€50 Million EIB Loan to Boost Solar Energy Capacity in Spain with Five New Plants

€50 Million EIB Loan to Boost Solar Energy Capacity in Spain with Five New Plants

(IN BRIEF) The European Investment Bank (EIB) and Matrix Renewables have secured a €50 million green loan to develop five new solar photovoltaic plants in Castilla y Leon and Extremadura, Spain, with a total capacity of 240 MW. This project, backed by the InvestEU programme, supports the EIB’s goal of facilitating €1 trillion in green investments by 2030. It also aligns with the REPowerEU plan, aiming to reduce the EU’s reliance on fossil fuels. The plants will contribute to regional economic growth and are expected to be operational by the end of 2025.

(PRESS RELEASE) LUXEMBOURG, 7-Aug-2024 — /EuropaWire/ — The European Investment Bank (EIB) and Matrix Renewables have announced the signing of a €50 million green loan agreement to facilitate the design, construction, and operation of five new solar photovoltaic plants with a combined installed capacity of 240 MW in the Spanish regions of Castilla y Leon and Extremadura. This collaboration highlights the ongoing efforts to enhance renewable energy infrastructure within the EU, in alignment with broader climate and energy security objectives.

This project is a significant step in the EIB’s mission to strengthen its role as the EU climate bank, with a commitment to support €1 trillion in green investments by 2030. This initiative aligns with the EIB’s target to dedicate at least half of its annual financing towards climate action and sustainability.

Alessandro Izzo, EIB Director of Equity, Growth Capital, and Project Finance, expressed the institution’s enthusiasm about the project, stating, “With this operation, the EIB continues to accelerate the energy transition in Spain by increasing renewable energy generation capacity. We are also delighted to support Independent Power Producers in their development and deployment efforts, fundamental to accelerate renewable generation investments.” Izzo emphasized that the project contributes to creating a more sustainable and energy-independent Europe.

The new solar plants will be located in cohesion regions, which are characterized by per capita incomes lower than the EU average. This underlines the EIB’s commitment to fostering economic growth and regional convergence. The plants are expected to be fully operational by the end of 2025.

The financing is part of the EIB’s strategy to support the REPowerEU plan, which aims to increase energy security by reducing EU dependence on fossil fuel imports. The operation is backed by the InvestEU programme, designed to mobilize both public and private sector funds to meet EU policy goals.

Nicolás Navas, CFO of Matrix Renewables, highlighted the importance of this partnership, stating, “We are thrilled to partner with the EIB in this significant project that not only advances our mission of sustainable energy development but also contributes to Spain’s and Europe’s broader energy transition goals. This project highlights Matrix’s commitment to innovation and sustainability. The development of these new solar plants will provide clean energy to thousands of homes and businesses, reinforcing our dedication to creating a greener future.”

The EIB’s substantial contributions to energy security were evident in 2023, with over €21 billion in financing directed towards energy security across Europe, including €4.5 billion allocated to Spain. These investments span renewable energy, energy efficiency, power grids, and storage systems, facilitating the continent’s transition to sustainable energy and reducing its reliance on fossil fuels.

In a notable move in July 2023, the EIB Board of Directors increased the funding for REPowerEU projects to €45 billion, aiming to eliminate Europe’s dependence on fossil fuel imports. This additional financing, which will be disbursed through 2027, is expected to mobilize over €150 billion in investments in key sectors, including those involving net-zero carbon emissions technologies and critical raw materials.

For more information on the EIB’s support for the energy sector, visit their official website.

The EIB and energy security

In 2023, the EIB Group provided more than €21 billion in financing for energy security in Europe. In the same year, it allocated €4.5 billion to this goal in Spain, financing projects in areas including renewable energy, energy efficiency, power grids and storage systems. These investments are helping Europe speed up its transition to sustainable energy and reduce its reliance on fossil fuel imports.

In July 2023, the EIB Board of Directors raised the amount earmarked for REPowerEU projects to €45 billion. REPowerEU is the plan designed to end Europe’s dependence on fossil fuel imports. To boost financing for the EU manufacturing industry, the EIB will also expand the range of eligible sectors to include leading strategic technologies with net-zero carbon emissions, as well as extraction, processing and recycling of critical raw materials. The additional financing will be disbursed between now and 2027. In total, it is expected to mobilise more than €150 billion in investment in the target sectors.

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

Background information

EIB

The ElB is the long-term lending institution of the European Union, owned by the Member States. It finances sound investments that further EU policy objectives. EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality.

The EIB Group, consisting of the EIB and the European Investment Fund (EIF), reported total financing signatures in Spain of €11.4 billion in 2023, approximately €6.8 billion of which went to climate action and environmental sustainability projects. Globally, the EIB Group signed €88 billion of new financing in 2023.

InvestEU

The InvestEU programme provides the European Union with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable recovery. It also helps mobilise private investment for EU policy priorities, such as the European Green Deal and the digital transition. InvestEU brings together under one roof the multitude of EU financial instruments previously available to support investment in the European Union, making funding for investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU Fund is deployed through implementing partners who will invest in projects using the EU budget guarantee of €26.2 billion. The entire budget guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilise at least €372 billion in additional investment.

Matrix Renewables

Matrix Renewables is a renewable energy platform created and backed by global alternative asset manager TPG and its $19 billion impact-investing platform TPG Rise. Matrix Renewables’ current portfolio is comprised of 14 GW of solar, storage and green hydrogen projects in Europe, United States, and Latin America.  For more information, visit www.matrixrenewables.com.

Media Contact:

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+34 606 66 82 62

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SOURCE: European Investment Bank