| Project Detail |
The investment programme concerns the renovation, reinforcement and extension of medium- and low voltage electricity distribution infrastructure (underground cables and substations) and the renovation and digitalisation of network control systems. The programme will be implemented in the state of Lower Saxony (Niedersachsen) in northwest Germany in the period 2025-2028. Additionality and Impact The project concerns standard electricity network investments in a regulated natural monopoly. The promoters investment cost plan includes investments in electricity distribution. The project will contribute to maintaining or increasing security of supply in the context of growing electricity demand, from heating and mobility in particular, and growing integration of electricity production from renewable energy sources RES. The Programme is expected to contribute 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 Energy Lending Policy (ELP) priority on Securing the Enabling Infrastructure (energy networks). The operation addresses a number of market failures, including increasing security of energy supply, and the integration of low-carbon generation, which reduces carbon emissions and air pollution, with positive climate and health externalities. The project is expected to deliver a very good economic rate of return and excellent rated social benefit. The promoter is experienced in works of this nature and has a sound project management system in place. The proposed loan will contribute to the diversification of the borrowers financing sources and thus strengthen its overall financing position. EIBs capability to lend a sizeable loan ticket on good terms will provide substantial support for the promoters crucial investment plans in its grid. EIB as a long-term anchor investor is also expected to create a positive signalling effect to the capital markets and decrease the borrowers relative exposure to the volatility thereof. The EIB loans flexible features such as the possibility to tranche disbursements and the availability period provided are considered particularly apt to finance this project. Objectives The project caters for demand growth, the connection of network users, the integration of renewables, and the improvement of 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 450 million Total cost (Approximate amount) EUR 712 million |
