UK’s National Grid has secured a £1.5bn loan from the European Investment Bank (EIB) to strengthen the power transmission network in the country.
It is the largest ever single loan to be offered by the European lending institution, EIB stated.
Besides being used to set-up new power generation links, especially for renewables, the funds will be used for upgrading ageing assets and improving network resilience in the country. It is hoped these changes will help the country cope with climate and security risks.
The EIB loan is expected to finance projects such as the £1bn London Power tunnels and will be used by the National Grid to reinforce infrastructure between the Wirral and Scotland.
Upgrades will be done to secure key infrastructure setups from floods, EIB informed.
The funds will be spent on establishing new connections to offshore wind projects and setting-up new interconnectors linking continental Europe.
EIB vice-president Jonathan Taylor said: "Investment in the UK electricity transmission network is essential to prepare for future demand, connect new sources of renewable energy and upgrade old facilities.
"This agreement, the largest ever single loan to be provided by the European Investment Bank, reflects both the scale of energy investment needed and National Grid’s own experience in implementing such a diverse capital investment programme."
National Grid global tax and treasury director Malcolm Cooper said: "This significant European Investment Bank loan will be used to fund infrastructure investment and build an electricity network for the future.
"With this loan, National Grid is supporting UKplc, funding projects and providing skilled jobs across the country."