REPSOL REPOWEREU WIND & SOLAR

The investment programme covers the implementation and operation of a portfolio of solar photovoltaic (PV) plants and wind farms, with an aggregate capacity of 1.09GW, to be located in various regions across Spain.

The aim is to support National and EU decarbonisation targets and contribute to climate change mitigation.

The investment programme increases renewable energy generation capacity in Spain and contributes to national and EU 2030 climate objectives. The financing of this programme also contributes to Bank's lending priority objectives on Energy (Renewable Energy), on climate action and on economic and social cohesion. 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 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 programme improves market efficiency and competition. Approximately one-third of the pipeline is located in Transition and Less Developed regions.

The operation is expected to yield very good quality and results, mainly attributed to the excellent social benefits, avoided GHG emissions, fair employment creation, as well as the promoter's adequate capacity to implement and operate the projects over the term of the loan.

The EIB financial contribution is considered good and valuable to the client, as it offers more flexible conditions compared to market alternatives, in particular in terms of long availability period and flexible disbursements. The EIB loan will diversify the borrower's lender base and increase the share of loans in its total financing.

Solar PV plants and on-shore wind farms fall under Annex II of the Environmental Impact Assessment (EIA) Directive 2014/52/EU amending 2011/92/EU, requiring the competent authorities to determine whether an EIA is required. Overhead transmission lines for the interconnection of the schemes to the grid falling under Annex I- due to their technical characteristics-, will be subject to an EIA process. The Bank will assess compliance with applicable EU Directives during appraisal, in particular concerning cumulative impacts and potential impacts on nature conservation sites.

The promoter is a private company and the schemes envisaged for this operation are market-based renewable energy projects, which do not enjoy any special or exclusive rights. Therefore, private sector procurement procedures should apply. This will be further reviewed during appraisal.