The European Investment Bank (EIB) has approved a €700m loan to the Spanish energy group Iberdrola to expand its electricity distribution network in Spain. The electricity grid expansion project has an estimated total investment of €1.44bn, of which €700m will be financed through the EIB’s green loan and the other €740m will be provided by Iberdrola. The first tranche of the loan amounts to €500m to finance the development of smart grids and their expansion, facilitating the integration of renewable energy sources and new uses.
The loan is part of the EIB’s plan of action to back REPowerEU and will support energy security by facilitating the integration of renewable energy and reducing the EU’s dependence on imports of fossil fuels. 65% of the total associated investment will go to regions whose per capita income is below the EU average to comply with the EIB’s commitment to economic, social and territorial cohesion.