This is the first loan from the European Investment Bank (EIB) in Spain linked to sustainability criteria.
Endesa has signed with European Investment Bank (EIB) financing for an amount of €250 millions, which could be increased to 700 million euros in the next two years, to finance its strategy of investment and deployment of renewable energy in Spain, informed both entities.
The agreement has been signed in Madrid by the CEO of Endesa, José Bogas, and the vice-president of the bank of the EU, Ricardo Mourinho Felix.
The energy company plans to allocate this amount to the construction of three photovoltaic solar projects and a wind project with a total installed power of 645 megawatts (MW) and a total investment of 500 million euros.
This is the first EIB operation in Spain that links the financial conditions to a goal of reducing direct greenhouse gas emissions of scope 1 (less than 150 grams of CO2eq/kWh by the end of 2023).
Bogas highlighted that the EIB granted Endesa the first green loan in Spain and “today we are the first linked to sustainable criteria”. Having the support of what is already the European climate bank is a guarantee of the solidity of Endesa’s commitments to comply with our investment plan and move towards total decarbonisation. And to do so with total conviction: 57% of all our gross debt is linked to sustainability objectives. And we want to reach 60% by the end of 2023,” he assured.
For his part, the Vice President of the EIB highlighted that the entity “has a long and fruitful relationship with Endesa and the Enel Group, developed through a long history of operations in the energy sector that have contributed to the achievement of several objectives such as climate action, security of energy supply and support for social cohesion”.
Both companies highlighted that the operation is part of a shared strategy of directing EIB financing towards Climate Action and Environmental Sustainability.
Thus, the investments will contribute to diversifying the energy generation ‘mix’ and improving security of supply, which is especially relevant in Spain, given the relatively low interconnection of the Iberian Peninsula with the energy markets of central Europe.
The operation will also be key to increasing the share of renewables in electricity generation in Spain and in Europe, in line with the climate goals adopted for 2030 and 2050.
The EU Bank supports this project through a loan linked to sustainability criteria whose characteristics fully comply with the Bank’s Climate Action and Environmental Sustainability (CA&ES) requirements.
GLOBAL FINANCING FRAMEWORK PROGRAM OF 700 MILLION.
Specifically, the global financing framework program (700 million euros) will be used to co-finance a large number of commercial-scale solar photovoltaic and wind projects in Spain, including evacuation infrastructure for grid interconnection.
In total, a number of renewable projects are anticipated to be funded within a project portfolio that includes 16 commercial-scale solar PV projects and 8 wind projects, supporting some 1.5 gigawatts (GW) of solar PV and 0 .4 GW. of onshore wind energy, equivalent to the annual energy consumption of nearly one million homes.
In addition, a large part of the investment program will be located in cohesion regions and will create nearly 2,500 jobs during the implementation phase, thus promoting economic recovery at a crucial time after the impact of the Covid-19 pandemic. .