The European Investment Bank (EIB) is providing a €500m loan to Endesa to help upgrade the Spanish company’s distribution grid to connect new supplies of renewable energy.
The upgrades will be implemented over the next two years to improve the quality and efficiency of Endesa’s supply facilities.
They will be carried out in the Spanish regions of Aragon, the Balearic Islands, Catalonia, the Canary Islands, Andalusia and Extremadura.
More than 17,500 jobs will be created during the project implementation phase, EIB said.
The work will include laying new low-voltage lines and replacing overhead lines with underground cables to reduce both the environmental impact and power cuts caused by fallen trees and branches.
The funding will also contribute to automating electricity facilities and improving the remote control of Endesa’s substations, which will be equipped with systems to detect leaks and unauthorised supply connections.
The company’s five power grid control centres in Zaragoza, Barcelona, Palma de Mallorca, Seville and Las Palmas de Gran Canaria will be set up to operate anywhere across the distribution grid, EIB said.
EIB vice president Román Escolano said: “One of the EIB’s priorities is to ensure the necessary finance is available to guarantee a secure and sustainable power supply.
“We are therefore pleased to support this project to revamp electricity facilities, with a two-fold objective: to enhance supply quality and contribute to tackling climate change through a more sustainable electricity system”.
Endesa chief executive José Bogas said the loan will help “boost the efficiency of distribution activities and increase the grid’s capacity to meet the demand for new energy services while enhancing the grid integration of renewable energies in the system”.