The European Investment Bank (EIB) has approved a €350m ($408.08m) loan to the Západoslovenská energetika (ZSE) Group to fund a multiyear investment programme to modernise Slovakia’s electricity distribution networks, including in the Bratislava region.
The loan will enable ZSE Group to upgrade high-, medium-, and low-voltage overhead lines and underground cables, modernise transformers and substations, deploy smart technologies, and automate the grid.
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These measures are intended to improve the reliability and quality of electricity supply and increase the country’s appeal for business and industries.
EIB vice-president responsible for Slovakia Marek Mora said: “This is the largest corporate loan we have signed in the country to date, further strengthening our decades-long role as a reliable partner for Slovak businesses.
“Modernisation of Slovakia’s distribution networks will strengthen the foundations of the Slovak economy, making it more resilient to modern challenges including meeting the projected increase in electrification.
“This will also create sound foundations for long-term, sustainable and green growth, faster job creation and an energy-independent future for Slovakia. EIB is happy to have been able to offer ZSE Group the opportunity to diversify funding sources and finance high-priority investments on terms not generally available in the market.”
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By GlobalDataA substantial portion of the EIB loan will be directed towards specific regions, in the west and east of the country.
This is aimed at supporting quicker and more balanced social and territorial development.
The ZSE investment will support the implementation of Slovakia’s National Energy and Climate Plan and aligns with EU energy and climate goals, including the REPowerEU plan, the EU Grid Action Plan, the European Green Deal, and the EU’s long-term objective of climate neutrality.
The EIB-ZSE partnership is expected to facilitate the integration of additional low-carbon generation and e-mobility, and accommodate rising electricity demand from Slovak households and businesses.
ZSE Group CEO Markus Kaune said: “The loan from the EIB is a major step forward in enabling the investments required to modernise and expand our electricity distribution network. We are proud to welcome the EIB as a strong strategic partner supporting our ambition to accelerate Slovakia’s energy transition.
“In the coming three years, we will be able to continue our high investment level, which has almost doubled since 2022. We are committed to building a smarter, more resilient and future-ready grid that meets the evolving needs of customers and the energy system, and especially the progressing electrification, eg in heating and transport.”
The EIB Group stated that it continues to finance the energy transition. It is on track to meet its goal of supporting at least €1tn in green investments by the end of this decade. Between 2021 and 2024, the EIB mobilised over €560bn.
In 2024, the share of green investment by the EIB was nearly 60% of its total financing.
In June this year, the EIB approved €1.6bn for the construction of the Bay of Biscay electricity interconnection, which will increase power exchange capacity between Spain and France.
