Portugal: Azores receive funding for renewable energy and transmission
The European Investment Bank (EIB) is providing a first tranche of EUR 50 million - out of EUR 72,5 million loan - to Electricidade dos Açores S.A. (EDA) in support of the company’s 2011-2016 investment programme. The project will cover investments in the areas of geothermal energy, electricity transmission and distribution and oil-fired generation in the nine islands of the Azores archipelago and will result in the addition of approximately 15,5 MW of generating capacity and the implementation of approximately 200 transmission and distribution schemes.
The loan will help to finance investments to increase power generation from renewable energy sources and upgrading of the power distribution and transmission grid with the aim of maintaining the quality and reliability of the different supply systems. A third component of the project will involve investments in the upgrading of existing thermal power stations. The investment programme will be implemented until 2016.
The project will contribute to meet the electricity demand in the Azores islands in an environmental sustainable way using available natural resources, and will improve quality of supply, reduce system losses and facilitate the integration of generation from renewable energy sources over the nine islands of the Azores.
The investments supported by this loan meet the EU objectives and Bank’s priorities of fostering regional development by contributing to economic and social cohesion in the Azores and by promoting sustainable, competitive and secure energy in a context of subdued macroeconomic conditions and scarcity of alternative funding sources. This is the 8th investment program of EDA being supported by the EIB, giving continuity to a long-standing cooperation that started even before the adhesion of Portugal to the EC.