The European Investment Bank Funds Bay of Biscay Electricity Interconnection Project

The European Investment Bank (EIB) has committed $1.84 billion to support the construction of the Bay of Biscay electricity interconnection between Spain and France. This funding will be provided in the form of loans to Spanish and French transmission-system operators Red Eléctrica and RTE Réseau de transport d’électricité.

The Bay of Biscay project, currently being developed by joint venture Inelfe (RTE and Red Eléctrica), is set to be operational by 2028. It involves the construction of a subsea direct current line that will connect two alternating current systems. Stations in Cubnezais, France, and Gatika, Spain, will convert the direct current to alternating current for integration into the respective transmission grids.

Upon completion, the Bay of Biscay interconnection will increase the electricity exchange capacity between France and Spain to 5,000 MW. This expansion will result in cleaner, more secure, and more affordable power for millions of consumers, while also reducing CO2 emissions by 600,000 tonnes annually.

Furthermore, the project will enhance the interconnection capacity between the two countries, supporting the Iberian peninsula’s efforts to meet the EU target of at least 15% interconnection of installed production capacity by 2030.

In addition to the Bay of Biscay project, other initiatives such as the underground link between Baixas-Santa Llogaia and upgrades to the Argia-Hernani infrastructure will further improve interconnection between the Iberian Peninsula and the rest of Europe. These developments will help integrate the region more effectively into the EU energy market.

Overall, the EIB’s investment in the Bay of Biscay electricity interconnection project represents a significant step towards enhancing energy connectivity, promoting sustainability, and fostering closer cooperation between European nations.