EIB Grants €50 mn Loan to Iberdrola for 111 MW Wind Farm in Spain

EIB will provide EUR 50 million in financing to an Iberdrola and Caja Rural de Navarra JV, to build wind energy projects worth a combined 111 MW in Spain

The European Investment Bank (EIB) has announced that it will provide EUR 50 million in financing to Renovables de la Ribera, a 50-50 joint venture between Iberdrola and Caja Rural de Navarra to build wind energy projects worth a combined 111 MW in Navarra, Spain.

The EIB is assisting this project via a Green Loan, the features of which are fully in line with the requirements set out in its Climate Awareness Bonds programme. As a result, it is likely to be allocated to its portfolio of loan operations financed via the issuance of these bonds.

The new project, located between the municipalities of Cadreita and Valtierra, includes four wind farms and will have an installed capacity of 111 MW. Construction will enable the creation of up to 200 jobs and the complex is expected to become operational in the first quarter of 2020.

In this way, the EU bank financing provided to Renovables de la Ribera will help meet the goal proposed by the European Commission of generating 32 percent of the energy used in the EU using renewable sources by 2030. The new wind complex – which will not release any polluting emissions – will generate enough clean energy to meet the electricity needs of 46,500 people and will avoid the release 84,000 tonnes of CO2 emissions into the atmosphere a year.

Cavar is also the first wind project in Spain to sell its energy to a large corporation. A long-term bilateral contract (a Power Purchase Agreement or PPA) will see it produce 40 MW of clean energy for Nike in Europe.

EIB Vice-President Emma Navarro, who is responsible for climate action at the Bank, said that Spain has major renewable energy potential, and the EIB wants to help it to become a reference point in the sector by providing investments to promote the transition to a low-carbon economy while simultaneously fostering growth and employment.

“Promoting clean energy generation is one of our key priorities. As part of its aim to establish itself as the EU climate bank, the EIB has reaffirmed its commitment to increasing its financing to support Europe in its plans to become the first carbon-neutral continent by 2050.”