The European Investment Bank ( EIB ) and Spanish electric utility firm Iberdrola have signed a €100 million ( US$104.1 million ) green loan to build a new photovoltaic plant in Italy.

The EIB financing is 70% backed by SACE's Archimede Guarantee, which provides market-based guarantees for financing and bonds with durations of up to 25 years, aimed at enhancing the competitiveness of the national system.

This is the EIB's first SACE-supported operation with Iberdrola. According to the EIB, the operation marks the beginning of a line of collaboration between EIB, SACE and Iberdrola, which can be replicated in the future.

Located in the provinces of Enna and Catania, Sicily, the new photovoltaic plant will have a peak generation capacity of 242.78 megawatts, enough to meet the annual needs of approximately 154,000 households in Italy. It will become operational in 2025.

“The EIB remains a key partner for Italy in the renewable energy sector,” says the bank’s vice-president Gelsomina Vigliotti. “The EIB plays a crucial role in attracting foreign investors to the country with the aim of promoting environmental sustainability, social cohesion and economic growth.”

According to EIB, the project represents a model of sustainable development, combining technological innovation and respect for the environment. The photovoltaic plant will use the latest technologies available, ensuring high energy efficiency and minimal environmental impact.

In addition, the construction and management of the plant will create new employment opportunities in local communities, contributing to the economic development of the region, the bank says.