Spanish energy company Iberdrola has signed a € 550 million ($ 649 million) green loan agreement with the European Investment Bank (EIB) to improve smart grids in Spain.
The agreement aims to support the development, modernization and digitization of Iberdrola’s electricity distribution networks in several regions of the country.
The loan will allow the company to strengthen smart grids in the region, which will contribute to greater electrification while supporting Spain’s and the European Union’s climate neutrality goals for 2050.
The EIB loan agreement will support a network investment plan that will be developed by i-DE, Iberdrola’s Spanish distributor, by 2023. The total amount invested under this plan could be up to amount to 1.43 billion euros ($ 1.7 billion).
The loan will help Iberdrola improve the reliability, efficiency and security of the regional supply of renewable and sustainable energy.
According to EIB estimates, i-DE’s investment plan could create nearly 10,000 jobs per year and boost the green recovery of the Spanish economy during its implementation period.
Among the investments, 68% will be made in areas with particularly high unemployment rates, called cohesion regions.
The EIB financing will help achieve three objectives, namely to meet the growth in demand and production, improve the resilience of the electricity grid and promote the modernization of processes related to electricity distribution infrastructure.
These three objectives will be achieved taking into account the sustainability criteria.
The investment will contribute to the EIB’s public policy objective of sustainable energy and meet the criteria of its Climate Bank roadmap.
It will also support increased electrification in the heating and mobility sectors, which complements the objectives of Spain’s national energy and climate plan.
Last February, the EIB approved a loan of 255 million euros ($ 301 million) for the modernization of the Greek electricity distribution network and agreed to support an investment program of the Greek distribution network operator (HEDNO).