EIB signs CZK 3.6bn loan with Czech electricity transmission system operator

EIB’s investment will contribute to replacing economically obsolete electricity transmission infrastructure, increasing the capacity of electricity supply to meet the demand, and to reducing congestions in the region.

The European Investment Bank (EIB) signed a CZK 3.6 billion loan (equivalent to €142 million) with ČEPS, a.s., the state-owned Czech Transmission System Operator. This investment aims at strengthening the electricity transmission infrastructure of the Czech Republic for the period 2021-2025.

EIB’s investment will contribute to replacing economically obsolete electricity transmission infrastructure, increasing the capacity of electricity supply to meet the demand, and to reducing congestions in the region.

The project will improve the security of the electricity system and facilitate power exchanges and transit flows mainly from Germany to Austria through Poland and the Czech Republic. Most of the investment will occur in cohesion priority regions and support the efficient operation of the electricity market in the Central and Eastern Europe region.

EIB Vice-President Lilyana Pavlova said: “This project will reinforce the electricity transmission in and around the country for the benefit of all citizens and strengthen cohesion in the region. By facilitating the integration of renewables, this project will also contribute to supporting the energy transition of the Czech Republic, in line with the objectives of the EU Green Deal and our EIB Energy Lending Policy. Ensuring a just transition to a low carbon economy is a key priority for the EIB, as the EU’s Climate Bank, and I am very pleased to sign this fifth partnership with our reliable partner ČEPS.”

CEPS Chairman of the Board of Directors Martin Durčák said: “The energy sector is undergoing fundamental changes. For ČEPS as a transmission system operator, it is crucial to prepare the network for the new requirements associated with the changes. I am very pleased that, thanks to the cooperation with the EIB, our company will be able to continue with an extensive investment program that will further strengthen the security of the transmission system in the Czech Republic.”

Due to the central location of its grid in the European North-South transmission corridor, ČEPS, through its interconnectors, provides a crucial link between regional electricity markets. Solving network bottlenecks in neighbouring countries and supporting the growth in renewables in the area are essential to ensure safe and resilient operation of the Czech transmission network and maintain security of supply.