The European Investment Bank (EIB) has granted a €175m loan to Red Eléctrica de España (REE), representing the Spanish part of the finance for the Spain-France power interconnection. The new line will connect the municipalities of Santa Llogaia (near Figueras) and Baixas (near Perpignan) and will be laid entirely underground. The interconnection is scheduled to be brought into service in 2014 and will enable to double electricity exchange capacity between Spain and the rest of Europe (from 1 400 to 2 800 MW).
The project will improve the security of the electricity supply and especially increase the stability of the power system by enhancing integration with the European grid. At the same time, increasing interconnection capacity between France and Spain will strengthen the overall European grid and improve resistance to possible risks and incidents.
The total cost of the interconnection will be €700m, half of which provided by the EIB. The project is also receiving a €225m EU grant under the European Energy Programme for Recovery.