EIB and Iberdrola agree EUR 700 million green loan for grid expansion in Spain
- The signed financing amounts to €500 million and is the first tranche of an approved green loan for a total value of €700 million.
- The loan will finance the development of smart grids and their expansion in Spain, facilitating the integration of renewable energy sources and the connection of new uses
- The project contributes to achieving the REPowerEU plan's goal of increasing energy security and reducing the European Union's dependence on fossil fuel imports
The European Investment Bank (EIB) has approved a EUR 700 million green loan to expand Iberdrola's electricity distribution network in Spain. The first tranche of the loan, worth EUR 500 million, was signed in Madrid by Jean-Christophe Laloux, the EIB's Director General for EU Operations, and José Sainz Armada, Director of Finance, Control and Corporate Development of Iberdrola, a group of which Iberdrola España forms part.
The total investment associated with the project will be 1.44 billion, the other 740 million euros will be provided by Iberdrola. The project will contribute to increasing the efficiency and resilience of the electricity distribution grid, facilitate connection, new electrification uses such as heat pumps or electric mobility, and enable the integration of more renewable energy sources into the grid, thus accelerating the energy transition and advancing the decarbonization of the Spanish electricity sector.
The project will also boost industrialization and economic and employment growth in Spain by maintaining some 10,000 jobs per year in 12 autonomous communities throughout the implementation period.
Find out more about the green loan agreement for the expansion of electricity grids in Spain.