The European Investment Bank (EIB) has allocated $1.84 billion to finance the construction of the Bay of Biscay electricity interconnection between Spain and France.
The EIB financing for the Bay of Biscay project takes the form of loans to Spanish and French transmission-system operators Red Eléctrica and RTE Réseau de transport d’électricité.
Construction of the Bay of Biscay link is already under way by Inelfe – joint venture by RTE and Red Eléctrica, and it is due to become operational in 2028.
The connection will link two alternating current systems via a subsea direct current line. At each end of the connection, stations in Cubnezais in France and Gatika in Spain will convert the direct current into alternating current for connection to the transmission grids of Spain and France.
Once operational, the project will almost double the electricity exchange capacity between France and Spain to 5,000 MW. That means cleaner, more secure, and more affordable power for millions of citizens, while avoiding 600,000 tonnes of CO2 each year.
The project will strengthen the interconnection capacity between France and Spain, helping the Iberian peninsula’s progress towards the EU interconnection target for Member States of at least 15% of installed production capacity by 2030.
The Bay of Biscay project, together with the underground project between Baixas-Santa Llogaia and the improvement of the existing Argia-Hernani infrastructure will contribute to enhance the interconnection capacity between the Iberian Peninsula and the rest of Europe, while better integrating it within the EU energy market.