The European Commission has adopted a Clean Energy Investment Strategy designed to mobilise additional private investment for clean energy.
Europe will need to invest about €660 billion a year in clean energy up to 2030, rising to around €695 billion a year between 2031 and 2040, the Commission informed in its statement on Tuesday.
Public money will be used as a “catalyst” to help attract more private capital by lowering financial risks and spreading costs over time, it added.
The European Investment Bank (EIB) Group plans to provide more than €75 billion in financing over the next three years in support of the strategy.
Commissioner for Energy and Housing Dan Jørgensen said public funding on its own would not be sufficient and that the strategy would focus on areas including clean technologies, energy efficiency and modern electricity infrastructure such as grids.
Focus on grids, new technologies and energy efficiency
One measure targets electricity grid operators, with the EIB set to establish a strategic infrastructure investment fund intended to provide equity — investment in return for a stake — to grid operators, backed by an indicative EIB commitment of up to €500 million, the Commission said.
The Commission and the EIB will also explore a facility that would let operators securitise future revenue streams — turning expected income into upfront cash — in exchange for immediate liquidity.
Another strand will seek to increase banks’ use of loan securitisation and intermediated lending to support smaller grid operators.
The strategy also includes targeted public funding to reduce risks for innovative clean energy technologies and energy-efficiency investments, including financing research on small modular nuclear reactors in Europe with the EIB.
A €500 million pilot scheme is planned to expand “energy efficiency as a service” models, where energy-saving upgrades are provided through service-style contracts rather than upfront purchases.
The Commission will convene an Energy Transition Investment Council with the investment community later this year, led by the Commissioner for Energy and Housing.
