The European Investment Bank (EIB) is lending €400 million to Czech energy supplier ČEZ to upgrade and expand its electricity-distribution system across the country. The EIB credit will improve energy services and green power supply in the Czech Republic. ČEZ plans to refurbish electricity ne Contact online >>
The European Investment Bank (EIB) is lending €400 million to Czech energy supplier ČEZ to upgrade and expand its electricity-distribution system across the country. The EIB credit will improve energy services and green power supply in the Czech Republic. ČEZ plans to refurbish electricity networks, install remotely controlled energy-supply systems and build infrastructure that can integrate new renewable-energy sources such as solar and wind power. With the EIB loan ČEZ will upgrade the power grid that would be thus able to absorb up to additional 5.5 gigawatts of new renewables.
The increase in renewables supply in the Czech Republic will enhance the country''s energy independence. The EIB loan aligns with the European Union''s REPowerEU initiative to reduce dependence on Russian fossil fuels and accelerate the green transition.
"This loan represents asignificant investment in modernizing the Czech Republic''s electricity distribution network while accelerating the integration of renewable energy sources," said EIB Vice-President Kyriacos Kakouris. "The EIB is committed to financing projects that enhance energy resilience, support the green transition, and strengthen the Czech Republic''s energy independence. This partnership highlights the critical role we play together in driving sustainable growth and achieving the country''s energy-transition goals. The ČEZ works being funded by the EIB credit are due to be completed in 2026.
The EIB''s strategic goals support projects that contribute to climate action, energy efficiency and economic and social cohesion.
The loan to ČEZ furthers the objectives of the European Commission''s REPowerEU plan, created in response to the hardships and global energy market disruption caused by Russia''s war of aggression. The plan aims to save and produce clean energy, diversify energy supplies, and is backed by financial and legal means to build the new energy infrastructure that Europe needs. REPowerEU sets out aseries of measures to rapidly reduce dependence on Russian fossil fuels, fast-forward the green transition, and increase energy system resilience EU-wide. These measures include finding alternative energy supplies, making behavioural changes to save energy, and spurring investment in renewable energy.
In 2022, the European Commission introduced the REPowerEU plan to accelerate the green transition. In 2023, the Bank''s investments in this plan rose to €21 billion. The EIB Group will provide €45 billion in additional support to the REPowerEU plan over five years by financing businesses and public authorities working on clean energy projects. This includes financing EU manufacturing in strategic net-zero technologies and the extraction, processing, and recycling of critical raw materials. The funding will be fully deployed by 2027, and it is expected to mobilise more than €150 billion in investment for targeted sectors.
Over the past decade, the European Investment Bank (EIB) Group has channelled around €108 billion into the European Union''s energy sector and additional finance for clean energy projects around the world. These investments are now helping Europe switch to clean energy sources and sharply reduce its reliance on Russian gas.
The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals. The EIB supports projects that make asignificant impact on economic growth, innovation, and job creation. It is also one of the largest providers of climate finance, supporting projects that contribute to environmental sustainability and the fight against climate change.
ČEZ is one of thebiggest companies in the Czech Republic and aleader in European energy utilities, operating in Western and Central Europe. ČEZ is committed to setting an example and making the energy sector sustainable, greener and friendlier to our planet. It strives for more diversity, for closer cooperation with communities and to always offer the best technological and energy-saving solutions to the customers. The ČEZ strategy— Clean Energy of Tomorrow— aims to significantly increase the number of renewable energy sources in the company''s portfolio, as well as among its customers. ČEZ aims to be climate-neutral by 2040.
Energetický regulační úřadMasarykovo náměstí 91/5586 01 Jihlava
Registration numberIČO 70894451
Telephone exchange (Czech only)+420 564 578666
ERO data mailbox IDeeuaau7
The European Investment Bank (EIB), the bank of the European Union, will lend €790 million to the Czech energy utility company ČEZ. The loan will fund the expansion of the national electricity distribution network, including the installation of automation technology and remotely controlled energy supply systems. ČEZ will also make upgrades to increase reliability of the electricity supply in nine regions of the Czech Republic.
With the new infrastructure, ČEZ will integrate up to 2.2 GW of new renewable energy sources, promoting the country''s energy independence and green transition. This is the largest loan the EIB has ever granted for the Czech Republic.
EIB Vice-President Lilyana Pavlova, who oversees EIB operations in the country, said, "The EIB continues to support modernisation of the Czech energy sector, this time with the biggest loan we''ve signed there to date. This is an important step towards an energy-independent Czech Republic, now an even more urgent matter given the current energy crisis. At the same time, the loan supports the European Commission''s REPowerEU plan to make Europe independent from Russian fossil fuels well before 2030, which objective is especially relevant in light of Russia''s invasion of Ukraine. The loan also has a significant green component, as ČEZ will be able to integrate new renewable energy sources into its grid and accelerate decarbonisation of the Czech economy."
