ELECTRICITY DISTRIBUTION SLOVENIA III

Promoter – Financial Intermediary

ELEKTRO MARIBOR PODJETJE ZA DISTRIBUCIJO ELEKTRICNE ENERGIJE DD,ELEKTRO PRIMORSKA PODJETJE ZA DISTRIBUCIJO ELEKTRICNE ENERGIJE DD

Location

• Slovenia

Description

The programme comprises investment schemes in the electricity distribution network in Slovenia over the period 2023-2025. It includes network reinforcements and refurbishments in high, medium and low voltage, targeting maintaining the quality of supply, integration of renewable energy generation, catering for peak demand growth, as well as climate-proofing part of the network.

Additionality and Impact

The project supports the modernization, reinforcement and digitalisation of the electricity distribution network infrastructure in Slovenia, in the Primorska and Maribor regions. EIB's financing of the investment programme will enable the promoters to replace assets that have reached the end of their lifetime while increasing capacity in a context of expected increase of electricity demand. 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) and EU fit-for-55 policy and targets.

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 good social benefits. The promoters are experienced in works of this nature and has a sound project management system in place. The Client will benefit from the flexibility of the EIB financing enabling the optimization of their cash flow needs. The pricing, availability period as well as longer grace period add to the attractiveness of mutual co-operation.

Objectives

The programme will enable the Promoters to maintain high quality of services and low losses across their electricity distribution networks, connect new end-users and renewable energy generators as well as climate-proofing part of the network.

Sector(s)

• Energy - Electricity, gas, steam and air conditioning supply

Proposed EIB finance (Approximate amount)

EUR 78 million

Total cost (Approximate amount)

EUR 162 million

Environmental aspects

Some programme schemes may fall under Annex II of Directive 2014/52/EU, amending the 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.

Procurement

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.

Status

Signed - 30/10/2023