The European Investment Bank (EIB) and Naturgy have signed a €1bn loan agreement to advance renewable energy projects in Spain.
The investment will finance the development of new solar and onshore wind power stations along with the modernisation and transition of existing sites into hybrid facilities.
An initial tranche of €400m was formalised in Madrid.
The loan will also partially support the installation of batteries for renewable energy storage.
According to EIB, the new commitment will boost Spain’s transition to cleaner energy sources. The project is expected to increase the country’s renewable energy capacity by 2.3GW.
Once completed, the clean energy projects are expected to produce enough green energy to supply electricity to more than 1,150,000 households annually.
Naturgy executive chairman Francisco Reynés said: “The financing agreement we have signed with the EIB once again demonstrates and validates our commitment to the energy transition and to advancing the decarbonisation of the Spanish economy.”
The majority of investments will be directed towards cohesion regions in Spain, areas where per capita income is below the European Union (EU) average.
The projects are expected to generate approximately 4,200 jobs during their implementation phase.
Besides, this initiative aligns with the EIB’s action plan under the REPowerEU strategy, aimed at enhancing energy security and accelerating the European energy transition.
Last year, EIB allocated €21bn to enhance energy security across Europe. This included €4.51bn dedicated to Spain, funding initiatives in renewable energy, energy efficiency, power grids, and storage systems.
EIB Director General and EU Lending and Advisory Head Jean-Christophe Laloux said: “This important financing agreement with Naturgy reflects the EIB’s strong commitment to supporting Europe’s energy transition.
“When complete, this project should generate enough green electricity to power more than one million homes, contributing also to our energy security and strategic autonomy.”
