EIB Signs €55 Million Green Loan for Iberdrola and Caja Rural de Soria for Wind Farm in Castilla y León

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  • The Buniel wind farm in the province of Burgos will have an installed capacity of around 100 MW, enough to generate clean energy for 69 700 households.
  • As one of the largest wind farms in Castilla y León, it will prevent 90 000 tonnes of CO2 emissions a year.
  • The project supports the REPowerEU plan to end Europe’s dependence on Russian fossil fuel imports and accelerate the green transition.

The European Investment Bank (EIB) has signed a €55 million green loan for a joint venture between Iberdrola (75%) and Caja Rural de Soria (25%) which will be used to build one of the largest wind farms in the Castilla y León region, in Spain.

The Buniel wind farm in the province of Burgos will have a total installed capacity of around 100 megawatts (MW), enough to power around 69 700 households with clean energy. The renewable power produced will prevent 90 000 tonnes of CO2 emissions a year.

The total investment cost of the project is approximately €100 million. The facility will boost the economy in rural areas of Burgos, creating up to 200 jobs during the construction stage and around ten positions during operation.

As the project is located in Castilla y León, which is a designated EU cohesion region, it contributes to the EIB’s regional development objectives. The EIB prioritises projects in regions with a gross domestic product (GDP) per capita below the EU average.

“We are pleased to be financing this wind farm, which is unique in many ways and will add an installed capacity of around 100 MW,” EIB Vice-President Ricardo Mourinho Félix said. “It will drive economic growth and employment in an EU cohesion region such as Castilla y León, and contribute to the climate goals of Spain and Europe.”

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Chief Executive Officer of Iberdrola Spain Mario Ruiz-Tagle added: “Spain has great potential when it comes to renewable energy. With initiatives like this, we can help our country become a leader in the sector, facilitating investments that promote the transition towards an economy that is less dependent on fossil fuels, while also creating economic growth and employment.”

President of Caja Rural de Soria Carlos Martínez Izquierdo, who is also president of the joint venture promoting the wind farm, highlighted “the importance of having a presence in the local economy — an economy linked to renewable energy, in which we already have over 25 years of experience. And it all started in Soria. Investing in ‘energy freedom’ makes us more economically stable as a country. This issue has really come to the fore amid the current geopolitical situation, which has become so acute that it has pushed the need for clean, local energy to the very top of the agenda.” He also added that “the turbines were almost completely designed and manufactured in Spain, and were actually assembled in Castilla y León, in Ágreda, Soria.”

This operation contributes to the energy policy priorities of the European Union and Spain. It supports the European Commission’s REPowerEU plan unveiled in May 2022, which aims to accelerate the green transition and end Europe’s dependence on Russian fossil fuel imports. In Spain, the project will also help to achieve the country’s 42% renewable energy target for 2030 under the 2021-2030 integrated national energy and climate plan.

The financing is classified as an EIB green loan as it fully complies with the climate action and renewable energy eligibility criteria. The features of the loan mean that it also fully meets the requirements of EIB Climate Awareness Bonds on the green loan market. This transaction is therefore likely to be allocated to the EIB’s portfolio of lending operations financed by the issuance of such bonds.