The European Investment Bank (EIB) will invest €1.6 billion ($1.84 billion) in a new power interconnector between Spain and France, Reuters reported on Monday, citing the bank. The planned 400-kilometre Bay of Biscay subsea cable, scheduled for launch in 2028, will double the electricity exchange capacity between the two countries from 2.8 to 5 gigawatts. The project is being developed by Red Electrica (Spain) and RTE (France). The move follows an unprecedented power outage in April that exposed the limited interconnection between Spain, Portugal, and the wider European grid. Officials say stronger links could have mitigated the blackout's impact. EIB Group President Nadia Calviño said the investment is key to ensuring Iberia is "no longer an energy island", as the region currently has just 3 per cent of its electricity connected to neighbours — well below the EU's 15 per cent target by 2030. In addition to the Bay of Biscay project, works to upgrade an existing France-Spain interconnector are expected to be complete this year, and new Pyrenees routes are under consideration. Attribution: Reuters Subediting: M. S. Salama
