EDP Secures €700 Million EIB Funding to Accelerate Renewable Energy and Grid

EDP and the European Investment Bank (EIB) have signed two loans totaling €700 million to finance renewable energy projects and the modernization of electricity distribution networks in Portugal, Spain, and Italy, aligning with the EU’s REPowerEU goals.

A €500 million loan, the first tranche of a €900 million green framework loan, will fund the development of solar and wind projects by EDP Renewables in these countries. The total planned installed capacity is 1,943 MW, with about one-third in each country.

These new installations will supply green energy for over 1 million households annually and contribute to EDP’s target of adding 18 GW of renewable capacity by 2026. The plan includes 1,559 MW of photovoltaic capacity and 384 MW of onshore wind projects between 2024 and 2026.

A second €200 million loan, part of an up to €800 million investment loan, will support the expansion and digitalization of EDP's power grids in Portugal and Spain. This project will improve energy resilience and enable smarter energy management, facilitating the integration of renewable energy and reducing network losses. It includes upgrading substations, transformers, overhead lines, and implementing smart meters.

These landmark projects will help accelerate Europe's green transition by harnessing the renewable energy potential in Southern Europe and enhancing the energy distribution networks. The financing also aligns with EIB's climate action goals and supports economic, social, and territorial cohesion, particularly in regions with lower per-capita income.

Rui Teixeira, CFO of EDP Group, emphasized the importance of these loans in strengthening EDP’s financial flexibility and advancing its renewable energy leadership. Nuno Ascenso Pires from the EIB highlighted how these projects will reduce Europe’s reliance on fossil fuel imports, enhance energy security, and support the EU’s green transition.