Iberdrola Secures €550 Million Loan For Renewable Projects In Spain

Iberdrola, the Spanish multinational utility company, has said that it has forged an agreement with the European Investment Bank (EIB) to expedite Spain’s energy transition by establishing new renewable energy capacity. Under the agreement, the EU bank will provide a €550 million green loan for the construction of a portfolio of projects with a total capacity of close to 1,800 MW.

The official statement of Iberdrola has shared that these facilities will generate green and competitive energy equal to the average annual consumption of close to a million households. The total investment in the wind farms will account for over  €1.1 billion.

Iberdrola informed that new projects will create 2,100 jobs annually during construction as well as those created in the wider supply chain and other sectors. The company mentions that the new capacity will have strategic value, as it will help to strengthen clean energy self-sufficiency in Europe.

The official release of Iberdrola stated that EIB will finance solar PV plants as well as wind farms in a string of Spanish municipalities, primarily in rural areas of Castilla y Leon and Extremadura. The funding will partially be invested in projects like the 200 MW Tagus and 80 MW Almaraz solar plants in Extremadura and the 50 MW Valdemoro wind farm in Castilla y Leon.

Ricardo Mourinho Felix, VP of EIB, said, “As the EU bank, we are continuing 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 climate. We are pleased to be supporting Iberdrola in projects that will generate economic growth and jobs in cohesion regions.”

Ignacio Galan, CEO, Iberdrola, stated, “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.”

Iberdrola said that this agreement aids the EU’s goal of reaching 32 per cent of energy from renewable sources in gross final energy consumption by the end of the decade.

The financing is accessible for projects that completely comply with the stipulations as defined in the EIB’s Climate Awareness Bond (CAB) programme. As such, the transaction is eligible for allocation to its portfolio of lending operations financed through the issuance of such bonds.

Iberdrola claims to be a leading private group by green bonds issue and sustainable finance. In 2014, Iberdrola became the first energy company in the world to issue green bonds. At the end of March 2022, the group had green financing or financing linked to sustainability criteria accounting for over €41 billion, of which more than €16 billion corresponds to green bonds.