InvestEU: EIB signs €50 million green loan with Matrix Renewables to deploy 5 new solar photovoltaic plants in Spain

This article is published in association with European Investment Bank.

• The loan will support the design, construction, and operation of 5 new solar photovoltaic plants with an installed capacity of 240 MW in the regions of Castilla León and Extremadura.
• The project contributes to consolidate the EIB’s position as the EU climate bank aiming to meet the objective of supporting €1 trillion in green investment in the critical decade to 2030.
• The EIB financing supports the REPowerEU plan to increase energy security by reducing EU dependence on fossil fuel imports.
• This operation is backed by the European Union’s InvestEU programme to mobilise public and private sector funds in support of EU policy goals.

The European Investment Bank (EIB) and Matrix Renewables have signed a €50 million green loan to support the design, construction, and operation of 5 solar photovoltaic plants with an installed capacity of 240 MW located in the regions of Castilla y Leon and Extremadura in Spain. Matrix Renewables is an Independent Power Producer (IPP) backed by TPG Rise.

The financing operation contributes to consolidate the EIB’s position as the EU climate bank aiming to meet the objective of supporting €1 trillion in green investment in the critical decade to 2030 and committing at least half of its annual financing to climate action and sustainability. 

“With this operation, the EIB continues to accelerate the energy transition in Spain by increasing renewable energy generation capacity. We are also delighted to support Independent Power Producers in their development and deployment efforts, fundamental to accelerate renewable generation investments” said EIB Director of Equity, Growth Capital and Project Finance Alessandro Izzo. “The project is part of the EIB contribution to a more sustainable and independent energy model for Europe.”

The new photovoltaic plants are in cohesion regions, where per capita income is lower than EU average, underlining the EIB’s commitment to economic growth and convergence among regions. It is expected that the new plants will be fully operational by the end of 2025.

The project supports the decarbonisation objectives of the European Green Deal and is also part of the EIB’s action plan to support REPowerEU, the EU plan designed to end dependence on fossil fuel imports by increasing energy efficiency and ramping up production from renewables.

Matrix Renewables CFO, Nicolás Navas said: “We are thrilled to partner with the EIB in this significant project that not only advances our mission of sustainable energy development but also contributes to Spain’s and Europe’s broader energy transition goals. This project highlights Matrix’s commitment to innovation and sustainability. The development of these new solar plants will provide clean energy to thousands of homes and businesses, reinforcing our dedication to creating a greener future”.

The project is supported by InvestEU, the EU flagship programme to mobilise more than €372 billion of additional investment from public and private sector funds to support EU policy goals in the period 2021-2027.

The EIB and energy security

In 2023, the EIB Group provided more than €21 billion in financing for energy security in Europe. In the same year, it allocated €4.5 billion to this goal in Spain, financing projects in areas including renewable energy, energy efficiency, power grids and storage systems. These investments are helping Europe speed up its transition to sustainable energy and reduce its reliance on fossil fuel imports.

In July 2023, the EIB Board of Directors raised the amount earmarked for REPowerEU projects to €45 billion. REPowerEU is the plan designed to end Europe’s dependence on fossil fuel imports. To boost financing for the EU manufacturing industry, the EIB will also expand the range of eligible sectors to include leading strategic technologies with net-zero carbon emissions, as well as extraction, processing and recycling of critical raw materials. The additional financing will be disbursed between now and 2027. In total, it is expected to mobilise more than €150 billion in investment in the target sectors.

Find out more about the EIB’s support for the energy sector here.

Background information

EIB

The ElB is the long-term lending institution of the European Union, owned by the Member States. It finances sound investments that further EU policy objectives. EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality.

The EIB Group, consisting of the EIB and the European Investment Fund (EIF), reported total financing signatures in Spain of €11.4 billion in 2023, approximately €6.8 billion of which went to climate action and environmental sustainability projects. Globally, the EIB Group signed €88 billion of new financing in 2023.

InvestEU

The InvestEU programme provides the European Union with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable recovery. It also helps mobilise private investment for EU policy priorities, such as the European Green Deal and the digital transition. InvestEU brings together under one roof the multitude of EU financial instruments previously available to support investment in the European Union, making funding for investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU Fund is deployed through implementing partners who will invest in projects using the EU budget guarantee of €26.2 billion. The entire budget guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilise at least €372 billion in additional investment.

Matrix Renewables

Matrix Renewables is a renewable energy platform created and backed by global alternative asset manager TPG and its $19 billion impact-investing platform TPG Rise. Matrix Renewables’ current portfolio is comprised of 14 GW of solar, storage and green hydrogen projects in Europe, United States, and Latin America.  For more information, visit www.matrixrenewables.com.