The European Investment Bank (EIB) has agreed to provide financing of €50m for the construction of the Cavar windfarm in Navarra, Spain. The windfarm will be built by Renovables de la Ribera, a 50/50 joint venture (JV) between the Spanish electric utility company Iberdrola and Caja Rural de Navarra.
Located between the municipalities of Cadreita and Valtierra, the Cavar complex will comprise four windfarms with a total capacity of 111 MW and will be operational in the first quarter of 2020.
EIB vice-president Emma Navarro said: “Spain has major renewable energy potential, and the EIB wants to help it to become a reference point in the sector by providing investments to promote the transition to a low-carbon economy while simultaneously fostering growth and employment.
“As part of its aim to establish itself as the EU climate bank, the EIB has reaffirmed its commitment to increasing its financing to support Europe in its plans to become the first carbon-neutral continent by 2050.”
Once operational, the complex will generate enough power that will be sufficient to meet the electricity needs of 46,500 people, while offsetting 84,000 tonnes of carbon emissions into the atmosphere annually.
Around 40MW of energy generated by the windfarm will be supplied to Nike in Europe under a power purchase agreement (PPA).
During the construction phase, the project is expected to create 200 employment opportunities in the region. By providing finance to the project, EIB has further strengthened its efforts to promote clean energy production in Spain.
The EIB is supporting the project through a Green Loan. Additionally, the financing will support European Commission’s proposed goal of generating 32% of the energy used in the EU from renewable sources by 2030.