The European Investment Bank (EIB) has granted a EUR 78.5 million loan to the Iberdrola Group to finance a wind farm in the south-west of Mexico.

The EIB loan will help to finance the construction and commissioning of a wind farm comprising 121 turbines with a total capacity of 103 MW in Santo Domingo Ingenio, Oaxaca. The project will also include the construction of access roads and interconnection with the high-voltage network.

The project is designed to cater for the rapidly growing electricity demand Mexico with a renewable energy source. This is the first EIB loan granted in Mexico under the Sustainable Energy and Security of Supply Facility. The project meets the Facility’s requirements by fostering environmental sustainability, energy security and the development of renewable energies. It will also promote economic development and bring social benefits to one of Mexico’s poorest regions by creating jobs. With this loan, the EIB is also supporting investment – and the resultant technology transfer – by a major European company in the renewables sector.

The European Investment Bank (EIB) is the EU’s long-term financing institution promoting European objectives. Created in 1958, it operates in the 27 EU Member States and more than 130 other countries. Its lending operations outside the European Union are conducted under EU mandates in application of the Union’s policy of cooperation with those countries.

The Sustainable Energy and Security of Supply Facility is a EUR 3 billion multi-annual line for financing projects in non-EU countries that contribute to ensuring a sustainable and secure energy supply. Latin America is one of the parts of the world that can receive financing from this line.

The EIB has been providing loans in Asia and Latin America since 1993 under three successive mandates. Under the current ALA IV mandate for the period 2007-2013 (in addition to the Sustainable Energy and Security of Supply Facility), it is authorised to lend up to EUR 3.8 billion to finance i) operations supporting the EU’s presence in the region through direct investment and/or the transfer of technology and know-how, and ii) climate change mitigation projects. The EUR 3.8 billion breaks down into indicative amounts of EUR 2.8 billion for Latin America and EUR 1 billion for Asia.