EIB Grants €50 Million to Upgrade Slovenia’s Electricity Grid, Boosting Renewable Energy and Grid Reliability

EIB Grants €50 Million to Upgrade Slovenia’s Electricity Grid, Boosting Renewable Energy and Grid Reliability

(IN BRIEF) The European Investment Bank (EIB) has provided a €50 million loan to Slovenia’s largest energy distribution company, Elektro Ljubljana, to expand and upgrade the electricity grid in the central and southeastern regions of the country. The project, which includes significant infrastructure enhancements such as new power lines, transformers, and smart meters, is aimed at meeting growing energy demand, improving grid reliability, and supporting Slovenia’s goals for electrification and renewable energy integration. The initiative is part of a broader effort to achieve the country’s green transition and aligns with EU climate goals.

(PRESS RELEASE) LUXEMBOURG, 2-Sep-2024 — /EuropaWire/ — The European Investment Bank (EIB), the lending arm of the European Union, announces that it has granted a €50 million loan to Elektro Ljubljana, Slovenia’s largest energy distribution operator, to support the expansion and modernization of the country’s electricity grid. This significant investment targets the central and southeastern regions of Slovenia, aiming to meet rising domestic electricity demand while reducing energy losses and enhancing grid reliability.

The project, scheduled for completion between 2024 and 2026, will involve the refurbishment and construction of medium and low-voltage infrastructure, including overhead lines, underground cables, power transformers, and substations. Additionally, it will introduce smart meters and advanced components to optimize energy efficiency, laying the groundwork for future renewable energy integration, electric vehicle charging stations, and heat pumps.

EIB Vice-President Kyriacos Kakouris emphasized the importance of the project in supporting Slovenia’s electrification and renewable energy goals, aligning with the EU’s broader REPowerEU initiative. “This partnership not only underscores our commitment to infrastructure development but also addresses a critical need in Slovenia’s energy sector,” Kakouris stated.

Elektro Ljubljana’s President of the Management Board, Urban Likozar, highlighted the project’s role in ensuring sufficient capacity for the green transition and the diversification of renewable energy sources. The total cost of the project is estimated at €164.2 million, with the EIB loan offering favorable financing terms. An additional €55.2 million will be provided through EU funding, with the remaining costs covered by Elektro Ljubljana.

Slovenia’s State Secretary Tina Seršen praised the initiative, noting that the distribution network is key to the country’s green transition and energy self-sufficiency. “The Ministry, through grants and legislation, supports Elektro Ljubljana and other electricity distribution companies in making the necessary investments,” she added.

Background information

The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It finances sound investment that contributes towards EU policy goals, including social and territorial cohesion, competitiveness, innovation, sustainable development and the just, swift transition to net zero. The EIB has committed more than €7.6 billion in total financing for projects in Slovenia since the start of its operations in the country.

Media contacts:

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SOURCE: European Investment Bank