Federal state of Burgenland and Burgenland Energie realise Austria’s largest wind and photovoltaic project portfolio in cooperation with the EIB
- Burgenland Energie has developed a wind and photovoltaic project portfolio in Burgenland that includes PV and wind generation capacities of around 2,000 megawatts by 2030 - this corresponds to around twenty per cent of the solar and wind energy capacity currently installed in Austria
- “Project Tomorrow” is a key project with the aim of making Burgenland one of the first regions in the world to become climate-neutral and energy-independent by 2030
- The European Investment Bank signs contracts for the largest ever green energy financing in Austria
- Unique financing partnership between Landesbank Baden-Württemberg, UniCredit Bank Austria, Erste Bank, Raiffeisen Bank International, Wiener Städtische and Talanx Group for the expansion of renewable energy infrastructure
Burgenland Energie is Austria's largest wind and photovoltaic company. In the last two years, the company has built up the largest project pipeline in Austria, totalling around 2,000 megawatts of capacity in the wind and photovoltaic sector. Some of these projects are already in operation or under construction.
The projects are spread across the whole of Burgenland from north to south in order to make the entire region energy-independent and energy-secure in the long term. Burgenland is one of the windiest and sunniest federal states in Austria. With the regional energy resources of wind and sun, Burgenland is set to be one of the first regions in the world to become climate-neutral and energy-independent by 2030.
The developed wind and photovoltaic project portfolio, which was presented today, provides for an investment of around 200 million euros in equity and around 500 million euros in debt capital in a first tranche by the end of 2026. A classic, state-of-the-art form of project financing was chosen, which was specially structured as portfolio financing and is a European leader in how the expansion of renewable energies can be successfully financed. This is financing without liability on the part of the owners, in which the borrowed funds will be repaid solely from future cash flow.
This financing is based on the strategic partnership with the state of Burgenland, which is investing in the subsidiary as part of “Project Tomorrow” and is the majority shareholder.
The European Investment Bank (EIB), together with the largest Austrian banks (UniCredit Bank Austria, Raiffeisen Bank International, Erste Bank, Wiener Städtische) and European financial institutions (LBBW, Talanx Group), is supporting the construction of the largest portfolio of solar and wind power plants in Austria with a loan totalling EUR 250 million. A further EUR 100 million will be provided through EIB-backed loans from Erste Bank and LBBW. The project is the largest financing for green energy from photovoltaics and wind in which the EIB has ever participated in Austria.
The project benefits from risk sharing under the European Union's InvestEU programme. It also supports the European Union's REPowerEU plan, which aims to reduce Europe's dependence on fossil fuels as quickly as possible. The EIB Group is providing an additional EUR 45 billion for REPowerEU until 2027. By the end of 2023, the Bank had already financed EUR 21 billion under the plan.
Burgenland’s Governor Hans Peter Doskozil: “The federal state of Burgenland is joining a subsidiary of Burgenland Energie as a strategic partner. This project company will realise Austria's largest expansion in the wind and photovoltaic sector with a volume of up to 2,000 megawatts. The proceeds from this expansion will be used to finance the Gols clinic. With 'Project Tomorrow', we are taking an important step towards climate neutrality, energy independence and planning security for the people of Burgenland and local businesses. At the same time, the expansion will minimise the risk of power blackouts or heating supply failures. That is why it is very important for Burgenland to emphasise that energy security should not be in the hands of private companies, but in the interests of public services.”
Stephan Sharma, CEO Burgenland Energie: “Europe has an international energy dependency that is still over 70 per cent. Austria's energy dependency is 60 per cent, while Burgenland's is only below 40 per cent thanks to the expansion of renewable energies that has already taken place. The high energy dependency on international and unpredictable players also leads to a high level of uncertainty with energy prices for electricity and gas that are many times higher than those in the USA and China. This is currently and permanently weakening the business location. That is why we are investing in the utilisation of our domestic energy resources, wind and solar, which strengthen our energy independence and the security of Burgenland and Austria. We will realise around 40 wind and photovoltaic projects from northern to southern Burgenland in a unique and innovative form as wind and PV hybrid parks with agriculture and citizen participation. In doing so, we are also creating important economic stimuli through a value-added effect of around 3.6 billion euros, employment stimuli of around 12,000 jobs (FTEs) and CO2 savings of around 7 million tonnes. Through the energy communities, we are creating permanently secure and affordable energy prices from wind and solar power for an entire region.”
