Iberdrola has signed a €550 million green loan from the European Investment Bank (EIB) to develop renewable capacity and drive forward Spain's energy transition.
Credit: Iberdrola
Credit: Iberdrola
The loan will be used for the construction of energy projects with a total capacity of 1,800 MW. These facilities will produce green equivalent to the average annual consumption of around one million households. The total investment in wind farms will amount to more than €1.1 billion.
Iberdrola says that the new infrastructure will create around 2,100 jobs per year during the construction phase, as well as more in the operation phase and in related sectors.
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The projects will not only contribute to the ongoing economic recovery in Spain but will also strengthen European energy self-sufficiency.
The EIB will finance photovoltaic plants and wind farms all across the country, but mainly in the rural areas of Castilla y León and Extremadura, considered 'cohesion regions' by the EU. Part of the funding will go to projects such as the 200 MW Tagus and 80 MW Almaraz photovoltaic plants in Extremadura and the 50 MW Valdemoro wind farm in Castilla y León. These investments will not only increase the generation of clean energy but also improve the security of supply.
EIB Vice-President Ricardo Mourinho Félix said: "The new green loan signed with Iberdrola enables us to step up our contribution to making Spain a country with increased renewable capacity, a key factor for Europe to achieve its climate targets.
"As the EU Bank, we continue to support projects in line with our ‘Climate 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 the cohesion regions."
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Iberdrola’s CEO, Ignacio Galán, explained that: "This financing agreement, which further strengthens our cooperation with the EIB, is a new boost for our projects in Spain at an important time when we need to speed up the energy transition and reduce our dependence on fossil fuels."
The financing signed with the EIB is also in line with “Iberdrola’s commitment to a sustainable energy model that will enable the transition to a low-carbon economy", Galán added.
Iberdrola's operations will contribute towards the EU goal of 32% of the energy mix coming from renewables by 2030, which the Commission recently proposed to increase to 45%.
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