France: RTE and EIB sign EUR 500m loan agreement for upgrading power grid

RTE and the European Investment Bank (EIB) have strengthened their partnership by signing a new EUR 500 million loan agreement. This contract, signed by Philippe Dupuis, RTE's deputy managing director in charge of finance, procurement, IT and telecoms, and EIB Vice-President Ambroise Fayolle, will help finance 35 projects carried out over a period of 5 years. These are designed to strengthen the security of supply, improve the quality of electricity and enhance the power grid's contribution to a successful energy transition.

This long-term loan, obtained on attractive terms thanks to the EIB's AAA credit rating, will in particular partly finance Brittany's electricity network from this year onwards, placing the region on the same level of power supply security as other French regions by 2017. By contributing to financing three IT schemes, including the LAB project aimed at reducing the length of power cuts by automatically locating faults, the EIB is supporting RTE in its goal of developing a smart power grid to meet the economic and energy challenges of tomorrow.

"This project is of major importance to optimising the efficiency of France's power grid" said EIB Vice-President Ambroise Fayolle. "The European Union's bank is once again delighted to be RTE's financial partner in this innovative and effective large-scale programme, which will have a direct impact on people's daily lives. The energy transition is under way. And it is our responsibility to facilitate its implementation in the heart of our regions. "

"To meet the challenges of the energy transition it is essential to have a smart, secure and efficient power grid to that is especially able to optimise the use of renewable energies. The EIB has been enabling us to achieve this goal with its support for many years", said Philippe Dupuis, RTE's deputy managing director in charge of finance, procurement, IT and telecoms.

The EIB will cover around 40% of the investment costs of the 35 projects selected in a variety of French regions (EUR 1.2 billion). RTE's investment programme, to which the EIB is making a substantial financial contribution, will also serve to create local jobs.