EDF and EIB complete €1 billion financing to modernize Enedis’ grid and integrate renewable energy in France

(IN BRIEF) EDF and the European Investment Bank have finalized the second €500 million tranche of a €1 billion financing package that will fund Enedis’ efforts to strengthen the French electricity grid and expand renewable energy connections. The investment will help the network withstand climate change impacts, integrate 7 GW of new renewable generation capacity, and replace or bury 2,500 km of distribution lines. Nearly 90% of France’s wind and solar energy is already distributed through Enedis, which now serves 1.2 million renewable producers. The loan supports EU Green Deal and REPowerEU goals, reaffirming the EIB’s role as a major investor in energy infrastructure.

(PRESS RELEASE) LUXEMBOURG, 6-Sep-2025 — /EuropaWire/ — EDF, acting as shareholder of Enedis, has finalized the second tranche of a €1 billion financing agreement with the European Investment Bank (EIB) to accelerate France’s energy transition. The funds will enable Enedis, which operates the public electricity distribution network covering 95% of France, to expand and modernize its infrastructure, making it more resilient to climate change and capable of integrating an ever-growing volume of decentralized renewable energy.

The financing package is structured in two equal phases: an initial €500 million loan signed in 2024, followed by the second €500 million tranche completed in July 2025. Together, these loans will directly support Enedis’ 2024–2025 investment programme.

The EIB has been a long-term financial partner to EDF, backing projects that align with EU climate and energy objectives. This agreement reinforces the European Union’s commitments under the Green Deal, which targets a 55% reduction in greenhouse gas emissions by 2030 and full carbon neutrality by 2050. A robust and adaptable electricity grid is recognized as a central pillar of this decarbonization pathway.

The financing also contributes to REPowerEU, the European strategy designed to reduce reliance on Russian fossil fuels by advancing renewable energy, energy efficiency, and grid modernization.

Bernard Fontana, Chairman and Chief Executive Officer of EDF, commented:
“This new agreement with the EIB is essential to our mission of public service. It provides Enedis with the resources to reinforce the power grid against the growing effects of climate change and to ensure the seamless integration of renewable energy into the French system.”

Ambroise Fayolle, Vice-President of the EIB, added:
“In 2024, the EIB mobilized 40% of all investments in Europe aimed at energy networks, interconnections, and storage. Supporting Enedis is fully in line with this strategy. This €1 billion partnership with EDF confirms our central role in Europe’s decarbonization efforts and energy security, while also modernizing the French grid.”

Electricity demand in France is projected to grow significantly, with forecasts estimating it will represent 55% of final energy use by 2050. To meet this challenge, Enedis is leading investments in climate resilience and renewable integration. Currently, nearly 90% of France’s wind and solar production is connected through its network. By May 2025, the grid was already serving 1.2 million renewable producers—double the number recorded in 2021—with self-consumption rising sharply.

The newly signed loan will partially fund the connection of 7 GW of additional renewable capacity and the burial or replacement of 2,500 kilometers of power distribution lines in 2025. These measures aim to improve reliability in the face of extreme weather while accommodating a surge in renewable generation.

Background information

EIB

The European Investment Bank (EIB) is the long-term lending institution of the European Union, owned by its Member States. The EIB finances investments in eight core priorities that support EU policy objectives. The EIB Group, which also includes the European Investment Fund (EIF), signed nearly €89 billion in new financing for over 900 high-impact projects in 2024, boosting Europe’s competitiveness and security. In France, the EIB Group signed more than 100 agreements in 2024, totalling €12.6 billion. Nearly 60% (69% in France) of annual EIB Group financing supports projects that help fight climate change and improve climate change adaptation. In 2024 the EIB made a record €8.5 billion in new financing for energy grids, interconnectors and storage, mobilising 40% of Europe’s total investment in that sector.

EDF

A major player in the energy transition, the EDF Group is an integrated energy company active in all sectors: production, transmission, distribution, trading, energy sales and energy services. The group is a world leader in low-carbon energy, with an output of 520 TWh (94% decarbonised), a carbon intensity of 30 g CO2/kWh in 2024, and a diverse generation mix based mainly on nuclear and renewable energy (including hydropower). It is also investing in new technologies to support the energy transition. EDF’s raison d’être is to build a net zero CO2 energy future with electricity and innovative solutions and services, to help save the planet and drive well-being and economic development. The group supplies energy and services to approximately 41.5 million customers[2] and generated consolidated sales of €118.7 billion in 2024.

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SOURCE: European Investment Bank