The EBRD invested €23 million in a 2.8 per cent stake in French renewable energy producer Voltalia in a move to help the company expand its operations into the economies where the Bank invests. The investment was part of a larger capital increase to finance Voltalia’s investment programme for 2020-23
SUPPORTING VOLTALIA OUTSIDE OF BRAZIL
The company is a major developer, owner and operator of renewable energy assets predominantly in Brazil. It was looking to diversify geographically and grow its asset base from an operating 678 MW in 2019 to more than 2.6 GW by 2023, which is currently in operation or under construction. The Bank played a key role in supporting this expansion by validating its strategy to investors and other stakeholders and contributing its experience and understanding of the region. Voltalia’s operations in Brazil now account for 66 per cent of its installed capacity (compared with 85 per cent at the time of the investment); Europe (including Greece) accounts for 26 per cent; and the rest of the world (including Egypt and Jordan) accounts for 8 per cent.
FINANCING THE TRANSITION TO GREEN ENERGY
The EBRD's investment was placed in a pure renewable energy developer for renewable projects in the economies where the Bank operates. The investment is expected to lead to at least 369 MW of new greenfield capacity in the Bank’s regions. CO2 savings are expected to be in excess of 115,000 tonnes annually.
INVESTING WITH IMPACT
The Bank’s impact arises from (i) supporting the market entrance of a new renewable energy player into the Bank's regions, where private sector participation is limited (therefore increasing competition in the energy sector) and (ii) delivering climate mitigation benefits through the expansion of renewable energy capacity in the EBRD regions.