The European Investment Bank has green lit €1.6 billion in funding for a long-delayed electricity interconnector between Spain and France.
The ‘game-changing’ project is set to more than double cross-border energy capacity by 2028.
It is expected to provide more reliable energy and fewer blackout. Its funding announcement comes just weeks after the record, hours-long power cut across Spain that resulted in several deaths.
The 400km subsea link, dubbed the Bay of Biscay interconnector, will run beneath the Atlantic from the Basque Country to southwest France, expanding electricity flow from 2.8 to 5 gigawatts – enough to power nearly three million homes.
The announcement, made in Luxembourg on Tuesday, was hailed by Spanish and European officials as a crucial step toward bolstering continental energy resilience and slashing dependency on volatile foreign gas imports.
Spain, rich in solar and wind capacity, has long suffered from what energy analysts call the ‘Iberian island effect’, referencing its limited connection to the rest of Europe’s power grid.
That bottleneck has stifled export potential and forced domestic renewables offline during periods of surplus.
With the new link, Spain aims to not only stabilise its own grid but to serve as a vital energy artery for northern Europe – especially as Germany and others scramble to fill the vacuum left by Russian gas.
Construction is expected to begin in early 2026, with full operation slated for late 2028.
The EIB’s backing – part of a broader EU energy independence drive – covers over 60% of the project’s estimated €2.6 billion cost.
It is expected to provide more reliable energy, fewer blackouts, and a eventually a downward pressure on prices.
