Iberdrola and the European Investment Bank (EIB) have signed a loan of 500 million euros for the development and expansion of smart electrical networks in Spain, as reported by the electricity company this Wednesday. The loan has been financed within the framework of the Autonomous Resilience Fund (FRA).
The project already has financing approved with EIB own funds of 700 million euros. To this financing are now added an additional 500 million euros channeled by the EIB from the Spanish Recovery Plan through the Autonomous Resilience Fund.
The F.R.A. channels financing for the Recovery, Transformation and Resilience Plan of Spain within the Next Generation EU program to promote environmental and social investments in the Autonomous Communities. The FRA is led by the Ministry of Economy, Commerce and Business and has the participation of the Autonomous Communities and Cities and the Spanish Federation of Municipalities and Provinces (FEMP) for the selection of projects, and with the EIB as a strategic partner for its management. This is the first operation with a private entity financed by the FRA, through the instrument.
The funded project will contribute to continue strengthening the resilience of the electrical distribution network for connection to new electrification uses such as heat pump or electric mobility and the integration of more renewable energy sources to the network.
The General Director of International Financing of the Treasury, Inés Carpiohas highlighted the importance of the Autonomous Resilience Fund “to continue promoting the modernization and transformation of the productive fabric and the Spanish economy through the Recovery Plan, with a clear orientation towards transition and energy efficiency.”
“We are very pleased to carry out the first financing with resources from the Autonomous Resilience Fund that will be allocated to the expansion and development of Iberdrola’s electrical networks in Spain,” he commented. Antonio Lorenzo, head of the Corporate Financing Division in Spain of the EIB. “This is a key project for the development of smart electrical networks that will allow the integration of renewable energies into the Spanish electrical system with an impact on 12 autonomous communities.”
“With this new financing with the EIB we expand the development of smart grids, which are essential to facilitate the energy transition, boost efficiency and improve the distribution network and the quality of supply. In addition, we contribute to the electrification of the economy and reducing the country’s energy dependence“, he assures José Sainz Armada, director of Finance, Control and Corporate Development (CFO) from Iberdrola.
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