Global energy and electricity provider Iberdrola announced today that it has signed a €1 billion financing agreement with European Investment Bank (EIB), with proceeds aimed at funding the buildout of renewable energy projects across Europe sufficient to power more than 1 million homes.

The new loan will help finance 22 renewable energy projects in Spain, Portugal and Germany, including 19 solar plants and 3 onshore wind farms. The projects are anticipated to have a total installed capacity of 2.2 GW, with total investment expected to reach €1.7 billion.

EIB Vice-President Ricardo Mourinho Félix said:

“This major financing agreement covering three countries highlights the EIB’s continued firm commitment to accelerating the energy transition in Europe and to ensuring access to affordable, clean power for all Europeans. This is a strategic objective for the European Union and the EIB that will not only contribute to climate change mitigation, but also to the EU’s energy security and strategic autonomy.”

The agreement forms part of the EIB’s financing package in support of REPowerEU, the EU’s €300 billion strategy to reduce European reliance on Russian fossil fuels through measures including the deployment of renewable and clean energy capacity.

According to the EIB, most of the projects finance by the new agreement will be in regions in which per-capita-income is lower than EU average, with investments also aimed at boosting economic growth and employment.

The projects will also include an innovation component, targeting the facilitation of renewables into the grid, including hybridizing some of the photovoltaic projects with wind power and battery systems to help create a more stable energy supply for the grid.

Iberdrola has 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.

 In November 2022, Iberdrola announced targets to achieve carbon neutrality in its power generation plants by 2030, and to reach net zero across its full value chain by 2040.

The announcement follows a €550 million green loan agreement between Iberdorla and the EIB last year, to help fund the development of a portfolio of wind farms and photovoltaic parks in Spain, with a projected capacity of 1.8 GW.

Ignacio Galán, Executive Chairman of Iberdrola said:

“As one of the main partners of the EIB, it is a pleasure for us to have the Bank support again through this loan, which represents a significant contribution to accelerate Europe’s energy independence -in line with the REPowerEU Plan of the European Union–, achieve climate objectives, and continue creating economic growth and employment in the continent.”