EIB and Iberdrola sign EUR 500 million loan for upgrading electricity grids in Spain
Investment in installation of meters and expansion of smart grids in Aragón, Cantabria, Castilla-La Mancha, Castilla y León, the Valencia Region, Extremadura, La Rioja, Madrid, Murcia, Galicia, Asturias, Navarre and the Basque Country
Schemes will create up to 6,000 jobs during implementation
Iberdrola has signed a EUR 500 million loan with the European Investment Bank (EIB). The purpose of the agreement is to finance the upgrading of power distribution networks and digitalisation of the company’s meters in Spain with the aim of continuing to improve the quality of its service to customers.
The EIB’s backing will enable Iberdrola to conclude the implementation of its STAR project (the Spanish acronym for “Grid Remote Management and Automation System”), an ambitious initiative that combines meeting the legal obligation to replace meters with power of 15 kilowatts or less – which for Iberdrola means 10.6 million units – with the extensive upgrading and digitalisation of the electricity grid.
Specifically, Iberdrola will be carrying out this investment in Aragón, Cantabria, Castilla-La Mancha, Castilla y León, the Valencia Region, Extremadura, La Rioja, Madrid, Murcia, Galicia, Asturias, Navarre and the Basque Country.
The EIB-financed upgrading of Iberdrola’s electricity infrastructure is having direct benefits for consumers through schemes including the installation of more than four million remotely managed digital meters that provide customers with real time information on their consumption. By enabling Iberdrola to invest in new smart digital grids, the EIB is helping to improve the electricity supply in Spain, making it more efficient and environmentally sustainable.
The project will also have a positive impact on employment by creating more than 6,000 direct and indirect jobs throughout the implementation phase.
The EIB has, since its creation, been one of the Iberdrola Group’s traditional sources of financing. It currently has ongoing operations with the company in a variety of business areas (renewable energy, networks, generation and commercialisation) and geographical regions (Spain, the UK, Brazil and Mexico).