EIB and Naturgy Partner to Advance Renewable Energy with €1 Billion Loan Agreement

EIB and Naturgy Partner to Advance Renewable Energy with €1 Billion Loan Agreement

(IN BRIEF) The European Investment Bank (EIB) and Naturgy have signed the first €400 million tranche of a €1 billion loan to expand renewable energy capacity in Spain. The funding will support the creation of new solar and onshore wind power plants, the modernization of existing facilities into hybrid sites, and energy storage solutions. The project will add 2.3 GW of renewable energy capacity, powering over 1.15 million homes annually and creating 4,200 jobs during implementation, with a focus on underdeveloped regions. Part of the EU’s REPowerEU plan, the initiative aims to strengthen energy security, accelerate the energy transition, and reduce reliance on fossil fuels.

(PRESS RELEASE) LUXEMBOURG, 2-Dec-2024 — /EuropaWire/ — The European Investment Bank (EIB) and Naturgy have signed the first €400 million tranche of a €1 billion financing agreement aimed at bolstering Spain’s renewable energy sector. This funding will support the development of new solar and onshore wind power plants, the modernization of existing facilities into hybrid energy sites, and investments in energy storage solutions such as batteries.

The initiative is expected to increase Spain’s renewable energy capacity by 2.3 GW, generating enough green electricity to power over 1.15 million households annually. It will also contribute to the EU’s REPowerEU objectives, enhancing energy security and accelerating the energy transition.

Driving Spain’s Energy Transition

Jean-Christophe Laloux, EIB Director General and Head of EU Lending and Advisory, emphasized the project’s significance:
“This agreement demonstrates the EIB’s unwavering commitment to Europe’s energy transition. By generating renewable energy for over 1 million homes, this project advances sustainability while strengthening energy security and autonomy.”

Francisco Reynés, Executive Chairman of Naturgy, highlighted the broader impact of the investment:
“This financing agreement reinforces Naturgy’s dedication to decarbonizing Spain’s economy. Beyond advancing renewable energy, these investments will create thousands of jobs in underdeveloped regions, fostering greater territorial cohesion.”

Supporting Regional Development and Cohesion

The project aligns with the EIB’s commitment to economic, social, and territorial cohesion, as much of the investment will occur in less developed regions where per capita income is below the EU average. An estimated 4,200 jobs will be created during the implementation phase, contributing to local economic revitalization.

Part of the REPowerEU Plan

The €1 billion loan is part of the EIB’s broader support for the REPowerEU plan, designed to reduce Europe’s reliance on fossil fuel imports and accelerate its energy transition. In 2023, the EIB allocated €21 billion toward energy security projects across Europe, including €4.5 billion in Spain. The bank has committed to mobilizing €150 billion in investment across sectors aligned with net-zero carbon emissions by 2027.

By supporting transformative projects like this, the EIB and Naturgy are driving progress toward a sustainable energy future while strengthening Europe’s energy independence.

Background information

EIB

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances 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 European Investment Bank Group (EIB Group), consisting of the European Investment Bank (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. In total, the EIB Group signed €88 billion in new financing in 2023.

Naturgy

Naturgy has been working for 180 years in the energy sector thanks to a business model that has been able to adopt the social, technological and economic changes that have taken place in the world. Its success in the face of the challenges and opportunities of the environment is the result of a business management that is resilient to the different contexts of history and a transforming culture that cares about people’s day-to-day lives. The company is aware of the global challenge posed by the fight against climate change and has therefore transformed and reoriented its business towards energy transition through a strategy based on the promotion of renewable energies and gases and a sustainable business model that contributes to the social and environmental challenges facing humanity.

Naturgy is present in more than 24 countries, supplies gas and electricity to nearly 16 million customers, reaching market shares of gas and electricity contracts in Spain of 44.3% and 14.6% respectively, with an installed capacity of nearly 18 GW and a diversified mix of electricity generation. It operates in the regulated and deregulated gas and electricity markets, with a significant contribution from international activity, mainly in the areas of gas and electricity distribution; electricity generation and supply; and gas infrastructure, supply and marketing.

Media Contact:

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

Press Office

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SOURCE: European Investment Bank