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Reference: 20220085
Release date: 29 June 2022

Promoter – Financial Intermediary

IBERDROLA SA

Location

Description

Financing of solar photovoltaic (PV) and wind power projects across Spain, mostly located in cohesion regions (Castile-León, Extremadura and Andalusia).

Additionality and Impact

The project increases renewable energy generation capacity in Spain and contributes to national and EU 2030 climate objectives. It is in line with the Bank's priority energy lending related to on Energy (Renewable Energy) as well as the transversal objectives on Climate Action (mitigation), Environmental Sustainability (Pollution Prevention Control) and Social and Economic Cohesion (93% of CAPEX). 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.

 

Quality and Results is rated Very Good. The project has an

excellent economic return and the current electricity market prices are not

fully reflecting the value of electricity. Besides, the promoter has a

recognised in-house design and project management capacity with a significant

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). 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.

Objectives

The operation is proposed to be structured as a framework loan aimed at financing part of Iberdrola's ambitious renewable energy investment programme in Spain throughout the period 2022-2023. The pipeline of plants to be included under this operation will be a combination of onshore wind and solar-photovoltaic power plants.

Sector(s)

  • Energy - Electricity, gas, steam and air conditioning supply

Proposed EIB finance (Approximate amount)

EUR 550 million

Total cost (Approximate amount)

EUR 1147 million

Environmental aspects

Iberdrola will be requested to comply with applicable national and EU legislation.

Procurement

Iberdrola will be requested to comply with applicable national and EU legislation.

Status

Signed - 22/07/2022

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).

Related tags

Spain Energy