The European Investment Bank (EIB) has awarded Endesa the first EIB Green Loan (EIB Green Loan). It is a funding aimed at facilitating investments in energy efficiency or energy production from renewable sources. Although the EIB has financed several projects of this nature in its long history of fighting climate change, this is the first time it has granted this rating to a loan, thus making it possible for developers like Endesa to undertake their decarbonization strategy.
The operation formalized entails a financing of 335 million euros for the construction of 15 wind farms, with a capacity of 446 MW, and three solar photovoltaic plants, with a power of 339 MW. The EIB Green Loan will fund operations that fully comply with the requirements defined in its Climate Awareness Bonds program and is, therefore, liable to be assigned to its portfolio of loan operations financed through the issuance of said Bonds.
The funding provided by the EIB will also contribute to meeting the goals set by the National Renewable Energy Action Plan, which establishes that 20% of the energy consumed in Spain in 2020 must be from renewable sources.
Endesa was awarded 540 MW of wind power and 339 MW of photovoltaic power in the auctions of new installations for the production of electricity from renewable sources in Spain in May and July 2017. This will result in an investment of more than 800 million euros by 2020.
Endesa´s wind farms and solar plants will be built in different locations throughout six autonomous communities: Aragón, Castilla-La Mancha, Castilla-León, Extremadura, Galicia and Murcia. The project will also contribute to the generation of employment: the construction of these winds farms and photovoltaic plants is allowing the recruitment of 1,700 people who will work on the project during the investment phase and until the commissioning.
Strategy towards decarbonization
As assured by the vice president of the EIB, Emma Navarro, the generation of energy from renewable sources is a “cornerstone” element in the European strategy to tackle the challenge of global warming. The EIB has become the largest multilateral funder of action against climate change, supporting projects that, like this one, “contribute to the ambitious goal of reducing greenhouse gas emissions to zero by 2050, investing in the transition towards clean energies “, Navarro explained. Spain can become “a great benchmark in this sector and the EIB will contribute to harness its full potential”, EIB vice president concludes.
For his part, the CEO of Endesa, José Bogas, highlighted “the investment effort that the company is making and will continue to make in renewable energies.” For Bogas it is “a commitment made by Endesa to boost a period of energy transition that allows us to move towards a fully decarbonized energy system in 2050. ”
The EU Bank is the multilateral institution that most funding provides worldwide to fight climate change. EIB devotes at least 25% of its total activity to this priority, a percentage that increases to 35% in developing countries.