Spain Allocates €133 Million in Zero-Interest Loans to Upgrade Public Lighting in 68 Municipalities

Published on July 3, 2025

Spain’s Ministry for the Ecological Transition and the Demographic Challenge has provisionally awarded €133 million in loans under the National Energy Efficiency Fund (FNEE) to support public lighting upgrades across 68 municipalities. The program, managed by the Institute for Energy Diversification and Saving (IDAE), aims to reduce light pollution and energy consumption by replacing outdated systems with high-efficiency luminaires and smart control equipment.

Andalusia leads in the number of funded projects (17), receiving €41 million, followed by Catalonia with €18 million for 11 projects. Major recipients by funding volume include Zaragoza (€9.9M), Sevilla (€9.4M), Alcalá de Guadaíra (€7.4M), Avilés (€8.5M), and Granada (€8M). The selected projects are expected to reduce energy use by over 70% and achieve payback in approximately seven years. The loans, covering up to 100% of project costs, are interest-free and repayable over a maximum of 10 years with a one-year grace period.

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