Bay of Biscay Subsea Link to Double Power Exchange Between Spain and France with €1.6 Billion EIB Backing

Bay of Biscay Subsea Link to Double Power Exchange Between Spain and France with €1.6 Billion EIB Backing

(IN BRIEF) The Bay of Biscay electricity interconnection will link Spain and France via a 400 km high-voltage DC submarine cable, boosting capacity from 2,800 to 5,000 MW and integrating the Iberian Peninsula into Europe’s power grid. Jointly implemented by Red Eléctrica and RTE through Inelfe, the project secured €1.6 billion in EIB loans and a €578 million EU grant. Key dignitaries signed €1.2 billion in loans on June 16, 2025. Scheduled to go live in 2028, the link will enhance reliability for France, Spain, and Portugal; reduce CO₂ emissions by 600,000 tonnes annually; and help Spain meet the EU’s 15 percent interconnection target. Complementary upgrades at Baixas–Santa Llogaia and Argia–Hernani will further strengthen cross-border capacity. The EIB’s financing supports REPowerEU goals and underscores its leadership in climate-focused energy investments.

(PRESS RELEASE) LUXEMBOURG, 16-Jun-2025 — /EuropaWire/ — Europe’s energy landscape is set to transform with the Bay of Biscay interconnection, a flagship Project of Common Interest that will nearly double electricity exchange capacity between Spain and France—from 2,800 MW to 5,000 MW. Spanning 400 km (300 km under the Bay of Biscay), this first-ever submarine link between the Iberian Peninsula and continental Europe will enhance supply reliability for France, Spain, and Portugal, while integrating Iberia into Europe’s broader power grid.

Implemented by Inelfe—a joint venture of Spain’s Red Eléctrica and France’s RTE—the project secured €1.6 billion in European Investment Bank loans and a €578 million Connecting Europe Facility grant. The EIB signed initial €1.2 billion loan tranches in Luxembourg on June 16, 2025, in a ceremony attended by Nadia Calviño (EIB President), Dan Jørgensen (EU Commissioner for Energy and Housing), Marc Ferracci (French Industry and Energy Minister), Miguel González Suela (Spanish Deputy Secretary for Ecological Transition), Beatriz Corredor (Chair, Redeia), and Thomas Veyrenc (RTE Executive Board).

Once operational in 2028, the Bay of Biscay link will deliver cleaner, more secure, and more affordable power to millions, cut CO₂ emissions by 600,000 tonnes annually, and help Spain meet the EU’s 15 percent interconnection target. It will work in concert with the Baixas–Santa Llogaia underground corridor and upgrades to the Argia–Hernani line, further tying Iberia into the continental grid.

“This interconnection will end the Iberian Peninsula’s energy isolation and boost EU competitiveness and strategic autonomy,” said Nadia Calviño.
“True Energy Union demands integrated systems and markets for clean, stable supplies,” added Dan Jørgensen.

Beatriz Corredor noted that the interconnection “builds a bridge between nations, strengthening European cohesion and enabling the energy transition.” Thomas Veyrenc emphasised RTE’s commitment to reinforcing France’s grid as a European crossroads.

The project underscores the EIB’s role as the EU’s climate bank and its support for REPowerEU, helping reduce fossil-fuel dependence and modernise power networks. In 2024, the EIB Group financed a record €31 billion in energy security initiatives, including €8.5 billion for grids and storage—more than double the previous year—in support of over €100 billion in total investment.

The EIB as a major financier of energy security and grids in Europe

In 2024, the EIB Group signed a record €31 billion to back EU energy security, including for efficiency, renewables, storage and electricity grids, which is expected to support over €100 billion in investment. A total of €8.5 billion financed electricity grids and storage projects, double the amount from previous year. This financing is helping to expand, modernise and digitalise electricity grids making them more resilient and allowing for more and better integration of renewable sources.

In Spain financing of energy security projects was higher than in any other EU country in 2024, totalling more than €5 billion, which is expected to support over €15 billion in investment. A total of €1.54 billion financed grids and storage projects, roughly double the previous year’s amount. In France financing of energy security projects in 2024 was in line with previous years at around €3.6 billion,  of which €400 million went to finance grids and storage projects, while €3.2 billion went to other energy projects including renewable energy sources and  energy efficiency.

In the last 5 years (2019-24), EIB has financed €16.7 billion in energy projects in Spain, and €17.7 billion in energy projects in France.

Find out more about the EIB’s support for the energy sector here.

Background information

EIB

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. Built around eight core priorities, we finance investments that contribute to EU policy objectives by bolstering climate action and the environment, digitalisation and technological innovation, security and defence, cohesion, agriculture and bioeconomy, social infrastructure, the capital markets union, and a stronger Europe in a more peaceful and prosperous world.

The EIB Group, which also includes the European Investment Fund, signed nearly €89 billion in new financing for over 900 high-impact projects in 2024, boosting Europe’s competitiveness and security.

All projects financed by the EIB Group are in line with the Paris Climate Agreement, as pledged in our Climate Bank Roadmap. Almost 60% of the EIB Group’s annual financing supports projects directly contributing to climate change mitigation, adaptation, and a healthier environment.

In Spain, in 2024, the EIB Group signed new financing worth €12.3 billion for over 100 high-impact projects,  while in France, the EIB Group signed new financing worth €12.6 billion also for over 100 high-impact projects,  contributing to both countries’ green and digital transition, economic growth, competitiveness and better services for their people.

High-quality, up-to-date photos of our headquarters for media use are available here.

Red Eléctrica

Red Eléctrica is the transmission system operator (TSO) for the Spanish electricity system and Redeia’s flagship. Since 1985, Red Eléctrica guarantee the security of supply in Spain, driving its social and economic development. Now, the company is also the backbone of the energy transition in the country. www.ree.es

Réseau Transport d’Électricité

The French electricity-transmission-system operator, RTE, provides a public service: guaranteeing a constant supply of electricity throughout France, with the same standard of service, thanks to the efforts of its 10,025-strong staff. RTE manages electricity flows, balancing production and consumption in real time. RTE maintains and develops the high and very-high voltage grid (from 63,000 to 400,000 volts) which includes nearly 100,000 kilometres of overhead lines, 7,000 kilometres of underground lines, 2,900 operational substations, some jointly operated, and around fifty cross-border lines. With 37 interconnections with neighbouring countries, the French grid is the largest in Europe. RTE is an independent and neutral industrial operator of the energy transition, optimising and transforming its grid to connect new consumers and low-carbon electricity generation facilities.

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SOURCE: European Investment Bank