ENEDIS TRANSITION AND ADAPTATION (PHASE 2)

The current project is a follow-up of the ENEDIS Transition and Adaptation (Phase 1) project. Phase 2 will finance investments to connect renewable energy sources and batteries as well as to increase the network resilience to the impacts of climate change.

The aim is to support the investments needed to increase the renewable capacity and strengthen the network to make it more resilient to climate change.

The programme consists in electricity distribution grid investments in France to connect new renewable generation capacity and to increase the climate change resilience and reinforce the low and medium voltage networks. It contributes to the energy and climate policy objectives of the EU and the energy transition strategy and multiannual program for energy of France, as set out in the National Energy and Climate Plan and REPowerEU Action Plan. The connection of solar PV and other renewables will enable the reduction of carbon and air pollution, climate and environmental externalities. The reinforcement and increased resilience of the network will contribute to the adaptation of the distribution network to climate change, increasing the electricity security of the grid which has dimensions of public good.

The quality of the programme is reinforced by its contribution to the economic activity in cohesion regions. The economic rate of return is rated good and the broader social benefit is rated very good. The Promoter is an experienced operator of electricity distribution networks with a sound project management structure. The employment impact of the project is rated very good.

The Bank will provide a long-term loan, with conditions which are not easily available with local commercial banks, and the Bank's financing will contribute to make the investment more cost-efficient. The EIB's support sends a strong signal to the financial market for EDF green projects.

The programme comprises several electricity distribution schemes with voltages ranging from 0.4 kV up to 20 kV. Where and if applicable, and based on a risk-based approach as defined in the EIB Group environmental and social (E&S) policy, the requirements of the Environmental Impact Assessment (EIA) Directive 2011/92/EU as amended by Directive 2014/52/EU, Birds Directive 2009/147/EC and Habitats Directive 92/43/EEC will be checked during appraisal. The schemes are expected to have limited environmental impact. The environmental and social due diligence will follow the programme lending approach according to the EIB's procedures and standards. It will focus on the promoter's capacity to implement the programme in line with the EIB's E&S standards and requirements.

The promoter has to ensure that contracts for implementation of the project are tendered in accordance with the 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.