EBRD and Piraeus Bank boost renewable portfolio of Greece’s Terna Energy

Boosting Greece’s large potential for renewable energy, the European Bank for Reconstruction and Development (EBRD) is extending €50 million in financing to Terna Energy S.A., a leading local renewable energy firm. Piraeus Bank is providing €10 million in parallel financing.

The funds will finance the development, construction and operation of Terna Energy’s renewable energy projects in Greece, including the development of 48 MW wind farms in Central Greece.

The company’s portfolio includes wind farms, small hydroelectric plants and waste-to-energy units with a total operational capacity of 738 MW. Terna Energy aims to increase this to 1,000 MW in the coming years.

The EBRD and Piraeus Bank financing follows the introduction of a new market-based support scheme for renewable energy projects in Greece. It allows developers to participate directly in the wholesale electricity market and demonstrates the authorities’ commitment to boosting support for renewable energy developers.

Nandita Parshad, EBRD Director for Power and Energy, said: “This transaction is not only our first investment in the Greek electricity sector, it also marks the transition to a new market-based scheme for renewable energy which helps deliver clean energy to end-users at a lower price. We are very pleased to support Terna Energy’s wind projects alongside Piraeus Bank and we hope that this investment will lay the groundwork for a deeper involvement in the Greek electricity market.”

Penelope Lazaridou, Piraeus Bank General Manager for Corporate, Structured and Shipping Finance, said: “With long experience in financing the Greek renewable energy sector, Piraeus Bank is very pleased to have collaborated with the EBRD on this transaction, which we consider a vote of confidence in the sector itself as well as in one of its key players, Terna Energy. Piraeus Bank stands ready to support future projects and encourages the EBRD’s further involvement in the sector.”

Emmanuel Maragoudakis, Chief Executive Officer of Terna Energy S.A., commented: “I would like to take this opportunity to thank the EBRD and Piraeus Bank for their support for the realisation of our investment programme. Terna Energy is a pioneer in the development of renewable energy sources and operates in local and international markets, with 20 years of experience of operating in Greece, the United States of America, Poland and Bulgaria. The new project will add 48 MW to the company’s 738 MW installed capacity, which is expected to exceed 1,000 MW over the next few years.”

The EBRD started investing in Greece on a temporary basis in 2015 to support the country’s economic recovery. In addition to strengthening the financial sector, which represents 26 per cent of its current portfolio, the Bank’s other priorities are support for privatisation, infrastructure development and regional integration of the Greek economy. To date, the EBRD has invested almost €640 million in Greece in 13 projects across sectors.