| Project Detail |
The project consists in an investment programme for electricity distribution in the period 2023 to 2024, including refurbishment, upgrading and expansion of existing electricity distribution infrastructure and the installation of smart meters in five provinces in the Netherlands.
Additionality and Impact
The project supports the modernization, reinforcement and digitalisation of the electricity distribution network infrastructure in five provinces in the Netherlands, in Groningen, Drenthe, Overijssel, North-Brabant and Limburg. The project caters for demand growth, the connection of new network users and the integration of renewables, improving the quality of service and the efficiency of operations.
The Programme contributes to Banks lending priority objectives on Climate Action and Environmental Sustainability, and it aligns with the REPowerEU objectives. The financing of the programme will contribute to the Banks ELP themes on Securing the Enabling Infrastructure (energy networks) and Innovative technologies and new types of energy infrastructure (smart meters). The operation addresses a number of market failures, including reducing carbon and air pollution externalities, increasing security of energy supply, reducing the risk of blackouts as well as improving energy efficiency via reductions of electricity consumption.
The project supports the Netherlands long-term climate strategy set out in the National Energy and Climate Plan (NECP) and EU policies on energy and climate, by enhancing and extending critical infrastructure for decarbonisation.
In line with the EU Taxonomy, electricity grid infrastructure in Europe is considered eligible for classification as an activity contributing to climate change mitigation and will contribute to the EU Economic, Social and Territorial Cohesion by partly investing in EIB Cohesion Priority regions.
The financing of this project is in line with the Banks lending priority objectives on energy as well as the transversal objectives on Climate Action. The project is expected to deliver good economic benefits and good social benefits. The promoter is experienced in works of this nature and has a sound project management system in place.
The investment loan will have a positive financial contribution for the Borrower as the EIB will be able to offer attractive interest rates compared to the debt capital markets. In addition, the finance contract will offer flexible disbursement conditions and long maturities. The EIB term loan is innovative for the client as it is currently not available in the banking market.
Objectives
The project caters for demand growth, the connection of new network users and the integration of renewables, improving the quality of service and the efficiency of operations.
Sector(s)
Energy - Electricity, gas, steam and air conditioning supply
Proposed EIB finance (Approximate amount)
EUR 500 million
Total cost (Approximate amount)
EUR 1446 million |
