The Bay of Biscay project is “a landmark project for the European electricity system,” the EIB said in a statement quoted by Jornal de Notícias.

The EIB will allocate €1.6 billion to this project, and agreements between all parties for the implementation of this financing have already been signed in Luxembourg, according to the same statement.

The new submarine connection will increase electricity exchange capacity from 2,800 to 5,000 megawatts (MW), “improving the reliability of energy supply between France, Spain and Portugal,” the EIB said.

With a total length of 400 kilometres, it will be the first submarine electricity connection between Spain and France and has been classified as a Project of Common Interest by the European Union (EU).

According to data from the European Commission, €584 billion is needed to reform electricity networks this decade, an amount that includes cross-border interconnections and the adaptation of distribution networks to the energy transition.