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“Record-breaking loan”: EIB to finance modernisation of ČEZ’s distribution grid and connection of RES

The EU’s European Investment Bank (EIB), will lend 790 million euros to the Czech energy utility company, ČEZ to fund the expansion of the national electricity distribution network, including the installation of automation technology and remotely controlled energy supply systems. ČEZ will also make upgrades to increase the reliability of the electricity supply in nine regions of the Czech Republic.  

With the new infrastructure, ČEZ will integrate up to 2.2 gigawatts (GW) of new renewable energy sources, promoting the country’s energy independence and green transition.

This is the largest loan the EIB has ever granted for the Czech Republic.

“The EIB continues to support the modernisation of the Czech energy sector, this time with the biggest loan we’ve signed there to date,” said the EIB Vice-President, Lilyana Pavlova, who oversees the bank’s operations in Czechia. “This is an important step towards an energy-independent Czech Republic, now an even more urgent matter given the current energy crisis. At the same time, the loan supports the European Commission’s REPowerEU plan to make Europe independent from Russian fossil fuels well before 2030, which objective is especially relevant in light of Russia’s invasion of Ukraine. The loan also has a significant green component, as ČEZ will be able to integrate new renewable energy sources into its grid and accelerate decarbonisation of the Czech economy.” 

“We welcome this new loan by the EIB that will help us accelerate the modernisation of the distribution grid and integrate the new renewable energy sources that the Czech Republic needs to meet its climate targets and strengthen its energy security, as well as the energy independence of our customers,” added ČEZ Chief Financial Officer, Martin Novák. “The number of renewables we have built for our customers has tripled year-on-year in 2022, and the number of applications for new connections of renewables that will be built in the near future has reached 80,000 to date. ČEZ is committed to upgrading the distribution network significantly, and our partnership with the EIB is one of the cornerstones of this effort.”

To date, the EIB has provided around 2.6 billion euros to ČEZ for projects that contribute to a reliable, efficient and green electric supply. With this loan, total EIB investment in the Czech energy sector has reached 3.45 billion euros.

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