Three UK based banks have offered new loans to eligible onshore wind developers, who will be able to broker the deals at a forum hosted by minister Ed Milliband and Chancellor Alistair Darling. The loan program, with support from HMTreasury and the Department of Energy and Climate Change, could release as much as GBP 1.4 billion in financing for onshore wind energy projects which could move on to construction phase over the next three years.

The European Investment Bank (EIB) will provide GBP 700 million, while the remainder of the total sum will be matched by RBS, Lloyds Banking Group and BNP Paribas Fortis. Onshore wind projects with a total cost of between GBP 20 and 100 million will be eligible to receive loans from the program.

According to Energy Secretary Ed Milliband, it took 14 years for the UK to reach 4 GW of installed wind capacity, but if the country is going to reach the set climate goals for 2020, it will need a 6-fold increase in installed wind capacity to make this happen. Only then can the UK hope to be able to achieve an 80% emissions cut by 2050.

[source: press release]