3 Jul 2020
EUR 60 million
Financial institutions and SMEs
|Date of agreement:||29 Jun 2012|
|Customer:||Ringkjøbing Landbobank A/S|
|Amount in DKK:||DKK 175 million|
|Amount in EUR:||EUR 23.5 million|
|NACE sector / loan type:||Loan programme|
|Business area:||Financial institutions and SMEs|
This loan contributes to climate change mitigation: 100%
The EUR 24 million loan has been provided for financing wind energy projects.
This is NIB’s fourth loan programme with Ringkjøbing Landbobank, which is aimed at promoting wind energy projects in Denmark. Based on the experience from the previous loan programmes, it is estimated that 20–30 wind turbines with a total new generation capacity of 60 MW with an annual output of 190 GWh would be installed under the new credit facility.
Ringkjøbing Landbobank is a full-service regional bank with its main operations in the western and central part of the Jutland peninsula in western Denmark. Being one of the leading financiers of wind power projects in the country, the bank has built up in-house expertise in the field and is capable of assessing potential risks associated with wind power projects.
The project will help reduce carbon CO2 emissions by replacing fossil-fired electricity generation and, thus, contribute to the fulfilment of Danish government policies on wind energy, which set the target that 50% of electricity consumed in Denmark by 2020 be harnessed from renewable sources. The output of the new installed capacity will increase the volume of electricity traded in the Nordpool area and raise the competitive pressure in the electricity market.
The main positive environmental issue of the loan programme is the decrease in CO2 emissions as the coal-based electricity production is crowded out. There are small negative impacts on the environment during the construction period. One of them is that the neighbours may be disturbed by the sound of operating windmills. Another impact concerns birds, which are typically negatively affected by newly built windmills. The latest studies show, however, that windmills are unlikely to have a continuous negative effect on wildlife, because birds tend to quickly adapt to a changed landscape.