Aquila Clean Energy has closed a €1 billion deal to develop solar and wind power plants in Southern Europe. The ISB loan is one of the largest granted under the InvestEU program.
Aquila Clean Energy supports renewable energy
The financing of the operation includes a 400 million EIB loan, guaranteed by the InvestEU program. The consortium of commercial banks associated with the project will participate with 600 million euros.
The total budget of the project is expected to reach an amount of more than two billion euros. The balance of more than €1 billion will be financed by funds managed by Aquila. Aquila Clean Energy will also invest a portion of its capital in the project.
A three-year program in Spain and Portugal
The network will be established in the regions of Castilla y Leon, Valencia, Cantabria, and Murcia in Spain. In Portugal, Aquila Clean Energy will develop infrastructures in Setubal, Coimbra, Evora, and Leiria. In total, this area will see more than 50 solar and wind power projects.
The program funded by Aquila Clean Energy will generate 2.6 GW of electricity. This is equivalent to the annual consumption of 1.4 million homes. The estimated output of these facilities is 5.3 TWh per year.
The role of the InvestEU program
Aquila Clean Energy’s project is exceptionally large due to the level of inflation. Nevertheless, many investors such as BNP Paribas, ING, Intesa Saopalo or Banco Sabadell support the program.
For ISB, this short-term financing arrangement represents a significant innovation. In fact, the entity had until now only carried out long-term financing. InvestEU made this arrangement possible by allowing ISB to increase its risk-taking capacity. Preliminary Project Approval was not required for project validation.
Valdis Dombrovskis, Vice President of the program “An Economy that works for people” recalls the main lines of this project:
“The development of this infrastructure will help achieve the objectives of the Green Deal which requires significant financial support. InvestEU is playing a key role in mobilizing the funding. I am delighted that this program will facilitate a €2 billion investment. This will allow Spain and Portugal to develop their renewable energy generation potential.”
