| Project Detail |
The project comprises the expansion and modernisation of electricity distribution networks in Portugal and Spain over the period 2024-2026.
Additionality and Impact
The investment programme concerns the extension and refurbishment of electricity distribution networks in Portugal and Spain. The Project is eligible under the EIB Energy Lending Policy and is consistent with the EIB Climate Bank Roadmap. It supports the Banks Sustainable Energy public policy goal, in particular by contributing to secure the necessary enabling infrastructure. It will provide a significant contribution to Climate Action (climate change mitigation and adaptation) in line with the applicable EU Taxonomy requirements and to the EU Economic, Social and Territorial Cohesion by investing in EIB Cohesion Priority regions.
EIB financing to the Project will contribute to addressing market failures. This is expected to result in greater efficiency of investments promoted by the client. Market failures include negative environmental externalities and the need to ensure security of electricity supply, which has valuable public-good attributes. The investment programme will enable the connection of new users, improve the reliability of supply and support further decarbonisation of the power mix.
The Projects overall economic viability is rated as good with a positive broader social benefit. The promoter is an experienced utility operator of electricity distribution networks and has the necessary capacity to manage the implementation of the Project and operate the assets over the term of the loan. Overall, the Project quality and results is expected to be Very Good.
The Banks financial contribution is considered valuable to the client, as the EIBs offering provides more flexible conditions compared to market alternatives (e.g. longer tenor and grace period). The Banks financing shows the alignment of the investments and the Promoters growth strategy with the EU policies on climate change, with the "EIB Green Loan" label deemed as a stamp of quality on the Promoters investments and environmental-related procedures.
Objectives
The operation will support the upgrade and modernisation of various distribution system elements in medium and low voltage levels, such as substations, power transformers, smart meters, automation, underground cables and overhead lines.
Sector(s)
Energy - Electricity, gas, steam and air conditioning supply
Proposed EIB finance (Approximate amount)
EUR 800 million
Total cost (Approximate amount)
EUR 1600 million |
