The European Investment Bank and EDP SA have agreed to two significant loans of €700 million for supporting renewable energy projects and upgrading the power grid in Portugal, Spain, and Italy. The funding will support EDP Renewables’ energy initiatives and EDP’s efforts at modernizing its grid toward achieving the EU’s green energy objectives.
The €500 million loan, part of a €900 million green loan, will fund the expansion of EDP Renewables’ projects. Together, these countries will account for nearly one-third of the 1,943 MW capacity planned for development.
Renewable installations will yield enough green energy to power more than 1 million homes per year. The deal supports EDP’s goal to add 18 GW of renewable capacity by 2026, including 1,559 MW of solar.
€200 Million loan for Grid Expansion and Digitalization
The second €200 million loan starts an €800 million investment to upgrade and expand EDP’s power distribution networks in Spain and Portugal. This project will address growing energy demand, integrate distributed renewable generation, and improve grid resilience.
It includes modernizing substations, extending cables, refurbishing lines, and implementing smart meters for better digital energy management. These upgrades will reduce losses in energy, improve management, and make the inclusion of renewable energy in the grid easier.
Supporting Europe’s Green Transition
These loans support the EIB’s strategy to speed up Europe’s green transition by boosting renewable energy and energy security. These loans support the EU’s REPowerEU plan, reducing reliance on fossil fuels and promoting energy independence across Europe.
Nuno Ascenso Pires, Head of the EIB Portugal Lending Division, said, “The European Investment Bank is very pleased to support EDP in its efforts to scale up renewable energy production and expand network distributions in Europe.”
He added, “These projects will help accelerate Europe’s green transition, which is a strategic objective for the European Union. The projects will also contribute to reduce Europe’s dependency on fossil fuel imports and strengthen its power grids and thus increase energy security.”
Also read: EIB Approves €243 Million Loan to ERG Group to Expand Renewable Energy
EIB’s Commitment to Energy Security
EIB is making significant investments in enhancing energy security in Europe. For the year 2023, the EIB Group had invested more than €21 billion in energy security; this investment included renewables, efficiency, grids, and storage.
These loans go into support for the EU’s REPowerEU initiative on cutting fossil fuel dependence, speeding up the sustainable transition of Europe’s energy. The EIB aims to mobilize over €150 billion for REPowerEU by 2027, expanding investment in Europe’s energy transition. The funding also supports key technologies and the extraction, processing, and recycling of materials vital for the green transition.