Iberdrola Spain and the Basque Energy Agency (EVE) have secured the development of the Labraza wind farm by obtaining a 29 million euro green loan from the European Investment Bank (EIB).
This funding will drive forward the implementation of a strategic project for the energy transition, promoting increased renewable energy production and strengthening security of supply in the Basque Country.
The new facility, located in the municipality of Oion in Álava, will have an installed capacity of 40 MW and represent a total investment of 59 million euros. It is the first wind farm to come into operation in the autonomous community since 2006, providing a significant boost to the Basque wind energy industry and to the companies that form part of its value chain.
Once operational, the farm will generate approximately 100,000 MWh of renewable electricity per year, enough to meet the energy needs of around 75,000 people. It will also help to reduce greenhouse gas emissions, preventing the release of around 16,300 tonnes of CO₂ annually.
The project, which has been recognised as being in the public interest by the Provincial Council of Álava, will also have a positive economic and social impact. During the construction phase, it is expected to create around a hundred jobs, mainly for local people, as well as generating opportunities for local businesses and suppliers.
From an economic perspective, the start of construction work will bring initial revenue of around 1.2 million euros to the municipalities involved. Subsequently, the infrastructure will generate estimated recurring revenue of 230,000 euros per year through taxes and fees, thereby strengthening local finances.
Furthermore, the project includes initiatives designed to encourage participation from the business community and the general public. These include a crowdlending programme, which allows individuals to invest in the facility, and the provision of power purchase agreements (PPAs) for local businesses, giving them access to renewable electricity at competitive prices.