EIB and Iberdrola Partner on €500M Smart Grid Expansion in Spain

The European Investment Bank (EIB) has provided a €500 million loan to Iberdrola to enhance smart electricity networks across Spain. This investment aims to strengthen the resilience of the distribution grid, support the integration of renewable energy, and facilitate the adoption of electrification technologies such as electric vehicles and heat pumps.

The project is part of Spain’s Regional Resilience Fund (FRA), which is a core component of the country’s Recovery, Transformation, and Resilience Plan under the Next Generation EU program. The FRA, led by Spain’s Ministry of Economy, Trade, and Business, involves collaboration with regional governments and municipalities.

The financing will enable Iberdrola to expand and upgrade its electricity networks, critical for supporting renewable energy integration and improving grid efficiency and reliability. The development of smart grids will also advance the country’s energy transition goals and contribute to reducing reliance on fossil fuels.

This loan represents the first FRA-funded project involving a private entity, co-financed through a direct financing instrument launched by the EIB in 2024. It follows a previous €700 million loan granted by the EIB for similar smart grid initiatives.