The European Investment Bank (EIB) has granted a EUR 175 million loan to Spanish power company Red Eléctrica de España (REE) representing the Spanish part of the finance for the Spain-France power interconnection, the first trans-European direct current link using innovative converter technology. The EIB undertook to finance this project to the tune of EUR 350 million in an agreement signed last October. The contract was signed in Madrid today by EIB Vice-President Magdalena Álvarez Arza and REE’s CEO, José Folgado.
The new line will connect the municipalities of Santa Llogaia (near Figueras) and Baixas (near Perpignan) and will be laid entirely underground in 64.5 km of trenches (31 km and Spain 33.5 km in France). The section crossing the Pyrenees will be laid in an 8.5 km tunnel alongside those of the Perpignan-Figueras high-speed rail line. The interconnection is scheduled to be brought into service in 2014.
The main purpose of this new interconnection is to double electricity exchange capacity between Spain and the rest of Europe (from 1 400 to 2 800 MW).
The project will improve the security of the electricity supply and especially increase the stability of the of the power system by enhancing integration with the European grid. At the same time, increasing interconnection capacity between France and Spain will strengthen the overall European grid and improve resistance to possible risks and incidents.
The total cost of the interconnection will be EUR 700 million, half of which provided by the EIB. The project is also receiving a EUR 225 million EU grant under the European Energy Programme for Recovery.
The European Investment Bank (EIB) and RLB NÖ-Wien will support investments in small and medium-sized renewable energy and energy efficiency projects in Austria. The EIB will make a framework loan of up to €100 million available to the Austrian regional bank, which will then create a credit portfolio of up to €200 million for financing clean energy projects.
The EIB Group, consisting of the European Investment Bank (EIB) and the European Investment Fund (EIF), has issued a guarantee to AS Citadele banka to support new lending to companies based in all three Baltic States. The Group’s first agreement with AS Citadele banka, the deal will provide capital relief for the bank and enable it to grant at least €460 million in additional loans and leases to businesses in the Baltics over the next three years. Against the uncertainty of the current economic climate and geopolitical situation, the agreement is especially welcome and affirms EIB Group’s status as a countercyclical investor.
The European Investment Bank (EIB) will lend €35 million to the Spanish multinational GAM (BME ticker: GALQ), which specialises in turnkey machinery solutions for industry, to make its rental fleet electric and develop more sustainable last-mile solutions for its subsidiary Inquieto. The loan will also be used to digitalise and develop Kirleo, the company’s vocational training school, therefore supporting digital skills development and training at the company. The EIB loan is backed by the European Fund for Strategic Investments (EFSI), the main pillar of the Investment Plan for Europe. This financing is in line with GAM’s strategic approach based on innovation and sustainability.