The European Investment Bank (EIB) and Iberdrola have signed a loan of $524.3 million within the framework of the Regional Resilience Fund to develop and expand smart electricity grids, facilitating renewable energy integration and industry connection.
The Regional Resilience Fund channels financing from Spain's Recovery, Transformation and Resilience Plan within the Next Generation EU to enhance environmental and social investments in the Autonomous Communities. The Fund is led by the Ministry of Economy, Trade and Enterprise.
While the Autonomous Communities and Cities, and the Spanish Federation of Municipalities and Provinces participate in the selection of projects, the EIB is the strategic partner for the management of the Fund.
The project will improve the efficiency and resilience of the power grid, allow the electricity to be used in heat pumps and electric vehicles, and enable more renewable energy sources to be connected to the grid, increasing the energy transition and its positive impacts in the energy security and autonomy as well as the decarbonization of the Spanish electricity sector.
A $733.83 million loan is approved from EIB's own funds to finance the project. The financing is supplemented by an additional $524.3 million loan from the Spanish Recovery Plan channelled by the EIB through the Regional Resilience Fund.
This is an operation with a private entity financed by the Regional Resilience Fund under the direct facility launched by the EIB in June 2024 to co-finance projects in sectors such as renewable energy, clean transport and sustainable infrastructure.
According to the Director General of International Financing of the Spanish Treasury, Ines Carpio, the Regional Resilience Fund will continue promoting the modernization and transformation of the productive sector and the Spanish economy through the Recovery Plan, with a focus on energy transition and efficiency.
“This is a key project for the development of smart grids that will enable the integration of renewable energies into Spain's electricity system, with an impact on 12 autonomous communities,” said Antonio Lorenzo, Head of the EIB's Corporate Finance Division in Spain.
The project will boost industrialization, economic growth and job creation in Spain, maintaining 10,000 jobs per year in 12 autonomous communities throughout the implementation period. The financing arrangement highlights the commitment of the EIB and the Spanish Ministry of Economy,
Trade and Enterprise to economic, social and territorial cohesion, with over 65% of the total investment going to regions with income per capita below the EU average.
“With this financing Iberdrola will be able to speed up the development of the distribution network in Spain over the coming years, which is so necessary for serving and connecting Spain's industry and businesses,” said Jose Sainz Armada, Iberdrola's Chief Financial Officer. “With this new EIB financing we are not only expanding the development of smart grids, which are essential for facilitating the energy transition, boosting efficiency and improving the distribution network and the quality of supply but also contributing to the electrification of the economy and to reduce the country's energy dependence.”
