The European Investment Bank supports the development of the Greek electricity distribution network
Improvement of the security of the supply of electricity and strengthening of the connections with Renewable Energy Sources (RES)
The European Investment Bank (EIB) supports the investment program of the Hellenic Distribution Network Operator (HEDNO), a subsidiary of Public Power Corporation (PPC), the largest electricity generator and supplier in Greece.
EIB and PPC signed today the second 20 year loan agreement, with the guarantee of the Hellenic Republic, amounting to € 100m, out of a total approved facility of € 255m for the reinforcement and the modernization of the Greek electricity distribution network across the mainland and islands.
The Minister of Finance and Governor of the European Investment Bank, Mr. Christos Staikouras stated that: "The contract signed with Public Power Corporation reaffirms the strategic support of EIB to projects that promote security of supply and energy efficiency. The reinforcement and modernization of energy networks in Greece are crucial in order to achieve the growth targets of the country. EIB, Europe's lending arm for the implementation of its new growth strategy, proves once again that it actively supports the Greek economy by providing financing and know-how."
The Minister of Environment and Energy Mr. Kostis Hatzidakis stated that: “The contract signed today strengthens the already substantial financial support and valuable know–how provided by EIB in the energy sector of the country, especially in projects that are crucial for the modernization of its infrastructure. We are looking forward to EIB’s support – given its transformation to the European Union’s climate bank – in the coming years in order to achieve the ambitious goals set in the National Plan for the Energy and the Climate, having as a cornerstone the Just Transition to the post lignite era."
The Chairman and CEO of PPC S.A. Mr. Georgios Stassis noted that: “The electricity distribution network has traditionally been a valuable asset of the Group and its development is a strategic priority for PPC. We are very pleased with EIB being a steady strategic financing partner supporting our investment plan in projects of great importance not only for PPC Group but for the economy, Greek consumers, the security of supply and the environment as well. The digital transformation of the Group, which is a strategic priority, involves to a large extent the distribution network as well, the digitalization and automation of which require significant investments. The support of EIB in the financing of such projects will continue to be of major importance”.
The CEO of HEDNO, Mr. Anastasios Manos stated that: “EIB΄s constant financial support contributes significantly to the achievement of our common strategic goals with PPC Group to upgrade the Electricity Distribution Network and safeguards the modernization of HEDNO and the services provided to all Greek citizens”.
The President of the European Investment Bank, Mr. Werner Hoyer, stated: “Investment in energy infrastructure is crucial to ensure reliable electricity supply and increase use of renewable energy. The European Investment Bank is pleased to support transformational investment by HEDNO that will modernise the Greek national electricity network, provide power essential for economic growth and ensure reliable energy for customers across Greece. The EIB’s has a strong track record of financing energy investment across Greece, including renewable energy, energy efficiency, interconnectors to islands and electricity distribution and is committed to working with Greek partners to energy investment in the years ahead.”
The new € 100 m. loan from EIB to PPC follows the progress in the completion of the projects for the upgrade of the Greek electricity distribution network and was signed at PPC’s headquarters by Mr. Georgios Stassis, Chairman and CEO of PPC S.A. and Mr. Werner Hoyer, President of EIB, with the Minister of Environment and Energy also attending.
Benefits for electricity consumers in Greece
Expansion of the national electricity distribution network will cater for expected increased future demand and enable electricity consumers across Greece to benefit from more reliable electricity supply. More than 7,000 km of new medium and low voltage electricity distribution lines will be installed that will improve distribution efficiency and increase network resilience and stability.
Improving connections to RES
Upgrading the national electricity distribution network is of pivotal importance for the further penetration of wind and solar parks as well as of other renewable energy sources to the electricity network of the Country.
Further EIB support for energy investment in Greece
Over the last decade the European investment bank has provided more than €3.4 billion for energy investment in Greece with PPC and private Greek energy partners. This has included improving connections to Greek islands essential for security of energy supply and harnessing renewable energy, supporting development of new windfarms in this country and accelerating energy efficiency investment.
The EIB will support The Navigator Company, a major Portuguese industrial group and Europe’s leading pulp and paper manufacturer, with a €27.5 million loan for the construction and operation of a new biomass boiler at their integrated mill facility located in Figueira da Foz, a cohesion region in Portugal.
The EIB will finance around 40 projects in Barcelona that aim to support climate change mitigation and adaptation in the city. To this end, the EU bank will provide €95 million to promote urban regeneration, with a focus on the environment but also on social inclusion and job creation to boost the economic recovery in the wake of the COVID-19 crisis.
The EIB signed a second tranche worth €40 million for the rehabilitation of 180 kilometres of road along the five main routes in Montenegro. The loan from the EU bank is complemented by a €1.5 million technical assistance grant awarded under the Economic Resilience Initiative (ERI). It is the first ERI grant to be awarded to a project in the Western Balkans. The total EIB investment worth €80 million is expected to increase road safety and efficiency and facilitate faster economic recovery and regional trade.