ČEZ secures grid upgrade loan from EIB
The European Investment Bank (EIB) is lending €400 million ($420.1 million) to Czech energy supplier ČEZ to upgrade and expand the country’s distribution grid.
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Czech Republic: The European Investment Bank (EIB) is lending €400 million ($420.1 million) to Czech energy supplier ČEZ to upgrade and expand the country’s distribution grid. The new credit line aims to boost the country’s energy independence by increasing renewables penetration.
ČEZ wants to refurbish networks, install remotely controlled energy systems, and build infrastructure that can integrate renewable sources like solar and wind power. With the loan, ČEZ will upgrade the grid to be able to handle an additional 5.5 GW of renewables. The works are due to be completed in 2026.
ČEZ chief financial officer Martin Novák said: “ČEZ is modernising and decarbonising its power plant portfolio as well as facilitating the overall transition to a zero-carbon Czech energy sector. The overall volume of our investments to modernise our electricity network is increasing every year and gradually changing the shape of the whole distribution environment, where the need for faster access to information is growing.”
EIB vice-president Kyriacos Kakouris added: “This loan represents a significant investment in modernising the Czech Republic’s electricity distribution network while accelerating the integration of renewable energy sources.”
The loan aligns with the objectives of the European Commission’s REPowerEU plan, created in response to the global energy market disruption caused by the war in Ukraine. The plan, backed by financial and legal means to build new energy infrastructure in Europe, aims to save and produce clean energy, as well as diversify energy supplies.
The financing follows an €800 million ($840.2 million) loan in September and a €790 million ($829.7 million) loan in 2022, both for the upgrade and expansion of the country’s distribution grid. So far, the EIB has provided almost €2.8 billion ($2.9 billion) to ČEZ for projects that contribute to reliable supply and generation in the Czech Republic.
Source: Smart Energy International
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