RESA and EIB Sign €190 Million Loan Agreement to Advance Energy Transition

RESA and EIB Sign €190 Million Loan Agreement to Advance Energy Transition

(IN BRIEF) RESA, an energy distribution network operator, has partnered with the European Investment Bank (EIB) to secure a €190 million loan agreement to support the first phase of its industrial plan for 2023-2026. The energy transition necessitates substantial investments in energy distribution infrastructure to accommodate increased electrification in various sectors. RESA’s plan, totaling nearly €3 billion over the next 25 years, aims to optimize infrastructure for flexible and efficient energy management. The loan will finance initial investments, including power enhancements, digital meter deployment, and more, enabling RESA to adapt to changing consumption patterns with decarbonized energy and contribute to sustainable growth in the EU energy sector.

(PRESS RELEASE) LUXEMBOURG, 1-Feb-2024 — /EuropaWire/ — As part of the energy transition, RESA and the EIB announce the signing of a €190 million loan agreement needed to implement the first part of the operator’s industrial plan for 2023-2026.

The energy transition requires substantial investment in energy distribution network infrastructure. Given the forecasts put forward by the various scenarios and projections both at EU and national level, and in light of the consumption trends already observed, massive electrification of usage is clear and unavoidable (heat pumps, electric vehicles, etc.).

It is therefore imperative to optimise infrastructure to ensure flexible and efficient energy management, guaranteeing continuous energy and voltage availability, both during the hours of daylight when demand is typically low and after dark when consumption reaches its peak.

In order to enable networks to adapt to changes in consumption patterns using decarbonised energy, RESA will have to invest an indexed amount of close to €820 million by 2050 (excluding project subsidies). On top of annual investment envelopes of around €80 million, this represents a total investment of nearly €3 billion over the next 25 years.

To partly finance this industrial energy transition plan for the period 2023-2026, RESA and the EIB have concluded a loan agreement worth €190 million which will be used, alongside an envelope of €60 million provided by the distribution system operator (DSO), to complete the initial investments in the electricity grid. This will mainly involve boosting the power of overhead installations and underground cables, transformers and substations as well as the deployment of digital meters to enhance network autonomy.

EIB Vice-President Kris Peeters said: “The EIB, as the EU climate bank, is committed to advancing the REPowerEU Plan to promote the sustainability of the EU energy sector and reduce the European Union’s energy dependency. The financial support provided to RESA for its energy transition industrial plan reflects our commitment to fostering sustainable and inclusive growth through the development of state-of-the-art energy networks, which are essential in the fight against climate change.”

CEO of RESA Gil Simon said: “This collaboration with the EIB, the first of its kind for RESA, demonstrates above all the credibility of our institution, its governance and the sound management of its finances. It will strengthen our capacity to deliver our energy transition goals in the short term, and to implement more resilient energy solutions that will enable us to face this new energy era in an inclusive, socially equitable and economically viable manner.”

Background information

About the EIB

The European Investment Bank (ElB) finances sound investments that contribute to EU policy objectives. EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality.

The EIB Group, which also includes the European Investment Fund (EIF), signed a total of €88 billion in new financing for over 900 projects in 2023. These commitments are expected to mobilise around €320 billion in investment, supporting 400 000 companies and 5.4 million jobs.

All projects financed by the EIB Group are in line with the Paris Climate Accord. The EIB Group does not fund investments in fossil fuels. We are on track to deliver on our commitment to support  €1 trillion in climate and environmental sustainability investment in the decade to 2030 as pledged in our Climate Bank Roadmap. Over half of the EIB Group’s annual financing supports projects directly contributing to climate change mitigation, adaptation, and a healthier environment.

Approximately half of the EIB’s financing within the European Union is directed towards cohesion regions, where per capita income is lower. This underscores the Bank’s commitment to fostering inclusive growth and the convergence of living standards.

About RESA

RESA is the main operator of electricity and gas distribution systems in the province of Liège (Belgium). Drawing on its 100 years of expertise at the service of the community, RESA supplies energy to thousands of professional and private customers through its networks.

Driven by values of proximity, responsibility, reliability and fairness, RESA delivers effective, responsible and fair energy solutions day after day and is committed, through its industrial plan, to meeting the challenges of the energy transition, which are closely tied in with its remits.

Media Contact:

Sabine Parisse
s.parisse@eib.org
+352 4379 – 83340

Press Office

press@eib.org
+352 4379 – 21000

SOURCE: European Investment Bank