- The terms and conditions for the loan could improve if direct greenhouse gas emissions (scope 1) are reduced, in line with United Nations Climate Action SDG 13.
- Financing valued at 300 million euros will be assigned to the construction of four photovoltaic solar projects and a wind project with a total installed capacity of 745 MW.
- The investments will diversify power generation and improve the security of energy supply, as well as increasing the share of renewables in Spain. Endesa's strategic plan for 2022-2024 includes plans to increase installed capacity from renewable sources by 48%, to 12,300 MW. This will mean that 92% of Spanish mainland production will already be CO2 emission-free by the end of 2024. The planned investment in renewables for the period amounts to 3,100 million euros.
- Endesa currently already has a sustainable debt level of 59% (vs 45% at the end of 2020) and expects this to reach 80% by the end of 2024.
Today in Madrid, the general director of business of the ICO, Rosario Casero and the general economic-financial director of Endesa, Luca Passa, signed financing linked to sustainability criteria amounting to 300 million euros to finance their investment strategy and the deployment of renewable energy in Spain. This is the largest financing linked to sustainability criteria granted by ICO to date and the financial conditions are linked to a scope 1 direct greenhouse gas emission reduction target (less than 150 grams of CO2eq/kWh by the end of 2023). Endesa is expected to allocate this amount to the construction of four photovoltaic solar projects and a wind project with a total installed capacity of 745 MW, representing a total investment of 567 million euros.
This green financing linked to sustainability criteria will contribute to complying with the Law on Climate Change and Energy Transition as well as with the Integrated National Energy and Climate Plan (PNIEC 2021-2030); it is also in line with the next EU legislative package "Fit for 55", which establishes a medium-term objective of reducing emissions by 55% in 2030 compared to 1990, making Europe the first carbon-neutral continent by 2050, in line with the goals of the Paris Agreement.
The general director of business of the ICO, Rosario Casero pointed out that "this loan linked to sustainability represents a new step in the actions that we are undertaking in the ICO, in co-financing with EIB, to contribute to boosting the development of renewable energies as one of the objectives of the Law on Climate Change and Energy Transition of May 2021, prioritising the identification and measurement of the environmental and social impact of the projects we finance. Operations such as the one signed today with Endesa strengthen our commitment to this line of work."
For Endesa's financial and insurance director, Adolfo García Nombela, "more than two years ago the ICO trusted Endesa and as a result granted its first green loan in Spain. Today we already talked about linking the terms and conditions for the credit to sustainability criteria, which is proof of the commitment of both parties to decarbonisation. Today we now have a "sustainable" debt level of 59% and our goal is for it to reach 80% by the end of 2024."
Towards climate neutrality
This transaction will help the company comply with its roadmap towards full decarbonisation. Last November, Endesa presented the latest strategic plan for 2022-2024 and the outlook for 2030, as well as bringing forward a decade, to 2040, its commitment to becoming a totally emission-free company. Endesa's planned investment in the short term for the development of renewable power will be €3,100 million, which will enable the commissioning of 4 gigawatts of new clean power: 90% will correspond to solar plants and the rest to wind farms.
This will enable the company to reach 12,300 MW of solar, wind and hydraulic energy by the end of the plan, an increase of 48% compared to the 8,300 MW with which it will conclude 2021. Growth in renewable energies will enable 92% of energy production in the Spanish mainland to be free of CO2 emissions by the end of 2024, six percentage points more than at the end of 2021. This year it will already be the integrated electricity company with the lowest CO₂ emissions in mainland Spain.
About the ICO
The Official Credit Institute or ICO (Instituto de Crédito Oficial in Spanish), which this year commemorates its 50th anniversary, is a Public Business Entity attached to the Ministry of Economic Affairs and Digital Transformation. The ICO is now a benchmark body in the financing of both SMEs and large-scale investment projects. The ICO contributes to sustainable growth, promoting economic activities whose social, cultural, innovative or environmental importance make them worthy of promotion and development.
The ICO includes sustainability as a horizontal principle for action in its various aspects: Environmental, social and governance. As a national promotion bank, in accordance with its Sustainability Policy, it pays special attention to the financing of renewable energy projects, sustainable infrastructures that include social, transport, logistics and ICT networks and installations.
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 generation, distribution and marketing business. Through Endesa X it also offers value-added services aimed at the electrification of energy usage in homes, companies, industries and Public Administrations. Endesa is firmly committed to the United Nations SDGs and strongly supports the development of renewable energies through Enel Green Power España, the digitalisation of grids through e-distribution and corporate social responsibility (CSR). The Endesa Foundation is also active in CSR. Our workforce numbers around 9,600 employees. Endesa is a division of Enel, the largest electricity group in Europe.