Iberdrola España and the Basque Energy Agency (EVE) have secured a €29 million green loan from the European Investment Bank (EIB) to support the development of the 40 MW Labraza wind farm in the Basque Country.
The financing will accelerate the construction of the project, which is expected to strengthen the region’s energy autonomy and security while supporting electrification, industrial growth, employment and economic competitiveness.
Located in the municipality of Oion in Álava, the Labraza wind farm will be the first wind project to become operational in the Basque Country since 2006. The project represents a total investment of €59 million and is expected to play a significant role in revitalising the regional wind energy sector and its supply chain.
The Provincial Council of Álava’s Department of Territorial Balance and Spatial Planning has declared the project to be in the public interest. Once operational, the wind farm is expected to generate nearly 100,000 MWh of renewable electricity annually, enough to supply around 75,000 people, while avoiding approximately 16,300 tonnes of CO₂ emissions each year.
The project is also expected to deliver economic benefits to the local community. Around 100 jobs, primarily for local workers, will be created during the construction phase, while neighbouring municipalities and businesses are expected to benefit from increased economic activity.
According to the project details, local councils will receive approximately €1.2 million in initial revenue at the start of construction, followed by recurring annual income of around €230,000 through taxes and concession fees.
To encourage local participation, the project will also introduce community investment initiatives, including a crowdlending programme that will allow residents to invest directly in the wind farm. In addition, competitive-priced power purchase agreements (PPAs) will be offered to local businesses, helping improve access to affordable renewable electricity.
