InvestEU: EIB signs €166 million green loan with BNZ to deploy renewable energy plants in Spain, Italy and Portugal

This article is published in association with European Investment Bank.

• consolidating the EIB´s position as the Climate Bank.
• The new plants will generate green energy equivalent to the average annual energy consumption of more than 390 000 households.
• 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 BNZ have signed a €166 million loan to support the deployment of 17 solar photovoltaic plants across Spain, Italy and Portugal. This is the first tranche of a €500 million loan approved by the EIB to support BNZ’s roll-out of 1.7 GW of solar photovoltaic power in Southern Europe by the end of 2026. BNZ is an Independent Power Producer (IPP) that develops, builds, and operates solar photovoltaic projects, and is owned by Nuveen Infrastructure.

The 17 new photovoltaic plants will provide green energy equivalent to the average annual energy consumption of more than 390 000 households and will mostly be located in cohesion regions, where per capita income is lower than EU average, underling the EIB’s commitment to economic growth and convergence among regions.

The financing operation contributes to EIB’s climate action goals and reinforces EIB position as the ‘The Climate Bank’, a top priority for the EIB Group as included in its 2024-2027 Strategic Roadmap.

“This new investment is a clear example of how the EIB is fostering the energy transition, contributing to a more sustainable energy model, and leveraging the great potential of southern European countries for renewable energy,” said EIB Director of Equity, Growth Capital and Project Finance Alessandro Izzo. “The project will boost energy supply security and contribute to the strategic autonomy of Europe by reducing dependency from fossil fuel imports.”

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

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.

BNZ Managing Director Luis Selva said: “The new phase marked by the closing of our financing demonstrates the solidity of our business and the ambitious nature of our plans and opens a new scenario for us to explore technological and geographical diversity, and to grow in volume and team headcount, with the aim of becoming one of the largest IPPs in the market. We want to continue building a cleaner and more sustainable future, and the support from such significant financial institutions such as the EIB shows a shared long-term vision to achieve a better world.”

Global Head of Clean Energy Investments at Nuveen Infrastructure Francesco Cacciabue said: “This significant investment marks a pivotal step towards advancing sustainable energy infrastructure in Southern Europe. This initiative will significantly contribute to the renewable energy goals of Spain, Italy and Portugal and the broader European Union’s climate objectives.”

The EIB and energy security

In 2023, the EIB Group provided more than €21 billion in financing for energy security in Europe, 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.

BNZ

BNZ is an independent power producer (IPP) that develops, builds, and operates solar photovoltaic projects with more than 1.7 GW of European solar investments in operation, construction and development in Italy, Portugal and Spain with a clear goal: the production of 100% renewable energy to help our economy to achieve a greener future. BNZ is a leader in the energy transition and is committed to the environmental and social progress of the local communities where the company installs its plants. Each of those projects will be scrupulously designed to ensure that it goes the extra mile in environmental, social and governance (ESG) policies and to support biodiversity, acting ethically in every aspect of BNZ’s business.

BNZ is a business focused on sustainability and efficiency, with a compact and highly motivated team. By directly managing the entire production chain, the company can achieve stable yields and predictable returns to its investors. BNZ plans to directly employ a diverse and multicultural team as it develops, with a best-in-class management team. BNZ’s professionals have decades of experience in the renewable energy sector and an intimate knowledge of the places where the company operates. At the same time, BNZ professionals work hand-in-hand with local partners who can meet that commitment to each place and share the company’s values.