EIB and Iberdrola Sign €120M Loan to Boost Energy Innovation and Decarbonisation Efforts

This partnership aims to accelerate the electrification and decarbonisation of the economy, with the total investment for the project reaching €250 million.

The European Investment Bank (EIB) has entered into a €120 million loan agreement with Iberdrola to finance research and innovation projects focused on advancing energy technologies. This partnership aims to accelerate the electrification and decarbonisation of the economy, with the total investment for the project reaching €250 million.

Driving Renewable Energy Innovation

The EIB financing is set to enhance innovation in various renewable energy projects, including solar photovoltaics, hydropower, and wind energy. Additionally, the funds will support research and development efforts to decarbonise energy demand through initiatives such as green hydrogen and heat pumps. The project will also explore solutions for better integration and management of renewables, facilitating energy storage and optimising energy efficiency across the entire value chain.

Investment in power grid infrastructure will focus on projects aimed at digitalisation, advanced data management, and power electronics to develop smart grids. These initiatives will include efforts to improve cybersecurity and resilience, ensuring that the energy grid can withstand potential threats. Furthermore, the projects will enhance the retail sector by creating smart solutions that promote self-supply and electric mobility.

Supporting Economic and Social Cohesion

This financing initiative aligns with Iberdrola’s 2024-2026 strategic plan, which seeks to expedite the decarbonisation of its operations while contributing to the overall electrification and digitalisation of the global economy. Notably, an estimated 27% of the total investment is earmarked for regions with a per capita income below the EU average, supporting economic, social, and territorial cohesion.

EIB's Commitment to Energy Security and Innovation

In 2023, the EIB Group allocated over €21 billion towards financing energy security projects across Europe, with €4.5 billion specifically directed to Spain. These investments span various sectors, including renewable energy, energy efficiency, power grids, and storage systems, all aimed at accelerating Europe’s transition to sustainable energy and reducing dependence on fossil fuel imports.

Iberdrola's Vision for a Sustainable Future

Iberdrola is committed to an energy model centred on electrification, leveraging clean and efficient technological solutions. The company plans to double its investment in research, development, and innovation, committing more than €4 billion by 2030. This funding will primarily target renewable energy, smart grids, digital transformation, green hydrogen, and customer-focused solutions, all geared towards expediting decarbonisation to tackle the climate crisis and enhance energy security.

Recognized by the European Commission as the world's leading private electric company in research and development investment, Iberdrola is set to play a crucial role in driving the transition towards a more sustainable energy future.