ČEZ CFO Martin Novák commented, "We welcome this new loan by the EIB that will help us accelerate the modernisation of the distribution grid and integrate the new renewable energy sources that the Czech Republic needs to meet its climate targets and strengthen its energy security, as well as the energy independence of our customers. The number of renewables we have built for our customers has tripled year-on-year in 2022, and the number of applications for new connections of renewables that will be built in the near future has reached 80 000 to date. ČEZ is committed to upgrading the distribution network significantly, and our partnership with the EIB is one of the cornerstones of this effort."
To date, the EIB has provided some €2.6 billion to ČEZ for projects that contribute to a reliable, efficient and green electric supply. With this loan, total EIB investment in the Czech energy sector has reached €3.45 billion. This cooperation has accelerated the green, sustainable growth of the Czech economy.
The loan to ČEZ furthers the objectives of the European Commission''s REPowerEU plan created in response to the hardships and global energy market disruption caused by Russia''s war of aggression. The plan aims to save and produce clean energy and diversify our energy supplies and is backed by financial and legal means to build the new energy infrastructure that Europe needs. REPowerEU sets out a series of measures to rapidly reduce dependence on Russian fossil fuels and fast-forward the green transition, while increasing energy system resilience EU-wide. The plan is based on finding alternative energy supplies, making behavioural changes to save energy and spurring investment in renewable energy.
The EIB Group has adopted a Climate Bank Roadmap to deliver on its ambitious agenda to support €1 trillion in climate action and environmental sustainability investments in the decade to 2030, and to deliver more than 50% of EIB finance for climate action and environmental sustainability by 2025. As part of the roadmap, all new EIB Group operations have been aligned with the goals and principles of the Paris Agreement since the start of 2021.
ČEZ is one of the biggest companies in the Czech Republic and a leader in European energy utilities, operating in Western, Central, and South-Eastern Europe. ČEZ is committed to setting an example and making the energy sector sustainable, greener and friendlier to our planet. It strives for more diversity, for closer cooperation with communities and to always offer the best technological and energy-saving solutions to the customers. The ČEZ strategy — Clean Energy of Tomorrow — aims to significantly increase the number of renewable energy sources in the company''s portfolio, as well as among its customers. ČEZ aims to be climate-neutral by 2040.
The EIB and energy security
Over the past decade, the EIB Group has channelled almost €100 billion into the European Union''s energy sector. These timely investments are now helping Europe weather the crisis triggered by the abrupt cut in Russian gas supplies. In the first nine months of this year alone, the EIB signed financial support totalling more than €8.3 billion for projects in energy efficiency, renewables, electricity and storage inside the European Union, strengthening the resilience of the European economy.
In October, the EIB''s Board decided to raise the Group''s clean energy financing volumes to unprecedented levels in support of the REPowerEU objective of ending Europe''s dependency on Russian fossil fuel imports. An additional €30 billion will be invested over the next five years, on top of the EIB''s already robust support for the EU energy sector. It is estimated that the REPowerEU package will mobilise an additional €115 billion in additional investment by 2027, thereby making a substantial contribution to Europe''s energy independence and the EIB Group''s target to mobilise €1 trillion in climate financing this decade.
Find out more about the EIB''s energy support here and the latest energy projects we financed here.
An investment programme for CEZ Distribuce''s electricity distribution network in the Czech Republic over the period 2023-2024. The programme includes investments in the reinforcement and refurbishment of medium and low voltage networks.
The European Investment Bank Group, consisting of the European Investment Bank (EIB) and European Investment Fund (EIF), invested €1.85 billion in the Czech Republic in 2022 facilitating regional development, accelerating sustainable development and innovation of small businesses and mid-caps, and ensuring the stability and efficiency of energy supply and climate action. The EIB lent €1.78 billion through 12 operations in the public, private and banking sectors, while the EIF provided an additional €70 million, via four equity, guarantee and inclusive finance operations.
The EIB is providing EUR 330m to the Czech energy utility CEZ to finance an investment programme for the extension, reinforcement and modernisation of the electricity distribution network in nine Czech regions: Plzeň, Karlovy Vary, Ústí nad Labem, Central Bohemia, Liberec, Hradec Králové, Pardubice, Olomouc and Moravia-Silesia.
The EIB is providing EUR 50m to the Czech Republic Inven Capital Fund to develop a co-investment initiative to support the growth of clean energy and smart technology SMEs and midcaps. Czech energy utility ČEZ is contributing the same amount to this initiative so that the total financing available for joint co-investments to clean-tech and smart energy businesses is EUR 100m. The transaction is backed by the guarantee of the European Fund for Strategic Investments (EFSI), which is the central pillar of the Investment Plan for Europe.
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