Summary sheet
The project comprises the implementation and operation of a portfolio of solar PV plants, onshore wind farms and, to a lesser extent, battery storage technology with an aggregate capacity of ca. 2.3 GW. This includes both greenfield stand-alone renewable energy plants as well as the repowering and hybridization of existing renewable energy plants. The schemes are located in various regions in Spain.
The aim is to contribute to reach the national and EU energy and climate goals, namely helping to decarbonise electricity production in the EU by decreasing the reliance on fossil fuels. Hence, the project is eligible under Article 309 point (c) common interest. Most of the Spanish regions where the preliminary portfolio of plants will be developed are classified as EIB Cohesion Priority Regions. Should plants in the project be located in such regions, then parts of the project would also be eligible under Article 309 point (a) "projects for developing less-developed regions".
This framework loan (FL) increases renewable energy generation capacity in Spain and includes battery storage technology (stand-alone and hybridization of existing solar PV and onshore wind), which enhances the integration of intermittent renewable energy generation into the grid and reduce power grid curtailment. The FL will address the market failure of negative climate and environmental externalities, through the reduction of carbon emissions and air pollution (compared to fossil-fuel generation) and the security of supply.
The FL contributes to the 2030 targets set out in the National Energy and Climate Plan of Spain and the REPowerEU Action Plan. The financing of this Project also contributes to Bank's lending priority objectives on Renewable Energy as well as on Climate Action.
The individual schemes will rely on revenues from (i) the spot market and (ii) PPAs, thereby the project improves market efficiency and competition. In terms of results, the schemes are expected to have a positive economic return, considering the economic value of the electricity generated. Therefore, the project will generate a positive social benefit by generating clean and renewable power at a cost (LCOE) reasonably below the cost of fossil-fuel based alternatives in Spain. On project quality, the schemes are supported by adequate capabilities / governance of the Promoter.
Overall, the financing through the EIB will strengthen the Promoter's capability to increase its capacity of renewable energy, complement other financing sources and improve its credit risk profile by extending the debt maturity profile. EIB's favourable customised terms are highly appreciated by the Borrower. Therefore, the loan is expected to provide a positive signalling effect in the market and crowd in complementary financing sources.
The individual plants and most of the ancillary infrastructure fall under Annex II of the )environmental impact assessment (EIA Directive 2011/92/EU amended by the Directive 2014/52/EU, requiring the competent authorities to determine whether an EIA is required. Battery energy storage systems do not fall under any of the annexes of the Directive. New overhead transmission lines for the interconnection of the schemes to the grid, if falling under Annex I due to their technical characteristics, are expected to be subject to an EIA. The promoter will be requested to comply with applicable national and EU legislation.
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 promoter will have to apply those rules.