Summary sheet
The project will support Electro Celje's investment programme in its regional electricity distribution network over the period 2024-2026. This includes network reinforcements and refurbishments in high, medium and low voltage, targeting at maintaining the quality of supply, integration of renewable energy generation, catering for peak demand growth, as well as climate-proofing part of the network.
The aim is to enable the promoter to maintain high quality of services and low losses across its electricity distribution network, connect new end-users and renewable energy generators as well as climate-proof part of the network. The programme supports the 2030 targets set in the country's National and Energy Climate Plan (with regards to the integration of RES), as well as EU policies on energy and climate, by enhancing critical infrastructure for decarbonisation. The project is also expected to contribute to the EU's REPowerEU objectives.
The Project supports the modernization, reinforcement and digitisation of the electricity distribution network infrastructure in Slovenia, in Savinja, Lower Sava and Carinthia regions. EIB's financing of the investment programme will enable the promoter to replace assets that have reached the end of their lifetime while increasing capacity of the distribution network for connecting the new customers. The Project will improve quality of service, reliability and security of supply that have public good attributes. Moreover, the electricity network investment will increase the hosting capacity of renewables and enable increased electrification, thereby enabling to reduce negative climate and environmental externalities. The Project will contribute to achieving Slovenia Long-Term Climate 2050 Strategy adopted in July 2021, the National Energy and Climate Plan (NECP), EU fit-for-55 policy and targets as well as RePowerEU objectives.
In line with the EU Taxonomy, electricity grid infrastructure in Europe is considered eligible for classification as an activity contributing to climate change mitigation. The financing of this Project is in line with the Bank's lending priority objectives on energy as well as the transversal objectives on Climate Action. The Project is expected to deliver good economic benefits and very good social benefits. The Promoter is experienced in works of this nature and has a sound project management system in place. The EIB support to this operation is expected to provide tangible value-added benefit, positively contributing to the Promoter's capital-intensive investments by offering more flexible terms compared to the commercial banks. EIB's involvement provides a flexible financial product to the Borrower including flexible drawdowns, availability period and long tenors. This allows the Borrower to diversify its financing sources.
Some programme schemes may fall under Annex II of Directive 2014/52/EU, amending the Environmental Impact Assessment (EIA) Directive 2011/92/EU thus requiring a review by the competent authorities at the planning/consent stage with due regard to the necessity for environmental impact assessments.
The Bank will require the Promoters to ensure that contracts for implementation of the Project have been and shall be tendered in accordance with the applicable EU procurement legislation, Directive 2014/25/EU as well as Directive 92/13/EEC as interpreted by the Court of Justice of the EU, with publication of tender notices in the Official Journal of the EU, as and where required.