- Financing will provide a boost to the Spanish company’s research, development, and innovation activities on electrical equipment for the energy sector.
- Arteche will use the loan to develop new products and solutions for the electric power sector, supporting energy transition and processes decarbonization.
- This agreement is backed by the InvestEU programme.
The European Investment Bank (EIB) and Arteche have signed a €29 million loan to finance the research, development and innovation activities of the Spanish company specialised in the development of solutions and electrical equipment for the energy sector.
The InvestEU-backed EIB loan will support research into the development of electrical and electronic equipment including transformers, relays, reclosers and switches, as well as substation automation systems and related services to ensure the electrical network provides the end user with efficient, reliable and quality energy. The loan will also help Arteche to invest in the digitalisation of its processes, production automation and cybersecurity.
This new EIB financing will contribute to strengthening EU manufacturing industry and its capacity to develop state-of-the-art strategic technologies. Given Arteche's role as an equipment provider to the energy sector, the operation also contributes to the REPowerEU initiative’s goal of increasing energy security and reducing EU dependence on fossil fuel imports.
This loan is in line with the EIB’s innovation, digitalisation and human capital public policy goal and its climate action and environmental sustainability cross-cutting objective.
“We are very pleased to be working with Arteche once again to boost research and development for electrical products and solutions that are key to advancing the decarbonisation of the energy sector and the electrification of the economy,” said EIB Vice-President Ricardo Mourinho Félix. “This loan is another example of how the EIB fosters the competitiveness of EU companies while accelerating the energy transition and contributing to the European Union’s strategic autonomy.”
“Thanks to this new financing from the EIB in the context of the InvestEU program we will continue to invest resources in the innovation of our solutions to respond to the needs of an increasingly digitalized, flexible and decentralized energy network.” said Alex Artetxe, president and CEO of Arteche.
This is the second financing signed by the EIB and Arteche to support the company’s research, development, and innovation activities.
Background information
EIB
The European Investment Bank Group (EIB Group), consisting of the European Investment Bank (EIB) and the European Investment Fund (EIF), reported total financing signatures of over €9.9 billion for Spain in 2022, including record financing for climate action and environmental sustainability projects.
The EIB and energy security
In 2022, the EIB Group provided more than €17 billion to finance the energy transition in Europe, as this is a top priority for the EU climate bank. In 2022, the EIB signed a record €3.1 billion in financing for projects in sustainable energy and natural resources in Spain (the second largest beneficiary of financing in the European Union). These investments are helping Europe to accelerate the transition to sustainable energy and weather the crisis triggered by the abrupt cut in gas supplies in the wake of Russia’s unjustified invasion of Ukraine.
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. This additional funding comes on top of the EIB’s already robust support for investments in sustainable energy. It is a 50% increase on the original €30 billion package for REPowerEU announced in October 2022.
The EIB will also expand the range of eligible sectors to boost financing for the EU manufacturing industry. This will include leading strategic technologies with net-zero carbon emissions, as well as critical raw material extraction, processing and recycling. This 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.
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 currently 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 implemented through financial 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.
Arteche
Founded in 1946, the Arteche Group develops its activity within the electrical sector, from generation to distribution, specializing in the electrical equipment, components and solutions industry. Within this framework, the Arteche Group is in the TOP 3 of the world leaders in the measurement transformer market, and is number 1 in the auxiliary relays market, and maintains a regional leadership position in the remainder of products, especially products aimed at high demand and added value markets, such as renewable generation and the railway sector.
The Arteche Group's business focus on allowing transportation and distribution of electrical energy from any generation plant to the end user with efficiency, quality and reliability. The company invests recurrently in R&D&i, with the intention of improving the quality and efficiency of its products, innovating in the development of new products and offering customers differential added value. Currently, Arteche is present in more than 175 countries with commercial distribution capabilities. It has 13 factories in Europe, America, Asia and Oceania, including 6 centers dedicated to research; and has more than 2,800 employees around the world.
