THE European Investment Bank (EIB) has signed a deal with investment firm Ben Oldman, paving the way for a €114 million fund to finance new solar and wind energy projects in Spain and Portugal.
It is estimated that the funding will provide enough renewable energy to provide for 200,000 households.
The agreement will see the project funded by unitranche debt, a form of financing in which secured and unsecured debt are combined into a single loan, meaning they usually have a more predictable repayment schedule.
Ricardo Mourinho Felix, EIB vice-president, said: “The Spanish and Portuguese markets have huge potential for renewable energy, and the EU bank is pleased to lend all our support to the investments needed to meet objectives on renewable energy generation and decarbonisation of the economy.”
The EIB is one of the world’s largest investors in green energy, having committed to ending its investment in all fossil fuel related energy projects.
In January it announced it would finance energy storage company Gravitricity’s plan to build a renewable energy storage facility in the Moravian Silesian region of Czechia.
The programme is also expected to create at least 700 jobs in the construction industry.
The Spanish government is aiming to source 42% of its energy from renewables by 2030.
It announced in December it had met its 2021 target of 20% of energy coming from renewables.
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