In push to strengthen Europe’s energy grid, EIB backs first Spain-France subsea link with €1.6B

The European Investment Bank (EIB) is supporting the construction of the first submarine electricity interconnection between Spain and France with €1.6 billion, in a push to improve the reliability of power supply among France, Spain and Portugal and with the rest of Europe.

Delivered by Inelfe, a joint venture between the Spanish transmission system operator (TSO) Red Eléctrica and the French counterpart Réseau de transport d’électricité (RTE), the Bay of Biscay electricity interconnection will have a total route length of 400 kilometers, of which 300 kilometers is underwater, connecting Cubnezais in France and Gatika in Spain.

Seen as “landmark”, the project will boost the interconnection capacity between the Iberian Peninsula and rest of continental Europe.

The EIB financing takes the form of loans to the TSOs, with the parties signing first loan tranches of €1.2 billion on June 16 at EIB headquarters in Luxembourg. It adds up to the €578 million EU grant allocated under the Connecting Europe Facility (CEF).

“EIB support for the France-Spain electricity interconnection will be key to ensuring that the Iberian Peninsula is no longer an energy island. This agreement will lead to a major shift in energy integration, an important area for EU competitiveness and strategic autonomy,” said Nadia Calviño, President of the EIB Group.

Construction is already underway, with the project expected to become operational in 2028 when it will almost double the electricity exchange capacity between France and Spain to 5,000 MW.

The link, classified as an EU Project of Common Interest (PCI), will help the Iberian peninsula’s progress towards the EU interconnection target for EU Member States of at least 15% of installed production capacity by 2030.

“Today, with the support of the EIB, we take another step forward in this project, a bridge between nations and key for European cohesion that will enable us to tackle the greatest challenge of our time: the energy transition. That is why both countries must continue to work together to strengthen our connections, also through the two new projects planned to cross the Pyrenees,” said Beatriz Corredor, Chairwoman of Redeia, parent company of Red Eléctrica.