- This is the EIB's first financial transaction in Spain associated with sustainability criteria, linking credit conditions to a target to reduce direct greenhouse gas emissions (scope 1) in line with the United Nations SDG 13 (Climate Action).
- This financing for the sum of 250 million euros will be allocated to the construction of renewable energy generation facilities in Spain. This transaction forms part of a framework programme that could amount to a total of 700 million euros.
- The investments will diversify power generation and improve the security of energy supply, as well as increasing the share of renewables in Spain.
To commemorate the end of the United Nations Climate Change Conference (COP26) in Glasgow, the European Investment Bank (EIB) and Endesa joined forces once again to promote the roll out of renewable energies in Spain. To this end, the Vice President of the EU bank, Ricardo Mourinho Félix, and the CEO of Endesa, José Bogas, today signed off on financing worth 250 million euros in Madrid, which could increase to 700 million euros over the next two years, to finance their investment strategy and the roll out of renewable energy in Spain. Endesa is expected to allocate this sum to the construction of three photovoltaic solar projects and a wind project with a total installed capacity of 645 MW and a total investment of 500 million euros.
This transactions represents a new milestone for Endesa, as it is the first EIB transaction in Spain to link financing conditions to a scope 1 target for the reduction of direct greenhouse gas emissions (less than 150 grams of CO2eq/kWh by the end of 2023).
The transaction forms part of a shared strategy to orient EIB financing towards Climate Action and Environmental Sustainability. The investments will contribute to diversifying the power generation mix and improving the security of energy supply, which is particularly relevant in Spain, given the relatively low interconnection of the Iberian Peninsula with the energy markets of Central Europe. The transaction will also be key in increasing the share of renewables in electricity generation in Spain and Europe, in line with the climate objectives adopted for 2030 and 2050.
The EU bank supports this project in the form of a loan linked to sustainability criteria, the characteristics of which fully comply with the bank's Climate Action and Environmental Sustainability (CA&ES) requirements.
Specifically, the global funding framework programme (€700 million) will be aimed at jointly financing a large number of commercial-scale solar PV and wind projects in Spain, including the grid interconnection evacuation infrastructure. In total, a number of renewable projects are expected to be financed as part of a project portfolio that includes 16 commercial-scale solar PV projects and 8 wind projects, providing approximately 1.5 GWp of solar photovoltaic energy and 0.4 GW of onshore wind energy, equivalent to the annual energy consumption of around 1 million homes. Furthermore, a large part of the investment programme will be located in cohesion regions and will see the creation of nearly 2,500 jobs during the implementation phase, thus fostering economic recovery at a crucial time following the COVID-19 pandemic.
This development is part of Endesa's commitment in its latest strategic plan covering 2021-2023, which foresees 30% growth in its renewable energy park, up to 11,500 MW and investment of 3,300 million euros (20% more than in the previous plan). Thanks to this investment, 89% of Endesa's energy production on the Iberian mainland by the end of 2023 will be free from CO2 emissions, six percent higher than in 2020.
Vice President of the EIB, Ricardo Mourinho Félix, head of the EU bank's activity in Spain, asserted: "As demonstrated over the course of the COP26, the EIB is firmly committed to the fight against global warming. As the EU Climate Bank, it is essential for us to promote the development of renewable energy generation infrastructure, thus contributing to the achievement of climate objectives. The Bank has a long and fruitful relationship with Endesa and the Enel Group, fostered as part of a long history of transactions in the energy sector that have contributed to the achievement of several national objectives, such as climate action, the security of energy supply and support for social cohesion".
In the words of Endesa CEO, José Bogas, "The EIB awarded the first green loan in Spain to us and today, they have awarded us the first linked to sustainable criteria. Having the support of what could now be called the European Climate Bank is a guarantee of the solidity of Endesa's commitments to fulfilling our investment plan and moving towards total decarbonisation. And doing this with total conviction: 57% of our total gross debt is linked to sustainability targets. We want this to come to 60% by the end of 2023."
General information
The European Investment Bank (EIB) is the European Union's long-term lending institution and is owned by EU Member States. It offers long-term financing to sound investments with a view to contributing to the EU's policy objectives both in Europe and beyond. The European Investment Bank has a presence in approximately 160 countries and is the world's largest multilateral lender for climate action projects.
The EIB Group has recently adopted its "Climate Bank Roadmap" with a view to fulfilling its ambitious programme of support for investments in climate action and environmental sustainability worth 1 trillion euros in the decade ending in 2030 and providing more than 50% of EIB financing to climate action and environmental sustainability between now and 2025. Furthermore, as part of this Roadmap, starting in 2021, all new EIB Group transactions will be in line with the objectives and principles of the Paris Agreement."
About Endesa
Endesa is the largest electricity company in Spain and the second largest in Portugal. The company is also the second largest gas operator in the Spanish market. Endesa operates an end-to-end business from generation to marketing and through Endesa X also offers value-added services aimed at the decarbonisation of energy uses in homes, companies, industries and public administrations. Endesa is firmly committed to the United Nations SDGs and therefore strongly supports the development of renewable energies through Enel Green Power España, the electrification of the economy and Corporate Social Responsibility. The Endesa Foundation is also active in CSR. Our workforce numbers around 9,600 employees. Endesa is a division of Enel, Europe's largest electricity group.