Repsol secures $635 million EIB loan for 1.1 GW renewables in Spain

The European Investment Bank (EIB) has granted a Eur575 million ($635 million) loan to support Repsol's rollout of wind and solar PV plants in Spain, the Spanish oil company said July 25.

The projects, with a total capacity of 1.1 GW, are due to be operational before the end of 2025.

"This new financing supports the company's roadmap set out in the 2021-2025 Strategic Plan, aiming to reach 6 GW of installed capacity by 2025 and 20 GW by 2030," said Repsol CEO Josu Jon Imaz.

The first tranche of financing signed July 25 amounts to Eur400 million, the statement said.

The planned projects will generate electricity equivalent to the annual average consumption of 645,000 Spanish households and will help reduce emissions by 800,000 mtCO2e/year.

Repsol already has 1.9 GW of renewable energy projects in operation, most of which are in Spain.

The EIB in 2022 committed to financing Eur17 billion for the energy transition in Europe, with Spanish projects receiving a record Eur3.1 billion, the second largest beneficiary in the EU.

In July 2023, the EIB decided to raise additional funds earmarked for REPowerEU projects to Eur45 billion, up 50% from the original Eur30 billion package decided in October 2022.

Additional funding will be deployed by 2027 and is expected to mobilize over Eur150 billion in investment for the targeted sectors.

Analysts at S&P Global Commodity Insights estimate break-even levels for a 10-year solar PPA in Spain starting in 2025 at around Eur64/MWh and onshore wind at Eur60/MWh to recover new build costs, operating costs, and financing costs, according to a report published in June.