The European Investment Bank (EIB) has signed a $204.1 million (EUR 190 million) loan agreement with Belgium’s main operator of electricity and gas distribution systems RESA. The loan, according to a joint media release, is part of RESA’s energy transition and will be used to help the operator implement its industrial plan for 2023-2026.
“The energy transition requires substantial investment in energy distribution network infrastructure”, the joint statement said. “Given the forecasts put forward by the various scenarios and projections both at EU and national level, and in light of the consumption trends already observed, massive electrification of usage is clear and unavoidable (heat pumps, electric vehicles, etc.)
“It is therefore imperative to optimize infrastructure to ensure flexible and efficient energy management, guaranteeing continuous energy and voltage availability, both during the hours of daylight when demand is typically low and after dark when consumption reaches its peak”.
The two added that to enable networks to adapt to changes in consumption patterns using decarbonized energy, RESA will have to invest an indexed amount of close to $881 million (EUR 820 million) by 2050, excluding project subsidies. On top of annual investment envelopes of around $85.9 million (EUR 80 million), this represents a total investment of nearly $3.2 billion (EUR 3 billion) over the next 25 years, the joint statement said.
To partly finance this industrial energy transition plan for 2023-2026, RESA and the EIB concluded a loan agreement worth $204.1 million, which will be used alongside an envelope of $64.4 million (EUR 60 million) provided by the distribution system operator to complete initial investments in the electricity grid. This will mainly involve boosting the power of overhead installations and underground cables, transformers and substations as well as the deployment of digital meters to enhance network autonomy.
“The EIB, as the EU climate bank, is committed to advancing the REPowerEU Plan to promote the sustainability of the EU energy sector and reduce the European Union’s energy dependency. The financial support provided to RESA for its energy transition industrial plan reflects our commitment to fostering sustainable and inclusive growth through the development of state-of-the-art energy networks, which are essential in the fight against climate change”, EIB Vice-President Kris Peeters said.
“This collaboration with the EIB, the first of its kind for RESA, demonstrates above all the credibility of our institution, its governance and the sound management of its finances. It will strengthen our capacity to deliver our energy transition goals in the short term, and to implement more resilient energy solutions that will enable us to face this new energy era in an inclusive, socially equitable and economically viable manner”, RESA CEO Gil Simon said.
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