Release date: 26 October 2023
Promoter – Financial Intermediary
COMPANIA ESPANOLA DE PETROLEOS SALocation
Description
Financing of the construction and operation of two solar photovoltaic plants for a total capacity of approximately 227 MW in the Spanish region of Andalucía.
Additionality and Impact
The Project produces electricity from low carbon sources (solar PV) in Spain and addresses the market failure of negative climate and environmental externalities, through the reduction of carbon emissions and air pollution. The Project supports EU Renewable Energy (RE) objectives and supports Spain in meeting its commitments with respect to renewable energy targets and greenhouse gas emission reductions set out in their Integrated National Energy and Climate Plan (INECP). The Project will be located in a cohesion region.
The Project will not rely on any RE supporting schemes, though it will possibly rely (in part) on PPAs with also the possibility of the plants portfolio to be being exposed to merchant risks. The Project thereby contributes to the policy objective of supporting market integration of renewable energy projects.
The financing of this project also contributes to Bank's lending priority objectives on Energy (Renewable Energy) as well as on Climate Action (transversal) and economic and social Cohesion (transversal).
The Promoter has a recognised project management capacity with a significant track record of international energy projects.
The EIB loan will diversify the Borrower's financing sources. The Bank is expected to provide the company with a longer maturity than available on the market and more aligned with the expected lifetime of the Project. EIB's financing would also provide a signalling effect on the soundness and quality of the Project.
Objectives
The project consists in the development of two renewable plants in Spain. This project will contribute to the achievement of both national and EU energy and climate goals, reducing the reliance on fossil fuels and decarbonising the electricity production in the EU.
Sector(s)
- Energy - Electricity, gas, steam and air conditioning supply
Proposed EIB finance (Approximate amount)
EUR 80 million
Total cost (Approximate amount)
EUR 160 million
Environmental aspects
Solar PV plants fall under Annex II of the EIA-Directive 2014/52/EU amending 2011/92/EU, requiring the competent authorities to determine whether an EIA is required. Based on their technical characteristics the overhead transmission lines for the interconnection of the schemes to the grid would fall under Annex I for one of the PV plants and under Annex II for the other. Both PV plants have obtained the environmental permits (Declaración de Impacto Ambiental). During appraisal, the Bank services will review the environmental studies, the authorisation procedures, including screening decisions, project descriptions, associated infrastructure as well as terms and conditions of the environmental and building permits.
Procurement
The promoter has been assessed as a private company and the schemes envisaged for this operation are market-based renewable energy projects, which do not enjoy any special or exclusive rights. Therefore, private sector procurement procedures should apply. However, if at appraisal, the EIB were to conclude that the promoter is subject to the EU public procurement legislation then the Bank would require these rules to be applied.
Status
Signed - 15/12/2023
Disclaimer
Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).