The European Investment Bank has agreed to lend Andorra €60 million to fund renewable power generation and upgrades to the country’s electricity networks.
The financing is structured as a framework loan, with the first tranche of €30 million already signed by the lender and the Principality of Andorra, the European Investment Bank announced on Tuesday.
The bank said the money will support investment in renewable energy production and in electricity transmission and distribution — the systems used to move power from generators to homes and businesses.
It added that the programme also includes investment in district heating and cooling networks, which provide heating or cooling from a central source to multiple buildings.
The agreement is the first loan the European Investment Bank has signed with Andorra, it said, and the projects are being developed mainly by Forces Elèctriques d’Andorra (FEDA), the country’s electricity company.
First tranche signed
The loan is on terms “in line with what the EIB offers European countries with the same credit rating as Andorra”, the EIB said.
The bank noted the financing is intended to support Andorra’s energy transition and energy security, including by reducing reliance on energy imports.
