IBERDROLA GREEN ENERGY FRAMEWORK LOAN II

Promoteur – Intermédiaire Financier

IBERDROLA SA

Lieu

• Espagne

Description

Financing of solar photovoltaic (PV) and wind power projects across Spain, mostly located in cohesion regions (Castile-León, Extremadura and Andalusia).

Additionality and Impact

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.

Objectifs

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.

Secteur(s)

• Énergie - Production et distribution d'électricité, de gaz, de vapeur et d'air conditionné

Montant BEI envisagé (montant approximatif)

EUR 550 million

Coût total (montant approximatif)

EUR 1147 million

Aspects environnementaux

Iberdrola will be requested to comply with applicable national and EU legislation.

Passation des marchés

Iberdrola will be requested to comply with applicable national and EU legislation.

Statut

Signé - 22/07/2022