Brussels, 19/06/2012 (Agence Europe) - On Monday 18 June, the European Investment Bank (EIB) granted a €175 million loan to Spanish power company Red Eléctrica de España (REE) representing the Spanish part of the finance for the Spain-France power interconnection - the first trans-European direct current link using innovative converter technology. The EIB undertook to finance this project to the tune of €350 million in an agreement signed last October.
The new line will connect the municipalities of Santa Llogaia (near Figueras) and Baixas (near Perpignan) and will be laid entirely underground in 64.5 km of trenches (31 km in Spain and 33.5 km in France). The section crossing the Pyrenees will be laid in an 8.5 km tunnel alongside those of the Perpignan-Figueras high-speed rail line. The interconnection is scheduled to be brought into service in 2014. The main purpose of this new interconnection is to double electricity exchange capacity between Spain and the rest of Europe (from 1,400 to 2,800 MW).
The project will improve the security of the electricity supply and especially increase the stability of the power system by enhancing integration with the European grid. The EIB explained that the initiative would help to increase “interconnection capacity between France and Spain” and would “strengthen the overall European grid and improve resistance to possible risks and incidents”. The total cost of the interconnection will be €700 million, half of which will be provided by the EIB. The project is also receiving a €225 million EU grant under the European Energy Programme for Recovery. (OL/transl.fl)