SOMACYL RENEWABLE ENERGY & ENERGY EFFICIENCY FL

Promoter – Financial Intermediary

SOCIEDAD PUBLICA DE INFRAESTRUCTURAS Y MEDIO AMBIENTE DE CASTILLA Y LEON SA

Location

• Spain

Description

The project will finance investments in biomass district heating systems and energy efficiency of public buildings, as well as, to a small extent, afforestation in the autonomous region of Castilla y León.

Additionality and Impact

The European Investment Bank (EIB), in partnership with Sociedad Pública de Intraestructuras y Medio Ambiente de Castilla y Leon (SOMACYL), will finance investments in district heating systems and in energy efficiency of public buildings in the Spanish region of Castilla y Leon (the Project).

 

This Project is compliant to a low carbon and resilient pathway, consistent with the Paris Agreement goals and principles. It will count fully towards the EIB's Climate Action and Environmental Sustainability targets.

 

Through the construction of new biomass district heating networks and the thermal rehabilitation of existing public buildings, the operation supports EU renewable energy and energy efficiency objectives, and supports Spain in meeting its greenhouse gas emission reductions commitments. The re-/afforestation component addresses market failures with respect to public goods and externalities, which lead to undervaluation of forest products and ecosystem services. In addition, the investments will be located in EIB Cohesion Priority Regions. The operation is expected to yield good quality and results and very good social benefits reducing GHG emissions and creating new employment.

 

 

The EIB loan will include flexible drawdown terms and conditions adjusted to the investment horizon of the projects. The framework loan structure provides ample flexibility to SOMACYL through inter alia continued dialogue with the EIB.

 

Objectives

The main objectives of the investment programme are: a) addressing in a more ecological and environmentally friendly way heating and sanitary hot water needs of public buildings, b) improving energy efficiency and integrating renewable energy within public buildings, c) replacing fossil fuels use with a renewable, sustainable and local source of energy (biomass), decreasing the region's energy dependence, helping to prevent forest fires and contributing to generate employment in rural areas, d) reducing CO2 emissions and carbon footprint, thus contributing to the ecological transition in the region.

Sector(s)

• Agriculture, fisheries, forestry - Agriculture, forestry and fishing
• Energy - Electricity, gas, steam and air conditioning supply
• Industry - Construction

Proposed EIB finance (Approximate amount)

EUR 60 million

Total cost (Approximate amount)

EUR 165 million

Environmental aspects

Some subprojects may fall under Annex II of the Environmental Impact Assessment (EIA) Directive 2011/92/EU as amended by Directive 2014/52/EU, thus requiring a review by the competent authorities at the planning/consent stage with due regard to the necessity for environmental and biodiversity impact and appropriate assessments. The environmental aspects of the subprojects will be appropriately assessed as part of the European Investment Bank's appraisal process. As the project pipeline includes the investment in biomass-fired combined heat and power (CHP) plant unit among other schemes, the assessment will concern also the sustainability of biomass (RED II-recast), Taxonomy Substantial Contribution (SC) screening/Do No Significant Harm (DNSH) requirements, EU Timber Regulation, and applicable national legislation for forest sector.

Procurement

The EIB will require the promoter to ensure that contracts for implementation of the project will be tendered in accordance with the applicable EU procurement legislation, Directive 2014/24/EU / 2014/25/EU as well as Directives 92/13/EEC and 89/665/EEC, as interpreted by the Court of Justice of the EU, with publication of tender notices in the EU Official Journal, as and where required.

Status

Signed - 21/12/2023