The GIB – set up by the UK government in late 2012 to helpkick-start investments in major low-carbon projects – has so far focused on offshorewind, waste-to-energy and energy efficiency.
But the green bank now plans to extend that to backingsmaller-scale, community onshore wind projects, which have faced problemsraising finance since the country’s Co-op Bank – a major supporter ofrenewables – was forced to pull in its horns last year.
The GIB has asked EU authorities to approve the remit extension,which would need to be sanctioned under state aid rules. It will argue that afailure of the market makes such support allowable.
The GIB was initially seeded with £3bn by the UK government and topped up with a further £800m last year.
The GIB would expect initial investments in onshore wind andsmall hydropower projects in the region of £100m.
