The European Investment Bank (EIB) and Iberdrola have signed a new financing agreement worth €1 billion, marking a significant move towards a greener and more energy-secure Europe. The collaborative project, co-financed by the duo, is expected to transform renewable energy in europe.
Renewable Energy in Europe
The New Energy Transition Agreement
Under the REPowerEU plan, a strategy to strengthen Europe’s energy autonomy, the EIB and Iberdrola have pledged to fast-track the energy transition in Europe. They aim to build an expansive network of 19 solar power plants and 3 onshore wind farms across the three countries. With a total installed capacity of 2.2 GW, the projects involve a joint investment of more than €1.7 billion, signifying a tremendous boost for supply security, climate action, and social cohesion in Europe.
Components of the Renewable Energy Project
The innovative aspect of the project lies in the hybridization of solar and wind power and energy storage. Some photovoltaic projects will generate solar energy when the sun shines and wind energy when the wind blows. The integrated systems complement each other and share the same connection point to ensure a more stable supply to the grid. Energy storage is a crucial part of the energy transition as it adds flexibility to renewable energy generation and improves system integration.
Economic Impact and Energy Security
The new installations will provide green energy equivalent to the average annual energy consumption of more than 1,000,000 households. Primarily located in cohesion regions, where per-capita income is lower than the EU average, the investment underlines the EIB’s commitment to equitable growth and living standard convergence. The developments will also boost economic growth and employment in the regions where these renewable energy facilities are installed, playing a significant role in national energy plans.
This collaborative endeavor will aid Iberdrola in achieving its 2040 net-zero emissions target, aligning with the overall objective of the EU’s REPowerEU plan.
European Investment Bank Commits to Energy Security
The EIB is steadfast in its commitment to ensure access to sustainable energy, especially amidst the great uncertainty triggered by Russia’s unjustified attack against Ukraine and the subsequent crisis brought on by the abrupt cut in gas supplies. The EIB’s clean energy financing volumes are at an unprecedented level in support of REPowerEU’s objective of ending Europe’s dependence on Russian fossil fuel imports.
Iberdrola: Commitment to Renewables and Sustainable Financing
This operation reflects Iberdrola’s commitment to decarbonizing the planet. The company plans to invest more than €47 billion between 2023 and 2025 to promote the energy transition, employment, and net zero emissions. This funding will further strengthen Iberdrola’s position in sustainable financing, with over €48 billion in ESG operations signed, including €17.6 billion in green bonds.
Iberdrola continues to progress with its sustainability strategy, which revolves around the electrification of the economy through sustainable energies, combating climate change, and creating wealth and jobs in the regions where it operates. The projects funded align with the UN Sustainable Development Goals, specifically SDG 7 (affordable and clean energy) and SDG 13 (climate action).
The EIB-Iberdrola agreement signifies a major stride in achieving sustainable energy and energy security in Europe. It sets a new benchmark for collaborative efforts in promoting renewable energy and marks a momentous step towards the realization of Europe’s net-zero emission goals.
