wind

Iberdrola Strengthens Development of the Labraza Wind Farm with €29M in EIB Financing

Iberdrola España, subsidiary of the Iberdrola Group in Spain, and the Basque Energy Agency (EVE), have strengthened the development of the Labraza wind farm in Álava following the signing of a €29 million green loan with the European Investment Bank (EIB).
Labraza Wind Farm (Ibderdrola)
Labraza Wind Farm (Ibderdrola)

The Labraza wind farm, located in the municipality of Oion in Álava, will be the first wind farm to become operational in the Basque Country since 2006. The project represents an investment of €59 million and will act as a catalyst for the Basque wind energy sector and its supply chain.

The project, which has been declared to be in the public interest by the Department of Territorial Balance and Spatial Planning of the Provincial Council of Álava, will hve an installed capacity of 40 MW and generate nearly 100,000 MWh of clean energy each year. This is enough to supply 75,000 people and avoid the emission of approximately 16,300 tons of CO₂ annually.

The development of the wind farm will create around 100 jobs, primarily for local workers, during the construction phase, and will deliver positive economic impacts and benefits for nearby municipalities and businesses. 

The construction of the wind farmwill provide local councils with an initial income of around €1.2 million at the start of the works, followed by recurring annual revenues of approximately €230,000 through taxes and concession fees.

In addition, mechanisms have been introduced to encourage community investment, including a crowdlending scheme that enables local people to invest directly in the project, as well as competitive-priced power purchase agreements with local businesses, providing a valuable advantage for companies in the area.

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