The European Investment Bank (EIB) is to provide Iberdrola with a €550m green loan to help with the construction of a portfolio of projects with a total capacity of around 1800MW.
The EIB will finance solar plants and wind farms in a number of Spanish municipalities, mainly in rural areas of Castilla y León and Extremadura.
Part of the funding will go to projects such as the 200MW Tagus and 80MW Almaraz PV plants in Extremadura and the 50MW Valdemoro wind farm in Castilla y León.
EIB vice-president Ricardo Mourinho Felix said: “The new green loan signed with Iberdrola enables us to step up our contribution to making Spain a country with greater renewable capacity, a key factor in helping Europe achieve its climate targets.
“As the EU Bank, we continue to support projects in line with our ‘Climate Bank Roadmap’, while at the same time boosting Europe’s security of energy supply in the current sensitive context.
“We are pleased to support Iberdrola in projects that will generate economic growth and jobs in cohesion regions.”
Iberdrola chief executive Ignacio Galan said: “This financing agreement, which further strengthens our partnership with the EIB, gives a new boost to our projects in Spain at an important time when we need to accelerate the energy transition and reduce dependence on fossil fuels.”
The loan is 100% eligible under the climate action/renewable energy framework, as it is dedicated to onshore wind and solar PV projects, and so can be considered as an EIB Green Loan.
The financing is available for projects that fully comply with the requirements defined in the EIB’s Climate Awareness Bonds programme.