EIB provides EUR 330m to energy utility in Czech Republic

The EIB funds will help reinforce and refurbish medium and low-voltage networks.

The European Investment Bank (EIB) is providing EUR 330m to the Czech energy utility CEZ to finance an investment programme for the extension, reinforcement, and modernization of the electricity distribution network in nine Czech regions: Plzeň, Karlovy Vary, Ústí nad Labem, Central Bohemia, Liberec, Hradec Králové, Pardubice, Olomouc, and Moravia-Silesia.

The EIB funds will help reinforce and refurbish medium and low-voltage networks. The money will also be used to install automation and tele-control systems. The project comprises a large number of geographically dispersed schemes, such as the installation of 4 160 km of new overhead and underground lines, the refurbishment of 2 475 km of lines and the addition of 861 MVA of transformer capacity on the electricity network.

"The project will boost the network's capacity and will make it fit to integrate more electricity from renewable sources, thereby fostering the move from centralized to de-centralized electricity generation. This is not only good news for households and companies, but it's also important groundwork in our fight against climate change," commented EIB Vice-President Lilyana Pavlova

"The EIB has been a trusted financing partner of CEZ for the last 10 years. Cooperation with the EIB has allowed CEZ to diversify its sources of funding by complementing traditional debt capital markets without compromising its desire for financing with long maturities. I am very pleased that this particular loan will facilitate investments supporting decentralized electricity generation in the Czech Republic," commented CEZ Chief Finance Officer Martin Novák.