CAPARACENA ALLOCATION REPOWEREU FL

The project will finance solar photovoltaic projects, notably the Caparacena (ca. 330MWp), Tagus (ca. 379MWp), Ayora 1 (ca. 182MWp) and Cofrentes 1 (ca. 184MWp) plants. This is the second allocation under the framework loan (FL) IBERDROLA REPOWEREU FRAMEWORK LOAN (2022-0896).

The aim is to contribute to achieve the EU-wide target of reaching 42.5% of energy from renewable sources in gross final energy consumption by 2030, as set out in the current EU Renewable Energy (Directive EU/2018/2001 revised by EU/2023/2413). It also contributes towards the renewable energy targets as laid out in the Spain's National Energy and Climate Plan (NECP). The operation is in line with both the EIB's cohesion objectives and with the lending priority related to renewable energy and climate action.

The project portfolio produces electricity from low carbon sources (solar PV) and thereby, addresses negative climate and environmental externalities, a market failure, through the reduction of carbon emissions and other air pollution. It contributes to meeting the EU and Spanish renewable energy targets for 2030 and to the REPowerEU Plan. The financing of this project is in line with the Bank's lending priority objectives on Energy (Renewable Energy) as well as the transversal objectives on Climate Action (mitigation), Environmental Sustainability (Pollution Prevention Control) and Social and Economic Cohesion.

The project portfolio provides new generation capacity in a sector, which is characterized by incomplete markets. The projects will solely rely on market revenues (through long-term private PPAs and spot market sales). It thereby contributes to the policy objective to support the market integration of renewable energy projects, as set out in the EIB's Energy Lending Policy. The investments are located in EIB Cohesion Priority Regions, supporting the strengthening of the EU's economic, social and territorial cohesion.

Project quality and results are expected to be Very Good, with a notch-up to Excellent for cohesion.

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. 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.

The schemes and most of their ancillary infrastructure fall under Annex II of the EIA Directive 2011/92/EU as amended by Directive 2014/52/EU. All the schemes underwent an environmental impact assessment (EIA) process including public consultation. The plants and associated infrastructure obtained their environmental permits (Declaración de Impacto Ambiental - DIA) between May 2021 and January 2023.

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.