EIB Invests €260M in Irish solar farm investment
Ireland’s renewable energy landscape is set for a significant transformation with the announcement of a landmark €260 million investment into four new utility-scale solar farms. Backed by the European Investment Bank (EIB), this initiative marks one of the country’s largest-ever investments in solar power, poised to accelerate Ireland’s journey towards its ambitious 2030 climate targets.
The projects, delivered by Dolmen Solar Ltd, a part of Power Capital Renewable Energy, represent a major step forward in harnessing the nation’s solar potential. This development will not only boost clean electricity generation but also enhance Ireland’s energy security for the future.
A Pioneering Financial Structure for Irish solar farm investment
At the heart of this €260 million investment is a €100 million project finance loan from the European Investment Bank. This substantial commitment is complemented by commercial lending from Danske Bank, creating a robust financial package for the development.
Significantly, this deal represents Ireland’s first fully non-recourse solar project financing. This innovative financial model, where lenders are repaid solely from the project’s cash flow, demonstrates strong confidence in the viability and long-term success of large-scale solar energy in the Irish market.
Project Scope and Impact of Irish solar farm investment
The investment will fund a portfolio of four solar farms with a combined capacity of 395 MWp. These sites are strategically located across the country in Counties Clare, Tipperary, Wicklow, and Wexford. Among the projects are the 15.5 MWp Ballinaclough Solar Farm in Wicklow and the substantial 181.6 MWp Tullabeg Solar Farm in Wexford.
Construction is set to begin shortly, with the projects expected to be fully operational between 2027 and 2028. The development phase will create 136 jobs, providing a welcome boost to local economies.
Once complete, these farms will generate approximately 367 GWh of clean electricity annually—enough to power around 80,000 homes. This new capacity will play a crucial role in reducing Ireland’s carbon footprint, displacing an estimated 114,000 tonnes of CO₂ emissions each year.
Aligning with National and European Goals for Irish solar farm investment
This investment is a critical component of Ireland’s national strategy to achieve 80% renewable electricity by 2030, which includes a target of generating approximately 8 GW from solar power. The initiative also aligns perfectly with the European Union’s broader climate objectives and the REPowerEU plan, which aims to reduce reliance on fossil fuel imports and bolster the continent’s energy independence.
As noted by EIB Vice-President Ioannis Tsakiris, this financing is crucial for unlocking “almost 400 MW of new renewable capacity,” underscoring the bank’s commitment to supporting clean energy transitions across Europe. An Irish government minister echoed this sentiment, highlighting that the investment directly supports the delivery of Ireland’s climate targets while boosting clean electricity generation.
The electricity generated from these farms will be sold via the wholesale market, backed by long-term support mechanisms. This strategic investment not only provides a powerful injection of green energy into the national grid but also solidifies the foundation for a more sustainable and resilient energy future for Ireland.
