Credit: Canva ProThe European Investment Bank (EIB) and Iberdrola have joined together in a new financing agreement worth $1 billion to accelerate the energy transition in Europe. This partnership aims to build an extensive network of 19 solar power plants and 3 onshore wind farms in Spain, Portugal, and Germany.
With a combined installed capacity of 2.2 gigawatts, these projects will require a joint investment of more than $1.7 billion, bolstering energy supply security, climate action, and social cohesion in Europe. The agreement is part of the EIB's commitment to the EU's REPowerEU plan, which aims to strengthen energy autonomy in Europe.
The collaboration will not only contribute to Europe's climate objectives but also facilitate the integration of renewables into grids. Some of the projects will include hybridization with wind power and battery systems for energy storage. By combining solar and wind energy sources and utilizing integrated systems, these projects will ensure a more stable supply to the grid.
The new installations will generate green energy equivalent to the average annual consumption of more than 1 million households. Moreover, the majority of these projects will be located in cohesion regions, emphasizing the EIB's commitment to equitable growth and convergence of living standards. These investments will not only stimulate economic growth and employment in the regions but also align with the national energy plans of the three countries involved.
The EIB Group has committed some $17 billion in financing for the energy transition in Europe in 2022 alone, making it a top priority for the EU climate bank. Spain received a record $3.1 billion in financing for sustainable energy and natural resources projects, solidifying its position as the second-largest beneficiary of EIB financing in the EU.
The EIB has further committed to raising its clean energy financing volumes to unprecedented levels in support of the REPowerEU objective of reducing Europe's dependence on Russian fossil fuel imports. An additional $30 billion will be invested over the next five years, contributing to Europe's energy independence and the EIB Group's target of mobilizing $1 trillion in climate finance this decade.
The partnership between the EIB and Iberdrola’s investment of $1 billion in solar power and wind farm projects will not only provide green energy to millions in Europe but also reduce its dependence on fossil fuel imports.
