€15 billion investment in Eastern Europe renewables expected
Billions of Euros are expected to be ploughed in Eastern European renewable energy projects over the next two years as loans from the European Bank for Reconstruction and Development inspire confidence amongst private investors.The EBRD plans to invest up to €5bn in the region's renewable energy sector before 2011 and estimates that this will attract further co-financing of around €10bn.
The bank is owned by over 60 national governments and was set up to support developing economies and democracies from central Europe to central Asia.
Many of the countries in the region still rely on cheap, wasteful energy sources and remain the most energy intensive economies in the world when comparing their carbon emissions to their GDP.
The EBRD believes that by stimulating renewable energy production in the region it can help these nations reduce their carbon output while at the same time providing a boost to their economies.
"Reducing energy wastage in eastern Europe and developing reliable new supplies of sustainable energy remain core to the EBRD's future strategy," said EBRD president Thomas Mirow.
"Energy efficiency helps increase competitiveness. It is a key part of the transition process."
Over the next three years, the EBRD will build on work done so far and target additional types of investment, including energy efficiency in buildings and transport, biomass and investments in climate change adaptation.