EDF Energies Nouvelles (EDF EN) and the European Investment Bank (EIB) have signed a memorandum of understanding to set up a financing structure for EDF EN's solar photovoltaic projects portfolio in France and Italy. The total amount allocated by the EIB is 500 million euros.
The investment program targets EDF EN's projects over the 2010-2012 period. These projects, which are currently under development or under construction, will all be equipped with thin-film photovoltaic technology from First Solar.
The financing framework agreement states that each project will be implemented jointly with several commercial banks, with each financing allocation independent of the others. The EIB's contribution will represent up to 50% of the total financing of each project.
Two pilot projects – the Gabardan ground-based solar farm in Landes, France, and the Loreo ground-based solar farm in Veneto, Italy, will be financed in early 2010 under this agreement. The financing structure to be implemented will then be replicated for each of the subsequent investments carried out under this program. According to the companies, this mechanism will help to simplify the implementation of all the other projects as, and when, their construction starts.