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Endesa receives €335M grant for 18 green projects, asks to shut 2 coal plants

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Endesa receives €335M grant for 18 green projects, asks to shut 2 coal plants

The European Investment Bank awarded Spanish electric utility Endesa SA with a €335 million EIB Green Loan to build 18 renewable energy projects.

The bank described the loan as first of its kind because it helps "promoters such as Endesa to develop their decarbonization strategy."

Under the loan agreement, Endesa will build 15 wind farms with a combined capacity of 446 MW and three solar facilities with a capacity of 339 MW. The projects will be built across six autonomous communities in Spain: Aragón, Castilla-La Mancha, Castilla-León, Extremadura, Galicia and Murcia.

The loan will help Spain achieve its goal of 20% of the energy consumed in 2020 coming from renewable sources as stated in the Spanish National Action Plan for Renewable Energies, the bank said in a news release Dec. 21.

"The EIB is the largest multilateral financer of climate action, supporting projects like this one that contribute to the ambitious objective of cutting greenhouse gas emissions to zero by 2050 by investing in the transition to clean energies," European Investment Bank Vice President Emma Navarro said in a statement.

In a separate decision Dec. 20, the EIB granted a €70 million loan to Talasol Solar, an indirect subsidiary of Ellomay Capital Ltd., to build a 300-MW solar plant in Talaván, Spain, to be in service in 2020. The loan was granted under the bank's Investment Plan for Europe, known as the Juncker Plan. Ellomay Capital said it raised a total of €177 million in financing, including the Juncker Plan loan and facilities from Deutsche Bank AG,

Endesa asks to shut 2 coal-fired plants

Separately, the Spanish energy company also has asked authorities to approve its request to shutter two coal-fired plants by 2020, according to Norwegian energy market analysis company Montel AS.

Operations at the 1,000-MW Compostilla and the 1,100-MW Teruel plants will cease in June 2020, shortly after a new emissions-related European regulation is executed.

Spain's TSO Red Electrica also confirmed that the country plans to shut approximately 5,500 MW of coal-fired projects by 2020 to reduce its emissions and meet the European targets.