- The financing is structured as two separate loans for investment in distribution networks: one worth €500 million financed with resources from the Regional Resilience Fund (FRA), put in place by the Spanish Ministry of Economy, Trade and Enterprise, and another worth €150 million financed with the EIB’s own funds.
- The investment is expected to increase the security of supply and make the grid more resilient. It will have a direct impact on six autonomous communities, some of which are cohesion regions.
- This operation will help achieve the objectives of the Spanish Recovery, Transformation and Resilience Plan, advance the EIB’s climate action and cohesion goals, and support the REPowerEU plan’s mission to increase Europe’s energy security.
The European Investment Bank (EIB) and Endesa have signed two loans totalling €650 million to support the electricity company’s investments in strengthening, modernising and digitalising Spain’s electricity grid. The financing is expected to boost investments in six autonomous communities, fostering the expansion and resilience of the distribution network, enhancing the security of supply, and promoting the integration of renewable energy sources.
The Ministry of Economy, Trade and Business will channel Next Generation EU funds from the Spanish Recovery Plan through the Autonomous Resilience Fund (FRA) to finance a €500 million loan to Endesa. The EIB is financing a second loan worth €150 million to Endesa from its own funds corresponding to a first tranche of a total financing package of €500 million approved by the EIB.
Among other things, the financing will be used to install smart meters and measuring devices, deploy advanced transformers that can better manage supply fluctuations, install software to fully digitalise the electricity grid, build new substations and lay new underground cables, thereby creating a more climate-adapted grid.
Supported by the two loans, the project will further strengthen the grid’s resilience and enhance the security of supply. This comes against a backdrop of recurring adverse natural events linked to climate change, rising electricity demand fuelled by the electrification of the economy, and a growing share of electricity generated from renewable energy sources. The financing arrangement also underscores the commitment of the EIB and the Spanish Ministry of Economy, Trade and Enterprise to economic, social and territorial cohesion, with more than half of the total investment going to cohesion regions, where income per capita is below the EU average.
The project will contribute to the EIB’s objectives of climate action and cohesion, two of the eight strategic priorities set out in the EIB Group’s Strategic Roadmap for 2024-2027. The operation is also part of the EIB action plan to support REPowerEU, the programme to increase energy security and speed up the energy transition by reducing the European Union’s dependence on fossil fuel imports.
Background information
EIB
The EIB is the long-term lending institution of the European Union, owned by the Member States. Built around eight core priorities, it finances investments that pursue EU policy objectives by bolstering climate action and the environment, digitalisation and technological innovation, security and defence, cohesion, agriculture and bioeconomy, social infrastructure, the capital markets union, and a stronger Europe in a more peaceful and prosperous world.
The EIB Group, which also includes the European Investment Fund (EIF), signed nearly €89 billion in new financing for over 900 high-impact projects in 2024, boosting Europe’s competitiveness and security.
Around half of EIB financing in the European Union goes to cohesion regions, where per capita income is below the EU average, while almost 60% of annual EIB Group investments support climate action and environmental sustainability.
In Spain, the EIB Group signed new financing worth €12.3 billion for over 100 high-impact projects in 2024, contributing to the country’s green and digital transition, economic growth, competitiveness and better services for its people.
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Regional Resilience Fund
The Regional Resilience Fund (FRA) was created to facilitate access to NextGenerationEU loans from the Spanish Recovery, Transformation and Resilience Plan for the autonomous communities, with the aim of boosting investments and developing projects in eight priority areas: social and affordable housing; urban renewal; transport and sustainable tourism; the energy transition; water and waste management; the care economy; research, development and innovation; and the competitiveness of industry and SMEs.
The fund is led by the Ministry of Economy, Trade and Enterprise, which takes input from the autonomous communities and cities for investment decision-making and looks to the EIB Group as a strategic management partner.
The initial phase of the fund includes the activation of up to €3.4 billion in financing via:
- a direct financing mechanism, to co-finance EIB-supported operations in sectors like renewable energy, clean transport and sustainable infrastructure;
- an intermediated mechanism managed by financial intermediaries selected by the EIB, to support projects in urban development and sustainable tourism;
- two instruments intermediated by the European Investment Fund that will facilitate SME financing for innovation, sustainability and competitiveness.