The EU bank will provide up to 385 million euros to the company Alfanar, a winner in the third auction of renewables in Spain.
The wind farms will be located in six autonomous communities, together add an installed wind power capacity of 547 MW, and generate a volume of energy equivalent to the consumption of 360,000 homes.
The EIB and Alfanar have signed the first phase of the operation: EUR 44.2 million to build the first 4 wind farms.
Impact on employment: the wind turbines project will create 1,900 jobs during the implementation phase and 170 permanently. Financing under the Investment Plan for Europe, or Juncker Plan.
The European Investment Bank (EIB) will finance one of the largest wind energy infrastructures developed so far in Spain: the construction of 21 wind farms that will be located in Andalusia, Asturias, Castilla-La Mancha, Castilla León, Galicia and Navarra. These new facilities will have a total capacity of 547 MW and will generate, together, approximately 1,491 GWh of energy per year, a volume that is equivalent to the consumption of 360,000 Spanish homes. It is one of the largest wind energy projects financed by the EIB in Spain after its participation in the financing of the Goya project.
The wind farms that are part of this project were awarded the renewable energy auction held in Spain in July 2017 and have been developed by the Alfanar group. To support its construction and implementation, the EU bank will provide Alfanar with several loans totaling up to 385 million euros. Both entities have signed the first one, for which the EIB grants 44.2 million euros to develop the first phase of the project. This financing from the EU bank, together with the complementary loan provided by several financial entities, will be implemented through a Project Financing structure and will allow the construction of the first 4 wind plants that total approximately 99 MW of power.
The loan has been signed under the Investment Plan for Europe, known as the Juncker Plan, whose support allows to increase the capacity of the EIB Group to finance investments that by their structure or nature have a higher risk profile. This project will not be supported by the public sector and is one of the first to be implemented under the new regulation of the sector approved in Spain in 2013.
Promoting renewable energy is one of the priorities of the EU bank, which is already the world’s largest provider of financing for projects that promote climate action. Once they enter into operation, the 21 wind farms will contribute to reducing greenhouse gas emissions in Spain and will reinforce the production of clean energy from renewable sources. The construction phase will require the hiring of 1,900 people and it will be necessary to hire 170, permanently, to operate the wind plants.
The vice president of the EIB, Emma Navarro, responsible for the action for the climate and the environment of the bank, said: “We are very satisfied with the signing of an agreement that will allow investing in the development of Spain’s great potential in renewable energy and contribute to the fulfillment of its climate change objectives. This project is a clear example of the EIB’s priorities in our country: to favor the transition towards a low carbon economy by supporting sustainable economic growth and job creation. “
For its part, the European Commissioner for Climate and Energy Action, Miguel Arias Cañete, said: “The European Commission is proud to support this important project in the field of renewable energy in Spain through the Juncker Plan. Spain has the potential to become a benchmark in renewable energy and the creation of sustainable and long-term employment. The clean energy generated by these new 21 wind farms in six autonomous communities is equivalent to the consumption of 360,000 Spanish homes, which means an important step forward in the right direction. ”
Jamal Wadi, CEO of Alfanar Global Development has stated: “The financing of the first phase of Alfanar’s portfolio of projects in Spain is a milestone of great relevance according to Alfanar’s strategic plan, which will facilitate the implementation of new projects in the framework of collaboration with the EIB. We are very pleased to have consolidated an agreement with the EIB, as a result of intense work in the last year. “
Emmanuel Ozaez, General Manager of Alfanar Global Development said: “In the next few years, Spain will lead in Europe the energy transition towards a technological mix where renewable generation is the mainstay