The European Investment Bank and a Spanish energy company has signed a loan contract for €200m (£172.6m) to modernise its electricity distribution network throughout Spain.
The loan will co-finance Iberdrola’s investment programme, with a large number of new supply points to be connected to the existing network with the aim of improving the reliability and safety of the distribution system.
The energy firm will also install new digital electricity meters in compliance with Spanish regulation, which requires residential customers to have the meters in their homes by 2018. The investment programme provides for the installation of up to 1.8 million new electricity meters.
The news comes just days after the EIB granted a loan worth €475 million (£410.9m) to another Spanish utility firm to upgrade its power grid.
The EIB has provided €1 billion (£0.86bn) worth of loans since the beginning of the year for energy projects in Spain.
Earlier this month ELN reported Iberdrola’s UK arm, ScottishPower, is seeking approval for plans to invest £5.2 billion between 2015 and 2023 in its electricity distribution network.