EIB and Iberdrola sign a €500m loan for smart networks in Spain
From left to right: José Sáinz Armadam director of Finance Control and Corporate Development (CFO) of Iberdrola; Antonio Lorenzo, head of the Corporate Finance Division in Spain of the EIB; Inés Carpio San Román, director general of International Financing of the Treasury, EIB.
Image courtesy Iberdrola.
The European Investment Bank (EIB) has signed a €500 million ($526.9 million) loan with TSO Iberdrola for the development and expansion of smart electricity networks in Spain
The funding aims to further strengthen the resilience of the electricity distribution network as new uses of electrification such as heat pumps or electric mobility come online and more renewable energy sources are integrated into the network.
The funding will also boost industrialisation and economic and employment growth in Spain, maintaining 10,000 jobs annually in 12 autonomous communities throughout the implementation period.
Commenting in a release was José Sainz Armada, director of Finance, Control and Corporate Development (CFO) of Iberdrola: “With this financing, Iberdrola will be able to accelerate the development of the distribution network in Spain in the coming years, which is essential to provide service and connection to industry and companies in our country.
“With this new financing from the EIB, we are expanding the development of smart grids, which are essential to facilitate the energy transition, boost efficiency and improve the distribution network and the quality of supply. In addition, we are contributing to the electrification of the economy and to reducing the country’s energy dependence.”
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The FRA
The loan was signed within the framework of the Regional Resilience Fund (FRA), which channels funding from Spain’s Recovery, Transformation and Resilience Plan within the Next Generation EU programme.
The FRA is led by the Ministry of Economy, Trade and Business. The Autonomous Communities and Cities and the Spanish Federation of Municipalities and Provinces (FEMP) will participate in the selection of projects, with the EIB acting as strategic management partner.
The director general of International Financing of the Treasury, Inés Carpio, highlighted the importance of the Regional Resilience Fund “to continue promoting the modernization and transformation of the productive fabric and the Spanish economy through the Recovery Plan, with a clear orientation towards energy transition and efficiency.”
“We are very pleased to have secured the first financing with resources from the Regional Resilience Fund, which will be used to expand and develop Iberdrola’s electricity networks in Spain,” said Antonio Lorenzo, head of the EIB’s Corporate Finance Division in Spain. “This is a key project for the development of smart electricity networks that will enable the integration of renewable energies into the Spanish electricity system, impacting 12 autonomous communities.”
The smart grids financing follows a prior EIB award to Iberdrola of €700 million ($737.2 million).
This is the first operation with a private entity financed from the FRA, through the direct financing instrument launched by the EIB in June 2024, to co-finance operations in sectors such as renewable energy, clean transport or sustainable infrastructure.
