An initial loan of 500 million euros was signed in Madrid between Jean-Christophe Laloux, Director General of EU Operations at the EIB, and José Sainz Armada, Director of Finance, Control and Corporate Development at Iberdrola. This financing is part of an overall project worth 1.44 billion euros, with Iberdrola contributing the remaining 740 million euros. The aim is to improve the efficiency and resilience of the power grid, enabling the connection of additional renewable energy sources and promoting the use of new technologies such as heat pumps and electric vehicles.
Economic and social impact
The project will stimulate industrialization, economic growth and job creation in Spain, safeguarding 10,000 annual jobs in 12 autonomous communities during the implementation period. The finance contract underlines the EIB’s commitment to economic, social and territorial cohesion, with over 65% of the total investment earmarked for Spanish regions where per capita income is below the EU average.
Contributing to energy security
This loan is part of the EIB’s action plan to support REPowerEU, the European Commission’s initiative to reduce the EU’s dependence on Russian fossil fuelsThis will contribute to energy security by facilitating the integration of renewable energy and reducing the EU’s dependence on imported fossil fuels. “Supporting the modernization of the electricity grid to facilitate the integration of new renewable energy sources is one of the priorities included in the EIB’s Climate Roadmap,” said Jean-Christophe Laloux.
Iberdrola’s commitment
José Sainz Armada added: “This loan will enable us to accelerate the decarbonization of industry, a key process for Spanish companies. We will use this new EIB financing to expand the development of the smart grid in Spain, which is vital for facilitating the energy transition, improving the efficiency and quality of distribution and supply. We will also contribute to the electrification of the economy and the reduction of the country’s energy dependency.”
In 2023, the EIB Group provided over 21 billion euros for energy security in Europe, including 4.5 billion euros for this cause in Spain, financing projects in areas such as renewable energy, energy efficiency, electricity grids and storage systems. The EIB’s investment in Iberdrola’s distribution network represents a significant step towards accelerating the energy transition and decarbonization of Spain’s electricity sector.
