Summary sheet
The investment programme concerns the renovation, reinforcement and extension of electricity distribution infrastructure up to 110 kV (overhead lines, underground cables and substations) and the renovation and digitalisation of network control systems. The programme will be implemented in state of Bavaria in southern Germany in the period 2025-2026.
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.
The Project helps fill the growing investment gap in European electricity grid infrastructure, which is needed to support the European Energy Transition, as identified, among others, in the EU Clean Industrial Deal, the EU Affordable Energy Action Plan, and the EU Grid Action Plan.
The Promoter's 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 Project is expected to contribute to the Bank's lending priority objectives on Climate Action and Environmental Sustainability and it aligns with the REPowerEU objectives. The financing of the Project will contribute to the Bank's Energy Lending Poilcy (ELP) priority on Securing the Enabling Infrastructure (energy networks).
The Project 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 an excellent rated social benefit. The Promoter is experienced in works of this nature and has a sound project management system in place.
The Project includes components that may fall under Annex II of the Environmental Impact Assessment (EIA) Directive 2011/92/EU as amended by Directive 2014/52/EU, which requires the competent national authority to determine the need for an EIA. All overhead lines and underground cables included in the project have an operating voltages below the threshold for screening set out in the national legislation (110kV) and are hence not subject to an EIA. The impacts that can be typically expected for some schemes relate to visual impact, vegetation clearance, collision and electrocution of flying vertebrates, electromagnetic fields, noise nuisance, and disturbances during construction, as well as the possible impacts on protected fauna and flora (Habitats 92/43/EC and Birds 2009/147/EC).
The promoter shall ensure that contracts for implementation of the project have been and will be tendered in accordance with the applicable EU procurement legislation: Directive 2014/23/EU / 2014/24/EU / 2014/25/EU as well as Directive 92/13/EEC or Directive 89/665/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.