French utility EDF, which oversees 95% of the country’s electricity distribution via its subsidiary Enedis, has secured a €1bn ($1.17bn) loan from the European Investment Bank (EIB).
This financial backing will underpin the firm’s investment programme, aimed at upgrading the power grid and integrating decentralised renewable energy sources.
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The package arranged for Enedis’ 2024-25 requirements will be disbursed in two equal instalments of €500m.
The latter phase is focused on the connection of 7GW of renewable generation capacity and the enhancement of network resilience through the burying or replacement of 2,500km of power distribution lines.
This move is expected to address the increasing challenges posed by climate change.
The €500m loan designated for the second phase will cover approximately 40% of the investment costs projected for 2025.
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By GlobalDataAs a consistent financier of EDF, the EIB endorses projects with significant potential that contribute to achieving the European Union’s policy objectives, particularly those aimed at tackling climate change and fulfilling the goals of the European Green Deal.
This includes a target to reduce net greenhouse gas emissions by at least 55% from 1990 levels by 2030, and to attain carbon neutrality by 2050.
The EIB’s commitment to financing Enedis is also part of the broader REPowerEU initiative, which seeks to wean the European Union off Russian energy supplies by fostering renewable energy sources and enhancing energy efficiency.
By securing this loan, Enedis is poised to play a pivotal role in the energy transition, ensuring that the power grid is not only resilient but also modernised to facilitate the large-scale electrification necessary for achieving the EU’s climate objectives.
EDF Group chair and CEO Bernard Fontana said: “This €1bn financing agreement granted by the EIB in two phases marks an important milestone. It enables Enedis to continue its public service mission by helping to strengthen the resilience of the network to the impacts of the climate change and ensuring the connection of renewable energies.”
EIB vice-president Ambroise Fayolle said: “In 2024, 40% of investments in Europe to finance energy networks, interconnections, and storage were mobilised by the EIB. The European Union’s bank thus plays a major role in the decarbonisation and energy security of the continent.
“The financing for Enedis is fully aligned with this dynamic. We are therefore pleased to continue supporting EDF with this total financing of €1bn to modernise the network and make it more resilient to the impacts of climate change.”
Recently, Data4, a European data centre provider, secured a 12-year nuclear production allocation contract with EDF.
