EIB's €108M Green Loan Fuels Sustainable Energy in Spain
- Puru Rohilla
- May 1
- 1 min read
Impact Investing Solutions is excited to share a significant development in the renewable energy sector. The European Investment Bank (EIB) has committed €108 million in green loans to Iberdrola, a Spanish utility company, to modernize the Valdecañas pumped-storage hydroelectric complex in Cáceres, located in the Extremadura region of Spain. This strategic investment directly supports the EU's REPowerEU initiative, aimed at bolstering energy security and reducing reliance on fossil fuel imports.
The EIB's financing comprises a €50 million loan from its own resources, complemented by funds from the Regional Resilience Fund, established by the Spanish government to allocate NextGenerationEU loans primarily to environmental and social projects within Spain's autonomous communities. This financial backing will enable Iberdrola to upgrade the pumping capacity of the Valdecañas hydroelectric complex, which includes two power plants, utilizing existing infrastructure in the Valdecañas and Torrejón-Tajo reservoirs. This approach minimizes environmental disruption and ensures the continued operation of the plant and its associated transport networks.
This project goes beyond environmental sustainability; it also fosters economic growth. The upgrade is projected to create 165 direct jobs and an additional 500 indirect jobs, providing a substantial boost to skilled employment in a region where the per capita income is below the European average. Upon completion, the modernized plant will have a total installed capacity of 225 megawatts (MW), a 15 MW hybrid battery, and 7.5 megawatt-hours (MWh) of stored energy. This enhanced capacity will significantly reduce CO2 emissions and contribute to Spain's commitment to a cleaner energy future. This investment exemplifies the powerful synergy between impact investing, sustainable development, and economic prosperity.
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