Spanish solar developer Solaria has successfully inked a significant financing framework agreement with the European Investment Bank (EIB), securing up to €1.7 billion (US$1.8 billion) in funding. This substantial investment is earmarked for the deployment of 120 solar photovoltaic (PV) plants across Spain, Italy, and Portugal.
The ambitious project is set to boast a cumulative capacity of approximately 5.6GW, with an estimated annual power output of around 9.29TWh expected once these plants become operational by the end of 2028.
Notably, more than a third of these solar projects will be strategically located in “less developed regions,” as identified by Solaria. These regions are characterized by a GDP per capita that falls below 75% of the European Union (EU) average.
EIB Vice-President Ricardo Mourinho Félix expressed enthusiasm for the initiative, stating, “This operation contributes to foster the energy transition in the European Union while promoting economic and employment growth in less developed regions in Spain, Portugal, and Italy, which have great potential for renewable energy.”
The financing for this venture will be provided through a series of long-term loans from the InvestEU program. The first of these loans has already been signed, amounting to a substantial €278 million (US$294 million). This initial funding will be directed towards developing approximately 1.08GW of PV projects. Financial institutions will have the opportunity to participate in these loans under the broader framework financing arrangement.
This initiative is a significant component of the REPowerEU plan, designed to reduce Europe's dependence on imported fossil fuels. In July, the EIB bolstered its available funding for this initiative by €15 billion (US$15.8 billion), expanding the scope of eligible projects for financing. In a parallel move during the same month, the EIB extended a similar REPowerEU loan to Spanish oil major Repsol for the development of 1.1GW of solar projects in Spain.
Paolo Gentiloni, Commissioner for the Economy, emphasized the positive impact of this venture, stating, “This important operation is a great demonstration of InvestEU's ability to meaningfully support Europe's transition to climate neutrality and energy independence. This is good news both for the climate and for our economy: it will not only help to power millions of households with clean energy but also create thousands of jobs in the construction phase in the relevant regions.”
This major funding agreement underscores the commitment of both Solaria and the European Investment Bank to advancing renewable energy and fostering economic growth in less affluent areas of Southern Europe, while also contributing to the broader goals of achieving climate neutrality and energy independence within the European Union.
