how important it is,” Darling said.
“In fact, it’s a pleasure to be here on behalf of my banks,” he joked, referring to the part state-owned RBS and Lloyds.
Miliband said the money was part of the government’s plan to inject much needed liquidity into the sector and secure the development of clean energy, which has taken a hit in the credit crunch.
“The recent turbulence in the financial markets has affected the availability of loan finance for smaller and medium sized projects,” Maria McCaffery, chief executive of the British Wind Energy Association (BWEA) said.
The EIB will supply £700m of the cash, with the remaining half coming from the partner banks. The financiers did not rule out teaming up with other retail banks, should they be interested.
Britain is seeking to cut its carbon emissions by 80 per cent, equivalent to 1990 levels, by 2050.
FAST FACTS WIND ENERGY
&9679; Lloyds Banking Group, RBS and BNPParibas are lending £700m to onshore windfarms, while the EIBis pumping in a further £700m.
&9679; Alistair Darling and Ed Miliband teamed up yesterday to welcome the loans.