The European Investment Bank (EIB) is funding €325 million (£227.5m) to improve the electricity grid in Spain.
Spanish company Iberdrola will use the cash to reform the electricity network and install more than three million smart meters in homes across 10 regions.
They include Madrid, Valencia, Pais Vasco and Navarra.
The EIB claims the project will help consumers save money on energy bills and reduce carbon emissions.
Román Escolano, EIB Vice President said: “The reform of the electricity network will help reduce waste while the replacement of smart meters will help householders use electricity efficiently.”