The European Investment Bank (EIB) provides EUR 215 million for environmental-friendly energy in Greece with two loans for electricity and natural gas.

EUR 190 million go to the Greek Public Power Corporation S.A. (PPC) for promoting energy security and efficiency in Greece.  The investment adds state-of-the-art, extended and efficient electricity transmission and distribution networks throughout the country, allowing inter alia the efficient exploitation of renewable generation sources. It concerns the whole range of activity from high voltage of 400kV, down to low voltage and includes several schemes falling under the Trans- European Networks for Energy (TEN-E).  The project therefore benefited of total EIB loans amounting to EUR 950 million (approved by EIB in 2009 and signed in tranches over the past years), of which this present EUR 190m loan represents the final tranche.

Also, following a first EIB loan of EUR 30m signed in 2012, an additional EUR 25 million go to the Hellenic National Gas System Operator S.A. (DESFA) for introducing natural gas in the currently un-served Peloponnesus, through a new high pressure pipeline from Aghioi Theodoroi to Megalopolis. The pipeline will supply a new large natural gas-fired, combined cycle power plant at Megalopolis, also financed by the EIB (total EIB loans of EUR 280m signed over 2011-12). By enlarging the natural gas distribution system and by feeding in the gas fired electricity production, the project displaces less efficient and more polluting sources of energy. With this second (and last) tranche, total EIB support for this project therefore amounts to EUR 55 million.

EIB Vice-President Mihai Tanasescu, whose responsibilities include the EIB’s lending activities in Greece, stated on this occasion: “Signatures in support of climate action and energy are a decisive step forward for not only development but also sustainable growth.  Our funding for environmental-friendly energy security and efficiency in Greece is fully in line with the European “Energy Security and Solidarity Action Plan”, as well as the ECOFIN Council’s priorities ”.

In the energy sector in Greece, EIB financing has been directed towards securing sustainable energy supplies, reducing the burden on the environment and promoting the development of new sustainable energy sources. Significant projects in this sector include support for (i) Public Power Corporation's network modernisation, involving several schemes to reinforce and extend electricity transmission and distribution networks throughout the country; (ii) the Greek Natural Gas company's priority Trans-European Network schemes, notably investments in the liquefied natural gas (LNG) terminal at Revithoussa, which increased capacity and enhanced overall security of supply; and (iii) the construction of the high pressure gas pipeline connecting Komotini with Alexandroupolis and the Turkish natural gas network at the Greek-Turkish border. In the private sector, the TERNA renewable energy project involves the construction of wind farms to generate renewable energy, thus furthering EU and national policy objectives on renewable energy and climate change.