Eurpoean Bank supports upgrade of electricity network in Hungary

8 October 2020 (Last Updated October 8th, 2020 12:31)

The European Investment Bank has announced support for the upgrade and expansion of the electrical power network in south-eastern Hungary. 

Eurpoean Bank supports upgrade of electricity network in Hungary
The European Investment Bank will fund supply and metering works across south-eastern Hungary. Credit: Fre Sonneveld via Unsplash.

The European Investment Bank (EIB) has announced support for the upgrade and expansion of the electrical power network in south-eastern Hungary. 

It will provide a loan of $141m (€120m) to MVM Hungarian Electricity for the project. MVM will use the loan to overhaul high, medium and low-voltage substations, as well as for overhead lines and underground cables. It will also deploy 600 distribution transformers and 210,000 advanced meters.

Futhermore, the company will use the loan to test advanced metering schemes, and integrate new renewable energy generators for 785,000 customers in Bacs-Kiskun, Bekes, Csongrad-Csanad and Pest counties.

New electric energy consumption metering schemes will be tested in a pilot project implemented in the cities of Kiskunmajsa and Békéscsaba. Approximately 210,000 modern meters will be installed across the cities. 

EIB vice-president Teresa Czerwinska said: “A reliable and modern electricity supply network is a key precondition for sustainable economic growth.  

“This EIB financing will ensure people and businesses in south-eastern Hungary continue to enjoy a reliable electrical power supply for decades to come. 

“We support Hungary’s energy security, increasing the use of renewable energy sources, crucial for successful climate action in Europe.  

“Together with our long-term partners in MVM, the EIB is looking forward to continuing to power Hungarian economic and social growth.” 

The loan will also be used to replace the above-ground network with underground alternatives, and fitting special equipment for bird protection across Hungary.

MVM CFO János Sum said: “Today we arrived at a new milestone of our three decades-long partnership with the EIB. 

“The agreement signed today demonstrates the EIB’s appreciation of MVM’s ambitious strategy, its support for achieving the group’s sustainability objectives and its confidence in MVM’s stable and competitive operation.”