TENNET OSTBAYERNRING GRID EXPANSION GREEN LOAN

The project comprises the construction of a 185 km-long electricity transmission corridor connecting Redwitz to Schwandorf (Ostbayernring), in the southeast of Germany. It includes a new 380kV line from the Redwitz to the Schwandorf substation, combined with an 110kV line for approximately 80km of the route. The project further includes the upgrade/reinforcement of the four existing 380kV substations at Redwitz, Mechlenreuth, Etzenricht and Schwandorf along the route and smaller replacements at an 110kV substation in Münchberg.

The project will increase the country's electricity transmission capacity, maintain the reliability and quality of electricity supply of the transmission system and will support the integration of new renewable energy generation.

The project comprises the construction of a 185 km-long electricity transmission corridor in the southeast of Germany (Ostbayernring). The project increases the transmission capacity within Bavaria, indirectly contributing to the ability of transferring power ? often times renewable electricity - on the North-South axis within Germany. Bottlenecks on this axis are cause of a series of issues, including loop flows in neighbouring countries, need for additional reserves and redispatching. It will support the integration of additional renewable generation capacity, thus contributing to mitigate the negative externalities linked to fossil-fuel power generation. It will also contribute to maintain quality and security of supply, which have characteristics of public goods. The project is fully in line with national and European energy and climate policies and goals, as well as EIB's. The project is considered eligible for climate change mitigation under the EU Taxonomy Regulation. The EIB financing is functional in enabling TenneT's ambitious investment programme, which is fundamental for the transition to a decarbonized economy. The promoter is an experienced transmission system operator with a sound implementation structure. The EIB contribution materialises through the diversification of sources of funds, attractive financing conditions and signalling effects to markets. The project's results an overall quality and result rating of very good and is deemed excellent in terms of economic welfare. 

The project falls under Annex I of the EU EIA Directive 2014/52/EU, amending Directive 2011/92/EU, which requires an environmental impact assessment (EIA). Environmental impact studies have been carried out as required and measures to avoid, reduce, mitigate and remedy impacts will be implemented.

The Bank will require the Promoter to ensure that contracts for the implementation of the project have been tendered in accordance with the relevant applicable EU procurement legislation, Directive 2014/25/EU, where applicable, 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.