European Investment Bank finances 100 million euro solar power project in Sicily for Iberdrola
The European Investment Bank (EIB) and Iberdrola Team Up to Boost Italy's Renewable Energy Capacity
The European Investment Bank (EIB) has signed a €100 million green loan agreement with Iberdrola, a major global renewable energy company, to support the construction of a new photovoltaic (solar) plant in Italy. This project is part of the EU’s efforts to boost renewable energy capacity and contribute to the REPowerEU initiative, an EU program aimed at reducing reliance on imported fossil fuels and accelerating the clean energy transition.
The new plant, scheduled to be operational in 2025, will be located in the provinces of Enna and Catania, Sicily. The renewable energy generation capacity of the plant will be 242.78 MWp, capable of meeting the annual energy needs of approximately 154,000 Italian households.
The EIB's financing for the project is 70% backed by SACE's Archimede Guarantee, an Italian insurance and finance group directly controlled by the Ministry of Economy and Finance. SACE's Archimede Guarantee provides market-based guarantees for financings and bonds with durations of up to 25 years, with the goal of enhancing the competitiveness of the Italian national system.
This loan marks the EIB's first SACE-supported operation with Iberdrola. Iberdrola has secured multiple EIB loans in the past to support renewable projects and grid modernization in Spain and Italy, reflecting its leading role in the EU’s energy transition with a portfolio of over 45,000 MW renewable capacity globally.
The EIB, as the EU’s long-term lending institution, finances projects that contribute to European climate and energy policy goals such as the European Green Deal and REPowerEU. Over half of the EIB Group's annual financing supports projects that contribute to climate change mitigation, adaptation, and a healthier environment.
By accelerating solar capacity growth in Italy, the loan helps meet target renewable energy shares and supports the broader EU agenda of decarbonizing the power sector while ensuring reliability and resilience of the energy system. This project exemplifies the EIB’s role as the EU climate bank, channeling substantial capital into green infrastructure that fosters sustainable economic growth and a just transition to climate neutrality.
Moreover, this loan also contributes to the EU's REPowerEU initiative, aimed at phasing out Russian fossil fuel imports. The increase in renewable energy production in Italy aligns with REPowerEU's goals, strengthening Italy’s and the EU’s strategic objectives to enhance domestic renewable energy production, thus improving energy security and reducing fossil fuel dependency.
In summary, the EIB–Iberdrola €100 million green loan for the new photovoltaic plant in Italy acts as a critical financial tool to implement the REPowerEU strategy by scaling up renewable energy investments, thereby promoting energy security, climate action, and economic sustainability within the EU energy transition framework.
- The European climate-change initiative REPowerEU is further bolstered by the EIB's financing of a renewable-energy project with Iberdrola in Italy, reducing the EU's reliance on imported fossil fuels.
- In environmental-science collaborations, SACE's Archimede Guarantee, supported by the Italian Ministry of Economy and Finance, backs 70% of the EIB's green loan for Iberdrola's solar plant in Italy, enhancing the competitiveness of the Italian national system.
- As part of the long-term financing institution EIB's strategy, this investment in renewable-energy generation contributes to the European Green Deal, with over half of the EIB Group's annual financing directed towards climate-change mitigation and adaptation projects.
