Spanish grid resilience boosted as Endesa secures €650 million loans from EIB and Recovery Fund

Spanish grid resilience boosted as Endesa secures €650 million loans from EIB and Recovery Fund

(IN BRIEF) The European Investment Bank (EIB) and Endesa have signed two loan agreements totalling €650 million to support the modernisation and digitalisation of Spain’s electricity distribution network. The financing package includes €500 million from the Regional Resilience Fund managed by the Spanish Ministry of Economy and €150 million directly from the EIB’s resources, as part of a larger approved facility. The funds will be used for smart meters, advanced transformers, digitalised grid management, substations, and underground cabling, enhancing supply security and grid resilience in six autonomous communities. More than half of the investment will benefit cohesion regions, aligning with Spain’s Recovery Plan, the EIB’s climate and cohesion priorities, and the EU’s REPowerEU strategy to increase energy security and accelerate the transition away from fossil fuels.

(PRESS RELEASE) LUXEMBOURG, 30-Sep-2025 — /EuropaWire/ — The European Investment Bank (EIB) and Endesa have signed two loan agreements worth a combined €650 million to modernise, expand and digitalise Spain’s electricity distribution network. The investment will reinforce the resilience of the grid, improve the security of supply, and support the integration of renewable energy in six autonomous communities, several of which are classified as cohesion regions.

The financing package consists of two separate components. A €500 million loan is provided through the Regional Resilience Fund (FRA), managed by the Spanish Ministry of Economy, Trade and Enterprise with resources from the EU Recovery and Resilience Facility. The second loan, worth €150 million, is financed directly from the EIB’s own funds and is the first tranche of a broader €500 million financing envelope approved by the Bank.

Endesa will use the financing to roll out a wide range of improvements across its distribution networks. Planned measures include the deployment of smart meters and monitoring equipment, the installation of next-generation transformers to manage supply fluctuations, the digitalisation of grid operations through advanced software, as well as the construction of new substations and underground cabling. These investments are designed to build a more climate-adapted and flexible network that can meet rising electricity demand while accommodating a growing share of renewable energy.

The project is also highly aligned with European and Spanish policy priorities. It contributes to the objectives of Spain’s Recovery, Transformation and Resilience Plan, advances the EIB’s climate action and cohesion goals, and supports the REPowerEU agenda, which seeks to strengthen Europe’s energy security and reduce reliance on fossil fuel imports. Importantly, more than half of the planned investments will be made in cohesion regions, where per-capita income is below the EU average, helping to promote balanced territorial development.

Against the backdrop of increasing electrification, higher demand, and more frequent climate-related events, the initiative highlights the importance of robust, modern infrastructure to ensure reliable energy supply. By combining national and EU-level funding, the EIB and Endesa are accelerating Spain’s energy transition while strengthening the resilience of local communities.

Background information

EIB

The EIB is the long-term lending institution of the European Union, owned by the Member States. Built around eight core priorities, it finances investments that pursue 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 (EIF), signed nearly €89 billion in new financing for over 900 high-impact projects in 2024, boosting Europe’s competitiveness and security.

Around half of EIB financing in the European Union goes to cohesion regions, where per capita income is below the EU average, while almost 60% of annual EIB Group investments support climate action and environmental sustainability.

In Spain, the EIB Group signed new financing worth €12.3 billion for over 100 high-impact projects in 2024, contributing to the country’s green and digital transition, economic growth, competitiveness and better services for its people.

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

Regional Resilience Fund

The Regional Resilience Fund (FRA) was created to facilitate access to NextGenerationEU loans from the Spanish Recovery, Transformation and Resilience Plan for the autonomous communities, with the aim of boosting investments and developing projects in eight priority areas: social and affordable housing; urban renewal; transport and sustainable tourism; the energy transition; water and waste management; the care economy; research, development and innovation; and the competitiveness of industry and SMEs.

The fund is led by the Ministry of Economy, Trade and Enterprise, which takes input from the autonomous communities and cities for investment decision-making and looks to the EIB Group as a strategic management partner.

The initial phase of the fund includes the activation of up to €3.4 billion in financing via:

• a direct financing mechanism, to co-finance EIB-supported operations in sectors like renewable energy, clean transport and sustainable infrastructure;
• an intermediated mechanism managed by financial intermediaries selected by the EIB, to support projects in urban development and sustainable tourism;
• two instruments intermediated by the European Investment Fund that will facilitate SME financing for innovation, sustainability and competitiveness.

Media contact:

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

Press Office
press@eib.org
+352 43791

SOURCE: European Investment Bank