The European Investment Bank (EIB), Endesa, and the Spanish Ministry of Economy, Trade and Enterprise have agreed on a €650 million financing package to strengthen, modernize, and digitalize Spain’s electricity grid. The funding is structured as two loans: a €500 million loan financed through the Regional Resilience Fund (FRA) using Next Generation EU funds from the Spanish Recovery Plan, and a €150 million loan provided by the EIB from its own resources. This investment will directly benefit six autonomous communities, including regions classified as cohesion areas, supporting equitable economic and social development.
The financing aims to increase the resilience and security of Spain’s electricity supply while facilitating the integration of renewable energy sources. It will fund the installation of smart meters and advanced measuring devices, deployment of modern transformers, implementation of software for a fully digitalized grid, construction of new substations, and laying of underground cables. These measures will help the electricity network adapt to climate-related challenges, meet growing demand due to electrification, and support sustainable energy development.
This project aligns with the objectives of the Spanish Recovery, Transformation and Resilience Plan, the EIB’s climate action and cohesion priorities, and the REPowerEU plan, which seeks to enhance Europe’s energy security and reduce dependency on fossil fuel imports. More than half of the total investment will go to cohesion regions, reinforcing economic, social, and territorial equity while advancing Spain’s energy transition.
By modernizing infrastructure and implementing smart technologies, the initiative will create a climate-adapted, reliable, and efficient electricity network capable of meeting future energy needs. It underscores the joint commitment of the Spanish government and the EIB to resilient infrastructure, sustainable development, and the ongoing transformation of Spain’s electricity system.
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