EIB and Naturgy Seal €1bn Deal to Boost Spain’s Renewable Capacity by 2.3 GW

Naturgy’s Executive Chairman, Francisco Reynés, praised the financing deal as a strong validation of the company’s ongoing efforts in advancing Spain's decarbonization agenda.

The European Investment Bank (EIB) and Naturgy have reached a significant €1 billion financing agreement aimed at accelerating Spain's energy transition. The loan will support the development of new solar and onshore wind power stations and the modernization of existing facilities to convert them into hybrid energy sites. The initial €400 million tranche of the agreement was signed in Madrid, marking a key milestone for both entities.

The funding will increase Spain’s renewable energy generation capacity by 2.3 GW, making a major contribution to both the national energy transition and the broader EU climate action goals. Once completed, the project will generate enough green electricity to power more than 1.15 million homes annually, based on typical average consumption. Additionally, the investments will involve renewable energy storage solutions, including batteries, to ensure more efficient energy use and stability in the grid.

This agreement highlights the EIB's commitment to supporting Europe’s green energy future. Jean-Christophe Laloux, Director General and Head of EU Lending and Advisory at the EIB, emphasized that the project aligns with the EIB’s strategic priorities to enhance energy security, improve sustainability, and reduce reliance on fossil fuels.

Naturgy’s Executive Chairman, Francisco Reynés, praised the financing deal as a strong validation of the company’s ongoing efforts in advancing Spain's decarbonization agenda. He also noted the positive impact the project will have on job creation, particularly in regions of Spain with lower per capita income—often referred to as ‘empty Spain’.

Strengthening Territorial and Social Cohesion

One of the standout features of this agreement is its contribution to territorial cohesion. A significant portion of the investment will go to Spain’s less-developed regions, supporting sustainable development and reducing regional disparities. It is estimated that the project will generate 4,200 jobs during the implementation phase, contributing to economic revitalization and social equity in these areas.

A Critical Step in EIB’s REPowerEU Efforts

This loan agreement also supports the European Union's REPowerEU plan, which aims to reduce Europe's dependence on fossil fuel imports and strengthen its energy security. The EIB is playing a crucial role in the REPowerEU initiative, having committed to mobilize €45 billion for projects in renewable energy and energy security by 2027. The €1 billion loan to Naturgy is a key part of this strategy, reinforcing the importance of private sector partnerships in achieving the EU’s green energy goals.

In 2023, the EIB Group signed over €21 billion in financing for energy security projects across Europe. Of that amount, €4.5 billion was allocated to projects in Spain, focusing on areas such as renewable energy, power grids, and energy storage systems. These investments are essential to speeding up the transition to clean energy and decreasing Europe's reliance on energy imports.

Broader EIB Funding Initiatives

The EIB has expanded its financing capacity for the REPowerEU plan, with a goal of mobilizing over €150 billion in investment by 2027. The additional funding will target key sectors like green technologies, carbon-neutral manufacturing, and the extraction and recycling of critical raw materials. This initiative is a cornerstone of the EU’s strategy to achieve a carbon-neutral economy and energy independence by mid-century.

The EIB’s partnership with Naturgy and its continued commitment to financing energy security underscore the importance of collaboration between public and private sectors in tackling the challenges of climate change and energy sustainability.