The European Investment Bank (EIB), through its international partnerships and development arm EIB Global, has announced a €1 billion financing initiative to strengthen electricity infrastructure and promote renewable energy across Central America. Launched at the CELAC-EU summit in Colombia, the initiative aligns with the EU Global Gateway Investment Agenda and aims to support transmission and distribution projects as well as renewable energy generation in Costa Rica, Panama, Honduras, Guatemala, El Salvador, and Belize. By improving grid integration and energy access, the project seeks to advance the region’s energy transition and decarbonisation goals.
The financing will be implemented through five to six sub-operations, ranging from €150 million to €350 million each, via framework and investment loans with national utilities and regional institutions. The initiative will contribute to the development of the Central American Regional Electricity Market (MER), which facilitates electricity trade and regional integration. With an expected climate action contribution of around 85%, the project supports countries’ Nationally Determined Contributions (NDCs) and strengthens the resilience, reliability, and quality of electricity supply for millions of people.
EIB Group President Nadia Calviño emphasized that the financing will deliver cleaner energy, better-connected grids, and enhanced energy security, while European leaders highlighted the importance of Team Europe collaboration. European Council President António Costa and European Commission Vice-President Teresa Ribera noted that the initiative reflects Europe’s commitment to green, sustainable, and inclusive development in Latin America and the Caribbean, integrating high social and environmental standards. European Commissioner Jozef Síkela also highlighted that the project will benefit communities, businesses, and the environment, promoting a cleaner and more interconnected electricity system.
The initiative exemplifies the EU-LAC Global Gateway Investment Agenda’s goals of fostering regional cooperation, sustainability, and connectivity. By modernizing national power grids, increasing renewable generation capacity, reducing energy losses, and expanding access to electricity, the project will stimulate clean energy investments and create opportunities for European companies to engage in Central America’s growing energy market. This comprehensive approach underscores EIB and Team Europe’s commitment to enabling a secure, sustainable, and inclusive energy future for the region.
