Summary sheet
Financing of a multi-scheme 188 MW solar photovoltaic (PV) project in Portugal.
The present project entails the implementation and operation of five solar PV plants and their connection facilities with a total capacity of ca. 188 MWp. The PV plants will be located in the Portuguese regions of Algarve, Centro, Alentejo and Lisbon.
The project increases renewable energy generation capacity in Portugal and contributes to national and EU 2030 climate objectives. Around 55% of the investment cost will be located in cohesion regions.
The financing of this project also contributes to Bank's lending priority objectives on Renewable Energy Climate Action, Economic and Social Cohesion and Environmental Sustainability.
The project produces electricity from low carbon sources (solar PV), thereby addressing the market failure of negative climate and environmental externalities through the reduction of carbon emissions and air pollution (compared to fossil-fuel generation).
The operation has been awarded support under the auction-based 'General remuneration' scheme in 2019. The scheme guarantees grid access capacity and allows generators to sell the generated electricity for 15 years at the prevailing market price less a fixed contribution for each unit of electricity produced to the National Electricity System. Given the exposure to residual market risks, the projects contribute to the EU policy objective to support the market integration of renewable energy projects (RED II).
The Bank's financial contribution is considered very good and valuable to the client, as the EIB's offering is more favourable than market alternatives under various dimensions (e.g. longer tenor, availability and grace periods, convertible or revisable rates). The promoter deems financing with an "EIB Green Loan" label as a stamp of quality on its investments and environment-related procedures and consistent with its green finance framework.
Iberdrola will be requested to comply with applicable national and EU legislation.
Iberdrola will be requested to comply with applicable national and EU legislation.