EIB and BNZ Join Forces to Expand Solar Energy in Southern Europe with €166 Million Green Loan

EIB and BNZ Join Forces to Expand Solar Energy in Southern Europe with €166 Million Green Loan

(IN BRIEF) The European Investment Bank (EIB) and BNZ have signed a €166 million loan to support the construction of 17 new solar photovoltaic plants in Spain, Italy, and Portugal, as part of a larger €500 million initiative. These plants will generate green energy sufficient to power more than 390,000 households annually. The project aligns with the EU’s REPowerEU plan to reduce dependence on fossil fuels and enhance energy security. The initiative also focuses on economic growth in lower-income EU regions and is backed by the InvestEU program, promoting sustainability and climate goals across Europe.

(PRESS RELEASE) LUXEMBOURG, 18-Sep-2024 — /EuropaWire/ — The European Investment Bank (EIB) and BNZ, an Independent Power Producer (IPP) owned by Nuveen Infrastructure, have signed a €166 million loan to support the deployment of 17 new solar photovoltaic plants in Spain, Italy, and Portugal. This is the first tranche of a broader €500 million loan commitment approved by the EIB to aid BNZ in rolling out 1.7 GW of solar power by 2026. The newly funded plants, with a combined capacity exceeding 700 MW, are expected to generate clean energy equivalent to the annual consumption of more than 390,000 households.

This initiative is part of the EIB’s ongoing commitment to promoting renewable energy and aligns with the EU’s REPowerEU plan, which seeks to bolster energy security by reducing dependence on fossil fuel imports. Most of the plants will be built in cohesion regions, which have per capita incomes below the EU average, reinforcing the EIB’s focus on fostering regional economic growth and convergence.

The project is backed by the EU’s InvestEU program, which aims to mobilize public and private sector investments in line with the EU’s sustainability and climate goals.

Key Highlights:

• Solar Capacity Expansion: The 17 new solar plants will provide over 700 MW of green energy.
• Impact on Households: The plants will generate enough energy to power more than 390,000 households annually.
• Regional Development: The project focuses on cohesion regions, aiding economic growth in areas with lower-than-average income levels in the EU.
• Climate Goals: The EIB’s financing supports the European Green Deal and REPowerEU objectives to increase renewable energy and reduce reliance on fossil fuels.

Luis Selva, Managing Director of BNZ, emphasized the strategic importance of the loan, stating, “This partnership with the EIB demonstrates our shared long-term vision for building a cleaner, more sustainable future.”

Francesco Cacciabue, Global Head of Clean Energy Investments at Nuveen Infrastructure, highlighted the project’s role in advancing EU climate goals, calling it “a pivotal step towards sustainable energy infrastructure.”

This green loan further cements the EIB’s position as the Climate Bank, as it continues to lead investments in renewable energy projects across Europe.

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.

BNZ

BNZ is an independent power producer (IPP) that develops, builds, and operates solar photovoltaic projects with more than 1.7 GW of European solar investments in operation, construction and development in Italy, Portugal and Spain with a clear goal: the production of 100% renewable energy to help our economy to achieve a greener future. BNZ is a leader in the energy transition and is committed to the environmental and social progress of the local communities where the company installs its plants. Each of those projects will be scrupulously designed to ensure that it goes the extra mile in environmental, social and governance (ESG) policies and to support biodiversity, acting ethically in every aspect of BNZ’s business.

BNZ is a business focused on sustainability and efficiency, with a compact and highly motivated team. By directly managing the entire production chain, the company can achieve stable yields and predictable returns to its investors. BNZ plans to directly employ a diverse and multicultural team as it develops, with a best-in-class management team. BNZ’s professionals have decades of experience in the renewable energy sector and an intimate knowledge of the places where the company operates. At the same time, BNZ professionals work hand-in-hand with local partners who can meet that commitment to each place and share the company’s values.

Media Contact:

Maite Cordero
m.corderomunoz@eib.org
+34 606 66 82 62

Press Office

press@eib.org
+352 43791

SOURCE: European Investment Bank