Global energy and electricity provider Iberdrola announced today a new €550 million green loan agreement with the European Investment Bank (EIB) to help fund the development of a portfolio of wind farms and photovoltaic parks in Spain, with a projected capacity of 1.8 GW.

The renewable energy projects will be built in various locations in rural areas in Spain, and are anticipated to supply sufficient energy to power around a million homes. Total investment in the projects is expected to exceed €1.1 billion.

The deal marks the latest in a string of sustainable finance transactions for Iberdrola, including a €2.5 billion sustainability linked credit line signed by the company earlier this month, and a €1 billion green loan with Banco Santander announced in April. Last year, Iberdola announced plans for its financing structure to have an increasingly higher percentage of green and sustainable products, estimated to account for nearly two-thirds of its debt by 2025.

Iberdrola has also been actively scaling its clean energy capacity. In late 2020, the company launched a €75 billion capital plan, which includes massive investments over the next few years in renewable energy, with the company anticipating nearly doubling its renewables capacity by 2025. Over the next decade, the company aims to invest €150 billion, tripling its renewable energy capacity and doubling its network assets.

Iberdrola CEO Ignacio Galán said:

“This financing agreement, which further strengthens our cooperation with the EIB, is a new boost for our projects in Spain at an important time when we need to speed up the energy transition and reduce our dependence on fossil fuels.”

In 2020, the EIB launched its Climate Roadmap, aimed at supporting €1 trillion of climate and environmental sustainability investments by 2030, and aligning all financing activities with the principles and goals of the Paris climate agreement.

EIB Vice-President Ricardo Mourinho Félix said:

“The new green loan signed with Iberdrola enables us to step up our contribution to making Spain a country with increased renewable capacity, a key factor for Europe to achieve its climate targets. As the EU Bank, we continue to support projects in line with our ‘Climate Roadmap’, while at the same time boosting Europe’s security of energy supply in the current sensitive context.”