EDP REPOWEREU FRAMEWORK LOAN

Promoter – Financial Intermediary

EDP RENOVAVEIS SA,EDP SA

Location

• Portugal
• Spain
• Italy

Description

The project will finance the construction and operation of a set of renewable energy plants, such as solar photovoltaic, onshore wind and a battery storage in Spain, Portugal and Italy in the period 2024-2026.

Objectives

The aim is to finance part of the Promoter's renewable energy pipeline. The project supports the REPowerEU initiative and contributes to the 2030 decarbonisation targets set out in the respective National Energy and Climate Plans. Most of the investments will be located in cohesion regions, being therefore eligible under Article 309 point (c) common interest. The underlying projects are expected to be economically justified, as it will generate economic benefits, notably in terms of climate action by stepping up investments in renewable energy, creation of economic activity and CO2 emission reductions.

Sector(s)

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

Proposed EIB finance (Approximate amount)

EUR 900 million

Total cost (Approximate amount)

EUR 1623 million

Environmental aspects

Some individual schemes and most of the ancillary infrastructure fall under Annex II of the environmental impact assessment (EIA) Directive 2011/92/EU as amended by Directive 2014/52/EU, requiring the competent authorities to determine whether an EIA Report is required, while the wind projects fall under Annex I, requiring an EIA report. Some of the schemes have already undergone an EIA process and obtained positive environmental decision. Likewise, most of the other projects are expected to be screened in or subject to an EIA process. The EIB will assess the capacity and procedures of the Promoter to ensure the schemes' compliance with the sector-relevant national and European environmental and biodiversity regulations. For large allocations, the authorization procedure and compliance with the relevant EU directives, specifically Habitats and Birds Directives (92/43/EEC and 2009/147/EC respectively), will be further assessed during the appraisal of the individual scheme. Given that China largely dominates the market of photovoltaic solar panels, and media reports about the risk of forced labour, the EIB will apply an enhanced due diligence on the topic, in line with the EIB's Environmental & Social Standards. The project contributes to the Climate Action and Environmental Sustainability (CA&ES) objectives, in particular to climate change mitigation and pollution prevention and control.

Procurement

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 European Commission will be duly informed, which will require the Promoter to apply such rules.

Status

Approved - 16/10/2024