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EIB Commits €450 Million Green Loan to Portugal’s REN for Renewable Energy Upgrades

EIB Commits €450 Million Green Loan to Portugal’s REN for Renewable Energy Upgrades

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  • The green loan contributes to REN’s 2022-2026 investment plan to enhance and modernize the electricity transmission network throughout Portugal
  • The financing will also support the connection and integration of additional renewable energy sources to the network, contributing to the REPowerEU Plan to reduce European dependency from fossil fuels
  • The majority of the investments financed from the loan will be located in areas designated as cohesion regions

The European Investment Bank (EIB) has agreed to lend €450 million to Redes Energéticas Nacionais SGPS, S.A. (REN) to finance renewable energy connections and the reinforcement and upgrading of the Portuguese electricity transmission network. This financing will contribute to REN’s five-year electricity transmission investment programme (2022-2026), benefiting several regions across Portugal.

This €450 million green loan committed by the EIB in Portugal is part of the wider REPowerEU Plan to boost green energy and support the EU’s autonomy and competitiveness. The total €30 billion EIB contribution to REPowerEU is expected to mobilize over €115 billion of additional investment by 2027 in support of green technologies and Europe’s energy independence.

A signature ceremony took place in Lisbon today where the EIB Vice-President Ricardo Mourinho Félix and the CEO of REN Rodrigo Costa highlighted the significance of the €450 million committed to finance the overall modernization and capacity increase of the electricity transmission network in Portugal.

 “We are extremely pleased to have EIB supporting our commitment to the energy transition. REN is at the core of that movement and this green loan will help us to do more and better in an increasingly complex energy system,” REN CEO, Rodrigo Costa said. ”It will reinforce our investment capacity and will accelerate the development of new grid projects that will further enhance the use of renewable energy. These projects are part of a pan-European effort that is absolutely vital if we want to be successful addressing the climate change threats”.

See related article: Portugal Agrees to Swap Cape Verde’s Debt for Environmental Investment

EIB Vice-President, Ricardo Mourinho Félix, stressed that “resilient and efficient energy networks are critical for the economy and citizens of a country. We are very pleased to strengthen our relationship with REN to support the modernization and upgrade of the Portuguese electricity transmission network. Moreover, with this committed financing we are fostering the connection of additional generation capacity from renewable energy sources, thus facilitating the delivering of green energy to households and companies across the country. The size of the loan also reflects the strong commitment of the EIB to be a main agent for the green transition in Portugal”.

The project is expected to support the modernization and efficient operation of the electricity transmission network in Portugal, to increase its capacity, to enable the connection and integration of new renewable energy sources (4.2 GW in total additional capacity) and to enable REN to maintain the reliability and quality of electricity supply. This will include, among others, extension, refurbishment and modernization of lines, substations and control and protection systems. A portion of the project (10%) is dedicated to improve the resilience of the network to climate change events, e.g. through reinforcement of towers and cables.

The programme is geographically dispersed throughout mainland Portugal, and it is expected that the majority of the investments will be in areas designated as EU cohesion regions, affirming the EIB’s commitment to support the convergence of living standards and equitable, sustainable growth across the Union.

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