The European Investment Bank (EIB) and Iberdrola have agreed to increase the green loan signed in 2021 to modernise the company’s distribution networks
The €220m top-up brings the total EIB financing to around €820m, allocated to strengthen smart grids in Spain and contribute to the further electrification of the economy.
This agreement supports the development of the smart grid investment plan being developed by i-DE, Iberdrola’s distribution company in Spain, over the period 2021-2023, involving a total investment of €1.8bn.
The company will have the capacity to multiply the reliability, efficiency and security of the electricity distribution grid, all thanks to support from the EIB and Spanish government funds through the Recovery and Resilience Mechanism (RRM).
The project linked to the loan will improve the efficiency of the distribution network, characterised by automation and control, and will impact twelve Spanish regions.
In addition, the loan will help Iberdrola safeguard around 10,000 jobs per year in Spain during the implementation period, according to the EIB’s estimates.
EIB vice-president Ricardo Mourinho Felix said: “The top-up of this facility is all the more important at a time of energy crisis. We at the EIB know that it is vital to boost electricity grids in order to see the growth of renewable energy, which is vital for ensuring security of supply and decarbonising the EU economy.
“The top-up of this green loan with Iberdrola is a further step towards this objective, and it also translates into economic growth and employment in Spain.”
Chairman and CEO of Iberdrola Ignacio Galan added that “the top-up of this green loan with the EIB will enable us to further develop Spain´s smart grids, which are essential for facilitating the integration of renewable energy production, boosting energy efficiency and improving the distribution network and the quality of supply.
“This will speed up the transition to a more sustainable model, helping to provide greater energy self-sufficiency and security, which are so necessary at this critical time.”