European Investment Bank to Sign Electricity Interconnection Refinancing Agreement Between Spain and France
New financing initiative aims to enhance electrical connectivity across the Bay of Biscay as costs escalate
Nadia Calviño, President of the European Investment Bank (EIB), announced today at a breakfast event in Madrid that a new financial package for the electric interconnection project between France and Spain is set to be finalized in the coming weeks.
This agreement will involve the refinancing of an already planned electrical interconnection, which is expected to enhance the exchange capacity between the two countries.
This refinancing agreement does not impact the new project requests submitted last weekend by the Spanish and Portuguese Ministers for Ecological Transition to their French counterpart.
The interconnection project, initially agreed upon in 2017, entails a joint investment of €1.75 billion aimed at increasing the connection capacity from 2.8 GW to 5 GW. Current estimates indicate that costs have already exceeded €3.1 billion, according to data from Entsoe, the European association representing electricity network companies.
Historically, France had declined to assume its proportional share of these rising costs.
The forthcoming agreement, as suggested by Calviño, could indicate a shift in the French government’s position and suggest an increase in European funding through the EIB.
During her address at the Ateneo de Madrid event, Calviño characterized this project as a long-awaited essential development, asserting that it would significantly enhance regional integration.
In her comments regarding nuclear energy services, she clarified that the EIB is not financing the construction of new nuclear power plants, but is supporting projects related to fuel recycling, enhanced safety protocols, and research and development.
The EIB is also limiting financing for new fossil fuel projects.
Calviño stated that the institution will continue to support energy sources that are pivotal for the energy transition, adhering to proportional guidelines for industry support.
In discussing the EIB's investment directions, Calviño noted that the institution's strategy is adapting to the current geopolitical landscape by expanding support for security and defense initiatives.
She mentioned the potential increase in investment in these areas to as much as €2 billion in 2024, more than doubling the financial support from previous years.
The EIB has earmarked €250 billion in loans up to 2027 for strategic areas including artificial intelligence, military infrastructure, critical raw materials, and green transitions.
This funding initiative aims to finance an additional 1,000 European champions, complementing the existing 3,000 entities.
Calviño emphasized the need for Europe to leverage its unique financial position, backed by the EIB's €600 billion balance sheet and 'AAA' credit rating, to facilitate continental transformation in the face of evolving global dynamics.
Despite the pivot towards defense investments, she reinforced that the EIB will continue to maintain its role as the “climate bank,” prioritizing environmental sustainability.
Moreover, she underscored the necessity for Europe to become less dependent on external jurisdictions in critical sectors such as energy and semiconductor manufacturing and advocated for collaborative military expenditures and defense policies similar to established European frameworks in agriculture and coal and steel.
The EIB is not currently financing the construction of new nuclear power facilities, although it does support projects aimed at nuclear technologies and fuels.
Additionally, while direct funding for fossil fuels is avoided, there is openness towards future initiatives, such as pipeline projects that could be repurposed for green hydrogen energy.
This agreement will involve the refinancing of an already planned electrical interconnection, which is expected to enhance the exchange capacity between the two countries.
This refinancing agreement does not impact the new project requests submitted last weekend by the Spanish and Portuguese Ministers for Ecological Transition to their French counterpart.
The interconnection project, initially agreed upon in 2017, entails a joint investment of €1.75 billion aimed at increasing the connection capacity from 2.8 GW to 5 GW. Current estimates indicate that costs have already exceeded €3.1 billion, according to data from Entsoe, the European association representing electricity network companies.
Historically, France had declined to assume its proportional share of these rising costs.
The forthcoming agreement, as suggested by Calviño, could indicate a shift in the French government’s position and suggest an increase in European funding through the EIB.
During her address at the Ateneo de Madrid event, Calviño characterized this project as a long-awaited essential development, asserting that it would significantly enhance regional integration.
In her comments regarding nuclear energy services, she clarified that the EIB is not financing the construction of new nuclear power plants, but is supporting projects related to fuel recycling, enhanced safety protocols, and research and development.
The EIB is also limiting financing for new fossil fuel projects.
Calviño stated that the institution will continue to support energy sources that are pivotal for the energy transition, adhering to proportional guidelines for industry support.
In discussing the EIB's investment directions, Calviño noted that the institution's strategy is adapting to the current geopolitical landscape by expanding support for security and defense initiatives.
She mentioned the potential increase in investment in these areas to as much as €2 billion in 2024, more than doubling the financial support from previous years.
The EIB has earmarked €250 billion in loans up to 2027 for strategic areas including artificial intelligence, military infrastructure, critical raw materials, and green transitions.
This funding initiative aims to finance an additional 1,000 European champions, complementing the existing 3,000 entities.
Calviño emphasized the need for Europe to leverage its unique financial position, backed by the EIB's €600 billion balance sheet and 'AAA' credit rating, to facilitate continental transformation in the face of evolving global dynamics.
Despite the pivot towards defense investments, she reinforced that the EIB will continue to maintain its role as the “climate bank,” prioritizing environmental sustainability.
Moreover, she underscored the necessity for Europe to become less dependent on external jurisdictions in critical sectors such as energy and semiconductor manufacturing and advocated for collaborative military expenditures and defense policies similar to established European frameworks in agriculture and coal and steel.
The EIB is not currently financing the construction of new nuclear power facilities, although it does support projects aimed at nuclear technologies and fuels.
Additionally, while direct funding for fossil fuels is avoided, there is openness towards future initiatives, such as pipeline projects that could be repurposed for green hydrogen energy.
Translation:
Translated by AI
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
