HEDNO SMART METERS I

The project concerns the roll-out of smart meters from 2023 to 2026. The operation will finance the first phase of HEDNO's country-wide smart metering roll-out, expected to be completed in 2030.

The aim is to reduce non-technical losses, enable remote operations related to end customers, improve demand forecasting, improve awareness on electricity consumption and support energy efficiency policies. Additionally, it will enable the implementation of new services, such as demand side management, increase observability of the low voltage distribution network, improve service quality, facilitate the energy market as well as contribute to reduce various operating costs.

The project concerns the installation of 3.12 million smart electricity meters and the necessary supporting infrastructure in Greece in the period 2023-2026.

The project is in line with several EU legislative instruments promoting smart metering in electricity (Directive 2009/72/EC, Directive 2019/944 amongst other) and it is consistent with long-term climate objectives. The investments are expected to contribute to addressing issues that slow the achievement of the EU and national long-term energy and climate goals. Installation of smart meters is expected to provide real-time information to end-customers, enhance energy savings and support demand response. The project will help address the market failure represented by incomplete markets (i.e. provision of real-time information to end-customers).

The expected economic rate of return and the broader social benefits are deemed "very good".

The Promoter is an experienced operator of electricity distribution networks with a sound project management structure.

The proposed operation meets the required funding needs of the Promoter, by providing an amortising loan with a long tenor and an adequate pre-amortisation period, together with a sizeable financing volume. The EIB loan is expected to further improve the Promoter's maturity profile as well as the diversification of its funding sources. 

The project is expected to have limited environmental impact. As such, it is unlikely that any Environmental Impact Assessments will be required. The main potential impact on the environment is from the disposal of the replaced meters. The environmental and social due diligence will focus on the Promoter's capacity to implement the programme in line with the EIB environmental and social standards and requirements.

The Bank will require the Promoter to ensure that contracts for the implementation of the project are tendered in accordance with the relevant applicable EU procurement legislation, Directive 2014/25/EU as well as Directive 92/13/EEC, as interpreted by the Court of Justice of the EU, with publication of tender notices in the EU Official Journal, as and where required.