AENA COVID-19 GREEN ENERGY LOAN FL

Loan aimed at financing photovoltaic panels to be installed in Aena's airport network.

The operation supports EU renewable energy objectives and supports Spain in meeting its commitments with respect to greenhouse gas emission reductions. In addition, it is envisaged that a part of the investments will be located in cohesion regions. The financing of this project is in line with the Bank's priority energy lending related to renewable energy and climate action. The operation is therefore eligible under Article 309 (a) projects for developing less-developed regions and point (c) common interest.

The project increases renewable energy generation capacity in Spain and contributes to national and EU 2030 climate objectives. The financing of this project also contributes to Bank's lending priority objectives on Energy (Renewable Energy) as well as on climate action (transversal), and partially on economic and social cohesion (transversal). The project produces electricity from low carbon sources (solar PV), 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 project relies partially on revenues from the market (the wholesale market and 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. It is expected to yield very good quality and results due to avoided greenhouse gas emissions, excellent social benefits, fair employment creation and an adequate governance system. With the appropriate conditions in place, the project is acceptable for financing in environmental and social terms.
The EIB provides an important financial contribution as it provides a financing benefit, longer tenor and customised terms to the borrower. Finally, the non-financial contribution rests primarily on a signalling effect to the banking system with regards to supporting renewable investments at advantageous terms.

This operation is intended to generate environmental benefits by supporting renewable energy projects that help mitigate climate change. Some of the schemes may be considered to fall under Annex II of the EIA Directive (2014/52/EU amending 2011/92/EU) as transposed in the national legislation, requiring the competent authorities to determine whether an environmental impact assessment (EIA) is required. Aerial power lines for the interconnection to the grid included in the Annex I of the EIA Directive, if any, will be expected to be subject in all cases to an EIA process. The Bank will assess the EIAs and permitting documentation as applicable, including compliance with applicable EU Directives, in particular cumulative impacts and conformity with relevant EU Directives, including Habitats (92/43/EEC) and Birds (2009/147/EC).

The Bank will require the Promoter to ensure that contracts for the implementation of the project have been and will be tendered in accordance with the relevant applicable EU procurement legislation, Directive 2014/23/EU / 2014/24/EU / 2014/25/EU, where applicable, as well as Directive 92/13/EEC, as interpreted by the Court of Justice of the EU, with publication of tender notices in the Official Journal of the EU, as and where required.