The European Investment Bank (EIB) has granted a loan of EUR 75 million to Empresa de Electricidade da Madeira (EEM) in support of the company’s investment programme for the modernisation of electricity infrastructure in the Autonomous Region of Madeira. EIB Vice-President Carlos da Silva Costa and EEM President Rui Rebelo signed the loan contract in Lisbon today.
“The EIB is happy to support Electricidade da Madeira’s programme, which will bring clear environmental benefits and have a positive impact on the security of the energy supply for customers in Madeira and Porto Santo. This project will promote the EU objectives of improving energy efficiency and security of supply” said EIB Vice-President Carlos da Silva Costa.
The loan will help to ensure the security, reliability and cost-efficient provision of electricity for over 135 000 customers on the islands of Madeira and Porto Santo. Improvements will positively affect the standard of services for existing customers, while also catering for growing customer demand and ensuring a better quality and reliability of the supply. This is all the more important in the aftermath of the natural disaster which affected the island last February.
EIB funds will part-finance the company’s current three-year investment programme, whose purpose is to modernise and expand the provision of electricity on these islands and also to enable a wider use of renewable energy. Investments include a pumping and storage hydropower facility, new transmission and distribution lines and substations, many refurbishments and also efficient automatic and remote control systems.
The project supports European and national targets for renewable energy generation and contributes to the climate change and security of energy supply objectives of the EU, which are priority lending objectives of the EIB.
The European Investment Bank is the long-term financing institution of the European Union (EU), working to further European objectives. Created in 1958, it operates in the EU’s 27 Member States and in over 130 other countries worldwide.
As part of the EU’s strategy of fostering sustainable, competitive and secure energy, the EIB gives priority to financing projects aimed at energy efficiency and the diversification and security of the internal energy supply as well as investment in renewable energies, energy RDI and external energy security.