The European Investment Bank (EIB) and the Instituto de Credito Oficial (ICO) will finance the development of a 500MW solar project that Iberdrola is developing in Spain.
The Nunez de Balboa photovoltaic plant, being built in Extremadura, is the largest photovoltaic plant under construction in Europe.
The green finance agreement was signed in Madrid by EIB vice president Emma Navarro, ICO president Jose Carlos Garcia de Quevedo and Iberdrola chairman Ignacio Galan.
When commissioned in 2020 the facility will be able to supply clean energy to 250,000 people, more than the combined population of the Spanish cities of Caceres and Badajoz.
Galan said: “With this new agreement we are securing our investment in Nunez de Balboa and we continue to make progress towards the objective of tripling our wind and solar capacity in Spain by 2030.
“The facility signed with EIB and ICO is also in line with Iberdrola’s commitment to a sustainable energy model that allows the transition to a low-carbon economy.”
The EIB will lend €145m and the ICO up to €140m to the project.
Nunez de Balboa is located between the Badajoz province municipalities of Usagre, Hinojosa del Valle and Bienvenida.
During its construction phase over a thousand workers will be employed on the project, which includes the grid connection infrastructure.
During the signing ceremony Navarro said: “We are very pleased to support a project that will strengthen Spanish and European leadership in the transition to a low-emission economy. Our participation proves EIB’s strong commitment to climate action.”
Garcia de Quevedo, added: “This financing is part of the ICO Group’s global strategy which includes sustainability criteria to perform its activities.”