EIB Grants €350m Loan to Modernise Slovakia’s Power Grid and Boost Energy Transition

The loan will also enable ZSE to diversify its funding sources and secure financing terms that are typically unavailable on commercial markets.

The European Investment Bank (EIB) and Západoslovenská energetika (ZSE) Group have signed a landmark €350 million loan agreement to finance a multi-year programme aimed at modernising Slovakia’s electricity distribution networks. The investment—one of the largest EIB corporate loans ever issued in the country—will support upgrades across the national grid, including in the economically critical Bratislava region.

The funding will allow ZSE Group to overhaul high-, medium- and low-voltage infrastructure, replace ageing overhead lines and underground cables, modernise transformers and substations, and deploy advanced automation and smart technologies. These enhancements will significantly boost the reliability, safety, and resilience of electricity supply, ensuring that Slovakia’s grid infrastructure can meet rising energy demand and support its transition to a greener, more electrified economy.

Strategic Investment for Slovakia’s Energy Future

EIB Vice-President Marek Mora, responsible for operations in Slovakia, emphasised the strategic significance of the agreement. “This is the largest corporate loan we have signed in the country to date,” he said. “Modernising Slovakia’s distribution networks will reinforce the foundations of the Slovak economy and strengthen its resilience to modern challenges, including the projected increase in electrification. This creates strong foundations for long-term, sustainable and green growth, job creation and energy independence.”

The loan will also enable ZSE to diversify its funding sources and secure financing terms that are typically unavailable on commercial markets.

ZSE Group CEO Markus Kaune hailed the loan as essential for accelerating Slovakia’s energy transition. “Our investment levels have nearly doubled since 2022, and this financing allows us to maintain that momentum. We are committed to building a smarter, more resilient, future-ready grid that meets the evolving needs of customers and supports major shifts such as electrification in heating and transport.”

Strengthening Development in Cohesion Regions

A significant portion of the investment will be directed toward Slovakia’s cohesion regions, particularly in the western and eastern areas of the country. These upgrades are expected to support more balanced social and territorial development, address regional disparities in infrastructure, and increase long-term economic competitiveness.

The ZSE investment programme contributes directly to Slovakia’s National Energy and Climate Plan as well as broader EU energy and climate commitments, including:

• REPowerEU, aimed at reducing reliance on imported fossil fuels

• The European Green Deal

• The EU Grid Action Plan

• The long-term goal of achieving climate neutrality by 2050

Building a Modern, Secure Electricity Network

The partnership between EIB and ZSE will enhance Slovakia’s ability to integrate low-carbon energy sources, accommodate expanding e-mobility, and improve services for both households and businesses. A more robust grid will also help the country withstand climate-related extreme weather events, reduce power outages, and optimise the use of renewable energy.

Such improvements are increasingly vital as Slovakia—and Europe as a whole—faces rising demand for electricity, driven by economic growth, green technologies, and widespread electrification of transport and industry.

EIB’s Expanding Role as Europe’s Climate Bank

As the EU’s official climate bank, the EIB Group continues to play a central role in financing Europe’s clean energy transition. Between 2021 and 2024, the EIB mobilised more than €560 billion in green investments, placing it firmly on track to achieve its goal of €1 trillion in climate and environmental financing this decade.

In 2024 alone, EIB achieved record-breaking support for energy investments:

• €31 billion in total energy financing — double the amount in 2021

• €12 billion for renewable energy projects — tripling 2020 levels

• €8.5 billion for electricity grids and storage — double the 2023 level

• €7.5 billion for energy efficiency improvements

These investments are crucial for strengthening European energy security, integrating more renewable power, and reducing emissions in line with EU climate goals.