The European Investment Bank (EIB) and BNZ have signed a €166 million ($185 million) loan agreement to fund the development of 17 solar photovoltaic plants in Spain, Italy, and Portugal. This marks the first installment of a €500 million ($556 milion) loan approved by the EIB to support BNZ’s goal of deploying 1.7 GW of solar photovoltaic power across Southern Europe by 2026. BNZ, an Independent Power Producer (IPP) owned by Nuveen Infrastructure, is responsible for developing, constructing, and operating solar photovoltaic projects.
The new solar plants will generate enough green energy to meet the average annual energy needs of over 390,000 households. Many of these plants will be located in cohesion regions, where income levels are below the EU average, underscoring the EIB’s commitment to fostering economic growth and regional convergence.
This financing aligns with the EIB’s climate action objectives and reinforces its role as “The Climate Bank,” a key focus outlined in the EIB’s 2024-2027 Strategic Roadmap.
“This new investment is a clear example of how the EIB is fostering the energy transition, contributing to a more sustainable energy model, and leveraging the great potential of southern European countries for renewable energy. The project will boost energy supply security and contribute to the strategic autonomy of Europe by reducing dependency on fossil fuel imports,” said EIB Director of Equity, Growth Capital and Project Finance Alessandro Izzo.
The project aligns with the European Green Deal’s decarbonisation goals and supports REPowerEU, the EU’s initiative to reduce reliance on fossil fuel imports by boosting energy efficiency and renewable energy production.
It is also backed by InvestEU, the EU’s flagship programme aimed at mobilising over €372 billion in additional public and private sector investment to advance EU policy objectives between 2021 and 2027.
BNZ Managing Director Luis Selva said, “The new phase marked by the closing of our financing demonstrates the solidity of our business and the ambitious nature of our plans and opens a new scenario for us to explore technological and geographical diversity, and to grow in volume and team headcount, with the aim of becoming one of the largest IPPs in the market. We want to continue building a cleaner and more sustainable future, and the support from such significant financial institutions such as the EIB shows a shared long-term vision to achieve a better world.”
Global Head of Clean Energy Investments at Nuveen Infrastructure Francesco Cacciabue said, “This significant investment marks a pivotal step towards advancing sustainable energy infrastructure in Southern Europe. This initiative will significantly contribute to the renewable energy goals of Spain, Italy and Portugal and the broader European Union’s climate objectives.”