The European Investment Bank (EIB) has committed €1.6bn ($1bn) for the construction of the Bay of Biscay electricity interconnection, which will increase power exchange capacity between Spain and France.
The project is part of efforts to strengthen cross-border connections and improve energy security within Europe.
The Bay of Biscay interconnection, designated by the European Union (EU) as a Project of Common Interest, is being executed by Inelfe, a joint venture between Red Eléctrica and Réseau Transport d’Électricité.
The project aims to connect two alternating current systems through a submarine direct current line.
Conversion stations located in Cubnezais, France, and Gatika, Spain, will transform the direct current back into alternating current for integration with the respective national transmission grids.
The first loan tranches totalling €1.2bn ($1bn) have been signed at the EIB headquarters in Luxembourg.
The financial support complements a substantial EU grant of €578m ($666m) allocated under the Connecting Europe Facility.
Together with initiatives such as Baixas-Santa Llogaia underground project and improvements to the Argia-Hernani infrastructure, the project aims to strengthen the Iberian Peninsula’s integration into the EU energy market.
Construction work on the project is underway and it is expected to become operational in 2028.
Once active, the project will almost double the France-Spain electricity exchange capacity to 5GW while reducing carbon emissions by 600kt annually.
The Bay of Biscay project aligns with broader objectives such as meeting EU interconnection targets, stipulating that member states must have at least 15% installed production capacity interconnected by 2030.
“EIB provides $1bn for Bay of Biscay electricity interconnection project” was originally created and published by Power Technology, a GlobalData owned brand.
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