The cash is part of the additional £4bn of EIB lending to support UK energy projects announced in the Budget for building onshore wind power projects with a particular focus on small and medium windfarm projects hit by the credit crunch.
Loans will be available for eligible wind power projects this autumn once the banks have agreed funding arrangements with the EIB which is planning to make up to £600m of its own funds available to match the banks’ lending, the DECC said. The EIB will match up to 50% of the project debt with the participating banks, potentially allowing for up to £1bn of loans.
Wind power developers and firms can also apply for DECC cash to develop offshore wind technology. There will be up to £10 million in grants, part of the £120m announced in the renewable energy strategy in July to support offshore wind.