BAKU, Azerbaijan, June 16. The European Investment Bank (EIB) has signed the first loan tranches totalling 1.2 billion euros to support the Bay of Biscay electricity interconnection between Spain and France, Trend reports.
The funding will go to Spanish and French transmission operators Red Eléctrica and RTE.
The project is part of a broader 1.6 billion euro financing commitment from the EIB, in addition to a 578 million euro grant under the EU’s Connecting Europe Facility. Construction is being carried out by Inelfe, a joint venture between RTE and Red Eléctrica, and the link is expected to become operational in 2028.
The 400-km interconnection will nearly double the electricity exchange capacity between the two countries to 5,000 MW, helping the EU reach its target of at least 15% interconnection capacity by 2030. It will also reduce CO₂ emissions by an estimated 600,000 tons annually.
The agreement was signed at the EIB’s headquarters in Luxembourg in the presence of senior EU, French, and Spanish officials, including EIB Group President Nadia Calviño and European Commissioner for Energy Dan Jørgensen.
The Bay of Biscay interconnection, classified as a Project of Common Interest, will be a submarine direct current line linking Cubnezais in France and Gatika in Spain. The project is part of broader EU efforts under REPowerEU to strengthen energy security and accelerate the energy transition.