Release date: 17 June 2024
Promoter – Financial Intermediary
ENEDISLocation
Description
The project will finance ENEDIS's network transition and adaptation to climate change, in particular connections to new renewable energy units, including the network resilience and modernisation.
Additionality and Impact
The programme comprises electricity distribution grid investment in France with the purpose to connect new renewable generation capacity and to increase the resilience and reinforce the network of the low voltage and medium voltage levels. The EIB finances this project because it contributes to the energy and climate policy objectives of the EU and the energy transition strategy and multiannual program for Energy (PPE) of France. The connection of solar PV and other renewables will address climate and environmental externalities by enabling the reduction of greenhouse gases and other pollutant emissions of the electricity sector. The reinforcement and resilience of the network will contribute to the adaptation of the distribution network to climate change, increasing the electricity security of the grid which has dimensions of public good.
The quality of the Programme is reinforced by its contribution to the economic activity in cohesion regions. The social benefit is excellent. The Promoter is an experienced operator of electricity distribution networks with a sound project management structure. The employment impact of the Programme is rated very good. With the appropriate conditions in place (please see ESDS), the project is acceptable for financing in environmental and social terms.
The Bank will provide a long-term loan, with conditions which is not easily available with local commercial banks, and the Bank's financing will contribute to make the investment more cost-efficient. The EIB's support sends a strong signal to the financial market for EDF green projects.
Objectives
The aim is to support the investments needed to increase the renewable capacity and strengthen the network to make it more resilient to climate change.
Sector(s)
- Energy - Electricity, gas, steam and air conditioning supply
Proposed EIB finance (Approximate amount)
EUR 500 million
Total cost (Approximate amount)
EUR 1008 million
Environmental aspects
The project includes components that fall under Annex II of the Environmental Impact Assessment (EIA) Directive (2011/92/EU), which requires the competent national authority to determine the need for an environmental impact assessment (EIA). The impacts that can be typically expected for some schemes relate to visual impact, vegetation clearance, collision and electrocution of flying vertebrates, electromagnetic fields, noise nuisance, and disturbances during construction, as well as the possible impacts on protected fauna and flora (Habitats 92/43/EC and Birds 2009/147/EC). The environmental and social due diligence will follow the programme lending approach according to the EIB's procedures and standards. It will focus on the Promoters' capacity to implement the project in line with EIB environmental and social standards and requirements.
Procurement
The promoter has to ensure that contracts for implementation of the project have been or will be tendered in accordance with the applicable EU procurement legislation Directive 2014/25/EU as well as Directive 92/13/EEC (amended by 2007/66/EU) 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 - 2/08/2024