The European Investment Bank (EIB) has approved a €60m framework loan to finance the energy transition in Andorra. The EIB and the Principality of Andorra have signed the first tranche of the loan for €30m.
The project includes investments in renewable energy generation as well as in electricity transmission and distribution networks. Investments will also be made in district heating and cooling networks and systems.
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This is the first loan that the EIB has signed with Andorra. The operation is intended to help accelerate the Principality’s green transition and improve its energy security by supporting strategic projects, developed mainly by Forces Elèctriques d’Andorra. The investments will enable a move towards a more sustainable energy model, while helping to reduce Andorra’s dependence on energy imports.
The loan comes on favourable financial terms, in line with what the EIB offers European countries with the same credit rating as Andorra. The operation will thus increase and diversify the pool of international financing for the Principality.
The project will serve the climate action objectives set out in the EIB Group’s Strategic Roadmap for 2024-2027 and phase two of the Climate Bank Roadmap for 2026-2030.
