Nov. 10 (Bloomberg) -- Chancellor of the Exchequer Alistair Darling said banks will offer up to 1.4 billion pounds ($2.3 billion) in loans to spur development of wind farms that generate electric power.

The European Investment Bank will provide up to 700 million pounds of new finance for power plant developers. Those funds will be matched by Lloyds Banking Group Plc, Royal Bank of Scotland Group Plc and BNP Paribas Fortis, the U.K. Treasury said in a statement in London today.

“The money that is being made available will help continue the essential work of building the U.K.’s capacity in renewable energy,” Darling said in the statement.

Governments from around the world will meet in Copenhagen starting Dec. 7 for the final round of talks on a climate accord to replace the 1997 Kyoto Protocol, which expires in 2012. The U.K. has set a target for a six-fold increase in energy production derived from renewable sources by 2020.

The loans, which can be up to 100 million pounds, are aimed at stimulating the creation of small and medium-sized wind farms which have struggled to attract the support of banks, the Treasury said. The EIB will offer up to half the cost of a project with the remainder being raised from banks.

To contact the reporter on this story: Gonzalo Vina in London at gvina@bloomberg.net

Last Updated: November 10, 2009 07:51 EST