The European Investment Bank (EIB) and Spanish state-owned bank Instituto de Crédito Oficial (ICO) have agreed to finance the largest solar PV power project under construction in Europe.

The Núñez de Balboa plant is currently being built by Iberdrola in Extremadura, Spain, and will have a total capacity of 500 MW, a surface area of nearly 1000 hectares and will be able to supply energy to 250,000 people. Commissioning is planned for 2020.

The EU bank will lend €145m and the ICO up to €140m, making a total of €285m ($319m). The finance agreement was signed in Madrid by EIB vice-president Emma Navarro, ICO president José Carlos García de Quevedo and Iberdrola chairman Ignacio Galán.

Navarro said: “We are very pleased to support a project that will strengthen Spanish and European leadership in the transition to a low-emission economy. Our participation proves EIB’s strong commitment to climate action.

“The EU bank is the largest multilateral finance provider for projects that contribute to the fight against climate change, such as this one that reduces polluting emissions while generating economic growth and jobs.”

ICO president José Carlos García de Quevedo said the financing “is part of the ICO Group’s global strategy which includes sustainability criteria to perform its activities”.

Iberdrola chief Galán explained that “with this new agreement we are securing our investment in Núñez de Balboa and we continue to make progress towards the objective of tripling our wind and solar capacity in Spain by 2030”. The facility signed with EIB and ICO is also in line with “Iberdrola’s commitment to a sustainable energy model that allows the transition to a low-carbon economy,” said Galán.