The European Union's lending arm, the European Investment Bank (EIB), approved a €700 million loan to expand Spanish renewable energy giant Iberdrola’s electricity-distribution grid in Spain.
EIB Director General for European Union Operations, Jean-Christophe Laloux, and Iberdrola Finance, Control and Corporate Development Director Jose Sainz-Armada signed an initial €500 million tranche in the Spanish capital, Madrid, the bank said in a statement on Monday.
“The total investment under the project amounts to €1.44 billion, with the remaining €740 million provided by Iberdrola,” the statement read.
The loan will finance smart power grid development and expansion, paving the way for the integration of renewable energy sources.
The project also aims to boost industrialization, economic growth and job creation in Spain, safeguarding 10,000 jobs annually in 12 autonomous communities.
Commenting on the agreement, EIB’s Laloux said: “This new financing agreement signed with Iberdrola will accelerate Spain's energy transition, ensure access to sustainable energy for all, and contribute to the European Union’s strategic and energy independence.”
For his part, Iberdrola’s Armada said: “We will use this new EIB financing to expand smart grid development in Spain, as this is vital for facilitating the energy transition, boosting efficiency and improving the distribution network and supply quality.”
“We will also contribute to the electrification of the economy and reducing the country’s energy dependence,” he added.
A significant investment boost is anticipated to be required in the production of renewable energy as well as in the upgrading of power grids to deliver this energy to consumers and companies, as the EU has raised its target for renewable energy consumption in Europe to 42.4% by 2030.
By Handan Kazanci
Anadolu Agency
energy@aa.com.tr