- The financing will back investments from il.lumina, Iberdrola’s project to reconstruct and modernise the power distribution grid affected by devastating floods in 2024.
- The project includes the implementation of resilience and digitalisation measures benefiting over 650 000 clients and improving electricity supply security.
- The EIB financing is sourced from its own resources and the Regional Resilience Fund put in place by the Spanish Ministry of Economy, Trade and Enterprise.
The European Investment Bank (EIB) has signed two €25 million loans with Iberdrola to finance the reconstruction, redesign, climate change adaptation and digitalisation work that the electricity company is carrying out on the power distribution grid damaged by the devastating floods that hit Valencia in October 2024.
These investments are part of Iberdrola’s il.lumina project to build the power grid of the future. Measures will include rebuilding damaged infrastructure, expanding facility automation, installing smart transformers to improve supply quality, moving overhead power lines underground, and raising and downsizing transformer substations.
These operations are expected to benefit more than 650 000 clients, according to the electric company, improving electricity supply security against a backdrop of extreme weather events and increasing integration of renewable energy production.
The project will strengthen the EIB’s role as the climate bank, one of the eight strategic priorities set out in the EIB Group’s Strategic Roadmap for 2024-2027. The operation is also part of the EIB action plan to support REPowerEU, the programme to increase energy security and speed up the energy transition by reducing the European Union’s dependence on fossil fuel imports.
The financing includes €25 million from EIB own resources and a further €25 million from the Regional Resilience Fund created to facilitate access to NextGenerationEU loans under Spain’s recovery, transformation and resilience plan. The Regional Resilience Fund aims to drive investment and develop projects in eight priority areas: social and affordable housing; urban renewal; transport and sustainable tourism; the energy transition; water and waste management; the care economy; research, development and innovation; and the competitiveness of industry and small and medium companies. The fund is led by the Spanish Ministry of Economy, Trade and Enterprise, with the EIB Group as a strategic management partner.
EIB support for power grids
EIB support for energy security and power grids is one of its main priorities to accelerate the green transition, contribute to EU energy autonomy and ensure access to a more secure and sustainable energy supply for all Europeans. In 2024, the EIB Group directed €8.5 billion to financing power grid and storage projects in all of its operational areas, double the 2023 figure. In Spain alone, €1.5 billion went to grid and storage projects in 2024, again doubling 2023 investment. This financing is helping to expand, modernise and digitalise power grids, making them more resilient and enabling greater and better integration of renewable energy.
More information on EIB support for the energy sector is available here.
EIB commitment to those impacted by the DANA
Following the DANA, the EIB moved quickly to make a €1.4 billion package available to the regions impacted (Valencia and Castilla-La Mancha) to help finance reconstruction work and support the needs of small and medium-sized enterprises. The EIB Group has also made contributions to NGOs operating in the area, such as Save the Children, SOS Aldeas Infantiles and Casa Caridad.
il-lumina, Iberdrola's commitment to Valencia
This financing is part of Iberdrola's strategy to promote a more robust electricity grid that is better prepared for extreme weather events, while reinforcing its commitment to the energy transition and green financing. With il·lumina, Iberdrola is not only responding to the damage, but also anticipating the future, committing to a safer, more efficient electricity infrastructure that is aligned with European climate objectives.
The il·lumina project involves the renovation of substations, transformer stations and the medium and low voltage network, with the aim of redesigning the electricity network affected by the DANA. The company has created a team of 35 people who are working exclusively on developing the construction plan for the electricity network of the future, coordinating the work of approximately 1,000 operators, most of whom are locally based.
Background information
EIB
The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. Built around eight core priorities, we finance investments that contribute to EU policy objectives by bolstering climate action and the environment, digitalisation and technological innovation, security and defence, cohesion, agriculture and bioeconomy, social infrastructure, high-impact investments outside the European Union, and the capital markets union.
The EIB Group, which also includes the European Investment Fund (EIF), signed nearly €89 billion in new financing for over 900 high-impact projects in 2024, boosting Europe’s competitiveness and security.
All projects financed by the EIB Group are in line with the Paris Climate Agreement, as pledged in our Climate Bank Roadmap. Almost 60% of the EIB Group’s annual financing supports projects directly contributing to climate change mitigation, adaptation, and a healthier environment.
In Spain, the EIB Group signed €12.3 billion of new financing for more than 100 high-impact projects in 2024. This financing is contributing to the country’s green and digital transition, economic growth, competitiveness and improved services for residents.
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Regional Resilience Fund
The Regional Resilience Fund (RRF) was created to facilitate access to NextGenerationEU loans from the Spanish Recovery, Transformation and Resilience Plan for the autonomous communities, with the aim of boosting investments and developing projects in eight priority areas: social and affordable housing; urban renewal; transport and sustainable tourism; the energy transition; water and waste management; the care economy; research, development and innovation; and the competitiveness of industry and SMEs.
The fund is led by the Ministry of Economy, Trade and Enterprise, which takes input from the autonomous communities and cities for investment decision-making and looks to the EIB Group as a strategic management partner
The initial phase of the RRF includes the activation of up to €3.4 billion in financing via:
- a direct financing mechanism, to co-finance EIB-supported operations in sectors like renewable energy, clean transport and sustainable infrastructure;
- an intermediated mechanism managed by financial intermediaries selected by the EIB, to support projects in urban development and sustainable tourism;
- two instruments intermediated by the European Investment Fund that will facilitate SME financing for innovation, sustainability and competitiveness.
Iberdrola
With more than 100,000 million euros in capitalisation, Iberdrola is the largest electricity company in Europe and one of the two largest in the world. The Group serves more than 100 million people worldwide and has a workforce of more than 44,000 employees and assets of more than 160,000 million euros. In 2024, Iberdrola recorded revenues of almost 50,000 million euros, a net profit of 5,600 million euros. The company contributes nearly 10,300 million euros in tax contributions in the countries in which it operates and supports more than 500,000 jobs in its suppliers thanks to purchases that exceeded 18,000 million euros in 2024.
Since 2001, Iberdrola has invested more than 175,000 million euros in renewable energies, electricity grids and energy storage to contribute to the creation of an energy model based on electrification. The company has more than 57,000 megawatts (MW) of capacity worldwide, of which more than 45,000 MW are renewable.