CEPS TRANSMISSION NETWORK UPGRADE II-GREEN LOAN

Promoteur – Intermédiaire Financier

CEPS AS

Lieu

• République tchèque

Description

The project concerns the reinforcement and modernisation of the electricity transmission network in the Czech Republic, over the period 2023-2025.

Additionality and Impact

The Project will support the efficient and secure operation of the electricity grid in Czech Republic and will enable the integration of RES generation, in line with national and EU policies and targets. EIB's financing of this electricity transmission project will support investments improving the quality of service, reliability and security of supply that have public good attributes. Moreover, the electricity network investments, having a long economic lifetime, will contribute to addressing a number of market failures, by allowing for the integration of renewable energy, which reduces negative climate and environmental externalities, and enabling increased electrification of the economy (transport, industry etc.). The Project 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. In line with the EU Taxonomy, electricity distribution infrastructure in the interconnected European System is considered to be on a trajectory to decarbonisation and eligible for climate change mitigation finance. The financing of this project is in line with the Bank's lending priority objectives on Energy (Networks) as well as the transversal objectives on Climate Action (mitigation), Environmental Sustainability (Pollution Prevention Control) and Social and Economic Cohesion (the project is understood to be located in EIB Cohesion Priority Regions).

The project is expected to deliver fair economic benefits and good social benefits. The promoter is 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 grace period add to attractiveness of the mutual co-operation.

Objectifs

The aim is to increase the capacity and efficiency of the electricity transmission network and to enable the Promoter to maintain the reliability and quality of electricity supply.

Secteur(s)

• Énergie - Production et distribution d'électricité, de gaz, de vapeur et d'air conditionné

Montant BEI envisagé (montant approximatif)

CZK 2228 million (EUR 91 million)

Coût total (montant approximatif)

CZK 2970 million (EUR 122 million)

Aspects environnementaux

The project consists of the upgrade of an existing 400 kV electricity transmission overhead line (OHL): considering voltage level and length of the lines affected from the change the scheme falls under Annex I of the Directive 2014/52/EU (with reference to points 20 and 24), amending the Environmental Impact Assessment (EIA) Directive 2011/92/EU, and will have to undergo an obligatory EIA. The main impacts that can typically be expected for a project of this nature relate to visual impact, vegetation clearance, electromagnetic fields, noise nuisance, impact on flying vertebrates and disturbance during construction.

Passation des marchés

The Promoter has to ensure contracts for the implementation of the Project have been tendered in accordance with the relevant applicable EU procurement legislation, Directives 2014/25/EU, where applicable, as well as Directive 92/13/EEC and Directive 89/665/EEC, as interpreted by the Court of Justice of the EU, with the publication of tender notices in the Official Journal of the European Union, as and where required.

Statut

Signé - 7/12/2022