EIB Approves up to €1.7 billion for Renewable Energy Rollout in Spain, Italy and Portugal
The European Investment Bank (EIB) has approved framework financing of up to €1.7 billion for Solaria to support the construction of some 120 photovoltaic power plants. Listed on the Spanish stock exchange, Solaria is a leader in the development and generation of solar photovoltaic power in southern Europe
Mostly located in Spain, as well as Italy and Portugal, the plants will have a total capacity of approximately 5.6 GW and will produce an estimated 9.29 TWh a year. They are expected to come into operation by the end of 2028.
The project is backed by the InvestEU programme, which aims to trigger more than €372 billion in additional investment over the period 2021-27. This operation comes under InvestEU’s Sustainable Infrastructure policy window and it will support the achievement of the EU’s policy objectives under the European Green Deal by providing electricity equivalent to the average annual demand of approximately 2.5 million households and reducing greenhouse gas emissions by around 3 million tonnes of CO2 a year. The project will contribute to social and economic cohesion, accelerate the green transition, and strengthen the security of energy supply in the European Union.
More than one-third of the installed capacity will be located in less developed regions. These are regions that have a GDP per capita that is less than 75% of the EU average. The project will significantly boost employment in the areas where the plants are to be built, creating around 11,100 jobs a year during the construction phase, according to EIB estimates.
The loan is part of the EIB’s support package to the REPowerEU Plan, designed to end dependence on fossil fuel imports, by increasing energy efficiency, and ramping up production from renewables.
‘This project covers three markets in the European Union, bearing testament to the EIB’s firm commitment to clean energy. We want to help ensure that Europeans have guaranteed energy supply security and access to sustainable energy,’ said EIB Vice-President Ricardo Mourinho Félix during the signing event in Madrid.
In 2022, the EIB Group committed financing of more than €17 billion for the energy transition in Europe. Projects in Spain received a record €3.1 billion in financing commitments for sustainable energy and natural resources in the same year, making it the second largest beneficiary in the European Union.
The InvestEU programme provides the European Union with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable recovery. It also helps mobilise private investments for the European Union’s policy priorities, such as the European Green Deal and the digital transition.