Spanish electric utility company Iberdrola Distribución Eléctrica and the European Investment Bank (EIB) have signed a loan agreement for the modernization of electricity distribution network in Spain.
As per the agreement, EIB will lend €200m to Iberdrola for its investment program, which aims at connecting new supply points and improve overall reliability and safety of its distribution system.
The loan will help Iberdrola to install 1.8 million new digital electricity meters in compliance with Spanish legislation.
According to the legislation, the digital meters are to be installed for residential customers by 2018.
Since the beginning of 2013, EIB has given €3.6bn for the projects in Spain, of which €1bn for the Spanish energy sector.