EIB Grants €500 Million Loan to Enexis for Dutch Electricity Grid Expansion

EIB Grants €500 Million Loan to Enexis for Dutch Electricity Grid Expansion

(IN BRIEF) The European Investment Bank (EIB) has provided a €500 million loan to Dutch distribution system operator (DSO) Enexis to fund its electricity network expansion efforts in the Netherlands. Enexis plans to upgrade and expand its infrastructure, encompassing medium-voltage underground cables, substations, low-voltage cables, and smart meter installations. This investment, expected to be completed by the end of 2024, aligns with the EIB’s climate and sustainability priorities, supporting Enexis’ commitment to accommodating the growing demand for green energy in its service areas.

(PRESS RELEASE) LUXEMBOURG, 22-Dec-2023 — /EuropaWire/ — The European Investment Bank (EIB) has signed a €500 million loan to Dutch distribution system operator (DSO) Enexis to finance part of its 2023-2024 investment activities. By refurbishing, upgrading and expanding its electricity network in the Netherlands, the Dutch grid operator intends to use the funding to future-proof its operations. The investments linked to the deal are expected to be concluded by the end of 2024. The loan falls under the EIB’s priorities in terms of climate action and environmental sustainability, and is aligned with the REPowerEU initiative.

“As Europe’s climate bank, tackling the financing challenges of the energy transition is currently one of our top priorities.” commented EIB Vice-President Kris Peeters. “In the light of the switch to renewable energy sources and difference in generating habits, adequate grid capacity becomes ever more important to avoid losing energy during peak periods of wind or sunlight. Enexis will significantly reinforce and expand its network to cater for the transition to green energy, and we’re happy to support that.”

CFO of Enexis Mariëlle Vogt added: “We are proud to welcome the EIB as our new financial partner, and we are happy to see how the EIB’s commitment aligns with the rollout of our own strategy. The network improvements that will be financed with this loan will target all the areas where Enexis is active, meaning the provinces of Groningen, Drenthe, Overijssel, Noord-Brabant and Limburg.”

Enexis’ investments will include the overhaul or new installation of around 7 500 km of new medium-voltage underground cables, 2 000 secondary substations, some 7 100 km of low-voltage cables, and the installation of around 370 000 smart meters. Overall, the project is expected to generate over 6 500 full-time employment positions during the construction phase.

Background information

Over the last five years, the European Investment Bank has financed over €10 billion worth of projects in the Netherlands, including more than €1.5 billion in the energy sector.

Enexis is owned by the provinces of Groningen, Drenthe, Overijssel, Noord-Brabant and Limburg and various municipalities in these provinces. Enexis is active in the fields of construction, operation, maintenance and management of distribution networks for electricity and natural gas. Enexis operates 46 300 km of medium-voltage and 98 500 km of low-voltage electricity network, serving 2 941 thousand connections.

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SOURCE: European Investment Bank