The European Investment Bank (EIB) and Iberdrola have signed a new agreement to accelerate Spain’s energy transition by developing new renewable energy capacity.
Article continues below
>
The EU bank will provide a €550 million green loan for the construction of a portfolio of projects with a total capacity of around 1 800 megawatts (MW).
These facilities will produce green and competitive energy equivalent to the average annual consumption of around 1 million households. The total investment in the wind farms will amount to more than €1.1 billion.
In total, the new projects will create around 2 100 jobs per year during construction, with additional jobs in the operational phase, as well as those created in the wider supply chain and other sectors. The new projects will make a major contribution to the sustainable recovery of the economy and job creation.
Additionally, the new capacity will have strategic value, as it will help to strengthen clean energy self-sufficiency in Europe.
The EIB will finance solar photovoltaic plants and wind farms in a number of Spanish municipalities, mainly in rural areas of Castilla y León and Extremadura, which are considered cohesion regions by the European Union.
Part of the funding will go to projects such as the 200 MW Tagus and 80 MW Almaraz solar photovoltaic plants in Extremadura and the 50 MW Valdemoro wind farm in Castilla y León. These investments will not only increase the generation of clean energy but also improve security of supply.
In addition, the project supports the Spanish renewable energy target of 42% for 2030 established in the integrated national energy and climate plan (PNIEC) 2021-2030.
As the loan is fully eligible under the climate action/renewable energy framework (as it is for onshore wind and solar photovoltaic projects), the operation can be considered an EIB green loan. This financing is available for projects that fully comply with the requirements defined in the EIB’s Climate Awareness Bond (CAB) programme.
As such, the transaction is eligible for allocation to its portfolio of lending operations financed through the issuance of such bonds. ■