EIB Pledges €1.6B to France-Spain Bay of Biscay Clean Energy Link

Developed by Inelfe, a joint venture between Red Eléctrica and RTE, the interconnection is being built through a participatory process with local communities to ensure environmental, social, and technical best practices.

In a major stride toward European energy integration and decarbonization, the European Investment Bank (EIB) has pledged €1.6 billion in financing for the Bay of Biscay electricity interconnection project between Spain and France. The cross-border initiative aims to nearly double electricity exchange capacity between the two countries and strengthen Europe’s energy security, clean energy infrastructure, and climate resilience.

The first €1.2 billion loan tranche was signed today at the EIB headquarters in Luxembourg with national electricity transmission system operators Red Eléctrica (Spain) and RTE Réseau de Transport d’Électricité (France). This builds on the €578 million EU grant already allocated under the Connecting Europe Facility (CEF).

The Bay of Biscay project has been designated a Project of Common Interest (PCI) by the European Union, reflecting its vital importance for regional cooperation, the European Green Deal, and the EU’s interconnection target of 15% of installed power generation capacity by 2030.

A Game-Changer for Cross-Border Energy Flow

Expected to be operational by 2028, the 400 km long high-voltage submarine interconnection will link the electrical grids of Cubnezais in France and Gatika in Spain via a direct current (DC) submarine cable, with conversion stations at both ends to feed into the respective national alternating current (AC) grids.

Once completed, it will:

• Increase transmission capacity between France and Spain from 2,800 MW to 5,000 MW

• Avoid 600,000 tonnes of CO₂ emissions annually by facilitating low-carbon electricity exchanges

• Provide more affordable, secure, and clean electricity to millions of consumers across southwestern Europe

• Enhance grid stability and resilience amid growing renewable energy production and variable demand

“This agreement will lead to a major shift in energy integration,” said Nadia Calviño, EIB President. “It’s essential for EU competitiveness and strategic autonomy.”

---

Uniting European Energy Infrastructure

The event was attended by high-ranking EU and national officials, underscoring the political and economic weight of the interconnection:

• Dan Jørgensen, European Commissioner for Energy and Housing

• Marc Ferracci, French Minister for Industry and Energy

• Miguel González Suela, Spanish Deputy Secretary of State for Ecological Transition

• Beatriz Corredor, Chairwoman of Redeia (Red Eléctrica’s parent company)

• Thomas Veyrenc, Executive Board Member of RTE

“Europe needs more integrated energy systems,” said Jørgensen. “This project will give citizens access to stable and clean supplies, and bring us closer to a true Energy Union.”

“It’s a bridge between nations and key for European cohesion,” added Beatriz Corredor.

Technical and Environmental Excellence

Developed by Inelfe, a joint venture between Red Eléctrica and RTE, the interconnection is being built through a participatory process with local communities to ensure environmental, social, and technical best practices.

This includes:

• Routing to minimize environmental impact

• Coastal engineering to withstand marine conditions in the Bay of Biscay

• Use of advanced conversion stations to handle high voltage direct current (HVDC) efficiently

The project is complemented by other infrastructure upgrades, such as the Baixas-Santa Llogaia underground link and upgrades to the Argia-Hernani corridor, further connecting Spain to the broader EU grid.

Part of the Broader Energy Security Push

The EIB’s investment supports the broader REPowerEU initiative, the EU’s strategic plan to end dependence on fossil fuel imports and accelerate the green energy transition. It also reinforces the EIB’s identity as the EU’s climate bank, a role underscored in its 2024–2027 Strategic Roadmap.

“This is not the last step,” said Spain’s Miguel González Suela. “It’s a major stride toward building the Energy Union and enhancing resilience across Europe.”

A Record Year for EU Energy Financing

The EIB has significantly ramped up support for energy transition and security:

• In 2024 alone, the EIB signed a record €31 billion in energy financing, supporting over €100 billion in total investment across the EU

  • €8.5 billion of this went toward grid modernization and energy storage

• Spain led the bloc in EIB energy financing with over €5 billion, double the previous year’s total

  • €1.54 billion focused on electricity grids and storage

• In France, energy-related EIB financing in 2024 totaled €3.6 billion, with €400 million allocated to grid and storage infrastructure

• Over the last five years, the EIB has backed €16.7 billion in energy projects in Spain and €17.7 billion in France

“With EU institutions and TSOs like RTE, we are laying the foundation for a resilient, low-carbon grid,” said Thomas Veyrenc of RTE. “The French grid is ready to be Europe’s electricity crossroads.”

Looking Ahead

The Bay of Biscay project is not just about energy—it’s about economic integration, climate responsibility, and European solidarity. As Europe intensifies efforts to meet climate goals and geopolitical challenges, such flagship projects exemplify how infrastructure can unite nations, boost resilience, and power a sustainable future.

“The Bay of Biscay link is a milestone in decarbonisation,” said France’s Marc Ferracci. “It reflects the strong partnership between France and Spain—and the shared ambition to create a more sustainable, interconnected Europe.”