“Solar and wind energy are cornerstones of the energy transition,” said EIB Vice-President Thomas Östros. “Large-scale projects like these lead by example and prove that we can improve the energy supply of regions, countries and even an entire continent in a remarkably short time. They bring us closer to a future in which we live, work and do business more independently and sustainably.”
Burgenland Energie CFO Reinhard Czerny: “Major challenges such as the climate transition are also major opportunities - they motivate us to break new ground. For us at Burgenland Energie, this is the biggest project in our company's history - a truly historic milestone. Thanks to the excellent cooperation with our project partners and a well thought-out financing solution, we have succeeded in creating a new pioneering model for the future financing of major climate transition projects - in Austria and throughout Europe.”
Robert Zadrazil, Country Manager Austria UniCredit: “This ground-breaking project in Burgenland shows how the energy transition can be successful and thus provide economic impetus for Austria. With this high level of investment, we are sending a strong signal against the weakening economy in Austria and strengthening the location in the long term. This flagship project fits perfectly into UniCredit Bank Austria's sustainability strategy.”
Johann Strobl, CEO Raiffeisen Bank International: “As a pioneer in the field of sustainable financing solutions, we are proud to be part of this forward-looking financing consortium. Project Tomorrow is not only a milestone for the Burgenland Energie Group and the province of Burgenland, but is of outstanding importance for the whole of Austria on the road to green transformation. This lighthouse project impressively demonstrates how sustainable investments in renewable energy sources can accelerate the energy transition in Austria and at the same time provide significant economic impetus. Through our participation, we are strengthening national energy security and the Austrian economy, and together we are making a significant contribution to achieving the climate targets.”
Hans Unterdorfer, Corporate Board Member of Erste Bank Austria: “The green transformation of our economy is both a historic challenge and an enormous opportunity. Energy security in particular has a decisive role to play here. A reliable and cost-efficient energy supply is an important prerequisite for the positive development of the business location. 'Project Tomorrow' has a pioneering effect for a sustainable future and contributes to the future success of Austria as a business location.”
Ralph Müller, CEO of Wiener Städtische: “Through our investments in renewable energies, we are actively contributing to the successful energy transition. In addition, we are expanding the diversification of our investments in the interests of our customers. I am very pleased that Wiener Städtische is on board with this project in Burgenland and that we are now also becoming active in Austria following our investments in wind and solar parks in Europe.”
Jan Wicke, CFO Talanx Group: “We are delighted to be actively shaping the energy transition with this investment. Due to the diversified project portfolio and the cooperation with the largest and most experienced local supplier, the investment is also attractive for us as an insurance investor - both from a sustainability and risk perspective.”
Background information
The European Investment Bank (EIB) is the European Union's long-term financing institution. Its shareholders are the EU Member States. Based on eight core priorities, it finances investments that contribute to the EU's strategic objectives. The EIB supports climate action and environment, digitalisation and technological innovation, security and defence, cohesion, agriculture and bioeconomy, social infrastructure, capital markets union and a stronger Europe in a stable, peaceful world.
The EIB Group, which includes the European Investment Fund (EIF), signed almost EUR 89 billion in new financing for more than 900 high-impact projects in 2024, making Europe more competitive and secure. In 2024, the EIB Group signed EUR 1.7 billion in Austria. This primarily supported counter-cyclical investments in energy-intensive sectors such as steel and renewable energies.
The InvestEU programme provides the European Union with important long-term funding by mobilising significant private and public resources to support a sustainable recovery. It also helps to mobilise private investment for the European Union's policy priorities, such as the European Green Deal and the digital transition. The InvestEU programme brings together the many EU financial instruments currently available to support investment in the European Union and makes the financing of investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU Fund will be implemented by financial partners who will invest in projects with the help of the EU budget guarantee of €26.2 billion. The total budget guarantee will support the implementing partners' investment projects, increase their risk-bearing capacity and thus mobilise at least €372 billion in additional investment.
BEAG is an Austrian energy company that is investing heavily in the expansion of renewable energies. The strategic focus is on the transformation from a traditional energy supplier to one of Europe's leading green tech companies in order to make Burgenland one of the first climate-neutral regions in Europe by 2030.
Enquiries:
EIB
Donata Riedel,d.riedel@eib.org ,
Phone: +49 30 590047-90, Mobile: +49 151 14659021
Website: www.eib.org/press - press@eib.org
Burgenland Energie AG
Jürgen Schwarz
Spokesperson Burgenland Energie AG
juergen.schwarz@burgenlandenergie.at
Mobile +43 (0)664/88210275
UniCredit Bank Austria
Matthias Raftl
matthias.raftl@unicreditgroup.at
Phone: +43(0)50505-52809