ENDESA WIND AND SOLAR TICO ALLOCATION

The current operation refers to solar and wind renewable energy generation projects allocation under the Framework Loan (FL) 2020-0916, approved by the EIB Board of Directors on 22.07.2021 (CA/545/21/451).

The aim is to contribute to achieve the EU-wide target of reaching 32% of energy from renewable sources in gross final energy consumption by 2030, as set out in the Renewable Energy Directive (EU 2018/2001). It also contributes towards the renewable energy targets outlined in the Spain's National Energy and Climate Plan (NECP). The operation is in line with both the EIB's cohesion financing and with the lending priority related to renewable energy and climate action.

The project increases renewable energy generation capacity in Spain and contributes to national and EU 2030 climate objectives. The financing of this project also contributes to Bank's lending priority objectives on Renewable Energy as well as on climate action, environmental sustainability and on economic and social cohesion. The project produces electricity from low carbon sources (solar PV and on-shore wind), addressing the market failure of negative climate and environmental externalities, through the reduction of carbon emissions and air pollution (compared to fossil-fuel generation). As the schemes are expected to rely (at least partially) on revenues from the market (the wholesale market and/or unsubsidized commercial Power Purchase Agreements), and potentially revenues from market-based public support (Contracts for Difference), in a sector characterised by incomplete markets (limited forward/hedging, lack of scarcity pricing and lack of locational pricing), the project improves market efficiency and competition. Thus the operation is expected to yield good quality and results, thanks to avoided GHG emissions and fair employment creation. The EIB's contribution will be most visible on the financial contribution side by accelerating the fundraising process and crowding in other financiers. The schemes are located in EIB Cohesion Priority regions.

The transmission line for "Apicio" Photovoltaic (PV) plant (part of "Brovales" cluster) is included in the Annex I of the environmental impact assessment (EIA) Directive (Directive 2014/52/EU amending the EIA Directive 2011/92/EU). All the PV plants and other grid interconnection infrastructure are included in the Annex II of the EIA Directive and have been screened in by the competent authority. All plants and associated infrastructure underwent an EIA process, including public consultation. The plants and associated infrastructure obtained their environmental permits (Declaración de Impacto Ambiental - DIA) between December 2019 and February 2021.

The promoter has been assessed by the EIB as being a private company not being subject to EU rules on public procurement or concessions. However, if at the project appraisal, the EIB were to conclude that the promoter is subject to the EU public procurement legislation then the Bank would require the promoter to apply those rules.