The European Investment Bank (EIB) and Instituto de Crédito Oficial (ICO) have signed a green financing deal with Spanish public multinational electric utility company Iberdrola to finance Núñez de Balboa photovoltaic (PV) power plant in Extremadura.

Núñez de Balboa power plant will be the largest power plant under construction in Europe and is expected to come online in 2020.

EIB vice-president Emma Navarro said: “We are very happy to be supporting a project that will strengthen Spanish and European leadership in the transition towards a low-emissions economy.

“Our involvement demonstrates the EIB’s strong commitment to climate action. The EU bank is the biggest multilateral financer of projects that contribute to climate action, supporting projects like this one that reduces contaminant emissions while generating economic growth and employment.”

EIB will provide €145m for the project, while ICO will offer up to €140m for the new renewable energy project, with the total investment in the PV solar facility is expected to touch €290m.

Covering an area of nearly 1000 hectares, the new PV facility will have the capacity to generate 500MW of clean energy and is expected to eliminate 215,000 tonnes of carbon emissions into the environment every year. It also includes the development of the entire infrastructure required to transmit the energy generated to the electricity distribution network.

The project is expected to create more than 1000 employment opportunities in the region during the construction phase.

Iberdrola president Ignacio Galán said: “This new agreement guarantees our investment in Núñez de Balboa, and we are continuing to work towards our target of tripling our wind and solar capacity in Spain by 2030.”