Endesa and the European Investment Bank (EIB) have signed a €250 million ($249.8 million) smart grid credit line to boost Spain’s distribution network.
Spain: EIB and Endesa sign a new credit line of sustainable financing for €250 million to boost the modernisation of distribution networks
EIB vice-president, Ricardo Mourinho Félix, and Endesa chief financial officer, Luca Passa, signed the loan in Madrid to finance the investments that e-distribución, Endesa’s networks subsidiary, will make during the 2022-2024 period in the improvement, modernisation and expansion of electricity distribution networks.
This is the first sustainable loan granted by the EU Bank to finance distribution networks in Spain, which links the financial conditions to a corporate direct emissions reduction target (GHG scope 1).
The funds will make it possible to boost the digitalisation, automation and sensorisation of networks to achieve more efficient and resilient electricity infrastructures that contribute to the energy transition. It is also hoped to bolster the integration of renewable energies, deployment of electric vehicles and the promotion of self-consumption.
This project will be implemented in eight Spanish autonomous communities: Andalusia, Aragon, the Balearic Islands, the Canary Islands, Castile-Leon, Catalonia, Extremadura and Galicia.
The project is expected to generate significant employment; estimates for the operation foresee some 8,000 jobs per year throughout its implementation.
Spanish sustainable financing
According to Passa, “this transaction reinforces Endesa’s commitment to sustainable finance in collaboration with the EIB. This relationship has been reflected over the past year in the signing of the first two sustainable financing transactions in Spain for an amount of €250 million each to develop renewable plants and continues now with a line of financing for the promotion of smart grids.
“Two elements, renewable energies and grids, which are the key to developing a new energy model that moves towards decarbonisation and will strengthen our energy independence.”
EIB Vice-President Ricardo Mourinho Félix added: “Securing financing to ensure a resilient and sustainable energy supply represents a priority for the EU Climate Bank. Therefore, we are pleased to support this project to modernise electricity grids, which creates jobs and supports social cohesion, while encouraging the greater integration of renewable energies.”
Endesa’s Strategic Plan for the 2022-2024 period places the strengthening and modernisation of distribution networks as one of the company’s two strategic pillars in addition to the development of generation from renewable sources.
Endesa will allocate €2.9 billion ($2.9 billion) over the course of the period to distribution networks, a figure that will increase to €12 billion ($12 billion) through to 2030 to improve the quality of services, reducing energy losses and interruptions in supply.
