Endesa secures €300m green loan to build 789MW renewable projects in Spain

WCN Editorial Team 14 May 2019 EUROPE ENERGY & UTILITIES

Italian energy company Enel’s subsidiary Endesa has secured €300m in green loan from the Instituto de Crédito Oficial (ICO) for the construction of wind and solar plants with a capacity of 789MW across six different regions in Spain.

The loan from the Spanish State Financing Agency ICO is intended to help companies invest in energy efficiency measures or to those which develop renewable energy projects.

To classify the loan as green, Endesa said that ICO has used guidelines issued by the Loan Market Association (LMA). The guidelines were published last March and offer a high-level framework in market standards and they allow for consistent methodology to be applied across the wholesale green loan market.

Endesa will use the loan for the construction and commissioning of wind and solar plants to be located in Aragón, Castilla la Mancha, Extremadura, Galicia, Murcia and Castilla y León. The company plans to invest more than €1.8bn to develop around 2GW in renewables assets by 2021.

Endesa secured 540MW wind and 339MW solar plant construction contracts in the auctions held in May and July 2017 in Spain. The total estimated investment in the power plants will be more than €800m up to 2020. The additional 879MW capacity won will double Endesa's current renewable assets.

Earlier this year, Enel Green Power España (EGPE), the renewable energy arm of Endesa, has begun construction of four wind farms for a total capacity of around 110MW in Zaragoza in the municipalities of Villamayor de Gállego, Mallén, Fréscano, Luna, Las Pedrosas and Fuendetodos.

Estimated to cost nearly €116m, the wind farms are anticipated to be operational by the end of 2019.

When fully operational, the wind facilities will be able to generate about 375GWh per annum, while avoiding the annual emission of 247,894 tonnes of CO2 into the atmosphere.

Presently, Endesa manages 6.5GW of renewable energy in Spain, of which 4.7GW is from hydropower generation and the remaining 1.8GW comes from wind power, mini-hydro power and other renewables.

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Image: ICO chairman José Carlos García Quevedo and Endesa CEO José Bogas. Photo: Courtesy of Endesa S.A.

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