The project includes investments in renewable energy generation as well as in electricity transmission and distribution networks. Investments will also be made in district heating and cooling networks and systems.
This is the first loan that the EIB has signed with Andorra. The operation will help accelerate the Principality’s green transition and improve its energy security by supporting strategic projects, developed mainly by Forces Elèctriques d’Andorra (FEDA). The investments will enable a move towards a more sustainable energy model, while also helping to reduce Andorra’s dependence on energy imports.
The loan comes on favourable financial terms, in line with what the EIB offers European countries with the same credit rating as Andorra. The operation will thus increase and diversify the pool of international financing for the Principality.
The project will serve the climate action objectives set out in the EIB Group’s Strategic Roadmap for 2024-2027 and phase two of the Climate Bank Roadmap for 2026-2030.
The EIB Group is the financing arm of the European Union, owned by the 27 Member States, and one of the largest multilateral development banks in the world. In 2025, the EIB Group signed 100 billion euros in new financing and advisory services for over 870 high-impact projects under eight core priorities that support EU policy objectives: climate action and the environment, digitalisation and technological innovation, security and defence, territorial cohesion, agriculture and the bioeconomy, social infrastructure, strong global partnerships and the savings and investments union.
Beyond long-term loans for large infrastructure, the EIB Group crowds in private investment for high-risk innovative projects and businesses, with a growing role in Europe’s markets for venture debt, venture capital, guarantees and securitisations.
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