The European Investment Bank (EIB) and VGP Renewable Energy N.V. signed a €150 million framework loan that will support solar panel installation on the roofs of VGP’s logistics centres across the European Union.
The ten-year loan will contribute to accelerating the energy transition, strengthen the security of power supply and boost climate action. It is part of the EIB’s dedicated contribution to REPowerEU, the plan designed to end Europe’s dependence on fossil-fuel imports. It will also reduce the carbon footprint of VGP and its clients.
VGP Renewable Energy N.V. is a wholly owned subsidiary of VGP, a listed pan-European real estate business specialised in the acquisition, development and management of warehouses and semi-industrial buildings. The company is implementing an ambitious initiative to expand its renewable energy production within its real estate portfolio across 14 EU countries. The focus of this programme is the installation of rooftop solar photovoltaic systems.
The newly installed photovoltaics will generate up to 190 GWh in renewable electricity per year, enough to cover the consumption of 110 000 Europeans. A significant part of the electricity will be used onsite, improving the viability of the project. The installation is planned on existing roof areas, meaning the project will not require additional land. Furthermore, it will increase the value of the buildings through new business use.
“There is large untapped potential for renewable energy on the roofs of warehouses and other industrial buildings,” said EIB Vice-President Thomas Östros, who is responsible for energy-related operations. “With loans like that to VGP Renewable Energy N.V., we can help save scarce agricultural land and natural spaces while increasing renewable energy production. More renewables will help Europe to break away from fossil fuels and lower its dependency on energy imports. Ultimately, this will not only be a win for the climate, but also bring down electricity prices, which is in everybody’s interest.”
Jan Van Geet, CEO of VGP, commented: “We are delighted about the collaboration with the European Investment Bank, which reflects the key role of buildings in enabling the green and efficient electrification in Europe’s energy transition. This is another important recognition of VGP’s efforts to enable the transformation to a low carbon society.”
The EIB is the European Union’s long-term lending institution, owned by its Member States. We finance sound investments that contribute to EU policy goals, including social and territorial cohesion, and the just transition to climate neutrality. The EIB was the first multilateral development bank to end support for fossil fuels and has committed to supporting €1 trillion in climate investment this decade. Over half of the EIB Group’s lending in 2022 was devoted to climate and environmental sustainability projects, while almost half of the EIB’s financing inside the European Union was signed for projects in cohesion regions, where per capita income is lower, highlighting the Bank’s commitment to equitable growth.
In July 2023, the EIB Board of Directors decided to raise the additional funds earmarked for projects aligned with REPowerEU, the plan designed to end Europe’s dependence on fossil-fuel imports, to €45 billion. The additional funding comes on top of the EIB’s already substantial support for clean investments and represents a 50% increase compared to the original €30 billion package announced in October 2022.
VGP Renewable Energy N.V. was set up by VGP N.V., a European provider of logistics and semi-industrial real estate, in 2020. Its purpose is to enable the green energy transition of VGP Group and assist its clients in making their businesses more sustainable in a cost-effective way. The imminent target is to expand the roll-out of photovoltaic (PV) installations on the roofs of VGP Parks – by investing and operating such PV systems directly as owner, in cooperation with the company’s tenants. Ultimately the goal of VGP Renewable Energy is to capitalise, not only on the available roof space on VGP Parks but on the most current energy technologies available across the entire spectrum of renewable energy production and storage.
Source: European Investment Bank
