Iberdrola, EIB & SACE: Boosting Renewable Energy in Italy
The European Investment Bank (EIB) has signed a €100m (US$102.9m) green loan agreement with Iberdrola to construct a new photovoltaic plant in Sicily, Italy.
Backed by SACE's Archimede Guarantee, this landmark deal marks the EIB's first SACE-supported operation with Iberdrola and represents a significant step towards increasing renewable energy production in Italy while contributing to the European Union's climate objectives.
"Thanks to this EIB loan and SACE's support at Iberdrola, we will continue to make progress in Italy's energy transition, with this new renewable project that will allow to produce clean energy equivalent to the consumption of 154,000 homes,” says Valerio Faccenda, CEO of Iberdrola Italy.
About the new photovoltaic plant
The new solar facility, set to be operational in 2025, will be located in the provinces of Enna and Catania in Sicily.
With a renewable energy generation capacity of 242.78MWp, the plant is expected to produce approximately 400GWh annually, sufficient to meet the energy needs of around 154,000 Italian households.
- EIB financing is 70% backed by SACE's Archimede Guarantee
- The guarantee provides market-based coverage for financings and bonds with durations of up to 25 years
- The project aligns with the REPowerEU initiative, aimed at reducing dependence on Russian fossil fuels and accelerating the green transition
The photovoltaic plant will employ state-of-the-art technologies to ensure high energy efficiency and minimal environmental impact.
As well as this, the construction and management of the facility are expected to create new job opportunities in local communities, contributing to the region's economic growth.
The companies behind the investment
The EIB, owned by EU Member States, is the EU's long-term lending institution.
In 2023 the EIB Group, including the European Investment Fund, signed €88bn (US$90.6bn) in new financing for more than 900 projects that are expected to mobilise around €320bn (US$329.4bn) in investment, supporting 400,000 companies and 5.4 million jobs.
The EIB focuses on climate action, with 57% of its 2023 activity in Italy dedicated to climate and environmental sustainability.
All EIB-financed projects align with the Paris Climate Accord and the Group is on track to support €1tn (US$1.03tn) in climate and environmental sustainability investment by 2030.
"The EIB remains a key partner for Italy in the renewable energy sector,” explains EIB Vice-President Gelsomina Vigliotti.
“The EIB plays a crucial role in attracting foreign investors to the country with the aim of promoting environmental sustainability, social cohesion and economic growth."
SACE, an Italian insurance and finance group controlled by the Ministry of Economy and Finance, specialises in supporting businesses and the national economic system.
For more than 45 years, it has been a key partner for Italian companies expanding internationally.
SACE supports the banking system through financial guarantees, facilitating access to credit and promoting investments in competitiveness and sustainability, aligning with Italy's Green New Deal.
The group manages a portfolio of €260bn (US$267.6bn) in insured operations and guaranteed investments, serving about 50,000 companies, primarily SMEs, in Italy and across 200 countries worldwide.
Ranked as the most sustainable company in the world in 2024 by Sustainability Magazine, Iberdrola is a global leader in the energy sector at the forefront of the sustainable energy transition.
The company is committed to electrifying the economy through clean energy, combating climate change and fostering economic growth in its operational communities.
As of Q3 2024, Iberdrola's green and sustainability-linked financing exceeded €57 billion (US$58.7bn), with approximately €27bn (US$29.8bn) in green bonds.
Collaborating for a more sustainable future
The collaboration between EIB, SACE and Iberdrola sets a precedent for future renewable energy projects in Italy and beyond.
“We are proud to partner with EIB alongside Iberdrola for this paramount investment in Sicily in the renewable sector, a project that will boost productivity, competitiveness and will create new job opportunities,” says Alessandra Ricci, SACE CEO.
“With this aim, since the start of Garanzia Archimede operations last June we have approved over 4.9 billion transactions to enhance Italy’s growth potential.”
This green loan agreement underscores the growing commitment to renewable energy in the corporate sector and highlights the crucial role of financial institutions in facilitating the transition to a more sustainable energy landscape.
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