The European Investment Bank (EIB) is providing EUR 400 million to finance French power grid manager RTE’s programme of investment to upgrade and extend the grid over the period 2009-2012. The finance contract relating to this programme was signed in Paris on 29 January by EIB Vice-President Philippe de Fontaine Vive and the chairman of RTE’s executive board Dominique Maillard.
RTE’s investment programme is expected to run to EUR 5 billion over the period 2009-2012. Under the programme, 31 projects amounting to EUR 1 billion have attracted the EIB’s interest. To implement these selected projects, the EIB has granted RTE a EUR 400 million loan designed to cover 40% of the investment. The highly attractive loan terms will ultimately benefit all RTE’s customers.
Financing these projects accords with the EIB’s policy of promoting the security and diversity of the EU’s energy supply, encouraging the development of renewables and supporting energy saving projects – goals to which it devoted more than EUR 10 billion last year.
The 31 projects in RTE’s investment programme financed by the EIB will involve the creation of more than 150 km of new lines and the upgrading of 700 km of 400 000 volt, 225 000 volt and 90 000 volt lines throughout France.
The programme will increase the grid’s transmission capacity in the face of growing consumption, strengthen the security of supply, especially in the Provence-Alpes-Côte d’Azur region, and take forward the grid safety drive launched in 2002. It will also connect RTE’s grid to new power plants supplied by different energy sources, particularly renewables, which are supposed to account for 20% of energy consumption by 2020.
The programme involves increasing cross-border transmission capacity via power interconnections: between France and Belgium (via the Moulaine-Aubange connection on the France-Belgium-Netherlands-Germany axis), and between France and Italy. These two links with neighbouring countries are identified as EU trans-European energy network priorities that are essential to enabling regions and countries to share, exchange and guarantee the power supply for EU citizens.
Finally, the programme includes the roll-out of around 3 200 km of fibre optic grid and the creation of a centre for the administration and supervision of the remote control network incorporating RTE’s fibre optic infrastructure.
Background information for editors
RTE is the manager of France’s power grid. As a public utility, its remit is to operate, maintain and develop the high and very high voltage network. It guarantees the smooth functioning and safety of the power supply.
RTE channels electricity between suppliers (French and European) and consumers, both power distributors (ERDF and local distribution companies) and industries directly connected to the grid.
With 100 000 km lines of between 63 000 and 400 000 volts and 44 cross-border lines, RTE manages Europe’s biggest grid. It had a turnover of EUR 4 126 million in 2007 and has a workforce of around 8 300.
The European Investment Bank is the EU’s long-term financing institution. Founded by the Treaty of Rome in 1958, its mission is to support through its activity the development of EU policies, broken down into six priorities: economic and social cohesion, environmental protection, research and innovation, support for SMEs, the development of trans-European transport and energy networks and the promotion of safe, competitive and sustainable energy. It borrows its funds on the capital markets in order to finance on the keenest terms projects that are in line with EU strategies. Every year, it makes available finance totalling some EUR 45 billion in support of projects located in the EU.