UK wind energy industry gets £1.4 billion loan

Renewable energy generation will receive a boost in the UK as small independent wind farm developers can now avail of badly needed funds from the £1.4-billion funding being made available from the European Investment Bank and commercial banks.

The industry has suffered with the onset of recession, where small developers have found it difficult to raise money as banks had stopped credit lines and project financing for low cost wind farms.

Three UK-based banks will start offering new loans to eligible onshore wind farms and Wind farm developers and the banks will begin to start lending under a scheme - supported by the UK Treasury and department of energy and climate change.

The European Investment Bank (EIB) will provide up to £700 million of the new finance with a loan term of 15 years, with the remainder matched by RBS, Lloyds Banking Group and BNP Paribas Fortis.

The loans totalling £1.4 billion will be available to eligible onshore wind projects over the next 3 years for projects that cost between £20 million and £100 million.

Chancellor Alistair Darling said, ''We welcome the EIB's commitment to provide this vital funding for renewable projects across the UK. The money that is being made available will help continue the essential work of building the UK's capacity in renewable energy. As the UK government continues to push for a global agreement on climate change at Copenhagen it is even more important that we live up to our responsibilities and make progress in reducing this country's dependence on carbon.''