EIB Grants €790 Million Loan to Czech Utility ČEZ for New Renewable Energy Sources
- The €790 million in financing by the EIB will help the Czech national utility company ČEZ upgrade and expand the country’s electricity distribution grid.
- The loan will promote the Czech Republic’s energy independence by enabling ČEZ to connect around 2.2 GW of new renewable energy sources.
- The operation is the biggest EIB loan for the Czech Republic signed to date.
The European Investment Bank (EIB), the bank of the European Union, will lend €790 million to the Czech energy utility company ČEZ. The loan will 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 reliability of the electricity supply in nine regions of the Czech Republic.
With the new infrastructure, ČEZ will integrate up to 2.2 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.
EIB Vice-President Lilyana Pavlova, who oversees EIB operations in the country, said, “The EIB continues to support modernisation of the Czech energy sector, this time with the biggest loan we’ve signed there to date. 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.”
See related article: EIB Supports RLB NÖ-Wien’s Investments in Renewable Energy and Energy Efficiency
Image: Charles Bridge, Prague. Source: Pexels / Pixabay
ČEZ CFO Martin Novák commented, “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. 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 some €2.6 billion 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. This cooperation has accelerated the green, sustainable growth of the Czech economy.