Naturgy Secures €1 Billion for Renewable Energy Development in Spain

Naturgy Energy Group SA Secures €1 Billion Loan from EIB to Boost Renewable Energy Investments.

New Renewable Capacity and Job Creation.

Spanish energy giant Naturgy Energy Group SA has signed a €1 billion loan agreement with the European Investment Bank (EIB) to support renewable energy investments, including energy storage systems.

The funding will be disbursed in tranches, with the first €400 million already approved. This initial funding will finance the development of solar and wind projects, modernization of existing facilities, and investments in hybridization and energy storage systems.

The EIB-backed project is expected to increase Spain’s renewable energy production capacity by 2.3 GW. This milestone aligns with the REPowerEU plan, which aims to strengthen Europe’s energy security and accelerate the energy transition. According to Naturgy, the investments will generate enough green energy to power over 1.15 million households annually and create 4,200 jobs, stimulating economic activity in low-income areas, known as “Empty Spain.”

“This agreement demonstrates the EIB’s commitment to Europe’s energy transition. Upon completion, the projects will produce enough energy to power over a million households,” said Jean-Christophe Laloux, EIB’s Director General for Financing and Advisory in the EU.

Impact on REPowerEU

The REPowerEU plan, part of the agreement, aims to reduce Europe’s dependence on fossil fuel imports. In 2023, the EIB allocated over €21 billion to projects enhancing energy security in Europe, with €4.5 billion directed to Spain.

In July 2023, the EIB increased its REPowerEU budget to €45 billion to support strategic low-carbon technologies and critical raw materials. By 2027, investments under the plan are expected to mobilize over €150 billion in sectors critical to the energy transition.

Energy Transition with Social Benefits

The Naturgy-EIB project exemplifies investments that combine environmental goals with economic and social benefits. Investments in “Empty Spain” will not only boost renewable energy’s share but also promote territorial cohesion by creating jobs and supporting less-developed regions.

Francisco Reynés, Naturgy’s Chairman, emphasized that the agreement reaffirms the company’s determination to decarbonize Spain’s economy. “These investments support the energy transition while strengthening territorial cohesion in less developed regions,” he added.

The Naturgy-EIB agreement is further proof that Europe is advancing towards a more sustainable and energy-independent future.

Source: eib.org