The European Investment Bank (EIB) has agreed to offer a loan of €80m to Portuguese energy giant Redes Energéticas Nacionais SGPS (REN), to support its multi-component investment programme aimed at strengthening the power transmission system in the country.
The five-year programme, which extends from 2014 to 2019, involves the setting up of renewable energy connections and reinforcement and modernisation of Portuguese electricity transmission network.
It involves multiple schemes and has been designed to cover almost the entire Portuguese mainland.
Most of the investments planned under the programme are likely to cover areas designated as convergence regions.
This EIB funding represents the first tranche of a €200m loan and is expected to facilitate integration of renewable energy sources along with connection of surplus hydro and wind energy capacities.
The investment is also aimed at betterment of improve network operation and efficiency in the country, besides reducing environmental impacts.
EIB vice-president Román Escolano said: "This EIB loan will strongly support REN’s investment programme, which will improve the Portuguese electricity transmission network infrastructure and the connections of additional generation capacity from renewable energy sources.
"Additional to other loans dedicated to support REN’s investments in the area of natural gas, this is the third EIB loan for investments in the electricity transmission grid, evidencing the excellent collaboration between the two institutions."