The European Investment Bank (EIB) is providing €1.6 billion in financing for the development of the Bay of Biscay electricity interconnection, a joint project between Spanish and French transmission system operators Red Eléctrica and Réseau de Transport d’Électricité (RTE). This project aims to enhance electricity exchange capacity between the Iberian Peninsula and the rest of continental Europe.
The interconnection, currently under construction by the Inelfe joint venture, will span approximately 400 kilometers, including 300 kilometers of underwater cable. Once completed — expected in 2028 — it will be the first submarine electricity link between Spain and France and is designed to nearly double the exchange capacity between the two countries, from 2,800 MW to 5,000 MW.
According to the project partners, the increased interconnection capacity is expected to improve the reliability of the power supply and contribute to energy market integration within the European Union. It may also support broader objectives related to energy security and emissions reductions.
The EIB loans supplement a €578 million grant from the European Union’s Connecting Europe Facility. Initial loan agreements totaling €1.2 billion were signed during a meeting at EIB headquarters in Luxembourg, attended by representatives from the EIB, the European Commission, the French and Spanish governments, and the project’s participating utilities.
The Bay of Biscay interconnection is designated as a Project of Common Interest by the European Union, which identifies it as a strategic infrastructure project intended to advance the EU’s energy policy goals. Additional infrastructure upgrades, including the Baixas–Santa Llogaia underground link and enhancements to the Argia–Hernani route, are also planned to improve the overall interconnection capacity between the Iberian Peninsula and the European grid.
At the technical level, the project will use high-voltage direct current (HVDC) submarine cables to connect conversion stations in Cubnezais, France, and Gatika, Spain. These stations will convert direct current to alternating current to integrate the link with national grids.
The interconnection forms part of broader EU goals to increase cross-border electricity flows, support renewable energy integration, and achieve a minimum 15% electricity interconnection level for all member states by 2030.
The EIB reports that in 2024 it committed €31 billion to energy-related initiatives across the EU, with €8.5 billion specifically supporting electricity grids and storage infrastructure. Of this, Spain received over €5 billion in financing for energy security projects, and France received approximately €3.6 billion. Between 2019 and 2024, the EIB has financed €16.7 billion in energy projects in Spain and €17.7 billion in France.
