The construction facility includes €400m credit from the EIB, backed by an EU budget guarantee under the InvestEU programme, and €600m from the consortium of the commercial banks

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Aquila to develop 2.6GW of renewable energy pipeline. (Credit: Karsten Würth on Unsplash)

Aquila Clean Energy, the European clean energy development arm of Aquila Capital, has secured a €1bn loan to fund the development of its 2.6GW renewable energy pipeline.

The construction facility includes €400m credit from the EIB, backed by an EU’s InvestEU initiative, and €600m from the consortium of the commercial banks.

Aquila Clean Energy will use the facility to advance the development of its renewable energy pipeline in Spain and Portugal, over the coming three years.

The pipeline includes more than 50 projects, primarily solar PV and onshore wind assets, and will have an estimated yield of 5.3TWh per annum.

The projects are planned to be implemented in the Castilla y León, Comunidad Valenciana, Andalucía, Cantabria, Castilla-La Mancha and Murcia regions in Spain, and Setúbal, Coimbra, Evora, Leiria, in Portugal.

They will have a total electricity generation capacity of 2.6GW, adequate to power annual consumption of around 1.4 million households, said Aquila Clean Energy.

Aquila Clean Energy CEO Susanne Wermter said: “We are extremely pleased about being able to secure this landmark financing in a market environment which is marked by high inflation, rising interest rates, supply chain issues and the war in the Ukraine.

“This transaction constitutes the largest financing in the history of Aquila Clean Energy and Aquila Capital. It demonstrates the creditability and appeal of our clean energy assets that aim to actively shape the European energy transition.

“With the financing now secured, we are opening up additional growth for our company and, with the planned assets, we will be able to offer our investors further interesting opportunities. I would like to thank all parties involved for their dedication and effort over the past twelve months to make this deal work.”

The project is estimated to cost more than €2bn, where the remaining €1bn will be contributed from funds managed by Aquila Capital, and Aquila Clean Energy.

It is anticipated to increase renewable energy generation capacity on the Iberian Peninsula, and contribute to the European Green Deal objectives.

In addition, the project is said to support the EU’s renewable energy targets and help Spain and Portugal achieve their greenhouse emissions reduction targets.

The facility is backed by an EU budget guarantee under the InvestEU programme, which builds on the success of the Investment Plan for Europe and enables investments in the EU.

EC executive vice-president Valdis Dombrovskis said: “Developing the infrastructure that will secure the objectives of the European Green Deal will require significant financial support. InvestEU will play an important role in mobilising the financing.

“I am delighted that this programme is facilitating a EUR 2 billion investment that will help Spain and Portugal fulfil their green energy potential.”