The European Investment Bank said Monday it is to lend up to 500 million euros (730 million dollars) to Ireland to boost wind power and also fund an undersea power link with Britain.
The loans would "help Ireland secure and green its electricity supplies and support Europe's economic recovery," the EIB said.
Some 300 million euros will help build a 256-kilometer (160-mile) cable under the Irish Sea between Ireland and Wales, underpinning the development of renewable energy by enabling the import and export of excess wind power.
The EIB, describing it as the first loan for an "EU recovery plan energy project", said it will improve security of supply and facilitate competition by connecting the Irish electricity market with the rest of Europe.
The bank is also lending 200 million euros for wind farms, the first EIB loan for renewable energy in Ireland.
A 475-million euro plan by Ireland's Electricity Supply Board (ESB) involves installing 248 megawatts of wind power capacity by 2012 in various locations.
Irish Energy Minister Eamon Ryan, a member of the Green party, said the government is transforming the country's energy policy.
"Today's investment will propel this transformation. We are well on the road to Ireland becoming a world leader in green energy and the fight against climate change," Ryan said.
EIB vice president Plutarchos Sakellaris said Ireland is very dependent on imported fossil fuels but has huge potential for wind power.
"Both these projects help Ireland in its ambition to go green and secure future energy supplies, helping Europe as a whole meet its climate change goals," Sakellaris said.
The loans bring total EIB support for Ireland this year to 850 million euros, almost double the total of 450 million eurosin 2008.
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