EIB Provides €700 Million in Loans to Support EDP’s Renewable Energy and Power Grid Expansion Projects

(IN BRIEF) The European Investment Bank (EIB) has granted €700 million in loans to EDP SA to advance renewable energy and modernize power grids in southern Europe. A €500 million loan will help EDP Renewables deploy 1,943 MW of solar and wind capacity in Portugal, Spain, and Italy, powering over one million homes annually. A €200 million loan will upgrade electricity distribution networks in Spain and Portugal, improving resilience, efficiency, and renewable integration. These projects align with the EU’s REPowerEU goals to boost energy security, reduce reliance on fossil fuels, and accelerate the green energy transition.

(PRESS RELEASE) LUXEMBOURG, 20-Dec-2024 — /EuropaWire/ — The European Investment Bank (EIB) has committed €700 million in financing to support EDP SA’s ambitious energy initiatives, which aim to accelerate renewable energy production and modernize electricity distribution networks across southern Europe. The funding is divided into two major loans designed to enhance energy security and promote the EU’s energy transition goals.

The first loan, totaling €500 million, marks the initial tranche of an approved €900 million green framework loan. This funding will enable EDP Renewables, a subsidiary of EDP SA, to roll out new solar photovoltaic and onshore wind installations in Portugal, Spain, and Italy. These renewable energy projects, expected to generate a combined 1,943 MW of installed capacity, will contribute to EDP’s goal of adding 18 GW of renewable capacity by 2026. The new facilities will produce enough green energy to power more than one million households annually.

A second €200 million loan, the first installment of an approved €800 million investment package, is earmarked for upgrading and expanding EDP’s electricity distribution networks in Spain and Portugal. These upgrades will support growing energy demand and distributed renewable generation, while improving the resilience and efficiency of power grids. Key initiatives include modernizing critical infrastructure such as overhead lines, underground cables, and substations, as well as implementing digital technologies like smart meters to enable smarter energy management and integrate renewable energy sources effectively.

“These projects underscore the EIB’s commitment to advancing Europe’s green energy transition,” said Nuno Ascenso Pires, Head of EIB Portugal Lending Division. “By supporting EDP’s renewable energy expansion and power grid upgrades, we aim to bolster Europe’s energy security, reduce dependency on fossil fuel imports, and contribute to a sustainable future.”

Rui Teixeira, CFO of EDP Group, highlighted the importance of this collaboration: “These loans reflect EDP’s strong partnership with the EIB and align perfectly with our financial strategy to enhance flexibility and extend debt maturity. With EIB’s support, we will continue to lead the global energy transition, delivering sustainable energy solutions and strengthening critical infrastructure to meet future demands.”

These investments align with the REPowerEU initiative, the EU’s strategic plan to reduce reliance on fossil fuels and accelerate the shift to renewable energy. The projects also emphasize EIB’s commitment to economic, social, and territorial cohesion by prioritizing investments in regions with lower-than-average per capita income within the EU.

In 2023 alone, the EIB Group provided over €21 billion in financing for energy security projects across Europe, ranging from renewable energy generation to power grids and storage systems. As part of its expanded support for the REPowerEU initiative, the EIB plans to mobilize more than €150 billion in additional investments by 2027, reinforcing Europe’s path toward energy sustainability and resilience.

Background information

About the EIB

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances investments that contribute to EU policy objectives. EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality.

The EIB Group, which also includes the European Investment Fund (EIF), signed a total of €88 billion in new financing for over 900 projects in 2023. These commitments are expected to mobilise around €320 billion in investment, supporting 400 000 companies and 5.4 million jobs.

All projects financed by the EIB Group are in line with the Paris Climate Accord. The EIB Group does not fund investments in fossil fuels. We are on track to deliver on our commitment to support  €1 trillion in climate and environmental sustainability investment in the decade to 2030 as pledged in our Climate Bank Roadmap. Over half of the EIB Group’s annual financing supports projects directly contributing to climate change mitigation, adaptation, and a healthier environment.

Approximately half of the EIB’s financing within the European Union is directed towards cohesion regions, where per capita income is lower. This underscores the Bank’s commitment to fostering inclusive growth and the convergence of living standards.

About EDP

EDP is a global energy leader present in Europe, North America, South America and Asia Pacific and operates across four primary platforms (Renewable Generation Assets, Networks, Client Solutions and Global Energy Management), with nearly 13,000 employees across the globe.

The group is one of the greenest utilities in the world, with 97% of its energy coming from renewable sources, and ranks first globally as the most sustainable utility company in the Dow Jones Sustainability Index. It is committed to becoming net-zero by 2040, investing more than €17 billion into the energy transition up to 2026.

EDP is leveraging a 29.4 GW portfolio to scale up renewable energy deployment through wind, solar and hydro, while exploring the technologies of the future (such as green hydrogen, storage,and hybridization of clean technologies) and expanding a robust grid infrastructure as a key enabler of the energy transition.

Media Contact:

Maite Cordero
m.corderomunoz@eib.org
+34 606 66 82 62

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SOURCE: European Investment Bank