The European Investment Bank (EIB) and Iberdrola have signed a new financing agreement worth €1bn to fast forward the energy transition in Europe by building a network of 19 solar power plants and three onshore wind farms in Spain, Portugal and Germany.
With a total installed capacity of 2.2GW, the projects envisage a joint investment of more than €1.7bn, which will accelerate the energy transition and boost supply security, climate action and social cohesion in Europe.
The operation is part of the EIB’s financing package in support of REPowerEU, the EU plan to strengthen Europe’s energy autonomy.
The project will also have an innovation component, as it will facilitate the integration of renewables into grids. Some of the photovoltaic projects will include hybridization with wind power and battery systems for energy storage.
The new installations will provide green energy equal to the average annual energy consumption of more than 1,000,000 households and they will be mostly located in cohesion regions, where per-capita-income is lower than EU average, underlining EIB’s commitment to equitable growth and the convergence of living standards. The investments made under this agreement will boost economic growth and employment in the regions where these renewable energy facilities are installed. The new projects will also support the national energy plans of the three countries, and help Iberdrola achieve its 2040 net zero emissions target.
“This major financing agreement covering three countries highlights the EIB’s continued firm commitment to accelerating the energy transition in Europe and to ensuring access to affordable, clean power for all Europeans,” said EIB vice president Ricardo Mourinho Félix (pictured above right).
“This is a strategic objective for the European Union and the EIB that will not only contribute to climate change mitigation, but also to the EU’s energy security and strategic autonomy. As the horrific war in Ukraine has shown, sustainable energy and energy security are two sides of the same coin. To achieve them both, it is vital that we collaborate with companies in the European energy sector such as Iberdrola.”
Iberdrola executve chairman Ignacio Galán (above left) added: “As one of the main partners of the EIB, it is a pleasure for us to have the bank support again through this loan, which represents a significant contribution to accelerate Europe’s energy independence -in line with the REPowerEU Plan of the European Union–, achieve climate objectives, and continue creating economic growth and employment in the continent.”