The European Investment Bank (EIB) and Naturgy have secured a €1bn ($1.05bn) loan to enhance renewable energy projects in Spain.
The agreement for the initial tranche of €400m ($422m) was signed in Madrid.
The loan will primarily fund the construction of new solar energy and onshore wind power stations and the upgrade of current sites into hybrid facilities.
A portion of the funds will also be allocated to battery storage investments for renewable energy.
The strategic investment is set to expand Spain's renewable energy capacity by 2.3GW, aligning with the nation's energy transition objectives and the EIB Group's climate action and environmental sustainability targets.
The completed projects will generate sufficient green energy to supply 1,150,00 homes annually, based on average consumption estimates.
The implementation phase of the project will create 4,200 jobs.
EIB director general and EU lending and advisory head Jean-Christophe Laloux stated: “This important financing agreement with Naturgy reflects the EIB's strong commitment to supporting Europe’s energy transition.
“When complete, this project should generate enough green electricity to power more than one million homes, contributing also to our energy security and strategic autonomy.”
The €1bn loan is integral to the EIB's strategy to bolster the REPowerEU plan, which aims to enhance energy security and expedite the energy transition in the European Union.
Naturgy executive chairman Francisco Reynés stated: “The financing agreement we have signed with the EIB once again demonstrates and validates our commitment to the energy transition and to advancing the decarbonisation of the Spanish economy.
“I would like to highlight the work done by Naturgy's finance team led by Steven Fernández to reach this agreement.
“The implementation of these investments will also enable the creation of thousands of jobs in what is known as ‘empty Spain’, which will result in greater territorial cohesion.”
In March 2024, EIB approved a €700m loan to Iberdrola to expand its Spanish electricity distribution network..
