Unterzeichnung(en)
Übersicht
- Energie - Energieversorgung
The operation will support parts of Karlsruhe's local utility's multi-annual, rolling investment programme (2025-2029) in the energy sector, aimed at upgrading infrastructure within its energy business units. Specifically, the investment schemes focus on the refurbishment and expansion of the electricity distribution and district heating networks. New generation capacities to be installed include heat pumps, heat accumulators, and large-scale electricity storage.
The aim is to enable the promoter to connect new users as well as to maintain or improve the reliability and quality standards of electricity and district heating supply. The project will contribute to the EIB's lending priority related to Climate Action and Environmental Sustainability as well as REPowerEU objectives. Additionally, it will support the EIB's Energy lending policy themes on Securing the Enabling Infrastructure (electricity and district heating networks) and Decarbonising Energy Supply (district heating).
The Project contributes to meeting security of supply objectives and it complies with the efficiency criteria defined in the EU Energy Efficiency Directive in the district heating sector. The Project's overall contribution to policy goals is "good".
It is aligned with the objectives of Bank's Energy Lending Policy (Energy Efficiency, Energy Supply, Securing the Enabling Infrastructure, Innovation and new types of energy infrastructure), the Climate Bank Roadmap 2021-2025, and it complies with the Climate Action Objective (Mitigation - Energy Efficiency, Other).
The Project is in line with the Climate policy targets of Germany, as set out in the revised National Energy and Climate Plan. The Climate Change Act prescribes 50% of heat production via renewable energy by 2030. Further, in line with the revised national energy legislation, the heating sector shall decarbonise by 2045.
The Promoter is experienced in works of this nature and has a sound project management system in place.
The Project is expected to deliver a very good economic rate of return as well as excellent rated broader social benefit.
The Bank's loan will allow the Borrower to plan its capex investments over the coming energy regulatory period, co-financing with commercial banks and with national and regional grants. The loan represents attractive financial conditions with a long tenor combined with grace period reflecting the average economic life of the assets. In non-financial terms, the granting of the EIB loan is considered to have a positive signalling and catalytic effect.
Some of the project's components could require the competent national authority to determine the need for an Environmental Impact Assessment (EIA). The project schemes envisaged for financing, however, are expected to have limited residual environmental impact and none of them are expected to meet the requirements for an EIA. Nevertheless, where and if applicable and based on a risk-based approach as defined in the EIB's Environmental and Social Standards Policy, the requirements of the relevant EU Directives will be checked during appraisal. Moreover, the EIB will contractually ensure that any EIA or nature conservation area impact assessment will be completed and will receive approval from the competent authorities prior to allocating the EIB's funds to the project scheme.
Under EU procurement policies, the promoter, as a public undertaking in the utilities sector, is considered a contracting authority. The EIB will require the promoter to ensure that contracts for the project's implementation are tendered in compliance with applicable EU procurement legislation.