European Investment Bank (EIB) signed four loan agreements totaling €1.2 billion ($1 billion) for the Bay of Biscay electricity interconnection project. This is an important move to increase energy connectivity between France and Spain. This goes a long way in supporting the European Union’s interconnection targets. This means that by 2030, member states need to reach a level of at least 15% of their installed production capacity interconnected. The investments will help increase the Iberian Peninsula’s integration into the larger EU energy market. We have long believed that it should play a central role in this transformation.
Construction activity in the field on the Bay of Biscay project. This ambitious initiative – called the Atlantic Loop – would connect two existing AC systems through a submerged DC line. The ongoing project includes opening of conversion stations in Cubnezais, France and Gatika, Spain. The first of these stations will be doing this job—converting direct current back into alternating current—with maximum efficiency. This process will help ensure smooth integration with their national transmission grids. The Bay of Biscay project is slated to be in operation by 2028.
Strengthening Cross-Border Energy Connections
The European Union lists the Bay of Biscay interconnection as a Project of Common Interest. This acknowledgement highlights the instrumental role that it can play in enhancing energy interconnectivity across borders and increasing Europe’s energy security. This collaborative, cross-border project will nearly double the capacity for exchanging electricity between France and Spain to 5 gigawatts (GW). Upon completion, it will tremendously increase the amount of renewable energy flowing across borders.
The secondary project in Bay of Biscay will add additional capacity. It will reduce carbon emissions by an estimated 600,000 tons annually. This reduction aligns with the EU’s broader climate goals and underscores the project’s role in promoting sustainability and reducing reliance on fossil fuels.
Collaborative Efforts in Energy Infrastructure
Inelfe is currently overseeing the construction of this Bay of Biscay project. This joint venture includes Red Eléctrica, of Spain, and Réseau Transport d’Électricité, of France. This agreement represents the best of that collaborative spirit to invest and improve critical energy infrastructure all across Europe. Meanwhile, the Bay of Biscay initiative is well underway. It reinforces other key infrastructure, such as the Baixas-Santa Llogaia underground project and works to upgrade the Argia-Hernani infrastructure. Together, they hope to set a new standard for a more integrated and resilient energy network.
These initiatives not only demonstrate a serious commitment to meeting our current energy demands with innovative solutions, they also prepare them to meet an impending new set of energy supply and distribution challenges. Through improving interconnections, European countries can better balance energy resources and maintain a steady supply of energy to their constituents.