The European Investment Bank (EIB) has announced a funding package of 1.6 billion euros to support a major electricity interconnection project linking France and Spain – an initiative that responds to Madrid’s calls for enhanced infrastructure following the massive blackout in April.
Experts argue that the widespread power outage, which crippled the entire Iberian Peninsula on 28 April and is considered one of the most significant in Europe’s recent history, might have been less severe if more interconnections had existed between the two countries. ALSO READ: Reasons for Spain’s April power blackout: ‘overvoltage’ & ‘poor planning’.
The EIB said it would extend loans to the national grid operators of Spain and France – Red Eléctrica and RTE – for the Bay of Biscay interconnection, which is expected to nearly double the power exchange capacity from 2,800 to 5,000 megawatts.
According to the bank’s statement, the interconnection is currently under construction and scheduled to be operational in 2028. The project spans more than 400 kilometres, with around 300 kilometres running beneath the Atlantic Ocean.
The initial 1.2 billion euros in funding was formalised at a signing ceremony at the EIB’s Luxembourg headquarters on Monday. The event was attended by EIB President Nadia Calviño (Spain’s former economy minister), EU Energy Commissioner Dan Jørgensen, and officials from both France and Spain.
The European Union has established a target requiring member states to have interconnections amounting to at least 15% of their installed electricity generation capacity by 2030, as part of its efforts to bolster the bloc’s energy security.
The April blackout highlighted the Iberian Peninsula’s limited energy interconnections. Assistance from France and Morocco was vital in helping to restore electricity across Spain and Portugal.
In response, the two countries recently sent a joint letter to the European Commission urging enhanced interconnection infrastructure to prevent future blackouts.
The EIB’s commitment to the Bay of Biscay project ‘will be key to ensuring that the Iberian Peninsula is no longer an energy island’, said Calviño.
She also noted that increased energy integration is ‘an important area for EU competitiveness and strategic autonomy’.
Click here to read all our reports related to Spain’s blackout.
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📹 Proud to share the important signature of the @eib financing agreement for the submarine electricity interconnector between 🇫🇷 & 🇪🇸.
It will strengthen EU’s energy security and strategic autonomy & ensure the Iberian Peninsula is no longer an energy island.#ThisIsEurope🇪🇺 pic.twitter.com/5mTPjkj5Os
— Nadia Calviño (@NadiaCalvino) June 16, 2025
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