Summary sheet
Financing of solar photovoltaic (PV) and wind power projects across Spain, mostly located in cohesion regions (Castile-León, Extremadura and Andalusia).
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.
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.
Iberdrola will be requested to comply with applicable national and EU legislation.
Iberdrola will be requested to comply with applicable national and EU legislation.