The European Investment Bank (EIB) and Iberdrola have signed a new agreement to accelerate Portugal’s energy transition via the development of new renewable energy plants.
The EU bank will provide a €70m green loan for the construction of a portfolio of projects with a total capacity of around 188MW.
The EIB will finance five solar PV plants and their connections to the grid, located in the Portuguese regions of Algarve, Centro, Alentejo and Lisbon. These projects are mainly located in rural areas, which are considered cohesion regions by the EU.
The financing will go to the following projects: Montechoro 1 and 2 (37MWp), Alcochete 1 and 2 (46MWp), Algeruz 2 (27MWp), Conde (14MWp) and Carregado (64MWp).
The financing will also include ancillary infrastructure such as access roads, substations and interconnections.
These new facilities, awarded at auctions in 2019, will produce green and competitive energy equivalent to the average consumption of more than 65,000 households. In total, more than €150m will be provided for these solar projects.
EIB Vice-President Ricardo Mourinho Felix said: “The agreement signed today confirms the bank’s commitment to support Europe in achieving climate targets. We are pleased to collaborate with Iberdrola in its first ever solar power plants in Portugal which will also generate economic growth and jobs in cohesion regions.
“This project is an excellent example of the strategic cooperation between the EIB – Europe’s climate bank and Iberdrola – a global leader in renewables, united in supporting the green recovery, the green transition and Europe’s energy security.”
Jose Sainz, Iberdrola’s Chief Financial Officer, added: “This collaboration with the EIB is a boost for Iberdrola’s projects in Portugal. This comes at a critical time for the energy transition, as more renewables is the only way to reduce our dependence on fossil fuels.”