Bay of Biscay Subsea Cable Project: Budget Overruns and Environmental Controversy

• The 276km Bay of Biscay subsea power link between Gatika and Cubnezais has seen costs soar by 77%, from an initial €1.75 billion to €3.1 billion.
• Repeated spills of bentonite during onshore drilling in Gatika have led to multiple work stoppages and significant local opposition regarding environmental damage.
• Critics argue that while public funds and EU subsidies support the project, the financial burden falls on consumers through utility bills, while profits are privatized by major operators and investment funds.

Project Finance and Scope

• Managed by Inelfe (a joint venture of Red Eléctrica and RTE), the project aims for completion by 2028.
• Increased costs translate directly into higher network remuneration fees, which are passed on to citizens via electricity bills.
• The project receives €578 million in EU grants and €1.6 billion in loans from the European Investment Bank.

Environmental Concerns

• The Basque Water Agency (URA) has halted works three times due to bentonite leaks polluting the Butroe river and surrounding areas.
• Local platforms have reported a lack of compensation for 38 affected land plots and unpaid municipal fees estimated at €13 million.
• Environmental impact assessments warn of damage to benthic communities, noise pollution affecting marine mammals, and disturbances to protected bird colonies.

Data Infrastructure Connection

• The cable includes 96 fiber optic strands, functioning as both an electricity highway and a data transit link.
• A massive data center campus in Araba, developed by Merlin Properties and Edged, is expected to consume up to 17% of Basque electricity demand.
• The data center is currently part of a global financial divestment operation, with owners reportedly exploring a sale worth up to $15 billion, highlighting the project's role in serving corporate digital infrastructure over local needs.