They sign 500 million euros of financing linked to sustainable incentives
The CEO of Endesa, José Bogas, the president of the ICO José Carlos García de Quevedo and the director of operations for Spain and Portugal of the EIB, Gilles Badot, have signed two financing operations in Madrid for an amount of 300 and 200 million euros , respectively, to finance Endesa's investment and renewable energy deployment strategy in Spain.
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Endesa, ICO and the European Investment Bank (EIB) have joined forces once again to promote the deployment of renewable energies in Spain. To this end, the CEO of Endesa, Joseph Bogas, the president of the ICO, José Carlos García Quevedo and the director of operations for Spain and Portugal of the EIB, Gilles Badot, have signed two financing operations in Madrid for an amount of 300 and 200 million euros, respectively, to finance their investment strategy and deployment of Endesa's renewable energy in our country.
The loan granted by the ICO, with an amount of 300 million euros, aims to support the construction project, started in 2021, of 20 photovoltaic plants and 8 wind farms, complementing the financing granted by the EIB. These plants will provide, in the case of photovoltaic plants, an estimated capacity of 2,35 GW, and 0,55 GW for the wind farms.
The EIB loan worth 200 million euros completes the financing framework program approved by the EU Bank in support of Endesa's renewable expansion plan, whose total is 700 million euros. This project contributes to accelerating the energy transition, security of energy supply and climate action, and is included in REPowerEU, the EU program to increase Europe's energy autonomy.
Specifically, the EIB and Endesa financing framework program is intended to co-finance a large number of the electricity company's solar photovoltaic and wind projects on a commercial scale in Spain, including evacuation infrastructure for grid interconnection. These projects contemplate a series of renewable assets within a portfolio that includes 16 commercial-scale solar energy developments and 8 wind projects, supporting approximately 1,5 GWp of photovoltaic energy and 0,4 GW of onshore wind, equivalent to the annual consumption of power of nearly 1 million homes.
During the signing ceremony at the headquarters Endesa, José Bogas, CEO, has stated that “having the support of the EIB and the ICO once again is a guarantee of the strength of Endesa's commitment to fulfill its strategic plan and continue walking towards the decarbonization of the economy”. “This financing linked to sustainability criteria will contribute to complying with the Climate Change and Energy Transition Law, as well as with him National Integrated Energy and Climate Plan (PNIEC 2021-2030) of our country; and it is also in line with the EU legislative package “Fit for 55”, which will make Europe the first carbon-neutral continent in 2050”, he commented.
The president of the ICO, Jose Carlos Garcia de Quevedo, has indicated that “the signing of this operation represents another step in ICO's commitment to the development of sustainable finance, an objective shared with the EIB, to boost the ecological transition and environmental sustainability. The projects that Endesa will develop with the financing signed today promote this path towards decarbonization, generating a positive environmental and social impact.”
The Director of Operations of the EIB for Spain and Portugal, Gilles Badot, has highlighted that “this EIB operation with Endesa represents a boost in the integration of renewable energies in Spain to achieve the Europe's climate goals, contributing to ensuring a sustainable and resilient energy supply. Furthermore, a large part of Endesa's solar and wind energy projects that we are financing are developed in cohesion regions, so we are promoting equitable growth and convergence between regions of the Union, one of the main objectives of transversal action of the EIB.”
These new operations link the financial conditions to a scope 1 direct greenhouse gas emissions reduction objective, the fulfillment of which will also be certified by an independent third party (AENOR - Spanish National Standards Body). The objective set in Endesa's 2023-2025 Strategic Plan is for these emissions to be less than 145 gr CO2eq/KWh by December 2025 (currently they are 205 gr CO2eq/KWh at the end of 2022).
Endesa is a leader in the implementation of financial operations with sustainable incentives and, at the end of 2022, 64% of its total debt includes this type of commitments that the company extends to working capital operations and its guarantee lines. The objective is that by the end of 2025 the volume of debt linked to sustainable criteria will be 87%.
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