BAY OF BISCAY INTERCONNECTION - PCI

The project concerns the implementation of a High-Voltage Direct Current (HVDC) link interconnecting France and Spain across the Biscay Bay. The project will have a rated capacity of 2000 MW, DC voltage of 400 kV and a total route length of circa 390 km.

The project will expand the electricity interconnection between Spain and France, thereby improving the integration of the EU electricity market and the operation of renewable power generation in both countries, and more widely between the Iberian Peninsula and the rest of Europe.

The Project will increase the interconnection capacity between France and Spain, and more widely, between the Iberian Peninsula and the rest of Continental Europe. The Project is an EU Project of Common Interest, which will allow better optimisation of renewable generation dispatch, and help strengthen the EU internal energy market. It will also help Spain's progress towards the EU's interconnection target for all Member States of at least 15% of installed production capacity by 2030.

The Project supports the EIB priority policies on Securing the enabling infrastructure and Climate Action and contributes to achieving the national and EU long-term energy and climate goals.

The Project will allow aligning market prices and reducing cross-border congestion between Spain and France. The Project is expected to return excellent economic and social benefits. The capacity of the Promoters to implement and operate the Project is good. Subject to proper mitigations and compensations of the negative environmental and social impacts, the Project is acceptable in environmental and social terms. The employment impact of the Project is rated Good, according to the Bank's methodology.

The Borrowers attach great value to EIB financing as a mean to diversify their funding sources and lengthen the average maturity of their debt. The Borrowers consider EIB funds well suited to the Project, as the long tenor of EIB financing better match the assets' economic life and payback periods.

Environmental impact Assessments (EIA) have been carried out for the project in both France and Spain in accordance with applicable legislation in line with the EU EIA directive. Measures to avoid, reduce, mitigate and remedy environmental and social impacts have been identified and will be implemented as necessary.

The Bank will require the promoter to ensure that contracts for implementation of the project have been tendered in accordance with the applicable EU procurement legislation with publication of tender notices in the EU Official Journal, as and where required.

The project is designated as a Project of Common Interest by the EU and has been awarded a grant for works and studies under the EU CEF programme.