German bank lends 36 million euros to Irish energy group for construction of solar energy projects
The German bank Berenberg will lend 36 million euros to the Irish group Elgin Energy to support the development of solar energy projects in the Republic and the United Kingdom.
Elgin is building solar power and energy storage plants in Ireland, Britain and Australia, including spending € 400 million there on generators capable of powering up to 140,000 homes .
The company confirmed on Tuesday that Berenberg’s junior green energy debt fund will finance the advanced development of around 50 Irish and UK solar projects.
Under the terms of the agreement, Berenberg will provide a total of 36 million euros in project credit, which can be drawn over three years.
Ronan Kilduff, chief executive of Elgin Energy, said the deal was a “radical change” in raising capital for the company that would accelerate development of a significant number of solar projects.
“Elgin Energy has a total portfolio of advanced development stage projects totaling over 3.7 gigawatts in three key markets of UK, Australia and Ireland,” he noted.
Mr. Kilduff added that the company looks forward to working with Berenberg as a strategic partner.
Support wind farms
Founded in 1590, Berenberg is one of the oldest banks in Europe. The Hamburg, Germany-based lender has divisions spanning wealth and asset management, investment banking and corporate banking.
Its € 600 million junior green debt I, II and III funds have supported more than 100 wind and solar projects in Europe, Japan, Australia and the United States.
Torsten Heidemann, head of infrastructure and energy at Berenberg, said the partnership would expand the scope of the green energy fund to Irish and UK projects.
“Elgin has a strong track record of performance in the market and we look forward to building our relationship into the future,” he said.
The first projects covered by the Berenberg deal are expected to be ready for construction within the last three months of next year, according to Elgin.
The company will develop them to the point where they can start generating electricity through its existing partnerships.
Last year, two of Elgin’s Irish solar projects succeeded in securing support for the first auction of the state’s Renewable Energy Support Program.
The company claims to have delivered 21 solar projects with a total capacity of 230 megawatts (MW) under the UK government’s renewable bond program, before the program ends in 2017.
In 2020, it partnered with Foresight Group to develop solar projects with a total capacity of 276 MW.
The company has grown internationally over the past 11 years, employing engineers, accountants and lawyers in its offices in Dublin, London and Sydney.