Enel Green Power (EGP) has secured a €160mn loan from the European Investment Bank (EIB) to source renewable and alternative energy sources.

This is the second and final tranche of a €600mn loan package that was approved in 2010. The first tranche of €440mn was signed two years ago.

The financing will be used to implement Enel’s four-year plan, which aims to increase the amount of electricity generated from renewable sources by developing a range of innovative technologies involving solar, photovoltaic, wind and geothermal energy as well as hydro power.

According to EIB, the operation is one of its priority areas as it involves financing energy projects that will help to increase the amount of power generated from renewable sources.

Diversifying the sources of production will improve the impact on the environment and increase overall efficiency, while ensuring the security and sustainability of energy supplies over time, EIB says in a statement.

The operation will also contribute towards implementing the European Union’s 2020 strategy, which has the target of reducing CO2 emissions by 20% over the next few years.