The European Investment Bank (EIB) has granted a green loan worth €700 million to Iberdrola. The loan is granted to expand the electricity distribution network in Spain. EIB Director General for EU Operations and Iberdrola Chief Finance, Control and Corporate Development Officer inked the loan’s first €500 million tranche in Madrid.
Furthermore, the overall project investment is expected to be €1.44 billion. Iberdrola will contribute the remaining €740 million. The project will help the electrical distribution network become more resilient and efficient, make connections easier, open up new electrification applications like electric vehicles and heat pumps, and enable the grid to accommodate additional renewable energy sources.
Throughout the entire execution period, the project will contribute to industrialization, economic and employment growth by generating around 10,000 jobs each year in 12 autonomous communities. The authorised €700 million loan is a component of the EIB’s action plan to bolster the RE Power EU initiative. It will contribute to energy security by enabling the integration of renewable energy and minimising the EU’s reliance on fossil fuel imports.
