The European Commission has granted €578 million ($714 million) loan for the Biscay Gulf France-Spain interconnection, a power link to transfer excess Spanish renewable energy to France.
Estimated to cost €1.7 billion ($2.1 billion), the interconnector project is expected to double the current exchange capacity to 5,000 MW, thus increasing the security, stability and quality of electricity supply between the two countries, reports EBR.
The awarded grant will be used for the construction of the 370 km Franco-Spanish subsea power cable across the Bay of Biscay, west of the Pyrenees mountain range.
The interconnector project is to be commissioned in 2025. It will be owned and operated by Inelfe, which is equally and jointly owned by the transmission companies of Spain and France, Red Eléctrica de España and Réseau de Transport d'Électricité, respectively.