Author: PPD Team Date: 17/06/2025
The European Investment Bank (EIB) has committed €1.6 billion (around $1 billion) to the Bay of Biscay electricity interconnection project, which will significantly expand electricity exchange between Spain and France.
Led by Inelfe—a joint venture of Spain’s Red Eléctrica and France’s Réseau Transport d’Électricité—the project involves building a submarine direct current line between the two countries. It will link their alternating current systems through conversion stations in Cubnezais (France) and Gatika (Spain), allowing seamless integration with national grids.
The Bay of Biscay project has been designated as a Project of Common Interest (PCI) by the European Union. The PCI framework was introduced by the European Commission in 2013 to prioritise key energy infrastructure projects that enhance interconnection across member states. These projects are eligible for public funding and are reviewed every two years.
The EU has supported the Bay of Biscay interconnector with a €578 million ($666 million) grant under the Connecting Europe Facility. The EIB has signed the first €1.2 billion tranche of its financing at its Luxembourg headquarters.
Construction is underway, and the interconnection is expected to become operational by 2028. Once completed, it will nearly double the electricity exchange capacity between France and Spain to 5GW. It is also expected to cut carbon emissions by 600,000 tonnes annually.
The project supports the EU’s 2030 target for all member states to have at least 15% of their installed generation capacity connected with neighbouring countries. It also complements other regional efforts, including the Baixas–Santa Llogaia underground link and upgrades to the Argia–Hernani grid.
Image: Map showing the Bay of Biscay region where France and Spain are connected by an electricity interconnector.