Energy producer Iberdrola's power distribution networks in Spain to help to reinforce the infrastructure and be better prepared for energy transition
December 06, 2019. By Ashish Wagh
Spain and Portugal-based clean energy producer Iberdrola has signed deals with the European Investment Bank to finance new digitalization of electrical networks in Spain and wind energy projects in Brazil.
The EU bank will provide EURO 440 million ($489 million) for Iberdrola's power distribution networks in Spain to help to reinforce the infrastructure and be better prepared for the energy transition, the EIB and Iberdola has said. The announcement comes as representatives from almost 200 countries are gathered in Madrid for the United Nations COP25 climate talks from December 2-13.
"The byword for this COP is the need to start taking action, and that is what Iberdrola and the EIB are doing today : undertaking specific actions that will help to limit the global temperature increase to 1.5 degrees C," Iberdrola President Ignacio Galan said.
The EIB said the deals highlight the bank's support for a low-carbon economy in Europe, with EU regulators now planning draft legislation to reach net zero emissions by 2050. "To fulfil the objectives of the Paris Agreement, we need to mobilise resources on an unprecedented scale, and the EIB is seeking to lead the response to this challenge," said EIB Vice President Emma Navarro.
The funding will help Spain's power networks integrate more renewable energy generation as well as boost sustainable mobility, smart cities and decentralized consumption, it said. The EIB will also provide Eur250 million to finance the construction of 15 wind farms that Iberdrola plans to build in northeastern Brazil, through its subsidiary Neoenergia, the company said. The facilities will have a total installed power of 520 MW.
The EIB is working on mobilizing up to Eur1 trillion over the coming decade through projects that will help the transition to a low-carbon economy, including renewable energy, it said.
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