The European Investment Bank (EIB) has agreed to provide EUR500m loan to Endesa to help the company to modernize and upgrade its distribution grid in Spain.

The project could be implemented in the next two years and is aimed at improving the quality and efficiency of Endesa’s electricity supply facilities.

Grid enhancement is expected to take place across six Spanish regions including Aragon, the Balearic Islands, Catalonia, the Canary Islands, Andalusia and Extremadura. The project is expected to create more than 17500 jobs during its implementation phase. 

Under the project, most of the schemes will include rolling out new connections to renewable electricity sources. It will allow Endesa in expanding its customer network and power supply for public transport.

Improvements in grid’s distribution will also include laying new low-voltage lines and replacing overhead power lines with underground cables to reduce both the environmental impact and power cuts caused by fallen trees and branches. 

The project is also expected to contribute towards automation of electric facilities that improve the remote control of Endesa’s substations. The substations will also be equipped with new systems to detect leaks and unauthorised supply connections.

Endesa’s five power grid control centres in Zaragoza, Barcelona, Palma de Mallorca, Seville and Las Palmas de Gran Canaria will be set up to operate anywhere across the distribution grid.

EIB vice-president Román Escolano said: “One of the EIB’s priorities is to ensure the necessary finance is available to guarantee a secure and sustainable power supply. We are therefore pleased to support this project to revamp electricity facilities, with a two-fold objective: to enhance supply quality and contribute to tackling climate change through a more sustainable electricity system.”