July 5 (Renewables Now) - Spanish energy company Gas Natural Fenosa (BME:GAS) is getting a EUR-450-million (USD 510m) loan from the European Investment Bank (EIB) for electricity network upgrades and for wind farms in the Canary Islands.
The signing of the loan agreement was announced today by the EIB.
The institution said the loan will be used to finance the construction of wind farms on the islands of Gran Canaria and Fuerteventura with a combined capacity of 49.6 MW. The energy group is building the wind farms through Gas Natural Fenosa Renovables.
The financing will also support the 2016-2019 investment plan of Gas Natural Fenosa's electricity distributor Union Fenosa Distribucion. The plan calls for the modernisation and extension of the distribution network in eight Spanish autonomous communities -- Canary Islands, Andalusia, Castilla la Mancha, Castilla Leon, Catalonia, the community of Madrid, Extremadura and Galicia.
The EIB said the projects will improve the operation and coverage of Spain's electricity network and will create more than 5,000 direct and indirect jobs.
(EUR 1 = USD 1.133)