ANNOUNCEMENT 25 May 2016

In May 2016, the British government announced a change in private-sector financial support.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE



EC press release about the project. Available at
http://europa.eu/rapid/press-release_MEX-16-1909_en.htm

European Commission (20 July 2015): The Investment Plan for Europe: Questions and Answers. Available at http://europa.eu/rapid/press-release_MEMO-15-5419_en.htm

EIB: European Fund for Strategic Investments - Questions and Answers. Available at http://www.eib.org/attachments/press/investment_plan_for_europe_qa_en.pdf


Inception date: 25 May 2016 | Removal date: open ended

State loan

 On 25 May 2016, the European Investment Bank decided to provide 525 million GBP to a Beatrice wind farm off the coast of Caithness, Scotland, as part of the European Fund for Strategic Investments (henceforth: EFSI).
The funds shall be used for the procurement of 86 wind turbines.
EFSI support does not fall under EU State Aid rules as it is meant as a tool to address "market failures or sub-optimal investment situations". However, the investment support does include favourable conditions in the form of public assumption of risk. As described in the European Commission's Fact Sheet form 20 July 2015: "The type of risk-financing instruments will be designed so as to take uncertainty out ("first loss protection") of as such viable projects and therefore crowd-in private sector investments. Since the EFSI will take riskier tranches in investment projects, the private sector will be able to join under more favourable conditions." Furthermore, the EIB states that "The new initiative 'i.e. the EFSI' will benefit from the EIB's strong credit standing that enables funding at favourable conditions and across maturities".
A state measure in the GTA database is assessed solely in terms of the extent to which its implementation affects the extent of discrimination against foreign commercial interests. On this metric, the investment support proposed here is discriminatory.
The Beatrice wind farm already received investment support from the EFSI in October 2015 (cf. Related Measures).
Also, the EIB provided another 500 million GBP of investment support for nearby located transmission links back in March 2016 (cf. Related Measures).

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AFFECTED PRODUCTS