RESEAU DE CHALEUR GEOTHERMIE EN VAL D ORGE

Expansion and modernisation of the district geothermal heating system in the department of Essonne (Ile de France region - France).

The project will increase the energy efficiency of district heating (DH) networks, which will be extended and densified, reduce the intensity of CO2 emissions for heat supply and contribute to the security of supply of heat in the region concerned. The Promoter's DH network complies with the definition of efficient DH per the EU Energy Efficiency Directive, i.e. a system using at least 50% renewable energy sources. Consequently, it will support national and European targets for Energy Efficiency and Renewable Energy use. The project is therefore eligible under Article 309 point c) common interest (energy). It is also consistent with the Bank's Energy Lending Policy objectives for Renewable Energy, Energy Efficiency and Climate Action.

Based on its technical characteristics, most of the project components are not expected to be subject to an environmental impact assessment (EIA). The geothermal heat generation component would, however, fall under Annex II of the Environmental Impact Assessment Directive (2014/52/EU amending 2011/92/EU), which requires the competent national authority to determine the need for an EIA. The extension of the DH system is projected to be carried out in industrial and urban areas and the Promoter indicated that the project does not cross or pass near any sites of nature conservation importance. The potential environmental and social impacts of the project, including the authorisation processes and capabilities of the Promoter, as well as the alignment of the project with relevant environmental legislation, mainly the EIA Directive, Habitats and Birds Directives, will be reviewed during appraisal.

The Bank will require the Promoter to ensure that contracts for the implementation of the project have been and will be tendered in accordance with the relevant applicable EU procurement legislation (Directives 2014/24/EU and/or 2014/25/EU, where applicable, as well as Directive 92/13/EEC or Directive 89/665/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. As most of the components in the Promoter's project are in the early stages of development and as such have not gone through their procurement process yet, the expected future contractors or suppliers are not known at this stage. Public contract award information available from similar operations undertaken by the Promoter indicate that the contractors will likely be EU companies. In any case, the Bank will require the Promoter to comply with the principles of economy and efficiency in their procurement, in line with point 2.2 of the Guide to Procurement.