Iberdrola and EU bank ink €550m loan to boost renewable energy in Spain

The loan will support the construction of solar and wind farms with a total capacity of around 1,800MW, generating enough electricity to power around one million homes

Big Zero Report 2022

Iberdrola and the European Investment Bank (EIB) have signed a €550 million (£468m) loan to boost the deployment of renewable energy projects in Spain.

The loan will be provided for the construction of a portfolio of solar and wind farms with a total capacity of around 1,800MW, which are expected to generate enough electricity to power around one million homes.

The new projects will also support the creation of around 2,100 green jobs per year during construction, with additional jobs in the operational phase.

Part of the funding will be provided for projects such as the 200MW Tagus and 80MW Almaraz solar plants in Extremadura and the 50MW Valdemoro wind farm in Castilla y León.

Iberdrola CEO Ignacio Galán said: “This financing agreement, which further strengthens our partnership with the EIB, gives a new boost to our projects in Spain at an important time when we need to accelerate the energy transition and reduce dependence on fossil fuels.”

The agreement contributes to the EU’s target of generating 32% of energy from renewable sources in gross final energy consumption by 2030, which has recently been proposed to increase to 45%.

It also supports Spain’s 42% renewable energy target for 2030.

EIB Vice President Ricardo Mourinho Félix added: “The new green loan signed with Iberdrola enables us to step up our contribution to making Spain a country with greater renewable capacity, a key factor in helping Europe achieve its climate targets.

“As the EU Bank, we continue to support projects in line with our ‘Climate Bank Roadmap’, while at the same time boosting Europe’s security of energy supply in the current sensitive context. We are pleased to support Iberdrola in projects that will generate economic growth and jobs in cohesion regions.”

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