Massive solar and wind capacity and transmission networks across Europe.
Link to source
Data sheet
Other links
Summary sheet
Release date
29 June 2023
Status
Reference
Signed | 07/06/2023
20220896
Project name
Promoter - financial intermediary
IBERDROLA REPOWEREU FRAMEWORK LOAN
IBERDROLA SA
Proposed EIB finance (Approximate amount)
Total cost (Approximate amount)
EUR 1000 million
EUR 1790 million
Location
Sector(s)
Description
Objectives
Financing of a set of renewable energy projects across Spain, Portugal and Germany in support of the REPowerEU initiative.
The operation is proposed to be structured as a framework loan aimed at financing part of Iberdrola's renewable energy projects in Spain, Portugal and Germany throughout the period 2023-2025. The pipeline of projects to be included under this operation will be a combination of onshore wind and solar-photovoltaic power plants.
Additionality and Impact
The project increases renewable energy generation capacity in Spain, Germany and Portugal and contributes to national and EU 2030 climate objectives. The financing of this project also contributes to Bank's lending priority objectives on Energy (Renewable Energy) as well as on climate action (transversal), and partially on economic and social cohesion (transversal). The project produces electricity from low carbon sources (solar PV and onshore 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), in a sector characterised by incomplete markets (limited forward/hedging, lack of scarcity and locational pricing), the project improves market efficiency and competition. The schemes are expected to be located mostly in EIB Cohesion Priority regions.
The project has an excellent economic return considering the expected costs and the economic value of the electricity generated (factoring in fully the positive externalities). The promoter has a proven track record of international energy projects.
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, disbursement conditions). 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.
Environmental aspects
Procurement
Iberdrola will be requested to comply with applicable national and EU legislation.
Iberdrola will be requested to comply with applicable national and EU legislation.
Milestone
Under appraisal
Approved
Signed
3 May 2023
7 June 2023
Related documents
Link to source
Summary sheet
Other links
Disclaimer
Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).
Documents
Environmental and Social Data Sheet (ESDS) - IBERDROLA REPOWEREU FRAMEWORK LOAN
Publication Date
19 Jul 2023
Document language
Main Topic
Lending
Document Number
167623704
Document Focus
Environmental Information
Document Type
Project Number
20220896
Sector(s)
Regions
Publicly available
Download now
Link to source
Other links
News & Stories
Link to source
Other links
Inside the project
How and Why
Ensure a stable supply of energy
Why
- Strengthening Europe’s energy autonomy
- Reduce greenhouse gas emission
- Increased demand for cleaner forms of energy.
How
- A €1 billion framework loan to finance many renewable energy projects
- A network of 19 solar photovoltaic power plants and three onshore wind farms across Spain, Portugal, and Germany
- New innovative technologies, such as hybridisation with a battery system, to ensure a more stable and reliable power supply.
Sectors & Countries
Play video
2:15
Story
Repowering Europe
Jaime Celaya had always wanted to work in the renewable energy market, because of its impact on society. So, following his studies and some early professional experience, he joined Iberdrola, the largest energy company in Europe by market capitalization and a leader in renewables. In his role as a business developer, he evaluates, selects, and implements new energy projects that will help Iberdrola reach its goal of zero emissions by 2040.
“It is a very dynamic and active sector, with new technologies, new mechanisms, new techniques appearing day-to-day,” he says. “Every day, I learn something new and acquire more knowledge.”
Celaya will be working on Iberdrola’s ambitious plan to build an extensive network of 19 solar photovoltaic power plants and three onshore wind farms across Spain, Portugal and Germany.
Developing renewables across Spain, Italy and Portugal will impact these countries and the European Union’s effort to tackle climate change, while increasing energy security.
A new burst renewable of energy for Spain
Incorporating renewable energy into our grids is difficult, because it doesn’t generate electricity consistently. Unlike fossil-fuel or hydropower plants that generate electricity on demand, solar panels and wind turbines rely on weather conditions and location. This means they produce varying and partially predictable amounts of electricity, making it hard for our energy grids to maintain a stable and consistent supply. This is the so-called renewable integration challenge.
To tackle this issue, some of Iberdrola’s photovoltaic projects will include hybridisation with a battery system — combining two different sources, like wind and solar, with energy storage to ensure a more stable and reliable power supply.
In 2023, the European Investment Bank backed another two Spanish companies, Red Eléctrica and Solaria, to boost Spain’s green transition and support Europe’s energy security.
Related media
Repowering Europe
Three Spanish projects strengthen Europe’s energy autonomy with solar and wind capacity and transmission networks
Powering Croatia
Several energy projects aim to make Croatia greener, ensure a secure energy supply, and improve lives in Zagreb
Turning up wind power
Price pressures and increasingly extreme environments push wind turbine innovation
Links
Related projects and stories
Uma conquista para a educação superior
A Nova School of Business and Economics reforça a educação universitária em Portugal, criando novas oportunidades académicas e profissionais para futuros líderes empresariais
Um projeto emblemático desde 1998
A Ponte Vasco da Gama, construída há mais de 25 anos, é um marco icónico da paisagem lisboeta que, com o apoio do BEI, mudou a vida de milhares de pessoas e revolucionou a mobilidade local
The difficult daily water ritual
Big water expansion project in western Kenya brings clean water and modern sewage treatment to the people who need the most help
General enquiries and comments
The EIB is committed to open communication and encourages constructive stakeholder input regarding its activities.
Enquiries and comments concerning the EIB’s involvement in a project or the financing facilities, activities, organisation and objectives of the EIB, can be sent to the EIB Infodesk.
Alternatively, the EIB can be contacted through its external offices.
Queries regarding details of a specific project, in particular when it is under appraisal by the EIB, should preferably be addressed directly to project promoters.
Media enquiries
Media-related enquiries can be addressed to the EIB Press Office. Please also visit our Media information section.
Complaints mechanism
Any complaint regarding alleged maladministration can be lodged via the EIB Complaints Mechanism. The European Ombudsman acts as an independent external accountability mechanism of the EIB.
Zero tolerance against fraud and corruption
The EIB has a zero tolerance policy on fraud or corruption. To report allegations of fraud and corruption relating to EIB-financed projects, please contact the Fraud and Investigation division. All complaints will be treated as strictly confidential and handled in line with the EIB investigation procedures and the Anti-Fraud Policy.
Related publications